Texas 2015 - 84th Regular

Texas Senate Bill SB364 Compare Versions

Only one version of the bill is available at this time.

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1	1	2015S0018-1 12/12/14
2	2	By: Estes S.B. No. 364
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the abolishment of the Texas Racing Commission and the
8	8	transfer of its powers and duties to the Texas Commission of
9	9	Licensing and Regulation; providing penalties; authorizing fees.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	ARTICLE 1. TRANSFER OF DUTIES TO TEXAS COMMISSION OF LICENSING AND
12	12	REGULATION
13	13	SECTION 1.01. Section 1.03, Texas Racing Act (Article 179e,
14	14	Vernon's Texas Civil Statutes), is amended by amending Subdivisions
15	15	(3), (5), and (79) and adding Subdivisions (82) and (83) to read as
16	16	follows:
17	17	(3) "Commission" means the Texas [Racing] Commission
18	18	of Licensing and Regulation.
19	19	(5) "Director" means the director of the racing
20	20	division ["Executive secretary" means the executive secretary of
21	21	the Texas Racing Commission].
22	22	(79) "Executive director" means the executive
23	23	director [secretary] of the department [Texas Racing Commission].
24	24	(82) "Department" means the Texas Department of
25	25	Licensing and Regulation.
26	26	(83) "Racing division" means the division of the
27	27	department assigned to oversee horse and greyhound racing.
28	28	SECTION 1.02. The heading to Article 2, Texas Racing Act
29	29	(Article 179e, Vernon's Texas Civil Statutes), is amended to read
30	30	as follows:
31	31	ARTICLE 2. [TEXAS] RACING DIVISION [COMMISSION]
32	32	SECTION 1.03. Sections 2.12, 2.13, 2.14, and 2.15, Texas
33	33	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
34	34	amended to read as follows:
35	35	Sec. 2.12. DIRECTOR [EXECUTIVE SECRETARY]; EMPLOYEES.
36	36	(a) The department [commission] shall employ a director of the
37	37	racing division [an executive secretary] and other employees as
38	38	necessary to administer this Act.
39	39	[(a-1) The commission and the executive secretary may use
40	40	the title "executive director" for any purpose in referring to the
41	41	office of executive secretary.]
42	42	(b) The racing division [commission] may not employ or
43	43	continue to employ a person:
44	44	(1) who owns or controls a financial interest in a
45	45	licensee of the department [commission];
46	46	(2) who is employed by or serves as a paid consultant
47	47	to a licensee of the department [commission], an official breed
48	48	registry, or a Texas trade association[, as defined by Section
49	49	2.071(c) of this Act,] in the field of horse or greyhound racing or
50	50	breeding;
51	51	(3) who owns or leases a race animal that participates
52	52	in pari-mutuel racing in this state; or
53	53	(4) who accepts or is entitled to any part of the purse
54	54	or Texas-bred incentive award to be paid on a greyhound or a horse
55	55	in a race conducted in this state.
56	56	(c) The racing division [commission] may not employ or
57	57	continue to employ a person who is residentially domiciled with or
58	58	related within the first degree by affinity or consanguinity to a
59	59	person who is subject to a disqualification prescribed by
60	60	Subsection (b) of this section.
61	61	(d) The commission shall employ the director [executive
62	62	secretary] and other employees to reflect the diversity of the
63	63	population of the state as regards race, color, handicap, sex,
64	64	religion, age, and national origin.
65	65	(e) In this section, "Texas trade association" means a
66	66	cooperative and voluntarily joined statewide association of
67	67	business or professional competitors in this state designed to
68	68	assist its members and its industry or profession in dealing with
69	69	mutual business or professional problems and in promoting their
70	70	common interest.
71	71	Sec. 2.13. DIRECTOR [EXECUTIVE SECRETARY]; DUTIES. The
72	72	director [executive secretary] shall keep the records of the racing
73	73	division [commission] and shall perform other duties as required by
74	74	the commission. The director [executive secretary] serves at the
75	75	pleasure of the commission on a full-time basis and may not hold
76	76	other employment.
77	77	Sec. 2.14. LEGAL REPRESENTATION. The attorney general
78	78	shall designate at least one member of the attorney general's staff
79	79	to counsel and advise the racing division [commission] and to
80	80	represent the racing division [commission] in legal proceedings.
81	81	The attorney general shall make available to the appropriate
82	82	prosecuting attorneys any information obtained regarding
83	83	violations of this Act.
84	84	Sec. 2.15. RECORDS. (a) All records of the racing
85	85	division [commission] that are not made confidential by other law
86	86	are open to inspection by the public during regular office hours.
87	87	All applications for a license under this Act shall be maintained by
88	88	the department [commission] and shall be available for public
89	89	inspection during regular office hours.
90	90	(b) The contents of the investigatory files of the racing
91	91	division [commission] are not public records and are confidential
92	92	except in a criminal proceeding, in a hearing conducted by the
93	93	department [commission], on court order, or with the consent of the
94	94	party being investigated.
95	95	(c) The department [commission] may share with another
96	96	regulatory agency of this state any investigatory file information
97	97	that creates a reasonable suspicion of a person's violation of a law
98	98	or rule under that agency's jurisdiction. The agency may use the
99	99	information as if it was obtained through that agency's
100	100	investigatory process.
101	101	SECTION 1.04. Section 2.16(b), Texas Racing Act (Article
102	102	179e, Vernon's Texas Civil Statutes), is amended to read as
103	103	follows:
104	104	(b) An investigation report or other document submitted by
105	105	the Department of Public Safety to the racing division [commission]
106	106	becomes part of the investigative files of the racing division
107	107	[commission] and is subject to discovery by a person that is the
108	108	subject of the investigation report or other document submitted by
109	109	the Department of Public Safety to the racing division [commission
110	110	that is part of the investigative files of the commission].
111	111	SECTION 1.05. Section 2.18, Texas Racing Act (Article 179e,
112	112	Vernon's Texas Civil Statutes), is amended to read as follows:
113	113	Sec. 2.18. FUNDS PAID TO DEPARTMENT [COMMISSION]. All
114	114	money paid to the department [commission] under this Act is subject
115	115	to Subchapter F, Chapter 404, Government Code.
116	116	SECTION 1.06. Sections 3.02(a), (b), (d), and (g), Texas
117	117	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
118	118	amended to read as follows:
119	119	(a) The commission shall regulate and the department shall
120	120	supervise every race meeting in this state involving wagering on
121	121	the result of greyhound or horse racing. All persons and things
122	122	relating to the operation of those meetings are subject to
123	123	regulation and supervision by the commission and department. The
124	124	commission shall adopt rules for conducting greyhound or horse
125	125	racing in this state involving wagering and shall adopt other rules
126	126	to administer this Act that are consistent with this Act. The
127	127	commission or department, as applicable, shall also make rules,
128	128	issue licenses, and take any other necessary action relating
129	129	exclusively to horse racing or to greyhound racing.
130	130	(b) The department [commission] may establish separate
131	131	sections to review or propose rules of the commission.
132	132	(d) The department [commission] shall post notice of a
133	133	meeting under Subsection (c) of this section at each racetrack
134	134	facility. The notice shall include an agenda of the meeting and a
135	135	summary of the proposed rule.
136	136	(g) The commission, in adopting rules, and the department,
137	137	in the supervision and conduct of racing, shall consider the effect
138	138	of a proposed commission or department action on the state's
139	139	agricultural, horse breeding, horse training, greyhound breeding,
140	140	and greyhound training industry.
141	141	SECTION 1.07. Sections 3.021(a) and (c), Texas Racing Act
142	142	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
143	143	as follows:
144	144	(a) Any provision in this Act to the contrary
145	145	notwithstanding, the department [commission] may license and
146	146	regulate all aspects of greyhound racing and horse racing in this
147	147	state, whether or not that racing involves pari-mutuel wagering.
148	148	(c) The department [commission] may charge an annual fee for
149	149	licensing and regulating a racetrack that does not offer
150	150	pari-mutuel wagering or a training facility in a reasonable amount
151	151	that may not exceed the actual cost of enforcing rules adopted for
152	152	the licensing and regulation of races and workouts at such a
153	153	facility.
154	154	SECTION 1.08. Sections 3.03 and 3.04, Texas Racing Act
155	155	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
156	156	as follows:
157	157	Sec. 3.03. POWER OF ENTRY. A member of the commission, an
158	158	authorized agent of the commission or department, a commissioned
159	159	officer of the Department of Public Safety, or a peace officer of
160	160	the local jurisdiction in which the association maintains a place
161	161	of business may enter any part of the racetrack facility or any
162	162	other place of business of an association at any time for the
163	163	purpose of enforcing and administering this Act.
164	164	Sec. 3.04. REQUIREMENT OF BOOKS AND RECORDS; FINANCIAL
165	165	STATEMENTS. The department [commission] shall require
166	166	associations, managers, totalisator licensees, and concessionaires
167	167	to keep books and records and to submit financial statements to the
168	168	department [commission]. The commission shall adopt reasonable
169	169	rules relating to those matters.
170	170	SECTION 1.09. Sections 3.07(a), (c), and (d), Texas Racing
171	171	Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
172	172	read as follows:
173	173	(a) The department [commission] shall employ all of the
174	174	judges and all of the stewards for the supervision of a horse race
175	175	or greyhound race meeting. Each horse race or greyhound race
176	176	meeting shall be supervised by three stewards for horse racing or by
177	177	three judges for greyhound racing. The department [commission]
178	178	shall designate one of the stewards or judges as the presiding
179	179	steward or judge for each race meeting. The association, following
180	180	the completion of the race meeting, may submit written comments to
181	181	the department [commission] regarding the job performance of the
182	182	stewards and judges for the department's [commission's] review.
183	183	Comments received are not binding, in any way, on the department
184	184	[commission]. For each race meeting, the department [commission]
185	185	shall employ at least one state veterinarian. The commission may,
186	186	by rule, impose a fee on an association to offset the costs of
187	187	compensating the stewards, judges, and state veterinarians. The
188	188	amount of the fee for the compensation of stewards, judges, and
189	189	state veterinarians must be reasonable according to industry
190	190	standards for the compensation of those officials at other
191	191	racetracks and may not exceed the actual cost to the department
192	192	[commission] for compensating the officials. All other racetrack
193	193	officials shall be appointed by the association, with the approval
194	194	of the department [commission]. Compensation for those officials
195	195	not compensated by the department [commission] shall be determined
196	196	by the association.
197	197	(c) The department [commission] shall require each steward
198	198	or judge to take and pass both a written examination and a medical
199	199	examination annually. The commission by rule shall prescribe the
200	200	methods and procedures for taking the examinations and the
201	201	standards for passing. Failure to pass an examination is a ground
202	202	for refusal to issue an original or renewal license to a steward or
203	203	judge or for suspension or revocation of such a license.
204	204	(d) Medication or drug testing performed on a race animal
205	205	under this Act shall be conducted by the Texas Veterinary Medical
206	206	Diagnostic Laboratory or by a laboratory operated by or in
207	207	conjunction with or by a private or public agency selected by the
208	208	department [commission] after consultation with the Texas
209	209	Veterinary Medical Diagnostic Laboratory. Medication or drug
210	210	testing performed on a human under this Act shall be conducted by a
211	211	laboratory approved by the department [commission]. Charges for
212	212	services performed under this section shall be forwarded to the
213	213	department [commission] for approval as to the reasonableness of
214	214	the charges for the services. Charges may include but are not
215	215	limited to expenses incurred for travel, lodging, testing, and
216	216	processing of test results. The reasonable charges associated with
217	217	medication or drug testing conducted under this Act shall be paid by
218	218	the association that receives the services. The commission shall
219	219	adopt rules for the procedures for approving and paying laboratory
220	220	charges under this section. The department [commission] shall
221	221	determine whether the laboratory charges are reasonable in relation
222	222	to industry standards by periodically surveying the drug testing
223	223	charges of comparable laboratories in the United States. The
224	224	department [commission] shall forward a copy of the charges to the
225	225	association that receives the services for immediate payment.
226	226	SECTION 1.10. Section 3.08(a), Texas Racing Act (Article
227	227	179e, Vernon's Texas Civil Statutes), is amended to read as
228	228	follows:
229	229	(a) Except as provided by Subsection (b) of this section, a
230	230	final decision of the stewards or judges may be appealed to the
231	231	department [commission] in the manner provided for a contested case
232	232	under Chapter 2001, Government Code [the Administrative Procedure
233	233	and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
234	234	Statutes)].
235	235	SECTION 1.11. Section 3.09(b), Texas Racing Act (Article
236	236	179e, Vernon's Texas Civil Statutes), is amended to read as
237	237	follows:
238	238	(b) The department [commission] shall deposit the money it
239	239	collects under this Act in the State Treasury to the credit of a
240	240	special fund to be known as the Texas racing [Racing Commission]
241	241	fund. The Texas racing [Racing Commission] fund may be
242	242	appropriated only for the administration and enforcement of this
243	243	Act. Any unappropriated money exceeding $750,000 that remains in
244	244	the fund at the close of each fiscal biennium shall be transferred
245	245	to the General Revenue Fund and may be appropriated for any legal
246	246	purpose. The legislature may also appropriate money from the
247	247	General Revenue Fund for the administration and enforcement of this
248	248	Act. Any amount of general revenue appropriated for the
249	249	administration and enforcement of this Act in excess of the
250	250	cumulative amount deposited in the Texas racing [Racing Commission]
251	251	fund shall be reimbursed from the Texas racing [Racing Commission]
252	252	fund not later than one year after the date on which the general
253	253	revenue funds are appropriated, with 6-3/4 percent interest with
254	254	all payments first attributable to interest.
255	255	SECTION 1.12. Sections 3.10 and 3.11, Texas Racing Act
256	256	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
257	257	as follows:
258	258	Sec. 3.10. ANNUAL REPORT. The racing division [commission]
259	259	shall make a report to the governor, lieutenant governor, and
260	260	speaker of the house of representatives not later than January 31 of
261	261	each year. The report shall cover the operations of the racing
262	262	division [commission] and the condition of horse breeding and
263	263	racing and greyhound breeding and racing during the previous year.
264	264	The racing division [commission] shall also obtain from the
265	265	Department of Public Safety a comprehensive report of any organized
266	266	crime activities in this state which the Department of Public
267	267	Safety [department] may wish to report and information concerning
268	268	any and all illegal gambling which may be known to exist in the
269	269	state and shall include the report by the Department of Public
270	270	Safety [department] in its report and shall include any
271	271	recommendations it considers appropriate.
272	272	Sec. 3.11. COOPERATION WITH PEACE OFFICERS. The commission
273	273	and the department shall cooperate with all district attorneys,
274	274	criminal district attorneys, county attorneys, the Department of
275	275	Public Safety, the attorney general, and all peace officers in
276	276	enforcing this Act. Under the [its] authority to conduct criminal
277	277	history information record checks under this Act or Section
278	278	51.4012, Occupations Code [5.04 of this Act], the department
279	279	[commission] shall maintain and exchange pertinent intelligence
280	280	data with other states and agencies.
281	281	SECTION 1.13. Section 3.13(b), Texas Racing Act (Article
282	282	179e, Vernon's Texas Civil Statutes), is amended to read as
283	283	follows:
284	284	(b) The department [commission] may recognize an
285	285	organization that meets the requirements of Subsection (a) of this
286	286	section.
287	287	SECTION 1.14. Sections 3.16(b), (d), (e), (f), and (j),
288	288	Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
289	289	amended to read as follows:
290	290	(b) The department [commission] shall require testing to
291	291	determine whether a prohibited substance has been used. The
292	292	testing may be prerace or postrace as determined by the department
293	293	[commission]. The testing may be by an invasive or noninvasive
294	294	method. The commission's rules shall require state-of-the-art
295	295	testing methods.
296	296	(d) Except as otherwise provided, a person may appeal a
297	297	ruling of the stewards or judges to the department [commission].
298	298	The department [commission] may stay a suspension during the period
299	299	the matter is before the department [commission].
300	300	(e) The department [commission] may require urine samples
301	301	to be frozen for a period necessary to allow any follow-up testing
302	302	to detect and identify a prohibited substance. Any other specimen
303	303	shall be maintained for testing purposes in a manner required by
304	304	commission rule.
305	305	(f) If a test sample or specimen shows the presence of a
306	306	prohibited substance, the entire sample, including any split
307	307	portion remaining in the custody of the department [commission],
308	308	shall be maintained until final disposition of the matter.
309	309	(j) A person who violates a rule adopted under this section
310	310	may:
311	311	(1) have any license issued to the person by the
312	312	department [commission] revoked or suspended; or
313	313	(2) be barred for life or any other period from
314	314	applying for or receiving a license issued by the department
315	315	[commission] or entering any portion of a racetrack facility.
316	316	SECTION 1.15. Sections 3.17, 3.18, 3.19, 3.20, and 3.21,
317	317	Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
318	318	amended to read as follows:
319	319	Sec. 3.17. SECURITY FOR FEES AND CHARGES. The department
320	320	[commission] may require an association to post security in an
321	321	amount and form determined by the commission to adequately ensure
322	322	the payment of any fees or charges due to the state or the
323	323	department [commission] relating to pari-mutuel racing, including
324	324	charges for drug testing.
325	325	Sec. 3.18. CEASE AND DESIST ORDER. (a) The executive
326	326	director [secretary] may issue a cease and desist order if the
327	327	executive director [secretary] reasonably believes an association
328	328	or other licensee is engaging or is likely to engage in conduct that
329	329	violates this Act or a commission rule.
330	330	(b) On issuance of a cease and desist order, the executive
331	331	director [secretary] shall serve on the association or other
332	332	licensee by personal delivery or registered or certified mail,
333	333	return receipt requested, to the person's last known address, a
334	334	proposed cease and desist order. The proposed order must state the
335	335	specific acts or practices alleged to violate this Act or a
336	336	commission rule. The proposed order must state its effective date.
337	337	The effective date may not be before the 21st day after the date the
338	338	proposed order is mailed or delivered. If the person against whom
339	339	the proposed order is directed requests, in writing, a hearing
340	340	before the effective date of the proposed order, the order is
341	341	automatically stayed pending final adjudication of the order.
342	342	Unless the person against whom the proposed order is directed
343	343	requests, in writing, a hearing before the effective date of the
344	344	proposed order, the order takes effect and is final and
345	345	nonappealable as to that person.
346	346	(c) On receiving a request for a hearing, the executive
347	347	director [secretary] shall serve notice of the time and place of the
348	348	hearing by personal delivery or registered or certified mail,
349	349	return receipt requested. At a hearing, the department
350	350	[commission] has the burden of proof and must present evidence in
351	351	support of the order. Each person against whom the order is
352	352	directed may cross-examine and show cause why the order should not
353	353	be issued.
354	354	(d) After the hearing, the department [commission] shall
355	355	issue or decline to issue a cease and desist order. The proposed
356	356	order may be modified as necessary to conform to the findings at the
357	357	hearing. An order issued under this section is final for purposes
358	358	of enforcement and appeal and shall require the person to
359	359	immediately cease and desist from the conduct that violates this
360	360	Act or a commission rule.
361	361	(e) A person affected by a cease and desist order issued,
362	362	affirmed, or modified after a hearing may file a petition for
363	363	judicial review in a district court of Travis County under Chapter
364	364	2001, Government Code. A petition for judicial review does not stay
365	365	or vacate the order unless the court, after hearing, specifically
366	366	stays or vacates the order.
367	367	Sec. 3.19. EMERGENCY CEASE AND DESIST ORDER. (a) The
368	368	executive director [secretary] may issue an emergency cease and
369	369	desist order if the executive director [secretary] reasonably
370	370	believes an association or other licensee is engaged in a
371	371	continuing activity that violates this Act or a commission rule in a
372	372	manner that threatens immediate and irreparable public harm.
373	373	(b) After issuing an emergency cease and desist order, the
374	374	executive director [secretary] shall serve on the association or
375	375	other licensee by personal delivery or registered or certified
376	376	mail, return receipt requested, to the person's last known address,
377	377	an order stating the specific charges and requiring the person
378	378	immediately to cease and desist from the conduct that violates this
379	379	Act or a commission rule. The order must contain a notice that a
380	380	request for hearing may be filed under this section.
381	381	(c) An association or other licensee that is the subject of
382	382	an emergency cease and desist order may request a hearing. The
383	383	request must be filed with the executive director [secretary] not
384	384	later than the 10th day after the date the order was received or
385	385	delivered. A request for a hearing must be in writing and directed
386	386	to the executive director [secretary] and must state the grounds
387	387	for the request to set aside or modify the order. Unless a person
388	388	who is the subject of the emergency order requests a hearing in
389	389	writing before the 11th day after the date the order is received or
390	390	delivered, the emergency order is final and nonappealable as to
391	391	that person.
392	392	(d) On receiving a request for a hearing, the executive
393	393	director [secretary] shall serve notice of the time and place of the
394	394	hearing by personal delivery or registered or certified mail,
395	395	return receipt requested. The hearing must be held not later than
396	396	the 10th day after the date the executive director [secretary]
397	397	receives the request for a hearing unless the parties agree to a
398	398	later hearing date. At the hearing, the department [commission]
399	399	has the burden of proof and must present evidence in support of the
400	400	order. The person requesting the hearing may cross-examine
401	401	witnesses and show cause why the order should not be affirmed.
402	402	Section 2003.021(b), Government Code, does not apply to hearings
403	403	conducted under this section.
404	404	(e) An emergency cease and desist order continues in effect
405	405	unless the order is stayed by the executive director [secretary].
406	406	The executive director [secretary] may impose any condition before
407	407	granting a stay of the order.
408	408	(f) After the hearing, the executive director [secretary]
409	409	shall affirm, modify, or set aside in whole or part the emergency
410	410	cease and desist order. An order affirming or modifying the
411	411	emergency cease and desist order is final for purposes of
412	412	enforcement and appeal.
413	413	Sec. 3.20. VIOLATION OF FINAL CEASE AND DESIST ORDER.
414	414	(a) If the executive director [secretary] reasonably believes
415	415	that a person has violated a final and enforceable cease and desist
416	416	order, the executive director [secretary] may:
417	417	(1) initiate administrative penalty proceedings under
418	418	Article 15 of this Act;
419	419	(2) refer the matter to the attorney general for
420	420	enforcement by injunction and any other available remedy; or
421	421	(3) pursue any other action, including suspension of
422	422	the person's license, that the executive director [secretary]
423	423	considers appropriate.
424	424	(b) If the attorney general prevails in an action brought
425	425	under Subsection (a)(2) of this section, the attorney general is
426	426	entitled to recover reasonable attorney's fees.
427	427	Sec. 3.21. INJUNCTION. The department [commission] may
428	428	institute an action in its own name to enjoin the violation of this
429	429	Act. An action for an injunction is in addition to any other
430	430	action, proceeding, or remedy authorized by law.
431	431	SECTION 1.16. Sections 3.22(b) and (c), Texas Racing Act
432	432	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
433	433	as follows:
434	434	(b) The executive director [secretary] may issue an order
435	435	prohibiting the association from making any transfer from a bank
436	436	account held by the association for the conduct of its business
437	437	under this Act, pending department [commission] review of the
438	438	records of the account, if the executive director [secretary]
439	439	reasonably believes that the association has failed to maintain the
440	440	proper amount of money in the horsemen's account. The executive
441	441	director [secretary] shall provide in the order a procedure for the
442	442	association to pay certain expenses necessary for the operation of
443	443	the racetrack, subject to the executive director's [secretary's]
444	444	approval. An order issued under this section may be made valid for
445	445	a period not to exceed 14 days.
446	446	(c) The executive director [secretary] may issue an order
447	447	requiring the appropriate transfers to or from the horsemen's
448	448	account if, after reviewing the association's records of its bank
449	449	accounts, the executive director [secretary] determines there is an
450	450	improper amount of money in the horsemen's account.
451	451	SECTION 1.17. Sections 4.01, 4.05, 5.01, 5.02, 5.03, 5.04,
452	452	5.05, and 6.01, Texas Racing Act (Article 179e, Vernon's Texas
453	453	Civil Statutes), are amended to read as follows:
454	454	Sec. 4.01. BOOKS AND RECORDS. All books, records, and
455	455	financial statements required by the department [commission] under
456	456	Section 3.04 of this Act are open to inspection by the comptroller.
457	457	The comptroller by rule may specify the form and manner in which the
458	458	books, records, and statements are to be kept and reports are to be
459	459	filed that relate to the state's share of a pari-mutuel pool.
460	460	Sec. 4.05. COMPLIANCE. (a) If an association or
461	461	totalisator company does not comply with a rule adopted by the
462	462	comptroller under this article, refuses to allow access to or
463	463	inspection of any of its required books, records, or financial
464	464	statements, refuses to allow access to or inspection of the
465	465	totalisator system, or becomes delinquent for the state's portion
466	466	of the pari-mutuel pool or for any other tax collected by the
467	467	comptroller, the comptroller shall certify that fact to the
468	468	department [commission].
469	469	(b) With regard to the state's portion of the pari-mutuel
470	470	pool and any penalties related to the state's portion, the
471	471	comptroller, acting independently of the department [commission],
472	472	may take any collection or enforcement actions authorized under the
473	473	Tax Code against a delinquent or dilatory taxpayer. Administrative
474	474	appeals related to the state's portion of the pari-mutuel pool or
475	475	late reporting or deposit of the state's portion shall be to the
476	476	comptroller and then to the courts as under Title 2, Tax Code. All
477	477	other administrative appeals shall be to the department
478	478	[commission] and then to the courts.
479	479	Sec. 5.01. FORM; CERTIFICATE; FEES. (a) The department
480	480	[commission] shall prescribe forms for applications for licenses
481	481	and shall provide each occupational licensee with a license
482	482	certificate or credentials.
483	483	(b) The commission shall annually prescribe reasonable
484	484	license fees for each category of license issued under this Act.
485	485	(c) The operation of a racetrack and the participation in
486	486	racing are privileges, not rights, granted only by the department
487	487	[commission] by license and subject to reasonable and necessary
488	488	conditions set by the department and commission.
489	489	(d) The commission by rule shall set fees in amounts
490	490	reasonable and necessary to cover the department's [commission's]
491	491	costs of regulating, overseeing, and licensing live and simulcast
492	492	racing at racetracks.
493	493	Sec. 5.02. JUDICIAL REVIEW. (a) Judicial review of an
494	494	order of the department or commission is under the substantial
495	495	evidence rule.
496	496	(b) Venue for judicial review of an order of the department
497	497	or commission is in a district court in Travis County.
498	498	Sec. 5.03. FINGERPRINTS. (a) An applicant for any license
499	499	or license renewal under this Act must, except as allowed under
500	500	Section 7.10 of this Act, submit to the racing division
501	501	[commission] a complete set of fingerprints of the individual
502	502	natural person applying for the license or license renewal or, if
503	503	the applicant is not an individual natural person, a complete set of
504	504	fingerprints of each officer or director and of each person owning
505	505	an interest of at least five percent in the applicant. The
506	506	Department of Public Safety may request any person owning any
507	507	interest in an applicant for a racetrack license to submit a
508	508	complete set of fingerprints.
509	509	(b) If a complete set of fingerprints is required by the
510	510	commission, the racing division [commission] shall, not later than
511	511	the 10th business day after the date the racing division
512	512	[commission] receives the prints, forward the prints to the
513	513	Department of Public Safety or the Federal Bureau of
514	514	Investigation. If the prints are forwarded to the Department of
515	515	Public Safety, the Department of Public Safety [department] shall
516	516	classify the prints and check them against its fingerprint files
517	517	and shall report to the racing division [commission] its findings
518	518	concerning the criminal record of the applicant or the lack of such
519	519	a record. A racetrack license may not be issued until the report is
520	520	made to the racing division [commission]. A temporary
521	521	occupational license may be issued before a report is made to the
522	522	racing division [commission].
523	523	(c) A peace officer of this or any other state, or any
524	524	district office of the department [commission], shall take the
525	525	fingerprints of an applicant for a license or license renewal on
526	526	forms approved and furnished by the Department of Public Safety and
527	527	shall immediately deliver them to the racing division [commission].
528	528	Sec. 5.04. ACCESS TO CRIMINAL HISTORY RECORDS. In addition
529	529	to any other authorizations to obtain criminal history record
530	530	information provided by law, the department [(a) The commission]
531	531	is authorized to obtain any criminal history record information
532	532	that relates to each applicant for employment by the racing
533	533	division [commission] and to each applicant for a license issued by
534	534	the department [commission] and that is maintained by the
535	535	Department of Public Safety or the Federal Bureau of Investigation
536	536	Identification Division. The department [commission] may refuse to
537	537	recommend an applicant who fails to provide a complete set of
538	538	fingerprints.
539	539	Sec. 5.05. COST OF CRIMINAL HISTORY CHECK. (a) The
540	540	commission shall, in determining the amount of a license fee, set
541	541	the fee in an amount that will cover, at least, the cost of
542	542	conducting a criminal history check on the applicant for a license.
543	543	(b) The racing division [commission] shall reimburse the
544	544	Department of Public Safety for the cost, if any, of conducting a
545	545	criminal history check under this article.
546	546	Sec. 6.01. LICENSE REQUIRED. A person may not conduct
547	547	wagering on a greyhound race or a horse race meeting without first
548	548	obtaining a racetrack license from the department [commission]. A
549	549	person who violates this section commits an offense.
550	550	SECTION 1.18. Sections 6.02(b), (c), (f), and (g), Texas
551	551	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
552	552	amended to read as follows:
553	553	(b) A class 1 racetrack is a racetrack on which live racing
554	554	is conducted for a number of days in a calendar year, the number of
555	555	days and the actual dates to be determined by the department
556	556	[commission] under Article 8 of this Act. A class 1 racetrack may
557	557	operate only in a county with a population of not less than 1.3
558	558	million, or in a county adjacent to a county with such a population.
559	559	Not more than three class 1 racetracks may be licensed and operated
560	560	in this state.
561	561	(c) A class 2 racetrack is a racetrack on which live racing
562	562	is conducted for a number of days to be determined by the department
563	563	[commission] under Article 8 of this Act. A class 2 racetrack is
564	564	entitled to conduct 60 days of live racing in a calendar year. An
565	565	association may request additional or fewer days of live racing. If
566	566	after receipt of a request from an association the department
567	567	[commission] determines additional or fewer days to be economically
568	568	feasible and in the best interest of the state and the racing
569	569	industry, the department [commission] shall grant the additional or
570	570	fewer days. The department [commission] may permit an association
571	571	that holds a class 2 racetrack license and that is located in a
572	572	national historic district to conduct horse races for more than 60
573	573	days in a calendar year.
574	574	(f) The number of race dates allowed under this section
575	575	relates only to live race dates. A racetrack may present simulcast
576	576	races on other dates as approved by the department [commission].
577	577	(g) A class 4 racetrack is a racetrack operated by a county
578	578	fair under Section 12.03 of this Act. An association that holds a
579	579	class 4 racetrack license may conduct live races for a number of
580	580	days not to exceed five days in a calendar year on dates selected by
581	581	the association and approved by the department [commission].
582	582	SECTION 1.19. Sections 6.03(a), (b), and (h), Texas Racing
583	583	Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
584	584	read as follows:
585	585	(a) The department [commission] shall require each
586	586	applicant for an original racetrack license to pay the required
587	587	application fee and to submit an application, on a form prescribed
588	588	by the department [commission], containing the following
589	589	information:
590	590	(1) if the applicant is an individual, the full name of
591	591	the applicant, the applicant's date of birth, a physical
592	592	description of the applicant, the applicant's current address and
593	593	telephone number, and a statement by the applicant disclosing any
594	594	arrest or conviction for a felony or for a misdemeanor, except a
595	595	misdemeanor under Subtitle C, Title 7, Transportation Code, [the
596	596	Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
597	597	Texas Civil Statutes)] or a similar misdemeanor traffic offense;
598	598	(2) if the applicant is a corporation:
599	599	(A) the state in which it is incorporated, the
600	600	names and addresses of the corporation's agents for service of
601	601	process in this state, the names and addresses of its officers and
602	602	directors, the names and addresses of its stockholders, and, for
603	603	each individual named under this subdivision, the individual's date
604	604	of birth, current address and telephone number, and physical
605	605	description, and a statement disclosing any arrest or conviction
606	606	for a felony or for a misdemeanor, except a misdemeanor under
607	607	Subtitle C, Title 7, Transportation Code, [the Uniform Act
608	608	Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
609	609	Statutes)] or a similar misdemeanor traffic offense; and
610	610	(B) identification of any other beneficial owner
611	611	of shares in the applicant that bear voting rights, absolute or
612	612	contingent, any other person that directly or indirectly exercises
613	613	any participation in the applicant, and any other ownership
614	614	interest in the applicant that the applicant making its best effort
615	615	is able to identify;
616	616	(3) if the applicant is an unincorporated business
617	617	association:
618	618	(A) the names and addresses of each of its
619	619	members and, for each individual named under this subdivision, the
620	620	individual's date of birth, current address and telephone number,
621	621	and physical description, and a statement disclosing any arrest or
622	622	conviction for a felony or for a misdemeanor, except a misdemeanor
623	623	under Subtitle C, Title 7, Transportation Code, [the Uniform Act
624	624	Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
625	625	Statutes)] or a similar misdemeanor traffic offense; and
626	626	(B) identification of any other person that
627	627	exercises voting rights in the applicant or that directly or
628	628	indirectly exercises any participation in the applicant and any
629	629	other ownership interest in the applicant that the applicant making
630	630	its best effort is able to identify;
631	631	(4) the exact location at which a race meeting is to be
632	632	conducted;
633	633	(5) if the racing facility is in existence, whether it
634	634	is owned by the applicant and, if leased to the applicant, the name
635	635	and address of the owner and, if the owner is a corporation or
636	636	unincorporated business association, the names and addresses of its
637	637	officers and directors, its stockholders and members, if any, and
638	638	its agents for service of process in this state;
639	639	(6) if construction of the racing facility has not
640	640	been initiated, whether it is to be owned by the applicant and, if
641	641	it is to be leased to the applicant, the name and address of the
642	642	prospective owner and, if the owner is a corporation or
643	643	unincorporated business association, the names and addresses of its
644	644	officers and directors, the names and addresses of its
645	645	stockholders, the names and addresses of its members, if any, and
646	646	the names and addresses of its agents for service of process in this
647	647	state;
648	648	(7) identification of any other beneficial owner of
649	649	shares that bear voting rights, absolute or contingent, in the
650	650	owner or prospective owner of the racing facility, or any other
651	651	person that directly or indirectly exercises any participation in
652	652	the owner or prospective owner and all other ownership interest in
653	653	the owner or prospective owner that the applicant making its best
654	654	effort is able to identify;
655	655	(8) a detailed statement of the assets and liabilities
656	656	of the applicant;
657	657	(9) the kind of racing to be conducted and the dates
658	658	requested;
659	659	(10) proof of residency as required by Section 6.06 of
660	660	this Act;
661	661	(11) a copy of each management, concession, and
662	662	totalisator contract dealing with the proposed license at the
663	663	proposed location in which the applicant has an interest for
664	664	inspection and review by the department [commission]; the applicant
665	665	or licensee shall advise the department [commission] of any change
666	666	in any management, concession, or totalisator contract; all
667	667	management, concession, and totalisator contracts must have prior
668	668	approval of the department [commission]; the same fingerprint,
669	669	criminal records history, and other information required of license
670	670	applicants pursuant to Sections 5.03 and 5.04 and Subdivisions (1)
671	671	through (3) of this subsection shall be required of proposed
672	672	totalisator firms, concessionaires, and managers and management
673	673	firms; and
674	674	(12) any other information required by the department
675	675	[commission].
676	676	(b) When the department [commission] receives a plan for the
677	677	security of a racetrack facility, or a copy of a management,
678	678	concession, or totalisator contract for review under Subdivision
679	679	(11) of Subsection (a) of this section, the department [commission]
680	680	shall review the contract or security plan in an executive session.
681	681	Documents submitted to the department [commission] under this
682	682	section by an applicant are subject to discovery in a suit brought
683	683	under this Act but are not public records and are not subject to
684	684	Chapter 552, Government Code [424, Acts of the 63rd Legislature,
685	685	Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
686	686	Statutes)]. In reviewing and approving contracts under this
687	687	subsection, the department [commission] shall attempt to ensure the
688	688	involvement of minority owned businesses whenever possible.
689	689	(h) In considering an application for a horse racetrack
690	690	license under this section, the department [commission] shall give
691	691	additional weight to evidence concerning an applicant who has
692	692	experience operating a horse racetrack licensed under this Act.
693	693	SECTION 1.20. Section 6.031, Texas Racing Act (Article
694	694	179e, Vernon's Texas Civil Statutes), is amended to read as
695	695	follows:
696	696	Sec. 6.031. BACKGROUND CHECK. The department [commission]
697	697	shall require a complete personal, financial, and business
698	698	background check of the applicant or any person owning an interest
699	699	in or exercising control over an applicant for a racetrack license,
700	700	the partners, stockholders, concessionaires, management personnel,
701	701	management firms, and creditors and shall refuse to issue or renew a
702	702	license or approve a concession or management contract if, in the
703	703	sole discretion of the department [commission], the background
704	704	checks reveal anything which might be detrimental to the public
705	705	interest or the racing industry. The department [commission] may
706	706	not hold a hearing on the application, or any part of the
707	707	application, of an applicant for a racetrack license before the
708	708	completed background check of the applicant has been on file with
709	709	the department [commission] for at least 14 days.
710	710	SECTION 1.21. Section 6.032(a), Texas Racing Act (Article
711	711	179e, Vernon's Texas Civil Statutes), is amended to read as
712	712	follows:
713	713	(a) The department [commission] at any time may require a
714	714	holder of a racetrack license or an applicant for a racetrack
715	715	license to post security in an amount reasonably necessary, as
716	716	provided by commission rule, to adequately ensure the license
717	717	holder's or applicant's compliance with substantive requirements of
718	718	this Act and commission rules.
719	719	SECTION 1.22. Section 6.04, Texas Racing Act (Article 179e,
720	720	Vernon's Texas Civil Statutes), is amended to read as follows:
721	721	Sec. 6.04. ISSUANCE OF LICENSE. (a) The department
722	722	[commission] may issue a racetrack license to a qualified person if
723	723	it finds that the conduct of race meetings at the proposed track and
724	724	location will be in the public interest, complies with all zoning
725	725	laws, and complies with this Act and the rules adopted by the
726	726	commission and if the department [commission] finds by clear and
727	727	convincing evidence that the applicant will comply with all
728	728	criminal laws of this state. In determining whether to grant or
729	729	deny an application for any class of racetrack license, the
730	730	department [commission] may consider the following factors:
731	731	(1) the applicant's financial stability;
732	732	(2) the applicant's resources for supplementing the
733	733	purses for races for various breeds;
734	734	(3) the location of the proposed track;
735	735	(4) the effect of the proposed track on traffic flow;
736	736	(5) facilities for patrons and occupational
737	737	licensees;
738	738	(6) facilities for race animals;
739	739	(7) availability to the track of support services and
740	740	emergency services;
741	741	(8) the experience of the applicant's employees;
742	742	(9) the potential for conflict with other licensed
743	743	race meetings;
744	744	(10) the anticipated effect of the race meeting on the
745	745	greyhound or horse breeding industry in this state; and
746	746	(11) the anticipated effect of the race meeting on the
747	747	state and local economy from tourism, increased employment, and
748	748	other sources.
749	749	(b) [(a-1)] When all of the requirements of licensure for
750	750	the applicant described in this article have been satisfied, the
751	751	department [commission] shall notify the applicant that the
752	752	application is complete.
753	753	(c) [(a-2)] The department [commission] shall make a
754	754	determination with respect to a pending application not later than
755	755	the 120th day after the date on which the department [commission]
756	756	provided to the applicant the notice required under Subsection (b)
757	757	[(a-1)] of this section.
758	758	(d) [(c)] The department [commission] shall not issue
759	759	licenses for more than three greyhound racetracks in this state.
760	760	Those racetracks must be located in counties that border the Gulf of
761	761	Mexico.
762	762	(e) [(d)] In considering an application for a class 4
763	763	racetrack license, the department [commission] may waive or defer
764	764	compliance with the department's [commission's] standards
765	765	regarding the physical facilities or operations of a horse
766	766	racetrack. The department [commission] may not waive or defer
767	767	compliance with standards that relate to the testing of horses or
768	768	licensees for the presence of a prohibited drug, chemical, or other
769	769	substance. If the department [commission] defers compliance, the
770	770	department [commission] shall, when granting the application,
771	771	establish a schedule under which the licensee must comply with the
772	772	standards.
773	773	SECTION 1.23. Sections 6.06(e), (f), and (k), Texas Racing
774	774	Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
775	775	read as follows:
776	776	(e) The department [commission] may condition the issuance
777	777	of a license under this article on the observance of commission
778	778	[its] rules. The commission may amend the rules at any time, and
779	779	the department may condition the continued holding of the license
780	780	on compliance with the rules as amended.
781	781	(f) The department [commission] may refuse to issue a
782	782	license or may suspend or revoke a license of a licensee under this
783	783	article who knowingly or intentionally allows access to an
784	784	enclosure where greyhound races or horse races are conducted to a
785	785	person who has engaged in bookmaking, touting, or illegal wagering,
786	786	whose income is from illegal activities or enterprises, or who has
787	787	been convicted of a violation of this Act.
788	788	(k) The department [commission] shall review the ownership
789	789	and management of an active license issued under this article every
790	790	five years beginning on the fifth anniversary of the issuance of the
791	791	license. In performing the review, the department [commission] may
792	792	require the license holder to provide any information that would be
793	793	required to be provided in connection with an original license
794	794	application under Article 5 of this Act or this article. The
795	795	department [commission] shall charge fees for the review in amounts
796	796	sufficient to implement this subsection.
797	797	SECTION 1.24. Sections 6.0601(a), (b), and (d), Texas
798	798	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
799	799	amended to read as follows:
800	800	(a) The department [commission] shall designate each
801	801	racetrack license as an active license or an inactive license. The
802	802	department [commission] may change the designation of a racetrack
803	803	license as appropriate.
804	804	(b) The department [commission] shall designate a racetrack
805	805	license as an active license if the license holder:
806	806	(1) holds live racing events at the racetrack; or
807	807	(2) makes good faith efforts to conduct live racing.
808	808	(d) Before the first anniversary of the date a new racetrack
809	809	license is issued, the department [commission] shall conduct an
810	810	evaluation of the license to determine whether the license is an
811	811	active or inactive license.
812	812	SECTION 1.25. Sections 6.0602(a), (b), (c), and (d), Texas
813	813	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
814	814	amended to read as follows:
815	815	(a) The commission by rule shall establish an annual renewal
816	816	process for inactive licenses, and the department may require the
817	817	license holder to provide any information required for an original
818	818	license application under this Act. An inactive license holder
819	819	must complete the annual renewal process established under this
820	820	section until the department [commission]:
821	821	(1) designates the license as an active license; or
822	822	(2) refuses to renew the license.
823	823	(b) In determining whether to renew an inactive license, the
824	824	department [commission] shall consider:
825	825	(1) the inactive license holder's:
826	826	(A) financial stability;
827	827	(B) ability to conduct live racing;
828	828	(C) ability to construct and maintain a racetrack
829	829	facility; and
830	830	(D) other good faith efforts to conduct live
831	831	racing; and
832	832	(2) other necessary factors considered in the issuance
833	833	of the original license.
834	834	(c) The department [commission] may refuse to renew an
835	835	inactive license if, after notice and a hearing, the department
836	836	[commission] determines that:
837	837	(1) renewal of the license is not in the best interests
838	838	of the racing industry or the public; or
839	839	(2) the license holder has failed to make a good faith
840	840	effort to conduct live racing.
841	841	(d) The department [commission] shall consult with members
842	842	of the racing industry and other key stakeholders in developing the
843	843	license renewal process under this section.
844	844	SECTION 1.26. Sections 6.0603(b) and (c), Texas Racing Act
845	845	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
846	846	as follows:
847	847	(b) If, after notice and hearing, the department
848	848	[commission] finds that a racetrack license holder or a person
849	849	employed by the racetrack has violated this Act or a commission rule
850	850	or if the department [commission] finds during a review or renewal
851	851	that the racetrack is ineligible for a license under this article,
852	852	the department [commission] may:
853	853	(1) revoke, suspend, or refuse to renew the racetrack
854	854	license;
855	855	(2) impose an administrative penalty as provided under
856	856	Section 15.03 of this Act; or
857	857	(3) take any other action as provided by commission
858	858	rule.
859	859	(c) The department [commission] may not revoke an active
860	860	license unless the department [commission] reasonably determines
861	861	that other disciplinary actions are inadequate to remedy the
862	862	violation.
863	863	SECTION 1.27. Sections 6.061, 6.062, and 6.063, Texas
864	864	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
865	865	amended to read as follows:
866	866	Sec. 6.061. REGULATION OF INAPPROPRIATE OR UNSAFE
867	867	CONDITIONS. (a) The commission shall adopt rules implementing
868	868	this section, including rules:
869	869	(1) requiring the report of and correction of:
870	870	(A) an inappropriate condition on the premises of
871	871	a racetrack facility, including a failure to properly maintain the
872	872	facility, that interferes with the administration of this Act; or
873	873	(B) a condition on the premises of a racetrack
874	874	facility that makes the facility unsafe for a race participant,
875	875	patron, or animal; and
876	876	(2) determining the methods and manner in which the
877	877	director [executive secretary] may determine and remedy
878	878	inappropriate conditions or unsafe facilities on the premises of a
879	879	racetrack facility, including the methods and manner in which the
880	880	department [executive secretary] may conduct inspections of the
881	881	racetrack facility and remedy emergency situations.
882	882	(b) The director [executive secretary] shall issue a notice
883	883	of violation to a racetrack facility on a finding that an
884	884	inappropriate or unsafe condition exists.
885	885	(c) If the director [executive secretary] determines that
886	886	an inappropriate or unsafe condition exists at the racetrack
887	887	facility, the director [executive secretary] shall order the
888	888	racetrack facility to take action within a specified period to
889	889	remedy the inappropriate condition or unsafe condition. In
890	890	determining the period for compliance, the director [executive
891	891	secretary] shall consider the nature and severity of the problem
892	892	and the threat to the health, safety, and welfare of the race
893	893	participants, patrons, or animals.
894	894	(d) The commission shall adopt rules requiring the
895	895	reporting of any corrective action taken by a racetrack facility in
896	896	response to an order of the director [executive secretary] under
897	897	Subsection (c) of this section.
898	898	(e) If a racetrack facility fails to take any action as
899	899	required under Subsection (c) of this section, the director
900	900	[executive secretary] shall initiate an enforcement action against
901	901	the racetrack facility. The director [executive secretary] may
902	902	rescind any live or simulcast race date of any racetrack
903	903	association that does not take corrective action within the period
904	904	set by the director [executive secretary].
905	905	(f) The commission shall adopt rules relating to the
906	906	department's [commission's] review of an action taken under this
907	907	section by the director [executive secretary]. A review procedure
908	908	adopted under this subsection must be consistent with Chapter 2001,
909	909	Government Code.
910	910	Sec. 6.062. SUPERVISION OF CHANGES TO PREMISES. (a) The
911	911	department [commission] shall adopt a method of supervising and
912	912	approving the construction, renovation, or maintenance of any
913	913	building or improvement on the premises of a racetrack facility.
914	914	(b) The commission shall adopt rules relating to:
915	915	(1) the approval of plans and specifications;
916	916	(2) the contents of plans and specifications;
917	917	(3) the maintenance of records to ensure compliance
918	918	with approved plans and specifications;
919	919	(4) the content and filing of construction progress
920	920	reports by the racetrack facility to the department [commission];
921	921	(5) the inspection by the department [commission] or
922	922	others;
923	923	(6) the method for making a change or amendment to an
924	924	approved plan or specification; and
925	925	(7) any other method of supervision or oversight
926	926	necessary.
927	927	(c) If the department [commission] has grounds to believe
928	928	that an association has failed to comply with the requirements of
929	929	this section, a representative of the association shall appear
930	930	before the department [commission] to consider the issue of
931	931	compliance with the rules adopted under this section.
932	932	(d) Before a building or improvement may be used by the
933	933	association, the department [commission] shall determine whether
934	934	the construction, renovation, or maintenance of the building or
935	935	improvement was completed in accordance with the approved plans and
936	936	specifications and whether other requirements of the department or
937	937	commission were met.
938	938	(e) If the department [commission] determines that the
939	939	association failed to comply with a requirement of this section or
940	940	rule adopted under this section, the department [commission] shall
941	941	initiate an enforcement action against the association. In
942	942	addition to any other authorized enforcement action, the department
943	943	[commission] may rescind any live or simulcast race date of any
944	944	association that has failed to comply with the requirement of this
945	945	section.
946	946	Sec. 6.063. SUMMARY SUSPENSION. (a) The executive
947	947	director [commission] may summarily suspend a racetrack license if
948	948	the executive director [commission] determines that a racetrack at
949	949	which races or pari-mutuel wagering are conducted under the license
950	950	is being operated in a manner that constitutes an immediate threat
951	951	to the health, safety, or welfare of the participants in racing or
952	952	the patrons.
953	953	(b) After issuing a summary suspension order, the executive
954	954	director [secretary] shall serve on the association by personal
955	955	delivery or registered or certified mail, return receipt requested,
956	956	to the licensee's last known address, an order stating the specific
957	957	charges and requiring the licensee immediately to cease and desist
958	958	from all conduct permitted by the license. The order must contain a
959	959	notice that a request for hearing may be filed under this section.
960	960	(c) An association that is the subject of a summary
961	961	suspension order may request a hearing. The request must be filed
962	962	with the executive director [secretary] not later than the 10th day
963	963	after the date the order was received or delivered. A request for a
964	964	hearing must be in writing and directed to the executive director
965	965	[secretary] and must state the grounds for the request to set aside
966	966	or modify the order. Unless a licensee who is the subject of the
967	967	order requests a hearing in writing before the 11th day after the
968	968	date the order is received or delivered, the order is final and
969	969	nonappealable as to that licensee.
970	970	(d) On receiving a request for a hearing, the executive
971	971	director [secretary] shall serve notice of the time and place of the
972	972	hearing by personal delivery or registered or certified mail,
973	973	return receipt requested. The hearing must be held not later than
974	974	the 10th day after the date the executive director [secretary]
975	975	receives the request for a hearing unless the parties agree to a
976	976	later hearing date. At the hearing, the department [commission]
977	977	has the burden of proof and must present evidence in support of the
978	978	order. The licensee requesting the hearing may cross examine
979	979	witnesses and show cause why the order should not be affirmed.
980	980	Section 2003.021(b), Government Code, does not apply to hearings
981	981	conducted under this section.
982	982	(e) A summary suspension order continues in effect unless
983	983	the order is stayed by the executive director [secretary]. The
984	984	executive director [secretary] may impose any condition before
985	985	granting a stay of the order.
986	986	(f) After the hearing, the executive director [secretary]
987	987	shall affirm, modify, or set aside in whole or part the summary
988	988	suspension order. An order affirming or modifying the summary
989	989	suspension order is final for purposes of enforcement and appeal.
990	990	SECTION 1.28. Sections 6.07(b) and (c), Texas Racing Act
991	991	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
992	992	as follows:
993	993	(b) The department [commission] may not approve a lease if:
994	994	(1) it appears that the lease is a subterfuge to evade
995	995	compliance with Section [6.05 or] 6.06 of this Act;
996	996	(2) the racetrack and surrounding structures do not
997	997	conform to the rules adopted under this Act; or
998	998	(3) the lessee, prospective lessee, or lessor is
999	999	disqualified from holding a racetrack license.
1000	1000	(c) Each lessor and lessee under this section must comply
1001	1001	with the disclosure requirements of Subdivision (1) of Subsection
1002	1002	(a) of Section 6.03 of this Act. The department [commission] may
1003	1003	not approve a lease if the lessor and lessee do not provide the
1004	1004	required information.
1005	1005	SECTION 1.29. Section 6.08(b)(4), Texas Racing Act (Article
1006	1006	179e, Vernon's Texas Civil Statutes), is amended to read as
1007	1007	follows:
1008	1008	(4) An association[, after January 1, 1999,] may pay a
1009	1009	portion of the revenue set aside under this subsection to an
1010	1010	organization recognized under Section 3.13 of this Act, as provided
1011	1011	by a contract approved by the department [commission].
1012	1012	SECTION 1.30. Section 6.08(i), Texas Racing Act (Article
1013	1013	179e, Vernon's Texas Civil Statutes), is amended to read as
1014	1014	follows:
1015	1015	(i) Ten percent of the total breakage from a live
1016	1016	pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
1017	1017	the department [commission] for use by the appropriate state horse
1018	1018	breed registry, subject to rules promulgated by the commission.
1019	1019	The appropriate breed registry for Thoroughbred horses is the Texas
1020	1020	Thoroughbred Breeders Association, for quarter horses is the Texas
1021	1021	Quarter Horse Association, for Appaloosa horses is the Texas
1022	1022	Appaloosa Horse Club, for Arabian horses is the Texas Arabian
1023	1023	Breeders Association, and for paint horses is the Texas Paint Horse
1024	1024	Breeders Association.
1025	1025	SECTION 1.31. Sections 6.09(d) and (f), Texas Racing Act
1026	1026	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
1027	1027	as follows:
1028	1028	(d) Fifty percent of the breakage is to be paid to the
1029	1029	appropriate state greyhound breeding registry. Of that portion of
1030	1030	the breakage 25 percent of that breakage is to be used in stakes
1031	1031	races and 25 percent of that total breakage from a live pari-mutuel
1032	1032	pool or a simulcast pari-mutuel pool is to be paid to the department
1033	1033	[commission] for the use by the state greyhound breed registry,
1034	1034	subject to rules promulgated by the commission.
1035	1035	(f) The commission in adopting rules relating to money paid
1036	1036	to the department [commission] for use by the state greyhound breed
1037	1037	registry under Subsection (d) of this section shall require the
1038	1038	award of a grant in an amount equal to two percent of the amount paid
1039	1039	to the department [commission] for use by the state greyhound breed
1040	1040	registry to a person for the rehabilitation of greyhounds or to
1041	1041	locate homes for greyhounds.
1042	1042	SECTION 1.32. Sections 6.091(a), (c), (e), (f), and (g),
1043	1043	Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
1044	1044	amended to read as follows:
1045	1045	(a) An association shall distribute from the total amount
1046	1046	deducted as provided by Sections 6.08(a) and 6.09(a) of this Act
1047	1047	from each simulcast pari-mutuel pool and each simulcast
1048	1048	cross-species pool the following shares:
1049	1049	(1) an amount equal to one percent of each simulcast
1050	1050	pool as the amount set aside for the state;
1051	1051	(2) an amount equal to 1.25 percent of each simulcast
1052	1052	cross-species pool as the amount set aside for the state;
1053	1053	(3) if the association is a horse racing association,
1054	1054	an amount equal to one percent of a multiple two wagering pool or
1055	1055	multiple three wagering pool as the amount set aside for the
1056	1056	Texas-bred program to be used as provided by Section 6.08(f) of this
1057	1057	Act;
1058	1058	(4) if the association is a greyhound association, an
1059	1059	amount equal to one percent of a multiple two wagering pool or a
1060	1060	multiple three wagering pool as the amount set aside for the
1061	1061	Texas-bred program for greyhound races, to be distributed and used
1062	1062	in accordance with rules of the commission adopted to promote
1063	1063	greyhound breeding in this state; and
1064	1064	(5) the remainder as the amount set aside for purses,
1065	1065	expenses, the sending association, and the receiving location
1066	1066	pursuant to a contract approved by the department [commission]
1067	1067	between the sending association and the receiving location.
1068	1068	(c) A greyhound racetrack association that receives an
1069	1069	interstate cross-species simulcast signal shall distribute the
1070	1070	following amounts from the total amount deducted as provided by
1071	1071	Subsection (a) of this section from each pool wagered on the signal
1072	1072	at the facility:
1073	1073	(1) a fee of 1.5 percent to be paid to the racetrack
1074	1074	facility in this state sending the signal;
1075	1075	(2) a purse in the amount of 0.75 percent to be paid to
1076	1076	the official state breed registry for thoroughbred horses for use
1077	1077	as purses at racetracks in this state;
1078	1078	(3) a purse in the amount of 0.75 percent to be paid to
1079	1079	the official state breed registry for quarter horses for use as
1080	1080	purses at racetracks in this state; and
1081	1081	(4) a purse of 4.5 percent to be escrowed with the
1082	1082	department [commission] for purses in the manner set forth in
1083	1083	Subsection (e) of this section.
1084	1084	(e) The purse set aside under Subsection (c)(4) of this
1085	1085	section shall be deposited into an escrow account in the registry of
1086	1086	the department [commission]. Any horse racetrack association in
1087	1087	this state may apply to the department [commission] for receipt of
1088	1088	all or part of the escrowed purse account for use as purses. The
1089	1089	department [commission] shall determine to which horse racetracks
1090	1090	the escrowed purse account shall be allocated and in what
1091	1091	percentages, taking into consideration purse levels, racing
1092	1092	opportunities, and the financial status of the requesting
1093	1093	racetrack. [The first distribution of the escrowed purse account
1094	1094	allocated to a racetrack under this section may not be made before
1095	1095	October 1, 1998.]
1096	1096	(f) A [After October 15, 1998, a] horse racetrack
1097	1097	association that is located not more than 75 miles from a greyhound
1098	1098	racetrack facility that offers wagering on a cross-species
1099	1099	simulcast signal may apply to the department [commission] for an
1100	1100	additional allocation of up to 20 percent of the funds in the
1101	1101	escrowed purse account that is attributable to the wagering on a
1102	1102	cross-species simulcast signal at the greyhound racetrack
1103	1103	facility, if the horse racetrack facility sends the cross-species
1104	1104	simulcast signal to the greyhound racetrack. If the applying horse
1105	1105	racetrack can prove to the department's [commission's] satisfaction
1106	1106	that a decrease in the racetrack's handle has occurred that is
1107	1107	directly due to wagering on an interstate cross-species simulcast
1108	1108	signal at a greyhound racetrack facility that is located not more
1109	1109	than 75 miles from the applying racetrack, the department
1110	1110	[commission] shall allocate the amounts from the escrowed purse
1111	1111	account as the department [commission] considers appropriate to
1112	1112	compensate the racetrack for the decrease, but the amount allocated
1113	1113	may not exceed 20 percent of the funds in the escrowed purse account
1114	1114	that are attributable to the wagering on the interstate
1115	1115	cross-species simulcast signal at the greyhound racetrack
1116	1116	facility. Any amount allocated by the department [commission]
1117	1117	under this subsection may be used by the racetrack facility for any
1118	1118	purpose.
1119	1119	(g) If a racing association purchases an interstate
1120	1120	simulcast signal and the cost of the signal is more than five
1121	1121	percent of the pari-mutuel pool, the department [commission] shall
1122	1122	reimburse the racing association an amount equal to one-half of the
1123	1123	signal cost that is more than five percent of the pari-mutuel pool
1124	1124	from the escrowed purse account under Subsection (c)(4) of this
1125	1125	section.
1126	1126	SECTION 1.33. Sections 6.092(c), (d), and (e), Texas Racing
1127	1127	Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
1128	1128	read as follows:
1129	1129	(c) An organization receiving funds generated by live or
1130	1130	simulcast pari-mutuel racing shall annually file with the
1131	1131	department [commission] a copy of an audit report prepared by an
1132	1132	independent certified public accountant. The audit shall include a
1133	1133	verification of any performance report sent to or required by the
1134	1134	department [commission].
1135	1135	(d) The department [commission] may review any records or
1136	1136	books of an organization that submits an independent audit to the
1137	1137	department [commission] as the department [commission] determines
1138	1138	necessary to confirm or further investigate the findings of an
1139	1139	audit or report.
1140	1140	(e) The commission by rule may suspend or withhold funds
1141	1141	from an organization that:
1142	1142	(1) it determines has failed to comply with the
1143	1143	requirements or performance measures adopted under Subsection (a)
1144	1144	of this section; or
1145	1145	(2) has, following an independent audit or other
1146	1146	report to the department [commission], material questions raised on
1147	1147	the use of funds by the organization.
1148	1148	SECTION 1.34. Section 6.093(a)(3), Texas Racing Act
1149	1149	(Article 179e, Vernon's Texas Civil Statutes), is amended to read
1150	1150	as follows:
1151	1151	(3) All amounts set aside by the association for the
1152	1152	state in Subdivisions (1) and (2) of this subsection shall be
1153	1153	applied to the reimbursement of all amounts of general revenue
1154	1154	appropriated for the administration and enforcement of this Act in
1155	1155	excess of the cumulative amount deposited to the Texas racing
1156	1156	[Racing Commission] fund until the earlier of:
1157	1157	(A) the excesses together with interest thereon
1158	1158	are reimbursed in full; or
1159	1159	(B) January 1, 1999.
1160	1160	SECTION 1.35. Sections 6.094(b), (c), (d), and (e), Texas
1161	1161	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
1162	1162	amended to read as follows:
1163	1163	(b) An association conducting the Breeders' Cup races may
1164	1164	apply to the reimbursement of Breeders' Cup costs amounts that
1165	1165	would otherwise be set aside by the association for the state under
1166	1166	Sections 6.091(a)(1) and 6.093 of this Act during the year in which
1167	1167	the association hosts the Breeders' Cup races, limited to an amount
1168	1168	equal to the lesser of the aggregate amount contributed to pay
1169	1169	Breeders' Cup costs by political subdivisions and development
1170	1170	organizations or $2 million. Beginning on January 1 of the year for
1171	1171	which the association has been officially designated to host the
1172	1172	Breeders' Cup races, amounts that would otherwise be set aside by
1173	1173	the association for the state during that year under Sections
1174	1174	6.091(a)(1) and 6.093 of this Act shall be set aside, in accordance
1175	1175	with procedures prescribed by the comptroller, for deposit into the
1176	1176	Breeders' Cup Developmental Account. The Breeders' Cup
1177	1177	Developmental Account is an account in the general revenue fund.
1178	1178	The department [commission] shall administer the account. Money in
1179	1179	the account may be appropriated only to the department [commission]
1180	1180	and may be used only for the purposes specified in this section.
1181	1181	The account is exempt from the application of Section 403.095,
1182	1182	Government Code.
1183	1183	(c) The department [commission] shall make disbursements
1184	1184	from the Breeders' Cup Developmental Account to reimburse Breeders'
1185	1185	Cup costs actually incurred and paid by the association, after the
1186	1186	association files a request for reimbursement. Disbursements from
1187	1187	the account may not at any time exceed the aggregate amount actually
1188	1188	paid for Breeders' Cup costs by political subdivisions and
1189	1189	development organizations, as certified by the department
1190	1190	[commission] to the comptroller, or $2 million, whichever is less.
1191	1191	(d) Not later than January 31 of the year following the year
1192	1192	in which the association hosts the Breeders' Cup races, the
1193	1193	association shall submit to the department [commission] a report
1194	1194	that shows:
1195	1195	(1) the total amount of Breeders' Cup costs incurred
1196	1196	and paid by the association;
1197	1197	(2) the total payments made by political subdivisions
1198	1198	and development organizations for Breeders' Cup costs; and
1199	1199	(3) any other information requested by the department
1200	1200	[commission].
1201	1201	(e) Following receipt of the report required by Subsection
1202	1202	(d) of this section, the department [commission] shall take any
1203	1203	steps it considers appropriate to verify the report. Not later than
1204	1204	March 31 of the year following the event, the department
1205	1205	[commission] shall transfer to the credit of the general revenue
1206	1206	fund any balance remaining in the Breeders' Cup Developmental
1207	1207	Account after reimbursement of any remaining Breeders' Cup costs
1208	1208	authorized under this section.
1209	1209	SECTION 1.36. Section 6.12(b), Texas Racing Act (Article
1210	1210	179e, Vernon's Texas Civil Statutes), is amended to read as
1211	1211	follows:
1212	1212	(b) In the event of the death of any person whose death
1213	1213	causes a violation of the licensing provisions of this Act, the
1214	1214	department [commission] may issue a temporary license for a period
1215	1215	not to exceed one year under rules adopted by the commission.
1216	1216	SECTION 1.37. Section 6.13, Texas Racing Act (Article 179e,
1217	1217	Vernon's Texas Civil Statutes), is amended to read as follows:
1218	1218	Sec. 6.13. FINANCIAL DISCLOSURE. (a) The commission by
1219	1219	rule shall require that each association holding a license for a
1220	1220	class 1 racetrack, class 2 racetrack, or greyhound racetrack must
1221	1221	annually file with the department [commission] a detailed financial
1222	1222	statement that:
1223	1223	(1) contains the names and addresses of all
1224	1224	stockholders, members and owners of any interest in the racetrack
1225	1225	facility;
1226	1226	(2) indicates compliance during the filing period with
1227	1227	Section 6.06 of this Act; and
1228	1228	(3) includes any other information required by the
1229	1229	department [commission].
1230	1230	(b) Each transaction that involves an acquisition or a
1231	1231	transfer of a pecuniary interest in the association must receive
1232	1232	prior approval from the department [commission]. A transaction
1233	1233	that changes the ownership of the association requires submission
1234	1234	of updated information of the type required to be disclosed under
1235	1235	Subsection (a) of Section 6.03 of this Act and payment of a fee to
1236	1236	recover the costs of the criminal background check.
1237	1237	SECTION 1.38. Sections 6.14(a), (b), and (d), Texas Racing
1238	1238	Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
1239	1239	read as follows:
1240	1240	(a) An association may not conduct greyhound or horse racing
1241	1241	at any place other than the place designated in the license except
1242	1242	as provided by this section or by Section 6.15 of this Act.
1243	1243	However, if the racetrack or enclosure designated in the license
1244	1244	becomes unsuitable for racing because of fire, flood, or other
1245	1245	catastrophe, the affected association, with the prior approval of
1246	1246	the department [commission], may conduct a race meeting or any
1247	1247	remaining portion of a meeting temporarily at any other racetrack
1248	1248	licensed by the department [commission] to conduct the same type of
1249	1249	racing as may be conducted by the affected association if the
1250	1250	licensee of the other racetrack also consents to the usage.
1251	1251	(b) The department [commission] shall not issue more than
1252	1252	three racetrack licenses for greyhound racing.
1253	1253	(d) On request of an association, the department
1254	1254	[commission] shall amend a racetrack license to change the location
1255	1255	of the racetrack if the commission finds that:
1256	1256	(1) the conduct of race meetings at the proposed track
1257	1257	at the new location will be in the public interest;
1258	1258	(2) there was not a competing applicant for the
1259	1259	original license; and
1260	1260	(3) the association's desire to change location is not
1261	1261	the result of a subterfuge in the original licensing proceeding.
1262	1262	SECTION 1.39. Section 6.15, Texas Racing Act (Article 179e,
1263	1263	Vernon's Texas Civil Statutes), is amended to read as follows:
1264	1264	Sec. 6.15. RACING AT TEMPORARY LOCATION. After an
1265	1265	association has been granted a license to operate a racetrack and
1266	1266	before the completion of construction at the designated place for
1267	1267	which the license was issued, the department [commission] may, on
1268	1268	application by the association, issue a temporary license that
1269	1269	permits the association to conduct races at a location in the same
1270	1270	county for a period expiring two years after the date of issuance of
1271	1271	the temporary license or on the completion of the permanent
1272	1272	facility, whichever occurs first. The department [commission] may
1273	1273	set the conditions and standards for issuance of a temporary
1274	1274	license and allocation of appropriate race days. An applicant for a
1275	1275	temporary license must pay the application fees and must post the
1276	1276	bonds required of other licensees before the issuance of a
1277	1277	temporary license. After a temporary license has expired, no
1278	1278	individual, corporation, or association, nor any individual
1279	1279	belonging to a corporation or association which has been granted a
1280	1280	temporary license, may get an extension of the temporary license or
1281	1281	a new temporary license.
1282	1282	SECTION 1.40. Section 6.16(a), Texas Racing Act (Article
1283	1283	179e, Vernon's Texas Civil Statutes), is amended to read as
1284	1284	follows:
1285	1285	(a) An association may not employ any person who has been a
1286	1286	member of the commission, the executive director [secretary of the
1287	1287	commission], or an employee employed by the racing division
1288	1288	[commission] in a position in the state employment classification
1289	1289	plan of grade 12 or above, or any person related within the second
1290	1290	degree by affinity or the third degree by consanguinity, as
1291	1291	determined under Chapter 573, Government Code, to such a member or
1292	1292	employee, during the one-year period immediately preceding the
1293	1293	employment by the association.
1294	1294	SECTION 1.41. Sections 7.01(a) and (c), Texas Racing Act
1295	1295	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
1296	1296	as follows:
1297	1297	(a) Except as provided by this section, a person may not
1298	1298	participate in racing with pari-mutuel wagering other than as a
1299	1299	spectator or as a person placing a wager without first obtaining a
1300	1300	license from the department [commission]. A person may not engage
1301	1301	in any occupation for which commission rules require a license
1302	1302	under this Act without first obtaining a license from the
1303	1303	department [commission].
1304	1304	(c) A racetrack licensed under this Act is responsible for
1305	1305	ensuring that its employees comply with this Act and commission
1306	1306	rules. The department or commission may impose disciplinary action
1307	1307	against a licensed racetrack for violations of this Act and
1308	1308	commission rules by its employees as provided by Section 6.0603 of
1309	1309	this Act.
1310	1310	SECTION 1.42. Sections 7.02(c), (d), and (e), Texas Racing
1311	1311	Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
1312	1312	read as follows:
1313	1313	(c) If an examination is required for the issuance of a
1314	1314	license under this article, not later than the 30th day after the
1315	1315	date on which a licensing examination is administered under this
1316	1316	Act, the department [commission] shall notify each examinee of the
1317	1317	results of the examination.
1318	1318	(d) If requested in writing by a person who fails a
1319	1319	licensing examination administered under this Act, the department
1320	1320	[commission] shall furnish the person with an analysis of the
1321	1321	person's performance on the examination.
1322	1322	(e) The department [commission] may not approve a
1323	1323	management contract to operate or manage a racetrack owned by a
1324	1324	governmental entity unless the racetrack license holder is an owner
1325	1325	of the entity that proposes to manage the racetrack.
1326	1326	SECTION 1.43. Sections 7.03, 7.04, and 7.06, Texas Racing
1327	1327	Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
1328	1328	read as follows:
1329	1329	Sec. 7.03. ISSUANCE. The department [commission] shall
1330	1330	issue a license to a qualified person on application and payment of
1331	1331	the license fee.
1332	1332	Sec. 7.04. LICENSES; GROUNDS FOR DENIAL, REVOCATION, AND
1333	1333	SUSPENSION. The department [commission], after notice and hearing,
1334	1334	may refuse to issue any original or renewal license under this
1335	1335	article or may revoke or suspend the license if it has reasonable
1336	1336	grounds to believe and finds that:
1337	1337	(1) the applicant has been convicted in a court of
1338	1338	competent jurisdiction of a violation of this Act or of any rule
1339	1339	adopted by the commission or has aided, abetted, or conspired with
1340	1340	any person to commit such a violation;
1341	1341	(2) the applicant has been convicted of a felony or of
1342	1342	any crime involving moral turpitude that is reasonably related to
1343	1343	the applicant's present fitness to hold a license under this Act;
1344	1344	(3) the applicant has violated or has caused to be
1345	1345	violated this Act or a rule of the commission in a manner that
1346	1346	involves moral turpitude, as distinguished from a technical
1347	1347	violation of this Act or of a rule;
1348	1348	(4) the applicant is unqualified, by experience or
1349	1349	otherwise, to perform the duties required of a licensee under this
1350	1350	Act;
1351	1351	(5) the applicant failed to answer or has falsely or
1352	1352	incorrectly answered a question in an original or renewal
1353	1353	application;
1354	1354	(6) the applicant fails to disclose the true ownership
1355	1355	or interest in a greyhound or horse as required by the rules of the
1356	1356	commission;
1357	1357	(7) the applicant is indebted to the state for any fees
1358	1358	or for the payment of a penalty imposed by this Act or by a rule of
1359	1359	the commission;
1360	1360	(8) the applicant is not of good moral character or the
1361	1361	applicant's reputation as a peaceable, law-abiding citizen in the
1362	1362	community where the applicant resides is bad;
1363	1363	(9) the applicant is in the habit of using alcoholic
1364	1364	beverages to an excess or uses a controlled substance as defined in
1365	1365	Chapter 481, Health and Safety Code, or a dangerous drug as defined
1366	1366	in Chapter 483, Health and Safety Code, or is mentally
1367	1367	incapacitated;
1368	1368	(10) the applicant may be excluded from a track
1369	1369	enclosure under this Act;
1370	1370	(11) the department or commission determines that the
1371	1371	applicant has improperly used a temporary pass, license
1372	1372	certificate, credential, or identification card issued under this
1373	1373	Act;
1374	1374	(12) the applicant is residentially domiciled with a
1375	1375	person whose license has been revoked for cause within the 12 months
1376	1376	immediately preceding the date of the present application;
1377	1377	(13) the applicant has failed or refused to furnish a
1378	1378	true copy of the application to the department's [commission's]
1379	1379	district office in the district in which the premises for which the
1380	1380	permit is sought are located; or
1381	1381	(14) the applicant is engaged or has engaged in
1382	1382	activities or practices that are detrimental to the best interests
1383	1383	of the public and the sport of horse racing or greyhound racing.
1384	1384	Sec. 7.06. FORM OF LICENSE. The department [commission]
1385	1385	shall issue a license certificate under this article in the form of
1386	1386	an identification card with a photograph and other information as
1387	1387	prescribed by the commission.
1388	1388	SECTION 1.44. Section 7.07(a-1), Texas Racing Act (Article
1389	1389	179e, Vernon's Texas Civil Statutes), is amended to read as
1390	1390	follows:
1391	1391	(a-1) The department [commission] shall obtain criminal
1392	1392	history record information on each applicant renewing an
1393	1393	occupational license under this article. The department
1394	1394	[commission] shall ensure that criminal history record information
1395	1395	is obtained on each license holder at least once every 36 months.
1396	1396	SECTION 1.45. Sections 7.09, 8.01, 8.02, and 9.01, Texas
1397	1397	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
1398	1398	amended to read as follows:
1399	1399	Sec. 7.09. TEMPORARY LICENSES. Pending investigation of an
1400	1400	applicant's qualifications to receive an original or renewal
1401	1401	license, the department [commission] may issue a temporary license
1402	1402	to an applicant under this article whose application appears to
1403	1403	comply with the requirements of law and who has paid the necessary
1404	1404	fee. The temporary license is valid for a period not to exceed 120
1405	1405	days from the date of issuance.
1406	1406	Sec. 8.01. ALLOCATION. The department [commission] shall
1407	1407	allocate the live and simulcast racing days for the conduct of live
1408	1408	and simulcast racing at each racetrack licensed under this Act.
1409	1409	Each racetrack shall accord reasonable access to races for all
1410	1410	breeds of horses as determined by the racetrack through
1411	1411	negotiations with the representative state breed registry with the
1412	1412	final approval of the department [commission]. In granting
1413	1413	approval, the department [commission] shall consider the factors of
1414	1414	availability of competitive horses, economic feasibility, and
1415	1415	public interest. In allocating race dates under this section, the
1416	1416	department [commission] shall consider live race dates separately
1417	1417	from simulcast race dates. The department [commission] may
1418	1418	prohibit Sunday racing unless the prohibition would conflict with
1419	1419	another provision of this Act.
1420	1420	Sec. 8.02. CHARITY DAYS. (a) The department [commission]
1421	1421	shall grant additional racing days to each association during a
1422	1422	race meeting to be conducted as charity days. The department
1423	1423	[commission] shall grant at least two and not more than five
1424	1424	additional days to each class 1 racetrack and to each class 2
1425	1425	racetrack. Each class 1 and class 2 racetrack shall conduct charity
1426	1426	race days in accordance with this section.
1427	1427	(b) The commission shall adopt rules relating to the conduct
1428	1428	of charity days. The department [commission] shall insure that the
1429	1429	races held by an association on a charity day are comparable in all
1430	1430	respects, including the generation of revenue, to the races held by
1431	1431	that association on any other racing day.
1432	1432	Sec. 9.01. TEXAS-BRED HORSES. Subject to this Act or any
1433	1433	rule of the commission, the state horse breed registries shall make
1434	1434	reasonable rules to establish the qualifications of accredited
1435	1435	Texas-bred horses to promote, develop, and improve the breeding of
1436	1436	horses in this state. Rules adopted by a registry are subject to
1437	1437	department [commission] approval.
1438	1438	SECTION 1.46. Section 9.03(b), Texas Racing Act (Article
1439	1439	179e, Vernon's Texas Civil Statutes), is amended to read as
1440	1440	follows:
1441	1441	(b) To encourage the breeding of horses in this state, any
1442	1442	accredited Texas-bred horse finishing first, second, or third in
1443	1443	any race in this state except a restricted stakes race shall receive
1444	1444	a purse supplement. The appropriate state breed registry shall act
1445	1445	in an advisory capacity to the association and the department
1446	1446	[commission] for the purpose of administering the provisions of
1447	1447	this section.
1448	1448	SECTION 1.47. Sections 9.05 and 9.06, Texas Racing Act
1449	1449	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
1450	1450	as follows:
1451	1451	Sec. 9.05. TYPES OF RACING. When a horse racing association
1452	1452	conducts a race meeting for more than one breed of horse at one
1453	1453	racetrack, the number of races to be run by each breed on each day
1454	1454	shall be equitable as determined by the department [commission]
1455	1455	under Section 8.01 of this Act. The commission, by rule or by
1456	1456	order, may allow an exception if there are not enough horses of a
1457	1457	breed available to provide sufficient competition.
1458	1458	Sec. 9.06. STABLING. When a horse racing association
1459	1459	conducts a race meeting for more than one breed of horse at one
1460	1460	racetrack, on-track stalls shall be provided on an equitable basis
1461	1461	as determined by the department [commission] under Section 8.01 of
1462	1462	this Act.
1463	1463	SECTION 1.48. Sections 9A.001(d), (e), and (f), Texas
1464	1464	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
1465	1465	amended to read as follows:
1466	1466	(d) The race conditions and qualifications and preference
1467	1467	systems developed for the Texas Derbies under Subsection (b) or (c)
1468	1468	of this section are subject to review and approval by the executive
1469	1469	director [secretary].
1470	1470	(e) The department [commission] shall set the date of and
1471	1471	the location for each Texas Derby. Each Texas Derby must be held
1472	1472	annually at the class 1 racetrack determined by the department
1473	1473	[commission]. The department [commission] shall determine the
1474	1474	location of each Texas Derby in consultation with:
1475	1475	(1) each class 1 racetrack;
1476	1476	(2) the official state breed registries; and
1477	1477	(3) the official horsemen's organization.
1478	1478	(f) The department [commission] may sell the right to name a
1479	1479	Texas Derby. The department [commission] shall deposit the
1480	1480	proceeds from the sale of the right to name a Texas Derby into the
1481	1481	Texas Derby escrow purse fund established under Section 9A.003 of
1482	1482	this article.
1483	1483	SECTION 1.49. Section 9A.002(a), Texas Racing Act (Article
1484	1484	179e, Vernon's Texas Civil Statutes), is amended to read as
1485	1485	follows:
1486	1486	(a) For each Texas Derby, the department [commission] shall
1487	1487	appoint a state veterinarian to conduct a prerace examination of
1488	1488	each horse entered in the race to determine whether the horse is
1489	1489	healthy and meets standards set by commission rule for racing.
1490	1490	SECTION 1.50. Sections 10.01 and 10.02, Texas Racing Act
1491	1491	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
1492	1492	as follows:
1493	1493	Sec. 10.01. NUMBER OF RACING DAYS. Any greyhound racing
1494	1494	licensee shall be entitled to have 300 evening and 150 matinee
1495	1495	performances in a calendar year. The department [commission] shall
1496	1496	grant at least five additional racing days during a race meeting to
1497	1497	be conducted as charity days. The commission shall adopt rules
1498	1498	relating to the conduct of charity days. The department
1499	1499	[commission] shall insure that the races held by an association on a
1500	1500	charity day are comparable in all respects, including the
1501	1501	generation of revenue, to the races held by that association on any
1502	1502	other racing day.
1503	1503	Sec. 10.02. SUBSTITUTE RACING DAYS OR ADDITIONAL RACES. If
1504	1504	for a reason beyond the licensee's control and not caused by the
1505	1505	licensee's fault or neglect it is impossible for the licensee to
1506	1506	hold or conduct a race or races on a day authorized by the
1507	1507	department [commission], the department [commission] in its
1508	1508	discretion and at the request of the licensee, as a substitute for
1509	1509	the race or races, may specify another day for the holding or
1510	1510	conducting of racing by the licensee or may add additional races to
1511	1511	already programmed events.
1512	1512	SECTION 1.51. Section 10.04(a), Texas Racing Act (Article
1513	1513	179e, Vernon's Texas Civil Statutes), is amended to read as
1514	1514	follows:
1515	1515	(a) Subject to this Act or any rule of the commission, the
1516	1516	state greyhound breed registry shall make reasonable rules to
1517	1517	establish the qualifications of accredited Texas-bred greyhounds
1518	1518	to promote, develop, and improve the breeding of greyhounds in this
1519	1519	state. Rules adopted by the registry are subject to department
1520	1520	[commission] approval.
1521	1521	SECTION 1.52. Section 11.01(a-1), Texas Racing Act (Article
1522	1522	179e, Vernon's Texas Civil Statutes), is amended to read as
1523	1523	follows:
1524	1524	(a-1) The department [commission] may commission as many
1525	1525	investigators as the department [commission] determines necessary
1526	1526	to enforce this Act and the rules of the commission. Each
1527	1527	investigator shall take the constitutional oath of office and file
1528	1528	it with the department [commission]. Each commissioned
1529	1529	investigator has the powers of a peace officer.
1530	1530	SECTION 1.53. Sections 11.011(b), (c), (f), and (m), Texas
1531	1531	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
1532	1532	amended to read as follows:
1533	1533	(b) With approval of the department [commission], wagers
1534	1534	accepted on a simulcast race by any out-of-state receiving location
1535	1535	may be included in the pari-mutuel pool for the race at the sending
1536	1536	racetrack association in this state.
1537	1537	(c) With approval of the department [commission], wagers
1538	1538	accepted by a licensed racetrack association in this state on a race
1539	1539	simulcast from out-of-state may be included in the pari-mutuel
1540	1540	pools for the race at the out-of-state sending racetrack.
1541	1541	(f) Nothing in this Act is to be construed to allow wagering
1542	1542	in Texas on simulcast races at any location other than a racetrack
1543	1543	licensed under this Act that has been granted live race dates by the
1544	1544	department [commission].
1545	1545	(m) The department [commission] shall not approve wagering
1546	1546	on an interstate simulcast race unless the receiving location
1547	1547	consents to wagering on interstate simulcast races at all other
1548	1548	receiving locations in this state.
1549	1549	SECTION 1.54. Section 11.02, Texas Racing Act (Article
1550	1550	179e, Vernon's Texas Civil Statutes), is amended to read as
1551	1551	follows:
1552	1552	Sec. 11.02. COMPUTATION OF WAGERING. The wagering may be
1553	1553	calculated only by state-of-the-art computational equipment that
1554	1554	is approved by the department [commission]. The department
1555	1555	[commission] may not require the use of a particular make of
1556	1556	equipment.
1557	1557	SECTION 1.55. Sections 11.04(a) and (e), Texas Racing Act
1558	1558	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
1559	1559	as follows:
1560	1560	(a) Only a person inside the enclosure where both live and
1561	1561	simulcast race meetings are authorized may wager on the result of a
1562	1562	live or simulcast race presented by the association in accordance
1563	1563	with commission rules. Except as provided by this section, a person
1564	1564	may not place, in person, by telephone, or over the Internet, a
1565	1565	wager for a horse race or greyhound race conducted inside or outside
1566	1566	this state. The commission shall adopt rules to prohibit wagering
1567	1567	by employees of the racing division [commission] and to regulate
1568	1568	wagering by persons licensed under this Act.
1569	1569	(e) An association that allows a machine in an enclosure as
1570	1570	provided by Subsection (c) shall collect a fee of $1 for each
1571	1571	transaction under Subsection (c). The commission shall adopt rules
1572	1572	providing for collection, reporting, and auditing of the
1573	1573	transaction fee. The association shall forward the fee to the
1574	1574	department [commission]. The department [commission] shall
1575	1575	deposit the fee to the credit of the general revenue fund.
1576	1576	SECTION 1.56. Section 11.07(b), Texas Racing Act (Article
1577	1577	179e, Vernon's Texas Civil Statutes), is amended to read as
1578	1578	follows:
1579	1579	(b) If the claimant satisfactorily establishes a right to
1580	1580	distribution from the pool, the association shall pay the amount
1581	1581	due the claimant. If the association refuses to pay a claimant who
1582	1582	has established satisfactorily a right to distribution from the
1583	1583	pool, the claimant may appeal to the department [commission] under
1584	1584	procedures prescribed by commission rule.
1585	1585	SECTION 1.57. Section 13.01, Texas Racing Act (Article
1586	1586	179e, Vernon's Texas Civil Statutes), is amended to read as
1587	1587	follows:
1588	1588	Sec. 13.01. REGULATION BY COMMISSION. The commission shall
1589	1589	adopt rules providing for the exclusion or ejection from an
1590	1590	enclosure where greyhound races or horse races are conducted, or
1591	1591	from specified portions of an enclosure, of a person:
1592	1592	(1) who has engaged in bookmaking, touting, or illegal
1593	1593	wagering;
1594	1594	(2) whose income is from illegal activities or
1595	1595	enterprises;
1596	1596	(3) who has been convicted of a violation of this Act;
1597	1597	(4) who has been convicted of theft;
1598	1598	(5) who has been convicted under the penal law of
1599	1599	another jurisdiction for committing an act that would have
1600	1600	constituted a violation of any of the rules mentioned in this
1601	1601	section;
1602	1602	(6) who has committed a corrupt or fraudulent act in
1603	1603	connection with greyhound racing or horse racing or pari-mutuel
1604	1604	wagering or who has committed any act tending or intended to corrupt
1605	1605	greyhound racing or horse racing or pari-mutuel wagering in this
1606	1606	state or elsewhere;
1607	1607	(7) who is under suspension or ruled off a racetrack by
1608	1608	the department [commission] or a steward in this state or by a
1609	1609	corresponding authority in another state because of fraudulent or
1610	1610	corrupt practices or other acts detrimental to racing;
1611	1611	(8) who has submitted a forged pari-mutuel ticket or
1612	1612	has altered or forged a pari-mutuel ticket for cashing or who has
1613	1613	cashed or caused to be cashed an altered, raised, or forged
1614	1614	pari-mutuel ticket;
1615	1615	(9) who has been convicted of committing a lewd or
1616	1616	lascivious act or other crime involving moral turpitude;
1617	1617	(10) who is guilty of boisterous or disorderly conduct
1618	1618	while inside a racing enclosure;
1619	1619	(11) who is an agent or habitual associate of a person
1620	1620	excludable under this section; or
1621	1621	(12) who has been convicted of a felony.
1622	1622	SECTION 1.58. Sections 13.02(b) and (c), Texas Racing Act
1623	1623	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
1624	1624	as follows:
1625	1625	(b) Such an application constitutes a contested case under
1626	1626	Chapter 2001, Government Code [the Administrative Procedure and
1627	1627	Texas Register Act (Article 6252-13a, Vernon's Texas Civil
1628	1628	Statutes)]. If, after a hearing as provided under that chapter
1629	1629	[Section 13 of that Act], the commission determines that the
1630	1630	exclusion or ejection was proper, it shall make and enter an order
1631	1631	to that effect in its minutes, and the person shall continue to be
1632	1632	excluded from each association.
1633	1633	(c) The person excluded or ejected may appeal an adverse
1634	1634	decision of the commission by filing a petition for judicial review
1635	1635	in the manner provided by Chapter 2001, Government Code [Section 19
1636	1636	of the Administrative Procedure and Texas Register Act (Article
1637	1637	6252-13a, Vernon's Texas Civil Statutes)]. Judicial review under
1638	1638	this subsection is subject to the substantial evidence rule. Venue
1639	1639	for the review is in a district court in Travis County.
1640	1640	SECTION 1.59. Section 14.01(c), Texas Racing Act (Article
1641	1641	179e, Vernon's Texas Civil Statutes), is amended to read as
1642	1642	follows:
1643	1643	(c) An offense under this section is a state jail felony if:
1644	1644	(1) the actor is a licensee under this Act or an
1645	1645	employee or member of the commission or the department and the actor
1646	1646	knowingly represents that a member or employee of the commission or
1647	1647	the department or a person licensed by the commission or department
1648	1648	is the source of the false information; or
1649	1649	(2) the false statement or information was contained
1650	1650	in racing selection information provided to the public.
1651	1651	SECTION 1.60. Section 14.04(a), Texas Racing Act (Article
1652	1652	179e, Vernon's Texas Civil Statutes), is amended to read as
1653	1653	follows:
1654	1654	(a) A person commits an offense if the person is a licensee
1655	1655	and the person knowingly or intentionally permits, facilitates, or
1656	1656	allows access, to an enclosure where races are conducted, to
1657	1657	another person who the person knows:
1658	1658	(1) has engaged in bookmaking, touting, or illegal
1659	1659	wagering;
1660	1660	(2) derives income from illegal activities or
1661	1661	enterprises;
1662	1662	(3) has been convicted of a violation of this Act; or
1663	1663	(4) is excluded by the department [commission] from
1664	1664	entering a racetrack facility.
1665	1665	SECTION 1.61. Section 14.05(a), Texas Racing Act (Article
1666	1666	179e, Vernon's Texas Civil Statutes), is amended to read as
1667	1667	follows:
1668	1668	(a) A person who is subject to this section commits an
1669	1669	offense if the person intentionally or knowingly wagers on the
1670	1670	result of a greyhound race or horse race conducted in this state
1671	1671	that:
1672	1672	(1) is held on an American Indian reservation or on
1673	1673	American Indian trust land located in this state; and
1674	1674	(2) is not held under the supervision of the
1675	1675	department [commission] under rules adopted under this Act.
1676	1676	SECTION 1.62. Section 14.06(c), Texas Racing Act (Article
1677	1677	179e, Vernon's Texas Civil Statutes), is amended to read as
1678	1678	follows:
1679	1679	(c) An offense under this section is a state jail felony
1680	1680	unless the statement was material in a commission or department
1681	1681	action relating to a racetrack license, in which event the offense
1682	1682	is a felony of the third degree.
1683	1683	SECTION 1.63. Section 14.12, Texas Racing Act (Article
1684	1684	179e, Vernon's Texas Civil Statutes), is amended to read as
1685	1685	follows:
1686	1686	Sec. 14.12. CRIMINAL CONFLICT OF INTEREST. A person who is
1687	1687	a member of the commission or an employee of the racing division
1688	1688	commits an offense if the person:
1689	1689	(1) accepts, directly or indirectly, employment or
1690	1690	remuneration from a racetrack facility, association, or other
1691	1691	licensee, including a facility, association, or licensee located or
1692	1692	residing in another state;
1693	1693	(2) wagers or causes a wager to be placed on the
1694	1694	outcome of a horse or greyhound race conducted in this state; or
1695	1695	(3) accepts or is entitled to any part of a purse to be
1696	1696	paid to an animal in a race conducted in this state.
1697	1697	SECTION 1.64. Section 14.17(b), Texas Racing Act (Article
1698	1698	179e, Vernon's Texas Civil Statutes), is amended to read as
1699	1699	follows:
1700	1700	(b) In this section, "lawful request" means a request from
1701	1701	the commission or the department, an authorized agent of the
1702	1702	commission or the department, the director or a commissioned
1703	1703	officer of the Department of Public Safety, a peace officer, or a
1704	1704	steward or judge at any time and any restricted location that:
1705	1705	(1) is on a racetrack facility; and
1706	1706	(2) is not a public place.
1707	1707	SECTION 1.65. Section 14.18(b), Texas Racing Act (Article
1708	1708	179e, Vernon's Texas Civil Statutes), is amended to read as
1709	1709	follows:
1710	1710	(b) A search may be conducted by a commissioned officer of
1711	1711	the Department of Public Safety or a peace officer, including a
1712	1712	peace officer employed by the department [commission], at any time
1713	1713	and at any location that is on a racetrack facility, except a
1714	1714	location:
1715	1715	(1) excluded by commission rule from searches under
1716	1716	this section; or
1717	1717	(2) provided by an association under commission rule
1718	1718	for private storage of personal items belonging to a licensee
1719	1719	entering a racetrack facility.
1720	1720	SECTION 1.66. Sections 14.20 and 15.04, Texas Racing Act
1721	1721	(Article 179e, Vernon's Texas Civil Statutes), are amended to read
1722	1722	as follows:
1723	1723	Sec. 14.20. COMMISSION AND DEPARTMENT AUTHORITY. This
1724	1724	article may not be construed to restrict the department's or the
1725	1725	commission's administrative authority to enforce this Act or
1726	1726	commission rules to the fullest extent authorized by this Act or
1727	1727	other law.
1728	1728	Sec. 15.04. COMPLAINTS. Complaints alleging violations of
1729	1729	this Act may be instituted by the Department of Public Safety, the
1730	1730	department [commission], or the attorney general. Such complaints
1731	1731	shall be adjudicated by the department [commission] pursuant to the
1732	1732	provisions for a contested case proceeding under Chapter 2001,
1733	1733	Government Code [the Administrative Procedure and Texas Register
1734	1734	Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
1735	1735	SECTION 1.67. Section 16.01(a), Texas Racing Act (Article
1736	1736	179e, Vernon's Texas Civil Statutes), is amended to read as
1737	1737	follows:
1738	1738	(a) The department [commission] shall not issue a racetrack
1739	1739	license or accept an application for a license for a racetrack to be
1740	1740	located in a county until the commissioners court has certified to
1741	1741	the secretary of state that the qualified voters of the county have
1742	1742	approved the legalization of pari-mutuel wagering on horse races or
1743	1743	greyhound races in the county at an election held under this
1744	1744	article. [A local option election may not be held under this
1745	1745	article before January 1, 1987.]
1746	1746	SECTION 1.68. Section 16.13(a), Texas Racing Act (Article
1747	1747	179e, Vernon's Texas Civil Statutes), is amended to read as
1748	1748	follows:
1749	1749	(a) Not later than the 30th day after the date the result of
1750	1750	the election is declared, any qualified voter of the county may
1751	1751	contest the election by filing a petition in the district court of
1752	1752	the county. Any person who is licensed or who has made application
1753	1753	to the department [commission] to be licensed in any capacity under
1754	1754	this Act may become a named party to the proceedings by pleading to
1755	1755	the petition on or before the time set for hearing and trial as
1756	1756	provided by Subsection (c) of this section or thereafter by
1757	1757	intervention on leave of court.
1758	1758	SECTION 1.69. Sections 18.06, 18.07, and 18.08, Texas
1759	1759	Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
1760	1760	amended to read as follows:
1761	1761	Sec. 18.06. RELEASE OF LIABILITY. A member of the
1762	1762	commission, an employee of the department [commission], a steward
1763	1763	or judge, an association, a horsemen's organization, or any other
1764	1764	person regulated under this Act is not liable to any individual,
1765	1765	corporation, business association, or other entity for a cause of
1766	1766	action that arises out of that person's performance or exercise of
1767	1767	discretion in the implementation or enforcement of this Act or a
1768	1768	rule adopted under this Act if the person has acted in good faith.
1769	1769	Sec. 18.07. PAST PERFORMANCE OF ASSOCIATION. In
1770	1770	considering a pleading of a racetrack association, the department
1771	1771	[commission] shall take into account the operating experience of
1772	1772	the racetrack association in Texas, which includes, but is not
1773	1773	limited to, the financial condition of the track, regulatory
1774	1774	compliance and conduct, and any other relevant matters concerning
1775	1775	the operation of a track.
1776	1776	Sec. 18.08. DISTANCE LEARNING. The department [commission]
1777	1777	may provide assistance to members of the racing industry who are
1778	1778	attempting to develop or implement adult, youth, or continuing
1779	1779	education programs that use distance learning.
1780	1780	SECTION 1.70. Sections 2.01, 2.02, 2.03, 2.04, 2.05, 2.06,
1781	1781	2.071, 2.073, 2.074, 2.08, 2.09, 2.10, 2.11, 2.19, 2.20, 2.21,
1782	1782	2.22, 2.23, 2.24, 2.25, and 18.01, Texas Racing Act (Article 179e,
1783	1783	Vernon's Texas Civil Statutes), are repealed.
1784	1784	ARTICLE 2. CONFORMING AMENDMENTS
1785	1785	SECTION 2.01. Section 87.002, Civil Practice and Remedies
1786	1786	Code, is amended to read as follows:
1787	1787	Sec. 87.002. APPLICABILITY OF CHAPTER. This chapter does
1788	1788	not apply to an activity regulated by the racing division of the
1789	1789	Texas Department of Licensing and Regulation [Racing Commission].
1790	1790	SECTION 2.02. Section 104.001, Civil Practice and Remedies
1791	1791	Code, is amended to read as follows:
1792	1792	Sec. 104.001. STATE LIABILITY; PERSONS COVERED. In a cause
1793	1793	of action based on conduct described in Section 104.002, the state
1794	1794	shall indemnify the following persons, without regard to whether
1795	1795	the persons performed their services for compensation, for actual
1796	1796	damages, court costs, and attorney's fees adjudged against:
1797	1797	(1) an employee, a member of the governing board, or
1798	1798	any other officer of a state agency, institution, or department;
1799	1799	(2) a former employee, former member of the governing
1800	1800	board, or any other former officer of a state agency, institution,
1801	1801	or department who was an employee or officer when the act or
1802	1802	omission on which the damages are based occurred;
1803	1803	(3) a physician or psychiatrist licensed in this state
1804	1804	who was performing services under a contract with any state agency,
1805	1805	institution, or department or a racing official performing services
1806	1806	under a contract with the Texas Department of Licensing and
1807	1807	Regulation [Racing Commission] when the act or omission on which
1808	1808	the damages are based occurred;
1809	1809	(3-a) a phlebotomist licensed in this state who was
1810	1810	performing services under a contract with the Texas Department of
1811	1811	Criminal Justice when the act or omission on which the damages are
1812	1812	based occurred;
1813	1813	(4) a chaplain or spiritual advisor who was performing
1814	1814	services under contract with the Texas Department of Criminal
1815	1815	Justice[, the Texas Youth Commission,] or the Texas Juvenile
1816	1816	Justice Department [Probation Commission] when the act or omission
1817	1817	on which the damages are based occurred;
1818	1818	(5) a person serving on the governing board of a
1819	1819	foundation, corporation, or association at the request and on
1820	1820	behalf of an institution of higher education, as that term is
1821	1821	defined by Section 61.003(8), Education Code, not including a
1822	1822	public junior college;
1823	1823	(6) a state contractor who signed a waste manifest as
1824	1824	required by a state contract; or
1825	1825	(7) the estate of a person listed in this section.
1826	1826	SECTION 2.03. Article 2.12, Code of Criminal Procedure, is
1827	1827	amended to read as follows:
1828	1828	Art. 2.12. WHO ARE PEACE OFFICERS. The following are peace
1829	1829	officers:
1830	1830	(1) sheriffs, their deputies, and those reserve
1831	1831	deputies who hold a permanent peace officer license issued under
1832	1832	Chapter 1701, Occupations Code;
1833	1833	(2) constables, deputy constables, and those reserve
1834	1834	deputy constables who hold a permanent peace officer license issued
1835	1835	under Chapter 1701, Occupations Code;
1836	1836	(3) marshals or police officers of an incorporated
1837	1837	city, town, or village, and those reserve municipal police officers
1838	1838	who hold a permanent peace officer license issued under Chapter
1839	1839	1701, Occupations Code;
1840	1840	(4) rangers and officers commissioned by the Public
1841	1841	Safety Commission and the Director of the Department of Public
1842	1842	Safety;
1843	1843	(5) investigators of the district attorneys', criminal
1844	1844	district attorneys', and county attorneys' offices;
1845	1845	(6) law enforcement agents of the Texas Alcoholic
1846	1846	Beverage Commission;
1847	1847	(7) each member of an arson investigating unit
1848	1848	commissioned by a city, a county, or the state;
1849	1849	(8) officers commissioned under Section 37.081,
1850	1850	Education Code, or Subchapter E, Chapter 51, Education Code;
1851	1851	(9) officers commissioned by the General Services
1852	1852	Commission;
1853	1853	(10) law enforcement officers commissioned by the
1854	1854	Parks and Wildlife Commission;
1855	1855	(11) airport police officers commissioned by a city
1856	1856	with a population of more than 1.18 million located primarily in a
1857	1857	county with a population of 2 million or more that operates an
1858	1858	airport that serves commercial air carriers;
1859	1859	(12) airport security personnel commissioned as peace
1860	1860	officers by the governing body of any political subdivision of this
1861	1861	state, other than a city described by Subdivision (11), that
1862	1862	operates an airport that serves commercial air carriers;
1863	1863	(13) municipal park and recreational patrolmen and
1864	1864	security officers;
1865	1865	(14) security officers and investigators commissioned
1866	1866	as peace officers by the comptroller;
1867	1867	(15) officers commissioned by a water control and
1868	1868	improvement district under Section 49.216, Water Code;
1869	1869	(16) officers commissioned by a board of trustees
1870	1870	under Chapter 54, Transportation Code;
1871	1871	(17) investigators commissioned by the Texas Medical
1872	1872	Board;
1873	1873	(18) officers commissioned by:
1874	1874	(A) the board of managers of the Dallas County
1875	1875	Hospital District, the Tarrant County Hospital District, the Bexar
1876	1876	County Hospital District, or the El Paso County Hospital District
1877	1877	under Section 281.057, Health and Safety Code;
1878	1878	(B) the board of directors of the Ector County
1879	1879	Hospital District under Section 1024.117, Special District Local
1880	1880	Laws Code; and
1881	1881	(C) the board of directors of the Midland County
1882	1882	Hospital District of Midland County, Texas, under Section 1061.121,
1883	1883	Special District Local Laws Code;
1884	1884	(19) county park rangers commissioned under
1885	1885	Subchapter E, Chapter 351, Local Government Code;
1886	1886	(20) investigators employed by the racing division of
1887	1887	the Texas Department of Licensing and Regulation [Racing
1888	1888	Commission];
1889	1889	(21) officers commissioned under Chapter 554,
1890	1890	Occupations Code;
1891	1891	(22) officers commissioned by the governing body of a
1892	1892	metropolitan rapid transit authority under Section 451.108,
1893	1893	Transportation Code, or by a regional transportation authority
1894	1894	under Section 452.110, Transportation Code;
1895	1895	(23) investigators commissioned by the attorney
1896	1896	general under Section 402.009, Government Code;
1897	1897	(24) security officers and investigators commissioned
1898	1898	as peace officers under Chapter 466, Government Code;
1899	1899	(25) an officer employed by the Department of State
1900	1900	Health Services under Section 431.2471, Health and Safety Code;
1901	1901	(26) officers appointed by an appellate court under
1902	1902	Subchapter F, Chapter 53, Government Code;
1903	1903	(27) officers commissioned by the state fire marshal
1904	1904	under Chapter 417, Government Code;
1905	1905	(28) an investigator commissioned by the commissioner
1906	1906	of insurance under Section 701.104, Insurance Code;
1907	1907	(29) apprehension specialists and inspectors general
1908	1908	commissioned by the Texas Juvenile Justice Department as officers
1909	1909	under Sections 242.102 and 243.052, Human Resources Code;
1910	1910	(30) officers appointed by the inspector general of
1911	1911	the Texas Department of Criminal Justice under Section 493.019,
1912	1912	Government Code;
1913	1913	(31) investigators commissioned by the Texas
1914	1914	Commission on Law Enforcement under Section 1701.160, Occupations
1915	1915	Code;
1916	1916	(32) commission investigators commissioned by the
1917	1917	Texas Private Security Board under Section 1702.061(f),
1918	1918	Occupations Code;
1919	1919	(33) the fire marshal and any officers, inspectors, or
1920	1920	investigators commissioned by an emergency services district under
1921	1921	Chapter 775, Health and Safety Code;
1922	1922	(34) officers commissioned by the State Board of
1923	1923	Dental Examiners under Section 254.013, Occupations Code, subject
1924	1924	to the limitations imposed by that section;
1925	1925	(35) investigators commissioned by the Texas Juvenile
1926	1926	Justice Department as officers under Section 221.011, Human
1927	1927	Resources Code; and
1928	1928	(36) the fire marshal and any related officers,
1929	1929	inspectors, or investigators commissioned by a county under
1930	1930	Subchapter B, Chapter 352, Local Government Code.
1931	1931	SECTION 2.04. Sections 88.526(a) and (c), Education Code,
1932	1932	are amended to read as follows:
1933	1933	(a) The director shall prepare an annual report on equine
1934	1934	research funded under this subchapter. The director shall
1935	1935	distribute the report to the racing division of the Texas
1936	1936	Department of Licensing and Regulation [Racing Commission] and
1937	1937	members of the Texas horse racing industry. The director shall make
1938	1938	copies of the report available to interested parties.
1939	1939	(c) The director shall, at least annually, consult with the
1940	1940	racing division of the Texas Department of Licensing and Regulation
1941	1941	[Racing Commission] on the use of the account and the impact of
1942	1942	equine research funded by the account.
1943	1943	SECTION 2.05. Section 411.096, Government Code, is amended
1944	1944	to read as follows:
1945	1945	Sec. 411.096. ACCESS TO CRIMINAL HISTORY RECORD
1946	1946	INFORMATION: RACING DIVISION OF THE TEXAS DEPARTMENT OF LICENSING
1947	1947	AND REGULATION [RACING COMMISSION]. (a) The racing division of
1948	1948	the Texas Department of Licensing and Regulation [Racing
1949	1949	Commission] is entitled to obtain from the department criminal
1950	1950	history record information maintained by the department that
1951	1951	pertains to a person who is:
1952	1952	(1) appointed to the racing division [commission];
1953	1953	(2) an applicant for employment by the racing division
1954	1954	[commission]; or
1955	1955	(3) an applicant for a license under the Texas Racing
1956	1956	Act (Article 179e, Vernon's Texas Civil Statutes).
1957	1957	(b) Criminal history record information obtained by the
1958	1958	racing division [commission] under Subsection (a) may not be
1959	1959	released or disclosed to any person except in a criminal
1960	1960	proceeding, in a hearing conducted by the Texas Department of
1961	1961	Licensing and Regulation [commission], on court order, or with the
1962	1962	consent of the applicant.
1963	1963	SECTION 2.06. Section 572.003(c), Government Code, is
1964	1964	amended to read as follows:
1965	1965	(c) The term means a member of:
1966	1966	(1) the Public Utility Commission of Texas;
1967	1967	(2) the Texas Commission on Environmental Quality;
1968	1968	(3) the Texas Alcoholic Beverage Commission;
1969	1969	(4) The Finance Commission of Texas;
1970	1970	(5) the Texas Facilities Commission;
1971	1971	(6) the Texas Board of Criminal Justice;
1972	1972	(7) the board of trustees of the Employees Retirement
1973	1973	System of Texas;
1974	1974	(8) the Texas Transportation Commission;
1975	1975	(9) the Texas Department of Insurance;
1976	1976	(10) the Parks and Wildlife Commission;
1977	1977	(11) the Public Safety Commission;
1978	1978	(12) the Texas Ethics Commission;
1979	1979	(13) the State Securities Board;
1980	1980	(14) the Texas Water Development Board;
1981	1981	(15) the governing board of a public senior college or
1982	1982	university as defined by Section 61.003, Education Code, or of The
1983	1983	University of Texas Southwestern Medical Center, The University of
1984	1984	Texas Medical Branch at Galveston, The University of Texas Health
1985	1985	Science Center at Houston, The University of Texas Health Science
1986	1986	Center at San Antonio, The University of Texas M. D. Anderson Cancer
1987	1987	Center, The University of Texas Health Science Center at Tyler,
1988	1988	University of North Texas Health Science Center at Fort Worth,
1989	1989	Texas Tech University Health Sciences Center, Texas State Technical
1990	1990	College--Harlingen, Texas State Technical College--Marshall, Texas
1991	1991	State Technical College--Sweetwater, or Texas State Technical
1992	1992	College--Waco;
1993	1993	(16) the Texas Higher Education Coordinating Board;
1994	1994	(17) the Texas Workforce Commission;
1995	1995	(18) the board of trustees of the Teacher Retirement
1996	1996	System of Texas;
1997	1997	(19) the Credit Union Commission;
1998	1998	(20) the School Land Board;
1999	1999	(21) the board of the Texas Department of Housing and
2000	2000	Community Affairs;
2001	2001	(22) [the Texas Racing Commission;
2002	2002	[(23)] the State Board of Dental Examiners;
2003	2003	(23) [(24)] the Texas Medical Board;
2004	2004	(24) [(25)] the Board of Pardons and Paroles;
2005	2005	(25) [(26)] the Texas State Board of Pharmacy;
2006	2006	(26) [(27)] the Department of Information Resources
2007	2007	governing board;
2008	2008	(27) [(28)] the Motor Vehicle Board;
2009	2009	(28) [(29)] the Texas Real Estate Commission;
2010	2010	(29) [(30)] the board of directors of the State Bar of
2011	2011	Texas;
2012	2012	(30) [(31)] the bond review board;
2013	2013	(31) [(32)] the Health and Human Services Commission;
2014	2014	(32) [(33)] the Texas Funeral Service Commission;
2015	2015	(33) [(34)] the board of directors of a river
2016	2016	authority created under the Texas Constitution or a statute of this
2017	2017	state; or
2018	2018	(34) [(35)] the Texas Lottery Commission.
2019	2019	SECTION 2.07. Section 2054.352(a), Government Code, is
2020	2020	amended to read as follows:
2021	2021	(a) The following licensing entities shall participate in
2022	2022	the system established under Section 2054.353:
2023	2023	(1) Texas Board of Chiropractic Examiners;
2024	2024	(2) Judicial Branch Certification Commission;
2025	2025	(3) State Board of Dental Examiners;
2026	2026	(4) Texas Funeral Service Commission;
2027	2027	(5) Texas Board of Professional Land Surveying;
2028	2028	(6) Texas Medical Board;
2029	2029	(7) Texas Board of Nursing;
2030	2030	(8) Texas Optometry Board;
2031	2031	(9) Department of Agriculture, for licenses issued
2032	2032	under Chapter 1951, Occupations Code;
2033	2033	(10) Texas State Board of Pharmacy;
2034	2034	(11) Executive Council of Physical Therapy and
2035	2035	Occupational Therapy Examiners;
2036	2036	(12) Texas State Board of Plumbing Examiners;
2037	2037	(13) Texas State Board of Podiatric Medical Examiners;
2038	2038	(14) Texas State Board of Examiners of Psychologists;
2039	2039	(15) State Board of Veterinary Medical Examiners;
2040	2040	(16) Texas Real Estate Commission;
2041	2041	(17) Texas Appraiser Licensing and Certification
2042	2042	Board;
2043	2043	(18) Texas Department of Licensing and Regulation;
2044	2044	(19) Texas State Board of Public Accountancy;
2045	2045	(20) State Board for Educator Certification;
2046	2046	(21) Texas Board of Professional Engineers;
2047	2047	(22) Department of State Health Services;
2048	2048	(23) Texas Board of Architectural Examiners;
2049	2049	(24) [Texas Racing Commission;
2050	2050	[(25)] Texas Commission on Law Enforcement; and
2051	2051	(25) [(26)] Texas Private Security Board.
2052	2052	ARTICLE 3. TRANSITION AND EFFECTIVE DATE
2053	2053	SECTION 3.01. The change in law made by this Act to the
2054	2054	requirements for the issuance or renewal of a license issued under
2055	2055	the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes)
2056	2056	applies only to the issuance or renewal of a certificate under that
2057	2057	Act that expires on or after January 1, 2016. A certificate that
2058	2058	expires before that date is governed by the law in effect on the
2059	2059	date the certificate expires, and the former law is continued in
2060	2060	effect for that purpose.
2061	2061	SECTION 3.02. The change in law made by this Act to the
2062	2062	procedures relating to disciplinary actions for persons licensed
2063	2063	under the Texas Racing Act (Article 179e, Vernon's Texas Civil
2064	2064	Statutes) applies only to a disciplinary action initiated on or
2065	2065	after January 1, 2016. A disciplinary action initiated before that
2066	2066	date is governed by the law in effect on the date the action is
2067	2067	initiated, and the former law is continued in effect for that
2068	2068	purpose.
2069	2069	SECTION 3.03. A person described by Section 6.16(a), Texas
2070	2070	Racing Act (Article 179e, Vernon's Texas Civil Statutes), is
2071	2071	governed by that section as it existed immediately before the
2072	2072	effective date of the amendment to that section by this Act, and
2073	2073	that law is continued in effect for that purpose.
2074	2074	SECTION 3.04. (a) On January 1, 2016:
2075	2075	(1) the Texas Racing Commission is abolished and all
2076	2076	powers and duties of the Texas Racing Commission under the Texas
2077	2077	Racing Act (Article 179e, Vernon's Texas Civil Statutes) and other
2078	2078	law are transferred to the Texas Commission of Licensing and
2079	2079	Regulation and the Texas Department of Licensing and Regulation;
2080	2080	(2) all obligations, rights, contracts, bonds,
2081	2081	appropriations, records, and property of the Texas Racing
2082	2082	Commission are transferred to the Texas Department of Licensing and
2083	2083	Regulation;
2084	2084	(3) a rule, policy, procedure, or decision of the
2085	2085	Texas Racing Commission continues in effect as a rule, policy,
2086	2086	procedure, or decision of the Texas Commission of Licensing and
2087	2087	Regulation or the Texas Department of Licensing and Regulation, in
2088	2088	accordance with Subdivision (1) of this subsection, until
2089	2089	superseded by a later act of the Texas Commission of Licensing and
2090	2090	Regulation or the Texas Department of Licensing and Regulation; and
2091	2091	(4) except as otherwise provided by this Act, a
2092	2092	reference in law to the Texas Racing Commission means the Texas
2093	2093	Commission of Licensing and Regulation.
2094	2094	(b) Not later than October 1, 2015, the Texas Racing
2095	2095	Commission, the Texas Commission of Licensing and Regulation, and
2096	2096	the Texas Department of Licensing and Regulation shall adopt a
2097	2097	comprehensive transition plan for the transfer described by
2098	2098	Subsection (a) of this section.
2099	2099	(c) Not later than November 1, 2015, the Texas Racing
2100	2100	Commission shall meet with the Texas Department of Licensing and
2101	2101	Regulation to provide for the transfer of essential personnel to
2102	2102	the Texas Department of Licensing and Regulation.
2103	2103	(d) The Texas Racing Commission shall continue, as
2104	2104	necessary, to perform the duties and functions being transferred to
2105	2105	the Texas Commission of Licensing and Regulation or the Texas
2106	2106	Department of Licensing and Regulation until the transfer of agency
2107	2107	duties and functions is complete.
2108	2108	(e) Subsections (b), (c), and (d) of this section take
2109	2109	effect September 1, 2015.
2110	2110	SECTION 3.05. (a) The Texas Racing Commission and the
2111	2111	Texas Commission of Licensing and Regulation shall enter into or
2112	2112	revise a joint memorandum of understanding to coordinate the Texas
2113	2113	Racing Commission's and the Texas Department of Licensing and
2114	2114	Regulation's information systems to allow for the sharing of
2115	2115	information so that each entity may effectively and efficiently
2116	2116	perform the functions and duties assigned to it. Neither the Texas
2117	2117	Racing Commission nor the Texas Department of Licensing and
2118	2118	Regulation may impose or collect a fee or charge in connection with
2119	2119	the sharing of information under the joint memorandum of
2120	2120	understanding entered into or revised under this section.
2121	2121	(b) The Texas Racing Commission and the Texas Department of
2122	2122	Licensing and Regulation shall implement the joint memorandum of
2123	2123	understanding using existing personnel and resources.
2124	2124	(c) Otherwise confidential information shared under the
2125	2125	memorandum of understanding remains subject to the same
2126	2126	confidentiality requirements and legal restrictions on access to
2127	2127	the information that are imposed by law on the entity that
2128	2128	originally obtained or collected the information.
2129	2129	(d) Information may be shared under the memorandum of
2130	2130	understanding without the consent of the person who is the subject
2131	2131	of the information.
2132	2132	(e) The memorandum of understanding required by Subsection
2133	2133	(a) of this section must be entered into or revised at the first
2134	2134	official meeting of the Texas Commission of Licensing and
2135	2135	Regulation occurring after the effective date of this section.
2136	2136	(f) This section takes effect September 1, 2015.
2137	2137	SECTION 3.06. (a) In addition to the memorandum of
2138	2138	understanding required by Section 3.05 of this article, the Texas
2139	2139	Racing Commission and the Texas Commission of Licensing and
2140	2140	Regulation may enter into or revise one or more other joint
2141	2141	memoranda of understanding necessary to effect the transfer of the
2142	2142	powers and duties of the Texas Racing Commission to the Texas
2143	2143	Commission of Licensing and Regulation and the Texas Department of
2144	2144	Licensing and Regulation under this Act. A memorandum of
2145	2145	understanding may include an agreement for the provision of office
2146	2146	space, utilities and other facility services, and support services
2147	2147	and for the transfer of information technology as necessary or
2148	2148	appropriate to effect the transfer of the powers and duties of the
2149	2149	Texas Racing Commission to the Texas Commission of Licensing and
2150	2150	Regulation and the Texas Department of Licensing and Regulation.
2151	2151	(b) Sections 3.05(b), (c), and (d) of this article apply to
2152	2152	a memorandum of understanding entered into or revised under
2153	2153	Subsection (a) of this section.
2154	2154	(c) This section takes effect September 1, 2015.
2155	2155	SECTION 3.07. Except as otherwise provided by this Act,
2156	2156	this Act takes effect January 1, 2016.