83R2697 DDT-D
By: Hinojosa S.B. No. 1450
A BILL TO BE ENTITLED
AN ACT
relating to the abolishment of the Texas Racing Commission and the
transfer of its powers and duties to the Texas Commission of
Licensing and Regulation; providing penalties; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TRANSFER OF DUTIES TO TEXAS COMMISSION OF LICENSING AND
REGULATION
SECTION 1.01. Section 1.03, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subdivisions
(3), (5), and (79) and adding Subdivisions (82), (83), and (84) to
read as follows:
(3) "Commission" means the Texas [Racing] Commission
of Licensing and Regulation.
(5) "Executive secretary" means the director
[executive secretary] of the racing division [Texas Racing
Commission].
(79) "Executive director" means the executive
director [secretary] of the commission [Texas Racing Commission].
(82) "Department" means the Texas Department of
Licensing and Regulation.
(83) "Director" means the director of the racing
division.
(84) "Racing division" means the division of the
department assigned to oversee horse and greyhound racing.
SECTION 1.02. The heading to Article 2, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), is amended to read
as follows:
[TEXAS] RACING DIVISION [COMMISSION]
SECTION 1.03. Sections 2.12, 2.13, 2.14, and 2.15, Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
Sec. 2.12. DIRECTOR [EXECUTIVE SECRETARY]; EMPLOYEES. (a)
The commission shall employ a director of the racing division [an
executive secretary] and other employees as necessary to administer
this Act.
[(a-1) The commission and the executive secretary may use
the title "executive director" for any purpose in referring to the
office of executive secretary.]
(b) The racing division [commission] may not employ or
continue to employ a person:
(1) who owns or controls a financial interest in a
licensee of the racing division [commission];
(2) who is employed by or serves as a paid consultant
to a licensee of the racing division [commission], an official
breed registry, or a Texas trade association[, as defined by
Section 2.071(c) of this Act,] in the field of horse or greyhound
racing or breeding;
(3) who owns or leases a race animal that participates
in pari-mutuel racing in this state; or
(4) who accepts or is entitled to any part of the purse
or Texas-bred incentive award to be paid on a greyhound or a horse
in a race conducted in this state.
(c) The racing division [commission] may not employ or
continue to employ a person who is residentially domiciled with or
related within the first degree by affinity or consanguinity to a
person who is subject to a disqualification prescribed by
Subsection (b) of this section.
(d) The commission shall employ the director [executive
secretary] and other employees to reflect the diversity of the
population of the state as regards race, color, handicap, sex,
religion, age, and national origin.
Sec. 2.13. DIRECTOR [EXECUTIVE SECRETARY]; DUTIES. The
director [executive secretary] shall keep the records of the racing
division [commission] and shall perform other duties as required by
the commission. The director [executive secretary] serves at the
pleasure of the commission on a full-time basis and may not hold
other employment.
Sec. 2.14. LEGAL REPRESENTATION. The attorney general
shall designate at least one member of the attorney general's staff
to counsel and advise the racing division [commission] and to
represent the racing division [commission] in legal proceedings.
The attorney general shall make available to the appropriate
prosecuting attorneys any information obtained regarding
violations of this Act.
Sec. 2.15. RECORDS. All records of the racing division
[commission] that are not made confidential by other law are open to
inspection by the public during regular office hours. All
applications for a license under this Act shall be maintained by the
department [commission] and shall be available for public
inspection during regular office hours. The contents of the
investigatory files of the department [commission], however, are
not public records and are confidential except in a criminal
proceeding, in a hearing conducted by the department [commission],
on court order, or with the consent of the party being investigated.
SECTION 1.04. Section 2.16(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) An investigation report or other document submitted by
the Department of Public Safety to the racing division [commission]
becomes part of the investigative files of the racing division
[commission] and is subject to discovery by a person that is the
subject of the investigation report or other document submitted by
the Department of Public Safety to the racing division [commission]
that is part of the investigative files of the department
[commission].
SECTION 1.05. Sections 3.02(a), (b), (d), and (g), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
(a) The commission shall regulate and the department shall
supervise every race meeting in this state involving wagering on
the result of greyhound or horse racing. All persons and things
relating to the operation of those meetings are subject to
regulation and supervision by the commission and department. The
commission shall adopt rules for conducting greyhound or horse
racing in this state involving wagering and shall adopt other rules
to administer this Act that are consistent with this Act. The
commission or department, as applicable, shall also make rules,
issue licenses, and take any other necessary action relating
exclusively to horse racing or to greyhound racing.
(b) The department [commission] may establish separate
sections to review or propose rules of the commission.
(d) The department [commission] shall post notice of a
meeting under Subsection (c) of this section at each racetrack
facility. The notice shall include an agenda of the meeting and a
summary of the proposed rule.
(g) The commission, in adopting rules, and the department,
in the supervision and conduct of racing, shall consider the effect
of a proposed commission or department action on the state's
agricultural, horse breeding, horse training, greyhound breeding,
and greyhound training industry.
SECTION 1.06. Sections 3.021(a) and (c), Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
(a) Any provision in this Act to the contrary
notwithstanding, the department [commission] may license and
regulate all aspects of greyhound racing and horse racing in this
state, whether or not that racing involves pari-mutuel wagering.
(c) The department [commission] may charge an annual fee for
licensing and regulating a racetrack that does not offer
pari-mutuel wagering or a training facility in a reasonable amount
that may not exceed the actual cost of enforcing rules adopted for
the licensing and regulation of races and workouts at such a
facility.
SECTION 1.07. Sections 3.03 and 3.04, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
Sec. 3.03. POWER OF ENTRY. A member of the commission, an
authorized agent of the commission or department, a commissioned
officer of the Department of Public Safety, or a peace officer of
the local jurisdiction in which the association maintains a place
of business may enter any part of the racetrack facility or any
other place of business of an association at any time for the
purpose of enforcing and administering this Act.
Sec. 3.04. REQUIREMENT OF BOOKS AND RECORDS; FINANCIAL
STATEMENTS. The department [commission] shall require
associations, managers, totalisator licensees, and concessionaires
to keep books and records and to submit financial statements to the
department [commission]. The commission shall adopt reasonable
rules relating to those matters.
SECTION 1.08. Sections 3.07(a), (c), and (d), Texas Racing
Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
read as follows:
(a) The department [commission] shall employ all of the
judges and all of the stewards for the supervision of a horse race
or greyhound race meeting. Each horse race or greyhound race
meeting shall be supervised by three stewards for horse racing or by
three judges for greyhound racing. The department [commission]
shall designate one of the stewards or judges as the presiding
steward or judge for each race meeting. The association, following
the completion of the race meeting, may submit written comments to
the department [commission] regarding the job performance of the
stewards and judges for the department's [commission's] review.
Comments received are not binding, in any way, on the department
[commission]. For each race meeting, the department [commission]
shall employ at least one state veterinarian. The commission may,
by rule, impose a fee on an association to offset the costs of
compensating the stewards, judges, and state veterinarians. The
amount of the fee for the compensation of stewards, judges, and
state veterinarians 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. All other racetrack
officials shall be appointed by the association, with the approval
of the department [commission]. Compensation for those officials
not compensated by the department [commission] shall be determined
by the association.
(c) The department [commission] shall require each steward
or judge to take and pass both a written examination and a medical
examination annually. The commission by rule shall prescribe the
methods and procedures for taking the examinations and the
standards for passing. Failure to pass an examination is a ground
for refusal to issue an original or renewal license to a steward or
judge or for suspension or revocation of such a license.
(d) Medication or drug testing performed on a race animal
under this Act shall be conducted by the Texas Veterinary Medical
Diagnostic Laboratory or by 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
Veterinary Medical Diagnostic Laboratory. Medication or drug
testing performed on a human under this Act shall be conducted by a
laboratory approved by the department [commission]. Charges for
services performed under this section shall be forwarded to the
department [commission] for approval as to the reasonableness of
the charges for the services. Charges may include but are not
limited to expenses incurred for travel, lodging, testing, and
processing of test results. The reasonable charges associated with
medication or drug testing conducted under this Act shall be paid by
the association that receives the services. The commission shall
adopt rules for the procedures for approving and paying laboratory
charges under this section. 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. The
department [commission] shall forward a copy of the charges to the
association that receives the services for immediate payment.
SECTION 1.09. Section 3.08(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) Except as provided by Subsection (b) of this section, a
final decision of the stewards or judges may be appealed to the
department [commission] in the manner provided for a contested case
under Chapter 2001, Government Code [the Administrative Procedure
and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
Statutes)].
SECTION 1.10. Section 3.09(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) The department [commission] shall deposit the money it
collects under this Act in the State Treasury to the credit of a
special fund to be known as the Texas racing [Racing Commission]
fund. The Texas racing [Racing Commission] fund may be
appropriated only for the administration and enforcement of this
Act. Any unappropriated money exceeding $750,000 that remains in
the fund at the close of each fiscal biennium shall be transferred
to the General Revenue Fund and may be appropriated for any legal
purpose. The legislature may also appropriate money from the
General Revenue Fund for the administration and enforcement of this
Act. Any amount of general revenue appropriated for the
administration and enforcement of this Act in excess of the
cumulative amount deposited in the Texas racing [Racing Commission]
fund shall be reimbursed from the Texas racing [Racing Commission]
fund not later than one year after the date on which the general
revenue funds are appropriated, with 6-3/4 percent interest with
all payments first attributable to interest.
SECTION 1.11. Sections 3.10 and 3.11, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
Sec. 3.10. ANNUAL REPORT. The racing division [commission]
shall make a report to the governor, lieutenant governor, and
speaker of the house of representatives not later than January 31 of
each year. The report shall cover the operations of the racing
division [commission] and the condition of horse breeding and
racing and greyhound breeding and racing during the previous year.
The racing division [commission] shall also obtain from the
Department of Public Safety a comprehensive report of any organized
crime activities in this state which the Department of Public
Safety [department] may wish to report and information concerning
any and all illegal gambling which may be known to exist in the
state and shall include the report by the Department of Public
Safety [department] in its report and shall include any
recommendations it considers appropriate.
Sec. 3.11. COOPERATION WITH PEACE OFFICERS. The commission
and the racing division shall cooperate with all district
attorneys, criminal district attorneys, county attorneys, the
Department of Public Safety, the attorney general, and all peace
officers in enforcing this Act. Under its authority to conduct
criminal history information record checks under this Act or
Section 51.4012, Occupations Code [5.04 of this Act], the racing
division [commission] shall maintain and exchange pertinent
intelligence data with other states and agencies.
SECTION 1.12. Section 3.13(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) The department [commission] may recognize an
organization that meets the requirements of Subsection (a) of this
section.
SECTION 1.13. Sections 3.16(b), (d), (e), (f), and (j),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
(b) The department [commission] shall require testing to
determine whether a prohibited substance has been used. The
testing may be prerace or postrace as determined by the department
[commission]. The testing may be by an invasive or noninvasive
method. The commission's rules shall require state-of-the-art
testing methods.
(d) Except as otherwise provided, a person may appeal a
ruling of the stewards or judges to the department [commission].
The department [commission] may stay a suspension during the period
the matter is before the department [commission].
(e) 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.
(f) 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.
(j) A person who violates a rule adopted under this section
may:
(1) have any license issued to the person by the racing
division [commission] revoked or suspended; or
(2) be barred for life or any other period from
applying for or receiving a license issued by the racing division
[commission] or entering any portion of a racetrack facility.
SECTION 1.14. Sections 3.17 through 3.21, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
Sec. 3.17. SECURITY FOR FEES AND CHARGES. The department
[commission] may require an association to post security in an
amount and form determined by the commission to adequately ensure
the payment of any fees or charges due to the state or the
department [commission] relating to pari-mutuel racing, including
charges for drug testing.
Sec. 3.18. CEASE AND DESIST ORDER. (a) The executive
director [secretary] may issue a cease and desist order if the
executive director [secretary] reasonably believes an association
or other licensee is engaging or is likely to engage in conduct that
violates this Act or a commission rule.
(b) On issuance of a cease and desist order, the executive
director [secretary] shall serve on the association or other
licensee by personal delivery or registered or certified mail,
return receipt requested, to the person's last known address, a
proposed cease and desist order. The proposed order must state the
specific acts or practices alleged to violate this Act or a
commission rule. The proposed order must state its effective date.
The effective date may not be before the 21st day after the date the
proposed order is mailed or delivered. If the person against whom
the proposed order is directed requests, in writing, a hearing
before the effective date of the proposed order, the order is
automatically stayed pending final adjudication of the order.
Unless the person against whom the proposed order is directed
requests, in writing, a hearing before the effective date of the
proposed order, the order takes effect and is final and
nonappealable as to that person.
(c) On receiving a request for a hearing, the executive
director [secretary] shall serve notice of the time and place of the
hearing by personal delivery or registered or certified mail,
return receipt requested. At a hearing, the department
[commission] has the burden of proof and must present evidence in
support of the order. Each person against whom the order is
directed may cross-examine and show cause why the order should not
be issued.
(d) After the hearing, the department [commission] shall
issue or decline to issue a cease and desist order. The proposed
order may be modified as necessary to conform to the findings at the
hearing. An order issued under this section is final for purposes
of enforcement and appeal and shall require the person to
immediately cease and desist from the conduct that violates this
Act or a commission rule.
(e) A person affected by a cease and desist order issued,
affirmed, or modified after a hearing may file a petition for
judicial review in a district court of Travis County under Chapter
2001, Government Code. A petition for judicial review does not stay
or vacate the order unless the court, after hearing, specifically
stays or vacates the order.
Sec. 3.19. EMERGENCY CEASE AND DESIST ORDER. (a) The
executive director [secretary] may issue an emergency cease and
desist order if the executive director [secretary] reasonably
believes an association or other licensee is engaged in a
continuing activity that violates this Act or a commission rule in a
manner that threatens immediate and irreparable public harm.
(b) After issuing an emergency cease and desist order, the
executive director [secretary] shall serve on the association or
other licensee by personal delivery or registered or certified
mail, return receipt requested, to the person's last known address,
an order stating the specific charges and requiring the person
immediately to cease and desist from the conduct that violates this
Act or a commission rule. The order must contain a notice that a
request for hearing may be filed under this section.
(c) An association or other licensee that is the subject of
an emergency cease and desist order may request a hearing. The
request must be filed with the executive director [secretary] not
later than the 10th day after the date the order was received or
delivered. A request for a hearing must be in writing and directed
to the executive director [secretary] and must state the grounds
for the request to set aside or modify the order. Unless a person
who is the subject of the emergency order requests a hearing in
writing before the 11th day after the date the order is received or
delivered, the emergency order is final and nonappealable as to
that person.
(d) On receiving a request for a hearing, the executive
director [secretary] shall serve notice of the time and place of the
hearing by personal delivery or registered or certified mail,
return receipt requested. The hearing must be held not later than
the 10th day after the date the executive director [secretary]
receives the request for a hearing unless the parties agree to a
later hearing date. At the hearing, the department [commission]
has the burden of proof and must present evidence in support of the
order. The person requesting the hearing may cross-examine
witnesses and show cause why the order should not be affirmed.
Section 2003.021(b), Government Code, does not apply to hearings
conducted under this section.
(e) An emergency cease and desist order continues in effect
unless the order is stayed by the executive director [secretary].
The executive director [secretary] may impose any condition before
granting a stay of the order.
(f) After the hearing, the executive director [secretary]
shall affirm, modify, or set aside in whole or part the emergency
cease and desist order. An order affirming or modifying the
emergency cease and desist order is final for purposes of
enforcement and appeal.
Sec. 3.20. VIOLATION OF FINAL CEASE AND DESIST ORDER. (a)
If the executive director [secretary] reasonably believes that a
person has violated a final and enforceable cease and desist order,
the executive director [secretary] may:
(1) initiate administrative penalty proceedings under
Article 15 of this Act;
(2) refer the matter to the attorney general for
enforcement by injunction and any other available remedy; or
(3) pursue any other action, including suspension of
the person's license, that the executive director [secretary]
considers appropriate.
(b) If the attorney general prevails in an action brought
under Subsection (a)(2) of this section, the attorney general is
entitled to recover reasonable attorney's fees.
Sec. 3.21. INJUNCTION. The department [commission] may
institute an action in its own name to enjoin the violation of this
Act. An action for an injunction is in addition to any other
action, proceeding, or remedy authorized by law.
SECTION 1.15. Section 3.22(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) The executive director [secretary] may issue an order
prohibiting the association from making any transfer from a bank
account held by the association for the conduct of its business
under this Act, pending department [commission] review of the
records of the account, if the executive director [secretary]
reasonably believes that the association has failed to maintain the
proper amount of money in the horsemen's account. The executive
director [secretary] shall provide in the order a procedure for the
association to pay certain expenses necessary for the operation of
the racetrack, subject to the executive director's [secretary's]
approval. An order issued under this section may be made valid for
a period not to exceed 14 days.
SECTION 1.16. Sections 4.01, 4.05, 5.01, 5.02, 5.03, 5.04,
5.05, and 6.01, Texas Racing Act (Article 179e, Vernon's Texas
Civil Statutes), are amended to read as follows:
Sec. 4.01. BOOKS AND RECORDS. All books, records, and
financial statements required by the department [commission] under
Section 3.04 of this Act are open to inspection by the comptroller.
The comptroller by rule may specify the form and manner in which the
books, records, and statements are to be kept and reports are to be
filed that relate to the state's share of a pari-mutuel pool.
Sec. 4.05. COMPLIANCE. (a) If an association or
totalisator company does not comply with a rule adopted by the
comptroller under this article, refuses to allow access to or
inspection of any of its required books, records, or financial
statements, refuses to allow access to or inspection of the
totalisator system, or becomes delinquent for the state's portion
of the pari-mutuel pool or for any other tax collected by the
comptroller, the comptroller shall certify that fact to the
department [commission].
(b) With regard to the state's portion of the pari-mutuel
pool and any penalties related to the state's portion, the
comptroller, acting independently of the department [commission],
may take any collection or enforcement actions authorized under the
Tax Code against a delinquent or dilatory taxpayer. Administrative
appeals related to the state's portion of the pari-mutuel pool or
late reporting or deposit of the state's portion shall be to the
comptroller and then to the courts as under Title 2, Tax Code. All
other administrative appeals shall be to the commission and then to
the courts.
Sec. 5.01. FORM; CERTIFICATE; FEES. (a) The department
[commission] shall prescribe forms for applications for licenses
and shall provide each occupational licensee with a license
certificate or credentials.
(b) The department [commission] shall annually prescribe
reasonable license fees for each category of license issued under
this Act.
(c) 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 department and commission.
(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. 5.02. JUDICIAL REVIEW. (a) Judicial review of an
order of the department or commission is under the substantial
evidence rule.
(b) Venue for judicial review of an order of the department
or commission is in a district court in Travis County.
Sec. 5.03. FINGERPRINTS. (a) An applicant for any license
or license renewal under this Act must, except as allowed under
Section 7.10 of this Act, submit to the racing division
[commission] a complete set of fingerprints of the individual
natural person applying for the license or license renewal or, if
the applicant is not an individual natural person, a complete set of
fingerprints of each officer or director and of each person owning
an interest of at least five percent in the applicant. The
Department of Public Safety may request any person owning any
interest in an applicant for a racetrack license to submit a
complete set of fingerprints.
(b) If a complete set of fingerprints is required by the
racing division [commission], the racing division [commission]
shall, not later than the 10th business day after the date the
racing division [commission] receives the prints, forward the
prints to the Department of Public Safety or the Federal Bureau of
Investigation. If the prints are forwarded to the Department of
Public Safety, the Department of Public Safety [department] shall
classify the prints and check them against its fingerprint files
and shall report to the racing division [commission] its findings
concerning the criminal record of the applicant or the lack of such
a record. A racetrack license may not be issued until the report is
made to the racing division [commission]. A temporary
occupational license may be issued before a report is made to the
racing division [commission].
(c) A peace officer of this or any other state, or any
district office of the racing division [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
shall immediately deliver them to the racing division [commission].
Sec. 5.04. ACCESS TO CRIMINAL HISTORY RECORDS. In addition
to any other authorizations to obtain criminal history record
information provided by law, the department [(a) The commission]
is authorized to obtain any criminal history record information
that relates to each applicant for employment by the racing
division [commission] and to each applicant for a license issued by
the racing division [commission] and that is maintained by the
Department of Public Safety or the Federal Bureau of Investigation
Identification Division. The racing division [commission] may
refuse to recommend an applicant who fails to provide a complete set
of fingerprints.
Sec. 5.05. COST OF CRIMINAL HISTORY CHECK. (a) The
department or commission shall, in determining the amount of a
license fee, set the fee in an amount that will cover, at least, the
cost of conducting a criminal history check on the applicant for a
license.
(b) The racing division [commission] shall reimburse the
Department of Public Safety for the cost, if any, of conducting a
criminal history check under this article.
Sec. 6.01. LICENSE REQUIRED. A person may not conduct
wagering on a greyhound race or a horse race meeting without first
obtaining a racetrack license from the department [commission]. A
person who violates this section commits an offense.
SECTION 1.17. Sections 6.02(b), (c), (f), and (g), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
(b) A class 1 racetrack is a racetrack on which live racing
is conducted for a number of days in a calendar year, the number of
days and the actual dates to be determined by the department
[commission] under Article 8 of this Act. A class 1 racetrack may
operate only in a county with a population of not less than 1.3
million, or in a county adjacent to a county with such a population.
Not more than three class 1 racetracks may be licensed and operated
in this state.
(c) A class 2 racetrack is a racetrack on which live racing
is conducted for a number of days to be determined by the department
[commission] under Article 8 of this Act. A class 2 racetrack is
entitled to conduct 60 days of live racing in a calendar year. An
association may request additional or fewer days of live racing. If
after receipt of a request from an association the department
[commission] determines additional or fewer days to be economically
feasible and in the best interest of the state and the racing
industry, the department [commission] shall grant the additional or
fewer days. The department [commission] may permit an 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.
(f) The number of race dates allowed under this section
relates only to live race dates. A racetrack may present simulcast
races on other dates as approved by the department [commission].
(g) A class 4 racetrack is a racetrack operated by a county
fair under Section 12.03 of this Act. An 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 association and approved by the department [commission].
SECTION 1.18. Sections 6.03(a), (b), (e), and (h), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), 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 and to submit an application, on a form prescribed
by the department [commission], containing the following
information:
(1) if the applicant is an individual, the full name of
the applicant, the applicant's date of birth, a physical
description of the applicant, the applicant's current address and
telephone number, and a statement by the applicant disclosing any
arrest or conviction for a felony or for a misdemeanor, except a
misdemeanor under Subtitle C, Title 7, Transportation Code, [the
Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
Texas Civil Statutes)] or a similar misdemeanor traffic offense;
(2) if the applicant is a corporation:
(A) the state in which it is incorporated, the
names and addresses of the corporation's agents for service of
process in this state, the names and addresses of its officers and
directors, the names and addresses of its stockholders, and, for
each individual named under this subdivision, the individual's date
of birth, current address and telephone number, and physical
description, and a statement disclosing any arrest or conviction
for a felony or for a misdemeanor, except a misdemeanor under
Subtitle C, Title 7, Transportation Code, [the Uniform Act
Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
Statutes)] or a similar misdemeanor traffic offense; and
(B) identification of any other beneficial owner
of shares in the applicant that bear voting rights, absolute or
contingent, any other person that directly or indirectly exercises
any participation in the applicant, and 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 names and addresses of each of its
members and, for each individual named under this subdivision, the
individual's date of birth, current address and telephone number,
and physical description, and a statement disclosing any arrest or
conviction for a felony or for a misdemeanor, except a misdemeanor
under Subtitle C, Title 7, Transportation Code, [the Uniform Act
Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
Statutes)] or a similar misdemeanor traffic offense; and
(B) identification of any other person that
exercises voting rights in the applicant or that directly or
indirectly exercises any participation in the applicant and 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 racing facility is in existence, whether it
is owned by the applicant and, if leased to the applicant, the name
and address of the owner and, if the owner is a corporation or
unincorporated business association, the names and addresses of its
officers and directors, its stockholders and members, if any, and
its agents for service of process in this state;
(6) if construction of the racing facility has not
been initiated, whether it is to be owned by the applicant and, if
it is to be leased to the applicant, the name and address of the
prospective owner and, if the owner is a corporation or
unincorporated business association, the names and addresses of its
officers and directors, the names and addresses of its
stockholders, the names and addresses of its members, if any, and
the names and addresses of its agents for service of process in this
state;
(7) identification of any other beneficial owner of
shares that bear voting rights, absolute or contingent, in the
owner or prospective owner of the racing facility, or any other
person that directly or indirectly exercises any participation in
the owner or prospective owner and 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 assets and liabilities
of the applicant;
(9) the kind of racing to be conducted and the dates
requested;
(10) proof of residency as required by Section 6.06 of
this Act;
(11) a copy of each management, concession, and
totalisator contract dealing with the proposed license at the
proposed location in which the applicant has an interest for
inspection and review by the department [commission]; the applicant
or licensee shall advise the department [commission] of any change
in any management, concession, or totalisator contract; all
management, concession, and totalisator contracts must have prior
approval of the department [commission]; the same fingerprint,
criminal records history, and other information required of license
applicants pursuant to Sections 5.03 and 5.04 and Subdivisions (1)
through (3) of this subsection shall be required of proposed
totalisator firms, concessionaires, and managers and management
firms; and
(12) any other information required by the department
[commission].
(b) When the department [commission] receives a plan for the
security of a racetrack facility, or a copy of a management,
concession, or totalisator contract for review under Subdivision
(11) of Subsection (a) of this section, the department [commission]
shall review the contract or security plan in an executive session.
Documents submitted to the department [commission] under this
section by an applicant are subject to discovery in a suit brought
under this Act but are not public records and are not subject to
Chapter 552, Government Code [424, Acts of the 63rd Legislature,
Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
Statutes)]. In reviewing and approving contracts under this
subsection, the department [commission] shall attempt to ensure the
involvement of minority owned businesses whenever possible.
(e) The minimum application fee for a horse racing track is
$15,000 for a class 1 racetrack, $7,500 for a class 2 racetrack,
$2,500 for a class 3 racetrack, and $1,500 for a class 4 racetrack.
The minimum application fee for a greyhound racing track is
$20,000. Using the minimum fees, the commission by rule shall
establish a schedule of application fees for the various types and
sizes of racing facilities. The department [commission] shall set
the application fees in amounts that are reasonable and necessary
to cover the costs of administering this Act.
(h) In considering an application for a horse racetrack
license under this section, the department [commission] shall give
additional weight to evidence concerning an applicant who has
experience operating a horse racetrack licensed under this Act.
SECTION 1.19. Section 6.031, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 6.031. BACKGROUND CHECK. The department [commission]
shall require a complete personal, financial, and business
background check of the applicant or any person owning an interest
in or exercising control over an applicant for a racetrack license,
the partners, stockholders, concessionaires, management personnel,
management firms, and creditors and shall refuse to issue or renew a
license or approve a concession or management contract if, in the
sole discretion of the department [commission], the background
checks reveal anything which might be detrimental to the public
interest or the racing industry. The department [commission] may
not hold a hearing on the application, or any part of the
application, of an applicant for a racetrack license before the
completed background check of the applicant has been on file with
the department [commission] for at least 14 days.
SECTION 1.20. Section 6.032(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) The department [commission] at any time may require a
holder of a racetrack license or an 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 Act and commission rules.
SECTION 1.21. Section 6.04, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended to read as follows:
Sec. 6.04. ISSUANCE OF LICENSE. (a) The department
[commission] may issue a racetrack license to a qualified person if
it finds that the conduct of race meetings at the proposed track and
location will be in the public interest, complies with all zoning
laws, and complies with this Act and the rules adopted by the
commission and if the department [commission] finds by clear and
convincing evidence that the applicant will comply with all
criminal laws of this state. In determining whether to grant or
deny an application for any class of racetrack license, the
department [commission] may consider the following factors:
(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 track;
(4) the effect of the proposed track on traffic flow;
(5) facilities for patrons and occupational
licensees;
(6) facilities for race animals;
(7) availability to the track 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
greyhound or horse 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.
(b) [(a-1)] When all of the requirements of licensure for
the applicant described in this article have been satisfied, the
department [commission] shall notify the applicant that the
application is complete.
(c) [(a-2)] The department [commission] shall make a
determination with respect to a pending application not later than
the 120th day after the date on which the department [commission]
provided to the applicant the notice required under Subsection (b)
[(a-1)] of this section.
(d) [(c)] The department [commission] shall not issue
licenses for more than three greyhound racetracks in this state.
Those racetracks must be located in counties that border the Gulf of
Mexico.
(e) [(d)] In considering an application for a class 4
racetrack license, the department [commission] may waive or defer
compliance with the department's [commission's] standards
regarding the physical facilities or operations of a horse
racetrack. The department [commission] may not waive or defer
compliance with standards that relate to the testing of horses or
licensees for the presence of a prohibited drug, chemical, or other
substance. If the department [commission] defers compliance, the
department [commission] shall, when granting the application,
establish a schedule under which the licensee must comply with the
standards.
SECTION 1.22. Sections 6.06(e), (f), and (k), Texas Racing
Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
read as follows:
(e) The department [commission] may condition the issuance
of a license under this article on the observance of commission
[its] rules. The commission may amend the rules at any time, and
the department may condition the continued holding of the license
on compliance with the rules as amended.
(f) The department [commission] may refuse to issue a
license or may suspend or revoke a license of a licensee under this
article who knowingly or intentionally allows access to an
enclosure where greyhound races or horse races are conducted to a
person who has engaged in bookmaking, touting, or illegal wagering,
whose income is from illegal activities or enterprises, or who has
been convicted of a violation of this Act.
(k) The department [commission] shall review the ownership
and management of an active license issued under this article every
five years beginning on the fifth anniversary of the issuance of the
license. 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 Article 5 of this Act or this article. The
department [commission] shall charge fees for the review in amounts
sufficient to implement this subsection.
SECTION 1.23. Sections 6.0601(a), (b), and (d), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), 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 1.24. Sections 6.0602(a), (b), and (d), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
(a) The commission by rule shall establish an annual renewal
process for inactive licenses and the department may require the
license holder to provide any information required for an original
license application under this Act. 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
facility; and
(D) other good faith efforts to conduct live
racing; and
(2) other necessary factors considered in the issuance
of the original license.
(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.
SECTION 1.25. Section 6.061(f), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(f) The commission shall adopt rules relating to the
department's [commission's] review of an action taken under this
section by the executive director [secretary]. A review procedure
adopted under this subsection must be consistent with Chapter 2001,
Government Code.
SECTION 1.26. Section 6.062, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 6.062. SUPERVISION OF CHANGES TO PREMISES. (a) The
department [commission] shall adopt a method of supervising and
approving the construction, renovation, or maintenance of any
building or improvement on the premises of a racetrack facility.
(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 facility 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 an association has failed to comply with the requirements of
this section, a representative of the association shall appear
before the department [commission] to consider the issue of
compliance with the rules adopted under this section.
(d) Before a building or improvement may be used by the
association, the department [commission] shall determine whether
the construction, renovation, or maintenance of the building or
improvement was completed in accordance with the approved plans and
specifications and whether other requirements of the department or
commission were met.
(e) If the department [commission] determines that the
association failed to comply with a requirement of this section or
rule adopted under this section, the department [commission] shall
initiate an enforcement action against the association. In
addition to any other authorized enforcement action, the department
[commission] may rescind any live or simulcast race date of any
association that has failed to comply with the requirement of this
section.
SECTION 1.27. Sections 6.063(a), (b), (c), and (d), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
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 participants in racing or the patrons.
(b) After issuing a summary suspension order, the executive
director [secretary] shall serve on the association by personal
delivery or registered or certified mail, return receipt requested,
to the licensee's last known address, an order stating the specific
charges and requiring the licensee immediately to cease and desist
from all conduct permitted by the license. The order must contain a
notice that a request for hearing may be filed under this section.
(c) An association that is the subject of a summary
suspension order may request a hearing. The request must be filed
with the executive director [secretary] not later than the 10th day
after the date the order was received or delivered. A request for a
hearing must be in writing and directed to the executive director
[secretary] and must state the grounds for the request to set aside
or modify the order. Unless a licensee who is the subject of the
order requests a hearing in writing before the 11th day after the
date the order is received or delivered, the order is final and
nonappealable as to that licensee.
(d) On receiving a request for a hearing, the executive
director [secretary] shall serve notice of the time and place of the
hearing by personal delivery or registered or certified mail,
return receipt requested. The hearing must be held not later than
the 10th day after the date the executive director [secretary]
receives the request for a hearing unless the parties agree to a
later hearing date. At the hearing, the department [commission]
has the burden of proof and must present evidence in support of the
order. The licensee requesting the hearing may cross examine
witnesses and show cause why the order should not be affirmed.
Section 2003.021(b), Government Code, does not apply to hearings
conducted under this section.
SECTION 1.28. Sections 6.07(b) and (c), Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
(b) The department [commission] may not approve a lease if:
(1) it appears that the lease is a subterfuge to evade
compliance with Section [6.05 or] 6.06 of this Act;
(2) the racetrack and surrounding structures do not
conform to the rules adopted under this Act; 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 Subdivision (1) of Subsection
(a) of Section 6.03 of this Act. The department [commission] may
not approve a lease if the lessor and lessee do not provide the
required information.
SECTION 1.29. Section 6.08(b)(4), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(4) An association[, after January 1, 1999,] may pay a
portion of the revenue set aside under this subsection to an
organization recognized under Section 3.13 of this Act, as provided
by a contract approved by the department [commission].
SECTION 1.30. Section 6.08(i), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(i) Ten percent of the total breakage from a live
pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
the department [commission] for use by the appropriate state horse
breed registry, subject to rules promulgated by the commission. The
appropriate breed registry for Thoroughbred horses is the Texas
Thoroughbred Breeders Association, for quarter horses is the Texas
Quarter Horse Association, for Appaloosa horses is the Texas
Appaloosa Horse Club, for Arabian horses is the Texas Arabian
Breeders Association, and for paint horses is the Texas Paint Horse
Breeders Association.
SECTION 1.31. Sections 6.09(d) and (f), Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
(d) Fifty percent of the breakage is to be paid to the
appropriate state greyhound breeding registry. Of that portion of
the breakage 25 percent of that breakage is to be used in stakes
races and 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 the use by the state greyhound breed registry,
subject to rules promulgated by the commission.
(f) The commission in adopting rules relating to money paid
to the department [commission] for use by the state greyhound breed
registry under Subsection (d) of this section shall require the
award of a grant in an amount equal to two percent of the amount paid
to the department [commission] for use by the state greyhound breed
registry to a person for the rehabilitation of greyhounds or to
locate homes for greyhounds.
SECTION 1.32. Sections 6.091(a), (c), (e), (f), and (g),
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended 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 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 department [commission]
between the sending association and the receiving location.
(c) A greyhound racetrack association that receives an
interstate cross-species simulcast signal shall distribute the
following amounts from the total amount deducted as provided by
Subsection (a) of this section from each pool wagered on the signal
at the facility:
(1) a fee of 1.5 percent to be paid to the racetrack
facility in this state sending the signal;
(2) a purse in the amount of 0.75 percent to be paid to
the official state 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 breed registry for quarter horses for use as
purses at racetracks in this state; and
(4) a purse of 4.5 percent to be escrowed with the
department [commission] for purses in the manner set forth in
Subsection (e) of this section.
(e) The purse set aside under Subsection (c)(4) of this
section shall be deposited into an escrow account in the registry of
the department [commission]. Any horse racetrack association in
this state may apply to the department [commission] for receipt of
all or part of the escrowed purse account for use as purses. The
department [commission] shall determine to which horse racetracks
the escrowed purse account shall be allocated and in what
percentages, taking into consideration purse levels, racing
opportunities, and the financial status of the requesting
racetrack. [The first distribution of the escrowed purse account
allocated to a racetrack under this section may not be made before
October 1, 1998.]
(f) A [After October 15, 1998, a] horse racetrack
association that is located not more than 75 miles from a greyhound
racetrack facility that offers wagering on a cross-species
simulcast signal may apply to the department [commission] for an
additional allocation of up to 20 percent of the funds in the
escrowed purse account that is attributable to the wagering on a
cross-species simulcast signal at the greyhound racetrack
facility, if the horse racetrack facility sends the cross-species
simulcast signal to the greyhound racetrack. If the applying horse
racetrack can prove to the department's [commission's] satisfaction
that a decrease in the racetrack's handle has occurred that is
directly due to wagering on an interstate cross-species simulcast
signal at a greyhound racetrack facility that is located not more
than 75 miles from the applying racetrack, the department
[commission] shall allocate the amounts from the escrowed purse
account as the department [commission] considers appropriate to
compensate the racetrack for the decrease, but the amount allocated
may not exceed 20 percent of the funds in the escrowed purse account
that are attributable to the wagering on the interstate
cross-species simulcast signal at the greyhound racetrack
facility. Any amount allocated by the department [commission]
under this subsection may be used by the racetrack facility for any
purpose.
(g) If a racing association purchases an interstate
simulcast signal and the cost of the signal is more than five
percent of the pari-mutuel pool, the department [commission] shall
reimburse the racing association an amount equal to one-half of the
signal cost that is more than five percent of the pari-mutuel pool
from the escrowed purse account under Subsection (c)(4) of this
section.
SECTION 1.33. Sections 6.092(c), (d), and (e), Texas Racing
Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
read as follows:
(c) An organization receiving 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 shall include a
verification of any performance report sent to or required by the
department [commission].
(d) The department [commission] may review any records or
books 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.
(e) The commission by rule may suspend or withhold funds
from an organization that:
(1) it determines has failed to comply with the
requirements or performance measures adopted under Subsection (a)
of this section; or
(2) has, following an independent audit or other
report to the department [commission], material questions raised on
the use of funds by the organization.
SECTION 1.34. Sections 6.094(b), (c), (d), and (e), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
(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 6.091(a)(1) and 6.093 of this Act 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
6.091(a)(1) and 6.093 of this Act 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 [commission] shall administer the account. Money in
the account may be appropriated only to the department [commission]
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 [commission] 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
[commission] 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 [commission] 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 department
[commission].
(e) Following receipt of the report required by Subsection
(d) of this section, the department [commission] shall take any
steps it considers appropriate to verify the report. Not later than
March 31 of the year following the event, the department
[commission] 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.
SECTION 1.35. Section 6.12(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) In the event of the death of any person whose death
causes a violation of the licensing provisions of this Act, the
department [commission] may issue a temporary license for a period
not to exceed one year under rules adopted by the commission.
SECTION 1.36. Section 6.13, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended to read as follows:
Sec. 6.13. FINANCIAL DISCLOSURE. (a) The commission by
rule shall require that each association holding a license for a
class 1 racetrack, class 2 racetrack, or greyhound racetrack must
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
facility;
(2) indicates compliance during the filing period with
Section 6.06 of this Act; 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 association must receive
prior approval from the department [commission]. A transaction that
changes the ownership of the association requires submission of
updated information of the type required to be disclosed under
Subsection (a) of Section 6.03 of this Act and payment of a fee to
recover the costs of the criminal background check.
SECTION 1.37. Sections 6.14(a), (b), and (d), Texas Racing
Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
read as follows:
(a) An association may not conduct greyhound or horse racing
at any place other than the place designated in the license except
as provided by this section or by Section 6.15 of this Act. However,
if the racetrack or enclosure designated in the license becomes
unsuitable for racing because of fire, flood, or other catastrophe,
the affected association, with the prior approval of the department
[commission], may conduct a race meeting or any remaining portion
of a meeting temporarily at any other racetrack licensed by the
department [commission] to conduct the same type of racing as may be
conducted by the affected association if the licensee of the other
racetrack also consents to the usage.
(b) The department [commission] shall not issue more than
three racetrack licenses for greyhound racing.
(d) On request of an association, the department
[commission] shall amend a racetrack license to change the location
of the racetrack if the commission finds that:
(1) the conduct of race meetings at the proposed track
at the new location will be in the public interest;
(2) there was not a competing applicant for the
original license; and
(3) the association's desire to change location is not
the result of a subterfuge in the original licensing proceeding.
SECTION 1.38. Section 6.15, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended to read as follows:
Sec. 6.15. RACING AT TEMPORARY LOCATION. After an
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 association, issue a temporary license that
permits the association to conduct races at a location in the same
county for a period expiring two years after the date of issuance of
the temporary license or on the completion of the permanent
facility, whichever occurs first. The department [commission] may
set the conditions and standards for issuance of a temporary
license and allocation of appropriate race days. An applicant for a
temporary license must pay the application fees and must post the
bonds required of other licensees before the issuance of a
temporary license. After a temporary license has expired, no
individual, corporation, or association, nor any individual
belonging to a corporation or association which has been granted a
temporary license, may get an extension of the temporary license or
a new temporary license.
SECTION 1.39. Section 6.16(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) An association may not employ any person who has been a
member of the commission, the executive director [secretary of the
commission], or an employee employed by the racing division
[commission] in a position in the state employment classification
plan of grade 12 or above, or any person related within the second
degree by affinity or the third degree by consanguinity, as
determined under Chapter 573, Government Code, to such a member or
employee, during the one-year period immediately preceding the
employment by the association.
SECTION 1.40. Sections 7.01(a) and (c), Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
(a) Except as provided by this section, a person may not
participate in racing with pari-mutuel wagering other than as a
spectator or as a person placing a wager 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 Act without first obtaining a license from the
department [commission].
(c) A racetrack licensed under this Act is responsible for
ensuring that its employees comply with this Act and commission
rules. The department or commission may impose disciplinary action
against a licensed racetrack for violations of this Act and
commission rules by its employees as provided by Section 6.0603 of
this Act.
SECTION 1.41. Section 7.02(e), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(e) 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.
SECTION 1.42. Section 7.03, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended to read as follows:
Sec. 7.03. ISSUANCE. The department [commission] shall
issue a license to a qualified person on application and payment of
the license fee.
SECTION 1.43. Sections 8.01, 8.02, and 9.01, Texas Racing
Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
read as follows:
Sec. 8.01. ALLOCATION. The department [commission] shall
allocate the live and simulcast racing days for the conduct of live
and simulcast racing at each racetrack licensed under this Act.
Each racetrack shall accord reasonable access to races for all
breeds of horses as determined by the racetrack through
negotiations with the representative state breed registry with the
final approval of the department [commission]. In granting
approval, the department [commission] shall consider the factors of
availability of competitive horses, economic feasibility, and
public interest. In allocating race dates under this section, the
department [commission] shall consider live race dates separately
from simulcast race dates. The department [commission] may prohibit
Sunday racing unless the prohibition would conflict with another
provision of this Act.
Sec. 8.02. CHARITY DAYS. (a) The department [commission]
shall grant additional racing days to each association during a
race meeting to be conducted as charity days. The department
[commission] shall grant at least two and not more than five
additional days to each class 1 racetrack and to each class 2
racetrack. Each class 1 and class 2 racetrack shall conduct charity
race days in accordance with this section.
(b) The commission shall adopt rules relating to the conduct
of charity days. The department [commission] shall insure that the
races held by an association on a charity day are comparable in all
respects, including the generation of revenue, to the races held by
that association on any other racing day.
Sec. 9.01. TEXAS-BRED HORSES. Subject to this Act or any
rule of the commission, the state horse breed registries shall make
reasonable rules to establish the qualifications of accredited
Texas-bred horses to promote, develop, and improve the breeding of
horses in this state. Rules adopted by a registry are subject to
department [commission] approval.
SECTION 1.44. Section 9.03(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) To encourage the breeding of horses in this state, any
accredited Texas-bred horse finishing first, second, or third in
any race in this state except a restricted stakes race shall receive
a purse supplement. The appropriate state breed registry shall act
in an advisory capacity to the association and the department
[commission] for the purpose of administering the provisions of
this section.
SECTION 1.45. Sections 9.05 and 9.06, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
Sec. 9.05. TYPES OF RACING. When a horse racing association
conducts a race meeting for more than one breed of horse at one
racetrack, the number of races to be run by each breed on each day
shall be equitable as determined by the department [commission]
under Section 8.01 of this Act. The commission, by rule or by order,
may allow an exception if there are not enough horses of a breed
available to provide sufficient competition.
Sec. 9.06. STABLING. When a horse racing association
conducts a race meeting for more than one breed of horse at one
racetrack, on-track stalls shall be provided on an equitable basis
as determined by the department [commission] under Section 8.01 of
this Act.
SECTION 1.46. Sections 9A.001(e) and (f), Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
(e) The department [commission] shall set the date of and
the location for each Texas Derby. Each Texas Derby must be held
annually 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 breed registries; and
(3) the official horsemen's organization.
(f) 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 9A.003 of
this article.
SECTION 1.47. Section 9A.002(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), 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 is
healthy and meets standards set by commission rule for racing.
SECTION 1.48. Sections 10.01 and 10.02, Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
Sec. 10.01. NUMBER OF RACING DAYS. Any greyhound racing
licensee shall be entitled to have 300 evening and 150 matinee
performances in a calendar year. The department [commission] shall
grant at least five additional racing days during a race meeting to
be conducted as charity days. The commission shall adopt rules
relating to the conduct of charity days. The department
[commission] shall insure that the races held by an association on a
charity day are comparable in all respects, including the
generation of revenue, to the races held by that association on any
other racing day.
Sec. 10.02. SUBSTITUTE RACING DAYS OR ADDITIONAL RACES. If
for a reason beyond the licensee's control and not caused by the
licensee's fault or neglect it is impossible for the licensee to
hold or conduct a race or races on a day authorized by the
department [commission], the department [commission] in its
discretion and at the request of the licensee, as a substitute for
the race or races, may specify another day for the holding or
conducting of racing by the licensee or may add additional races to
already programmed events.
SECTION 1.49. Section 10.04(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) Subject to this Act or any rule of the commission, the
state greyhound breed registry shall make reasonable rules to
establish the qualifications of accredited Texas-bred greyhounds
to promote, develop, and improve the breeding of greyhounds in this
state. Rules adopted by the registry are subject to department
[commission] approval.
SECTION 1.50. Section 11.01(a-1), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a-1) The department [commission] may commission as many
investigators as the department [commission] determines necessary
to enforce this Act and the rules of the commission. Each
investigator shall take the constitutional oath of office and file
it with the department [commission]. Each commissioned
investigator has the powers of a peace officer.
SECTION 1.51. Sections 11.011(b), (c), (f), and (m), Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
(b) With approval of the department [commission], 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
racetrack association in this state.
(c) With approval of the department [commission], wagers
accepted by a licensed racetrack association in this state 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 racetrack.
(f) Nothing in this Act is to be construed to allow wagering
in Texas on simulcast races at any location other than a racetrack
licensed under this Act that has been granted live race dates by the
department [commission].
(m) The department [commission] shall 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.
SECTION 1.52. Section 11.02, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 11.02. COMPUTATION OF WAGERING. The wagering may be
calculated only by state-of-the-art computational equipment that
is approved by the department [commission]. The department
[commission] may not require the use of a particular make of
equipment.
SECTION 1.53. Sections 11.04(a) and (e), Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
(a) Only a person inside 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 racing division [commission] and to regulate
wagering by persons licensed under this Act.
(e) An association that allows a machine in an enclosure as
provided by Subsection (c) shall collect a fee of $1 for each
transaction under Subsection (c). The commission shall adopt rules
providing for collection, reporting, and auditing of the
transaction fee. The association shall forward the fee to the
department [commission]. The department [commission] shall
deposit the fee to the credit of the general revenue fund.
SECTION 1.54. Section 11.07(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) If the claimant satisfactorily establishes a right to
distribution from the pool, the association shall pay the amount
due the claimant. If the association refuses to pay a claimant who
has established satisfactorily a right to distribution from the
pool, the claimant may appeal to the department [commission] under
procedures prescribed by commission rule.
SECTION 1.55. Section 13.01, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 13.01. REGULATION BY COMMISSION. The commission shall
adopt rules providing for the exclusion or ejection from an
enclosure where greyhound races or horse 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 Act;
(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 of the rules mentioned in this
section;
(6) who has committed a corrupt or fraudulent act in
connection with greyhound racing or horse racing or pari-mutuel
wagering or who has committed any act tending or intended to corrupt
greyhound racing or horse racing or pari-mutuel wagering in this
state or elsewhere;
(7) who is under suspension or ruled off a racetrack by
the department [commission] or a steward in this state or by a
corresponding authority in another state because of fraudulent or
corrupt 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 a racing enclosure;
(11) who is an agent or habitual associate of a person
excludable under this section; or
(12) who has been convicted of a felony.
SECTION 1.56. Sections 13.02(b) and (c), Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), are amended to read
as follows:
(b) Such an application constitutes a contested case under
Chapter 2001, Government Code [the Administrative Procedure and
Texas Register Act (Article 6252-13a, Vernon's Texas Civil
Statutes)]. If, after a hearing as provided under that chapter
[Section 13 of that Act], the commission determines that the
exclusion or ejection was proper, it shall make and enter an order
to that effect in its minutes, and the person shall continue to be
excluded from each association.
(c) The person excluded or ejected may appeal an adverse
decision of the commission by filing a petition for judicial review
in the manner provided by Chapter 2001, Government Code [Section 19
of the Administrative Procedure and Texas Register Act (Article
6252-13a, Vernon's Texas Civil Statutes)]. Judicial review under
this subsection is subject to the substantial evidence rule. Venue
for the review is in a district court in Travis County.
SECTION 1.57. Section 14.01(c), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(c) An offense under this section is a state jail felony if:
(1) the actor is a licensee under this Act or an
employee or member of the commission or the department and the actor
knowingly represents that a member or employee of the commission or
the department or a person licensed by the commission or department
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 1.58. Section 14.04(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) A person commits an offense if the person is a licensee
and the person knowingly or intentionally 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 Act; or
(4) is excluded by the department [commission] from
entering a racetrack facility.
SECTION 1.59. Section 14.05(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) A person who is subject to this section commits an
offense if the person intentionally or knowingly wagers on the
result of a greyhound race or horse 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 Act.
SECTION 1.60. Section 14.06(c), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(c) An offense under this section is a state jail felony
unless the statement was material in a commission or department
action relating to a racetrack license, in which event the offense
is a felony of the third degree.
SECTION 1.61. Section 14.12, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 14.12. CRIMINAL CONFLICT OF INTEREST. A person who is
a member of the commission or the racing division commits an offense
if the person:
(1) accepts, directly or indirectly, employment or
remuneration from a racetrack facility, association, or other
licensee, including a facility, association, or licensee located or
residing in another state;
(2) wagers or causes a wager to be placed on the
outcome of a horse or greyhound race conducted in this state; or
(3) accepts or is entitled to any part of a purse to be
paid to an animal in a race conducted in this state.
SECTION 1.62. Section 14.17(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(b) In this section, "lawful request" means a request from
the commission or the department, an authorized agent of the
commission or the department, the director or a commissioned
officer of the Department of Public Safety, a peace officer, or a
steward or judge at any time and any restricted location that:
(1) is on a racetrack facility; and
(2) is not a public place.
SECTION 1.63. Section 14.18(b), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(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 that is on a racetrack facility, except a
location:
(1) excluded by commission rule from searches under
this section; or
(2) provided by an association under commission rule
for private storage of personal items belonging to a licensee
entering a racetrack facility.
SECTION 1.64. Section 14.20, Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 14.20. COMMISSION AND DEPARTMENT AUTHORITY. This
article may not be construed to restrict the department's or
commission's administrative authority to enforce this Act or
commission rules to the fullest extent authorized by this Act or
other law.
SECTION 1.65. Section 16.01(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) The department [commission] shall not issue a racetrack
license or accept an application for a license 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
article. [A local option election may not be held under this
article before January 1, 1987.]
SECTION 1.66. Section 16.13(a), Texas Racing Act (Article
179e, Vernon's Texas Civil Statutes), is amended to read as
follows:
(a) Not later than the 30th day after the date the result of
the election is declared, any qualified voter of the county may
contest the election by filing a petition in the district court of
the county. Any person who is licensed or who has made application
to the department [commission] to be licensed in any capacity under
this Act may become a named party to the proceedings by pleading to
the petition on or before the time set for hearing and trial as
provided by Subsection (c) of this section or thereafter by
intervention on leave of court.
SECTION 1.67. Sections 18.06, 18.07, and 18.08, Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
amended to read as follows:
Sec. 18.06. RELEASE OF LIABILITY. A member of the
commission, an employee of the department [commission], a steward
or judge, an association, a horsemen's organization, or any other
person regulated under this Act is not liable to any individual,
corporation, business association, or other entity for a cause of
action that arises out of that person's performance or exercise of
discretion in the implementation or enforcement of this Act or a
rule adopted under this Act if the person has acted in good faith.
Sec. 18.07. PAST PERFORMANCE OF ASSOCIATION. In
considering a pleading of a racetrack association, the department
[commission] shall take into account the operating experience of
the racetrack association in Texas, which includes, but is not
limited to, the financial condition of the track, regulatory
compliance and conduct, and any other relevant matters concerning
the operation of a track.
Sec. 18.08. 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.
SECTION 1.68. Sections 2.01, 2.02, 2.03, 2.04, 2.05, 2.06,
2.071, 2.073, 2.074, 2.08, 2.09, 2.10, 2.11, 2.19, 2.20, 2.21,
2.22, 2.23, 2.24, 2.25, and 18.01, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), are repealed.
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Section 87.002, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 87.002. APPLICABILITY OF CHAPTER. This chapter does
not apply to an activity regulated by the racing division of the
Texas Department of Licensing and Regulation [Texas Racing
Commission].
SECTION 2.02. Section 104.001, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 104.001. STATE LIABILITY; PERSONS COVERED. In a cause
of action based on conduct described in Section 104.002, the state
shall indemnify the following persons, without regard to whether
the persons performed their services for compensation, for actual
damages, court costs, and attorney's fees adjudged against:
(1) an employee, a member of the governing board, or
any other officer of a state agency, institution, or department;
(2) a former employee, former member of the governing
board, or any other former officer of a state agency, institution,
or department who was an employee or officer when the act or
omission on which the damages are based occurred;
(3) a physician or psychiatrist licensed in this state
who was performing services under a contract with any state agency,
institution, or department or a racing official performing services
under a contract with the Texas Department of Licensing and
Regulation [Racing Commission] when the act or omission on which
the damages are based occurred;
(3-a) a phlebotomist licensed in this state who was
performing services under a contract with the Texas Department of
Criminal Justice when the act or omission on which the damages are
based occurred;
(4) a chaplain or spiritual advisor who was performing
services under contract with the Texas Department of Criminal
Justice[, the Texas Youth Commission,] or the Texas Juvenile
Justice Department [Probation Commission] when the act or omission
on which the damages are based occurred;
(5) a person serving on the governing board of a
foundation, corporation, or association at the request and on
behalf of an institution of higher education, as that term is
defined by Section 61.003(8), Education Code, not including a
public junior college;
(6) a state contractor who signed a waste manifest as
required by a state contract; or
(7) the estate of a person listed in this section.
SECTION 2.03. Article 2.12, Code of Criminal Procedure, is
amended to read as follows:
Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
officers:
(1) sheriffs, their deputies, and those reserve
deputies who hold a permanent peace officer license issued under
Chapter 1701, Occupations Code;
(2) constables, deputy constables, and those reserve
deputy constables who hold a permanent peace officer license issued
under Chapter 1701, Occupations Code;
(3) marshals or police officers of an incorporated
city, town, or village, and those reserve municipal police officers
who hold a permanent peace officer license issued under Chapter
1701, Occupations Code;
(4) rangers and officers commissioned by the Public
Safety Commission and the Director of the Department of Public
Safety;
(5) investigators of the district attorneys', criminal
district attorneys', and county attorneys' offices;
(6) law enforcement agents of the Texas Alcoholic
Beverage Commission;
(7) each member of an arson investigating unit
commissioned by a city, a county, or the state;
(8) officers commissioned under Section 37.081,
Education Code, or Subchapter E, Chapter 51, Education Code;
(9) officers commissioned by the General Services
Commission;
(10) law enforcement officers commissioned by the
Parks and Wildlife Commission;
(11) airport police officers commissioned by a city
with a population of more than 1.18 million located primarily in a
county with a population of 2 million or more that operates an
airport that serves commercial air carriers;
(12) airport security personnel commissioned as peace
officers by the governing body of any political subdivision of this
state, other than a city described by Subdivision (11), that
operates an airport that serves commercial air carriers;
(13) municipal park and recreational patrolmen and
security officers;
(14) security officers and investigators commissioned
as peace officers by the comptroller;
(15) officers commissioned by a water control and
improvement district under Section 49.216, Water Code;
(16) officers commissioned by a board of trustees
under Chapter 54, Transportation Code;
(17) investigators commissioned by the Texas Medical
Board;
(18) officers commissioned by:
(A) the board of managers of the Dallas County
Hospital District, the Tarrant County Hospital District, the Bexar
County Hospital District, or the El Paso County Hospital District
under Section 281.057, Health and Safety Code; and
(B) the board of directors of the Ector County
Hospital District under Section 1024.117, Special District Local
Laws Code;
(19) county park rangers commissioned under
Subchapter E, Chapter 351, Local Government Code;
(20) investigators employed by the racing division of
the Texas Department of Licensing and Regulation [Racing
Commission];
(21) officers commissioned under Chapter 554,
Occupations Code;
(22) officers commissioned by the governing body of a
metropolitan rapid transit authority under Section 451.108,
Transportation Code, or by a regional transportation authority
under Section 452.110, Transportation Code;
(23) investigators commissioned by the attorney
general under Section 402.009, Government Code;
(24) security officers and investigators commissioned
as peace officers under Chapter 466, Government Code;
(25) an officer employed by the Department of State
Health Services under Section 431.2471, Health and Safety Code;
(26) officers appointed by an appellate court under
Subchapter F, Chapter 53, Government Code;
(27) officers commissioned by the state fire marshal
under Chapter 417, Government Code;
(28) an investigator commissioned by the commissioner
of insurance under Section 701.104, Insurance Code;
(29) apprehension specialists and inspectors general
commissioned by the Texas Juvenile Justice Department as officers
under Sections 242.102 and 243.052, Human Resources Code;
(30) officers appointed by the inspector general of
the Texas Department of Criminal Justice under Section 493.019,
Government Code;
(31) investigators commissioned by the Commission on
Law Enforcement Officer Standards and Education under Section
1701.160, Occupations Code;
(32) commission investigators commissioned by the
Texas Private Security Board under Section 1702.061(f),
Occupations Code;
(33) the fire marshal and any officers, inspectors, or
investigators commissioned by an emergency services district under
Chapter 775, Health and Safety Code;
(34) officers commissioned by the State Board of
Dental Examiners under Section 254.013, Occupations Code, subject
to the limitations imposed by that section;
(35) investigators commissioned by the Texas Juvenile
Justice Department as officers under Section 221.011, Human
Resources Code; and
(36) the fire marshal and any related officers,
inspectors, or investigators commissioned by a county under
Subchapter B, Chapter 352, Local Government Code.
SECTION 2.04. Sections 88.526(a) and (c), Education Code,
are amended to read as follows:
(a) The director shall prepare an annual report on equine
research funded under this subchapter. The director shall
distribute the report to the racing division of the Texas
Department of Licensing and Regulation [Racing Commission] and
members of the Texas horse racing industry. The director shall make
copies of the report available to interested parties.
(c) The director shall, at least annually, consult with the
racing division of the Texas Department of Licensing and Regulation
[Racing Commission] on the use of the account and the impact of
equine research funded by the account.
SECTION 2.05. Section 411.096, Government Code, is amended
to read as follows:
Sec. 411.096. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION: TEXAS DEPARTMENT OF LICENSING AND REGULATION [RACING
COMMISSION]. (a) The Texas Department of Licensing and Regulation
[Racing Commission] 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 racing division of the department
[commission];
(2) an applicant for employment by the racing division
of the department [commission]; or
(3) an applicant for a license under the Texas Racing
Act (Article 179e, Vernon's Texas Civil Statutes).
(b) Criminal history record information obtained by the
department [commission] under Subsection (a) may not be released or
disclosed to any person except in a criminal proceeding, in a
hearing conducted by the department [commission], on court order,
or with the consent of the applicant.
SECTION 2.06. Section 572.003(c), Government Code, is
amended to read as follows:
(c) The term means a member of:
(1) the Public Utility Commission of Texas;
(2) [the Texas Department of Economic Development;
[(3)] the Texas Commission on Environmental Quality;
(3) [(4)] the Texas Alcoholic Beverage Commission;
(4) [(5)] The Finance Commission of Texas;
(5) [(6)] the Texas Facilities Commission;
(6) [(7)] the Texas Board of Criminal Justice;
(7) [(8)] the board of trustees of the Employees
Retirement System of Texas;
(8) [(9)] the Texas Transportation Commission;
(9) [(10) the Texas Workers' Compensation Commission;
[(11)] the Texas Department of Insurance;
(10) [(12)] the Parks and Wildlife Commission;
(11) [(13)] the Public Safety Commission;
(12) [(14)] the Texas Ethics Commission;
(13) [(15)] the State Securities Board;
(14) [(16)] the Texas Water Development Board;
(15) [(17)] the governing board of a public senior
college or university as defined by Section 61.003, Education Code,
or of The University of Texas Southwestern Medical Center at
Dallas, The University of Texas Medical Branch at Galveston, The
University of Texas Health Science Center at Houston, The
University of Texas Health Science Center at San Antonio, The
University of Texas M. D. Anderson [System] Cancer Center, The
University of Texas Health Science Center at Tyler, University of
North Texas Health Science Center at Fort Worth, Texas Tech
University Health Sciences Center, Texas State Technical
College--Harlingen, Texas State Technical College--Marshall, Texas
State Technical College--Sweetwater, or Texas State Technical
College--Waco;
(16) [(18)] the Texas Higher Education Coordinating
Board;
(17) [(19)] the Texas Workforce Commission;
(18) [(21)] the board of trustees of the Teacher
Retirement System of Texas;
(19) [(22)] the Credit Union Commission;
(20) [(23)] the School Land Board;
(21) [(24)] the board of the Texas Department of
Housing and Community Affairs;
(22) [(25) the Texas Racing Commission;
[(26)] the State Board of Dental Examiners;
(23) [(27)] the Texas Medical [State] Board [of
Medical Examiners];
(24) [(28)] the Board of Pardons and Paroles;
(25) [(29)] the Texas State Board of Pharmacy;
(26) [(30)] the Department of Information Resources
governing board;
(27) [(31)] the Texas Department of Motor Vehicles
[Vehicle Board];
(28) [(32)] the Texas Real Estate Commission;
(29) [(33)] the board of directors of the State Bar of
Texas;
(30) [(34)] the bond review board;
(31) [(35) the Texas Board of Health;
[(36) the Texas Board of Mental Health and Mental
Retardation;
[(37) the Texas Board on Aging;
[(38) the Texas Board of Human Services;
[(39)] the Texas Funeral Service Commission;
(32) [(40)] the board of directors of a river
authority created under the Texas Constitution or a statute of this
state; or
(33) [(41)] the Texas Lottery Commission.
SECTION 2.07. Section 2054.352(a), Government Code, is
amended to read as follows:
(a) The following licensing entities shall participate in
the system established under Section 2054.353:
(1) Texas Board of Chiropractic Examiners;
(2) Court Reporters Certification Board;
(3) State Board of Dental Examiners;
(4) Texas Funeral Service Commission;
(5) Texas Board of Professional Land Surveying;
(6) Texas Medical Board;
(7) Texas Board of Nursing;
(8) Texas Optometry Board;
(9) Department of Agriculture, for licenses issued
under Chapter 1951, Occupations Code;
(10) Texas State Board of Pharmacy;
(11) Executive Council of Physical Therapy and
Occupational Therapy Examiners;
(12) Texas State Board of Plumbing Examiners;
(13) Texas State Board of Podiatric Medical Examiners;
(14) Texas State Board of Examiners of Psychologists;
(15) State Board of Veterinary Medical Examiners;
(16) Texas Real Estate Commission;
(17) Texas Appraiser Licensing and Certification
Board;
(18) Texas Department of Licensing and Regulation;
(19) Texas State Board of Public Accountancy;
(20) State Board for Educator Certification;
(21) Texas Board of Professional Engineers;
(22) Department of State Health Services;
(23) Texas Board of Architectural Examiners;
(24) [Texas Racing Commission;
[(25)] Commission on Law Enforcement Officer
Standards and Education; and
(25) [(26)] Texas Private Security Board.
ARTICLE 3. TRANSITION AND EFFECTIVE DATE
SECTION 3.01. The change in law made by this Act to the
requirements for the issuance or renewal of a license issued under
the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes)
applies only to the issuance or renewal of a certificate under that
Act that expires on or after January 1, 2014. A certificate that
expires before that date is governed by the law in effect on the
date the certificate expires, and the former law is continued in
effect for that purpose.
SECTION 3.02. The change in law made by this Act to the
procedures relating to disciplinary actions for persons licensed
under the Texas Racing Act (Article 179e, Vernon's Texas Civil
Statutes) applies only to a disciplinary action initiated on or
after January 1, 2014. A disciplinary action initiated before that
date is governed by the law in effect on the date the action is
initiated, and the former law is continued in effect for that
purpose.
SECTION 3.03. (a) On January 1, 2014:
(1) the Texas Racing Commission is abolished and all
powers and duties of the Texas Racing Commission under the Texas
Racing Act (Article 179e, Vernon's Texas Civil Statutes) and other
law are transferred to the Texas Commission of Licensing and
Regulation and the Texas Department of Licensing and Regulation;
(2) all obligations, rights, contracts, bonds,
appropriations, records, and property of the Texas Racing
Commission are transferred to the Texas Department of Licensing and
Regulation;
(3) a rule, policy, procedure, or decision of the
Texas Racing Commission continues in effect as a rule, policy,
procedure, or decision of the Texas Commission of Licensing and
Regulation or the Texas Department of Licensing and Regulation, in
accordance with Subdivision (1) of this subsection, until
superseded by a later act of the Texas Commission of Licensing and
Regulation or the Texas Department of Licensing and Regulation; and
(4) except as otherwise provided by this Act, a
reference in law to the Texas Racing Commission means the Texas
Commission of Licensing and Regulation.
(b) Not later than October 1, 2013, the Texas Racing
Commission, the Texas Commission of Licensing and Regulation, and
the Texas Department of Licensing and Regulation shall adopt a
comprehensive transition plan for the transfer described by
Subsection (a) of this section.
(c) Not later than November 1, 2013, the Texas Racing
Commission shall meet with the Texas Department of Licensing and
Regulation to provide for the transfer of essential personnel to
the Texas Department of Licensing and Regulation.
(d) The Texas Racing Commission shall continue, as
necessary, to perform the duties and functions being transferred to
the Texas Commission of Licensing and Regulation or the Texas
Department of Licensing and Regulation until the transfer of agency
duties and functions is complete.
(e) Subsections (b), (c), and (d) of this section take
effect September 1, 2013.
SECTION 3.04. (a) The Texas Racing Commission and the Texas
Commission of Licensing and Regulation shall enter into or revise a
joint memorandum of understanding to coordinate the Texas Racing
Commission's and the Texas Department of Licensing and Regulation's
information systems to allow for the sharing of information so that
each entity may effectively and efficiently perform the functions
and duties assigned to it. Neither the Texas Racing Commission nor
the Texas Department of Licensing and Regulation may impose or
collect a fee or charge in connection with the sharing of
information under the joint memorandum of understanding entered
into or revised under this section.
(b) The Texas Racing Commission and the Texas Department of
Licensing and Regulation shall implement the joint memorandum of
understanding using existing personnel and resources.
(c) Otherwise confidential information shared under the
memorandum of understanding remains subject to the same
confidentiality requirements and legal restrictions on access to
the information that are imposed by law on the entity that
originally obtained or collected the information.
(d) Information may be shared under the memorandum of
understanding without the consent of the person who is the subject
of the information.
(e) The memorandum of understanding required by Subsection
(a) of this section must be entered into or revised at the first
official meeting of the Texas Commission of Licensing and
Regulation occurring after the effective date of this section.
(f) This section takes effect September 1, 2013.
SECTION 3.05. (a) In addition to the memorandum of
understanding required by Section 3.04 of this article, the Texas
Racing Commission and the Texas Commission of Licensing and
Regulation may enter into or revise one or more other joint
memoranda of understanding necessary to effect the transfer of the
powers and duties of the Texas Racing Commission to the Texas
Commission of Licensing and Regulation and the Texas Department of
Licensing and Regulation under this Act. A memorandum of
understanding may include an agreement for the provision of office
space, utilities, and other facility services, and support
services, and the transfer of information technology as necessary
or appropriate to effect the transfer of the powers and duties of
the Texas Racing Commission to the Texas Commission of Licensing
and Regulation and the Texas Department of Licensing and
Regulation.
(b) Sections 3.04(b), (c), and (d) of this article apply to
a memorandum of understanding entered into or revised under
Subsection (a) of this section.
(c) This section takes effect September 1, 2013.
SECTION 3.06. Except as otherwise provided by this Act,
this Act takes effect January 1, 2014.