Texas 2017 - 85th Regular

Texas House Bill HB3926 Compare Versions

OldNewDifferences
1-85R22709 DMS-F
2- By: Kuempel, Thompson of Harris, Geren, H.B. No. 3926
3- King of Uvalde, Larson
4- Substitute the following for H.B. No. 3926:
5- By: Kuempel C.S.H.B. No. 3926
1+85R12629 DMS-F
2+ By: Kuempel H.B. No. 3926
63
74
85 A BILL TO BE ENTITLED
96 AN ACT
107 relating to the regulation of horse racing and greyhound racing and
118 pari-mutuel wagering in connection with that racing.
129 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1310 SECTION 1. Section 1.03, Texas Racing Act (Article 179e,
1411 Vernon's Texas Civil Statutes), is amended by amending Subdivisions
1512 (2), (6), (18), (46), (50), (67), and (74) and adding Subdivisions
1613 (82), (83), and (84) to read as follows:
1714 (2) "Association" or "racetrack association" means a
1815 person licensed under this Act to offer [conduct a horse race
1916 meeting or a greyhound race meeting with] pari-mutuel wagering on
2017 horse racing or greyhound racing.
2118 (6) "Horse race meeting" means the conducting of live,
2219 simulcast, or purpose-driven pari-mutuel wagering on horse races on
2320 a day or during a period of consecutive or nonconsecutive days.
2421 (18) "Pari-mutuel wagering" means the form of wagering
2522 on the outcome of greyhound or horse races [racing] in which [those
2623 who wager purchase tickets of various denominations on an animal or
2724 animals and] all wagers [for each race] are pooled and held by the
2825 racing association for distribution of the total amount, less the
2926 deductions authorized by this Act, to winning wagers [holders of
3027 tickets on the winning animals].
3128 (46) "Multiple wagering" means wagering on two or more
3229 entries [animals] in one race or on one or more entries [animals] in
3330 more than one race. "Multiple two wagering" means wagering on two
3431 entries [animals] in one or more races. "Multiple three wagering"
3532 means wagering on three or more entries [animals] in one or more
3633 races.
3734 (50) "Greyhound racing days" means 24-hour periods
3835 ending at 12 midnight [days] on which a permitted racetrack
3936 association may conduct [conducts] greyhound racing. ["One racing
4037 day" means a period commencing at noon and ending at 2 a.m. the next
4138 calendar day, except in the case of days on which there are matinee
4239 races.]
4340 (67) "Racetrack facility" means a facility operated by
4441 a racetrack [an] association within its enclosure for the purpose
4542 of offering [presenting races for] pari-mutuel wagering on the
4643 outcome of greyhound or horse races.
47- (74) "Race" includes:
48- (A) previously run races, whether digitally
49- represented, simulated, or presented by video recording; or
50- (B) a live audio and visual signal of a race.
44+ (74) "Race" includes previously run races, whether
45+ digitally represented, simulated, or presented by video recording
46+ and a live audio and visual signal of a race.
5147 (82) "Purpose-driven pari-mutuel wagering" means
5248 wagering on a greyhound race or horse race, whether running or
5349 harness, that:
5450 (A) was previously conducted at a facility
5551 licensed to offer pari-mutuel wagering on the outcome of greyhound
5652 or horse races;
5753 (B) concluded with official results; and
5854 (C) concluded without a scratch,
5955 disqualification, or dead-heat finish.
6056 (83) "Purpose-driven pari-mutuel pool" means the
6157 total amount of money wagered by patrons within the enclosure of a
6258 racetrack association on the results of a previously run race.
6359 (84) "Purpose-driven pari-mutuel wagering system
6460 provider" means a person, company, or association that contracts
6561 with a racetrack association to provide the necessary systems and
6662 hardware to conduct purpose-driven pari-mutuel wagering.
6763 SECTION 2. Section 3.02(a), Texas Racing Act (Article 179e,
6864 Vernon's Texas Civil Statutes), is amended to read as follows:
6965 (a) The commission shall regulate and supervise every race
7066 meeting in this state involving wagering on the result of live,
7167 simulcast, or previously run greyhound or horse races [racing].
7268 All persons and things relating to the operation of those meetings
7369 are subject to regulation and supervision by the commission. The
7470 commission shall adopt rules for conducting greyhound or horse
7571 racing in this state involving wagering and shall adopt other rules
7672 to administer this Act that are consistent with this Act. The
7773 commission shall also make rules, issue licenses, and take any
7874 other necessary action relating exclusively to horse racing or to
7975 greyhound racing.
8076 SECTION 3. Section 3.021(a), Texas Racing Act (Article
8177 179e, Vernon's Texas Civil Statutes), is amended to read as
8278 follows:
8379 (a) Any provision in this Act to the contrary
8480 notwithstanding, the commission may license and regulate all
8581 aspects of greyhound racing and horse racing offered in this state,
8682 whether or not that racing involves pari-mutuel wagering.
8783 SECTION 4. Section 3.09, Texas Racing Act (Article 179e,
8884 Vernon's Texas Civil Statutes), is amended by adding Subsection (c)
8985 to read as follows:
9086 (c) A pari-mutuel pool may be funded with money allocated to
9187 initiate the pool or a guaranteed amount.
9288 SECTION 5. Section 6.01, Texas Racing Act (Article 179e,
9389 Vernon's Texas Civil Statutes), is amended to read as follows:
9490 Sec. 6.01. LICENSE REQUIRED. A person may not conduct
9591 wagering on a greyhound race or a horse race [meeting] without first
9692 obtaining a racetrack license from the commission. A person who
9793 violates this section commits an offense.
9894 SECTION 6. Sections 6.03(a) and (b), Texas Racing Act
9995 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
10096 as follows:
10197 (a) The commission shall require each applicant for an
10298 original racetrack license to pay the required application fee and
10399 to submit an application, on a form prescribed by the commission,
104100 containing the following information:
105101 (1) if the applicant is an individual, the full name of
106102 the applicant, the applicant's date of birth, a physical
107103 description of the applicant, the applicant's current address and
108104 telephone number, and a statement by the applicant disclosing any
109105 arrest or conviction for a felony or for a misdemeanor, except a
110106 misdemeanor under Subtitle C, Title 7, Transportation Code, [the
111107 Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
112108 Texas Civil Statutes)] or a similar misdemeanor traffic offense;
113109 (2) if the applicant is a corporation:
114110 (A) the state in which it is incorporated, the
115111 names and addresses of the corporation's agents for service of
116112 process in this state, the names and addresses of its officers and
117113 directors, the names and addresses of its stockholders, and, for
118114 each individual named under this subdivision, the individual's date
119115 of birth, current address and telephone number, and physical
120116 description, and a statement disclosing any arrest or conviction
121117 for a felony or for a misdemeanor, except a misdemeanor under
122118 Subtitle C, Title 7, Transportation Code, [the Uniform Act
123119 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
124120 Statutes)] or a similar misdemeanor traffic offense; and
125121 (B) identification of any other beneficial owner
126122 of shares in the applicant that bear voting rights, absolute or
127123 contingent, any other person that directly or indirectly exercises
128124 any participation in the applicant, and any other ownership
129125 interest in the applicant that the applicant making its best effort
130126 is able to identify;
131127 (3) if the applicant is an unincorporated business
132128 association:
133129 (A) the names and addresses of each of its
134130 members and, for each individual named under this subdivision, the
135131 individual's date of birth, current address and telephone number,
136132 and physical description, and a statement disclosing any arrest or
137133 conviction for a felony or for a misdemeanor, except a misdemeanor
138134 under Subtitle C, Title 7, Transportation Code, [the Uniform Act
139135 Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
140136 Statutes)] or a similar misdemeanor traffic offense; and
141137 (B) identification of any other person that
142138 exercises voting rights in the applicant or that directly or
143139 indirectly exercises any participation in the applicant and any
144140 other ownership interest in the applicant that the applicant making
145141 its best effort is able to identify;
146142 (4) the exact location at which a race meeting is to be
147143 conducted;
148144 (5) if the racing facility is in existence, whether it
149145 is owned by the applicant and, if leased to the applicant, the name
150146 and address of the owner and, if the owner is a corporation or
151147 unincorporated business association, the names and addresses of its
152148 officers and directors, its stockholders and members, if any, and
153149 its agents for service of process in this state;
154150 (6) if construction of the racing facility has not
155151 been initiated, whether it is to be owned by the applicant and, if
156152 it is to be leased to the applicant, the name and address of the
157153 prospective owner and, if the owner is a corporation or
158154 unincorporated business association, the names and addresses of its
159155 officers and directors, the names and addresses of its
160156 stockholders, the names and addresses of its members, if any, and
161157 the names and addresses of its agents for service of process in this
162158 state;
163159 (7) identification of any other beneficial owner of
164160 shares that bear voting rights, absolute or contingent, in the
165161 owner or prospective owner of the racing facility, or any other
166162 person that directly or indirectly exercises any participation in
167163 the owner or prospective owner and all other ownership interest in
168164 the owner or prospective owner that the applicant making its best
169165 effort is able to identify;
170166 (8) a detailed statement of the assets and liabilities
171167 of the applicant;
172168 (9) the kind of racing to be conducted and the dates
173169 requested;
174170 (10) proof of residency as required by Section 6.06 of
175171 this Act;
176172 (11) a copy of each management, concession, [and]
177173 totalisator contract, and purpose-driven pari-mutuel wagering
178174 system provider contract dealing with the proposed license at the
179175 proposed location in which the applicant has an interest for
180176 inspection and review by the commission; the applicant or licensee
181177 shall advise the commission of any change in any management,
182178 concession, [or] totalisator contract, or purpose-driven
183179 pari-mutuel wagering system provider contract; all management,
184180 concession, [and] totalisator contracts, and purpose-driven
185181 pari-mutuel wagering system provider contracts must have prior
186182 approval of the commission; the same fingerprint, criminal records
187183 history, and other information required of license applicants
188184 pursuant to Sections 5.03 and 5.04 and Subdivisions (1) through (3)
189185 of this subsection shall be required of proposed totalisator firms,
190186 purpose-driven pari-mutuel wagering system providers,
191187 concessionaires, and managers and management firms; and
192188 (12) any other information required by the commission.
193189 (b) When the commission receives a plan for the security of
194190 a racetrack facility, or a copy of a management, concession, [or]
195191 totalisator contract, or purpose-driven pari-mutuel wagering
196192 system provider contract for review under Subdivision (11) of
197193 Subsection (a) of this section, the commission shall review the
198194 contract or security plan in an executive session. Documents
199195 submitted to the commission under this section by an applicant are
200196 subject to discovery in a suit brought under this Act but are not
201197 public records and are not subject to Chapter 552, Government Code
202198 [424, Acts of the 63rd Legislature, Regular Session, 1973 (Article
203199 6252-17a, Vernon's Texas Civil Statutes)]. In reviewing and
204200 approving contracts under this subsection, the commission shall
205201 attempt to ensure the involvement of minority owned businesses
206202 whenever possible.
207203 SECTION 7. Section 6.04, Texas Racing Act (Article 179e,
208204 Vernon's Texas Civil Statutes), is amended by adding Subsections
209205 (e) and (f) to read as follows:
210206 (e) A racetrack association licensed to offer pari-mutuel
211207 wagering on horse races, whether live or simulcast, and granted
212208 live or simulcast race dates may offer purpose-driven pari-mutuel
213209 wagering on any day during the calendar year.
214210 (f) A racetrack association licensed to offer pari-mutuel
215211 wagering on greyhound races, whether live or simulcast, and granted
216212 live or simulcast race dates may offer purpose-driven pari-mutuel
217213 wagering on any day during the calendar year.
218214 SECTION 8. Section 6.08(b)(3), Texas Racing Act (Article
219215 179e, Vernon's Texas Civil Statutes), is amended to read as
220216 follows:
221217 (3) The horse racetrack [racing] association shall
222218 transfer the amount set aside for purses from any live,
223219 purpose-driven, and simulcast pools and shall deposit the amounts
224220 in purse accounts maintained by breed by the horsemen's
225221 organization in one or more federally insured depositories. Legal
226222 title to purse accounts is vested in the horsemen's organization.
227223 The horsemen's organization may contract with a racetrack [an]
228224 association to manage and control the purse accounts and to make
229225 disbursements from the purse accounts:
230226 (A) to an owner whose horse won a purse;
231227 (B) to the horsemen's organization for its
232228 expenses; or
233229 (C) for other disbursements as provided by
234230 contract between the horsemen's organization and the association.
235231 SECTION 9. Section 6.08, Texas Racing Act (Article 179e,
236232 Vernon's Texas Civil Statutes), is amended by amending Subsections
237233 (i) and (j) and adding Subsections (o) and (p) to read as follows:
238234 (i) Ten percent of the total breakage from a live
239235 pari-mutuel pool, purpose-driven pari-mutuel pool, or a simulcast
240236 pari-mutuel pool is to be paid to the commission for use by the
241237 appropriate state horse breed registry, subject to rules
242238 promulgated by the commission. The appropriate breed registry for
243239 Thoroughbred horses is the Texas Thoroughbred [Breeders]
244240 Association, for quarter horses is the Texas Quarter Horse
245241 Association, for Appaloosa horses is the Texas Appaloosa Horse
246242 Club, for Arabian horses is the Texas Arabian Breeders Association,
247243 and for paint horses is the Texas Paint Horse Breeders Association.
248244 (j) Ten percent of the total breakage from a live
249245 pari-mutuel pool, purpose-driven pari-mutuel pool, or a simulcast
250246 pari-mutuel pool is to be retained by the racetrack association to
251247 be used in stakes races restricted to accredited Texas-bred horses.
252248 The appropriate state horse breed registry shall pay out the
253249 remaining 80 percent of the total breakage as follows:
254250 (1) 40 percent of the remaining breakage is allocated
255251 to the owners of the accredited Texas-bred horses that finish
256252 first, second, or third;
257253 (2) 40 percent is allocated to the breeders of the
258254 accredited Texas-bred horses that finish first, second, or third;
259255 and
260256 (3) 20 percent is allocated to the owner of the
261257 stallion standing in this state at the time of conception whose
262258 Texas-bred get finish first, second, or third.
263259 (o) A racetrack association may not begin offering
264260 purpose-driven pari-mutuel wagering until the association
265261 executes:
266262 (1) a valid contract with the officially recognized
267263 horsemen's organization to establish the portion of the
268264 association's commission on purpose-driven pari-mutuel pools that
269265 will be set aside for purses; and
270266 (2) a valid contract with the official breed
271267 registries to establish the portion of the association's commission
272268 on purpose-driven pari-mutuel pools that will be set aside for
273269 breeder incentives.
274270 (p) The commission shall be the final arbiter of any
275271 disagreements between a racetrack association and the horsemen's
276272 organization, or between a racetrack association and the official
277273 breed registries when reaching the terms of a valid contract.
278274 SECTION 10. Section 6.09, Texas Racing Act (Article 179e,
279- Vernon's Texas Civil Statutes), is amended by amending Subsection
280- (d) and adding Subsections (g) and (h) to read as follows:
275+ Vernon's Texas Civil Statutes), is amended by amending Subsections
276+ (a) and (d) and adding Subsections (g) and (h) to read as follows:
277+ (a) Every racetrack association authorized under this Act
278+ to conduct pari-mutuel wagering at a greyhound race meeting on
279+ races run shall distribute all sums deposited in any live or
280+ simulcast pari-mutuel pool to the holders of the winning tickets if
281+ those tickets are presented for payment within 60 days after the
282+ closing day of the race meeting at which the pool was formed, less
283+ an amount paid as a commission of 18 percent of the total deposits
284+ in pools resulting from regular win, place, and show wagering, and
285+ an amount not to exceed 21 percent of the total deposits in pools
286+ resulting from multiple two wagering and an amount not to exceed 25
287+ percent of the total deposits in pools resulting from multiple
288+ three wagering.
281289 (d) Fifty percent of the breakage for live, previously run,
282290 or simulcast races is to be paid to the appropriate state greyhound
283291 breeding registry. Of that portion of the breakage 25 percent of
284292 that breakage is to be used in stakes races and 25 percent of that
285293 total breakage from a live pari-mutuel pool, purpose-driven
286294 pari-mutuel pool, or a simulcast pari-mutuel pool is to be paid to
287295 the commission for the use by the state greyhound breed registry,
288296 subject to rules promulgated by the commission.
289297 (g) A racetrack association may not begin offering
290298 purpose-driven pari-mutuel wagering until the association executes
291299 a valid contract with the Texas Greyhound Association that
292300 establishes the portions of the association's commission on
293301 purpose-driven pari-mutuel pools that will be set aside for purses
294302 and breeder incentives.
295303 (h) The commission shall be the final arbiter of any
296304 disagreements between an association and the Texas Greyhound
297305 Association when reaching the terms of a valid contract.
298306 SECTION 11. Sections 6.092(a) and (c), Texas Racing Act
299307 (Article 179e, Vernon's Texas Civil Statutes), are amended to read
300308 as follows:
301309 (a) The commission shall adopt reporting, monitoring, and
302310 auditing requirements or other appropriate performance measures
303311 for any funds distributed to or used by or any function or service
304312 provided by the expenditure of any funds distributed to or used by
305313 any organization that receives funds generated by live,
306314 purpose-driven, or simulcast pari-mutuel wagering [racing].
307315 (c) An organization receiving funds generated by
308316 pari-mutuel wagering on live, purpose-driven, or simulcast
309317 [pari-mutuel] racing shall annually file with the commission a copy
310318 of an audit report prepared by an independent certified public
311319 accountant. The audit shall include a verification of any
312320 performance report sent to or required by the commission.
313321 SECTION 12. Article 6, Texas Racing Act (Article 179e,
314322 Vernon's Texas Civil Statutes), is amended by adding Section 6.095
315323 to read as follows:
316324 Sec. 6.095. DEDUCTIONS FROM PURPOSE-DRIVEN PARI-MUTUEL
317325 POOL. (a) For each dollar wagered in a purpose-driven pari-mutuel
318326 pool, a racetrack association shall set aside for this state an
319- amount equal to one percent to be distributed as follows:
320- (1) 45 percent of the state's share annually not to
321- exceed $20 million is allocated to the criminal justice division of
322- the governor's office to provide financial assistance to law
323- enforcement agencies in this state for the purpose of equipping
324- officers with bulletproof vests, ballistic plates, and plate
325- carriers;
326- (2) 33 percent of state's share annually not to exceed
327- $15 million is allocated to the fund for veterans' assistance
328- established under Section 434.017, Government Code;
329- (3) 22 percent of state's share annually not to exceed
330- $10 million is allocated as financial assistance to survivors of
331- certain law enforcement officers, firefighters, and others as death
332- benefits for families of law enforcement officers, firefighters,
333- and others killed in the line of duty under Chapter 615, Government
334- Code, or other law; and
335- (4) any remainder is allocated annually for deposit to
336- the general revenue fund.
327+ amount equal to one percent to be distributed in the following order
328+ of priority:
329+ (1) $20 million is allocated to pay the costs of body
330+ armor for law enforcement officers in this state;
331+ (2) $10 million is allocated as death benefits for
332+ families of law enforcement officers killed in the line of duty; and
333+ (3) any remainder is allocated for deposit to the
334+ general revenue fund to be used at the discretion of this state.
337335 (b) For each dollar wagered in a purpose-driven pari-mutuel
338336 pool, a racetrack association shall set aside for nonprofit
339- corporations an amount equal to one percent. A racetrack
340- association shall allocate and distribute one percent of the money
341- set aside for nonprofit corporations under this subsection to the
342- National Council on Problem Gambling.
337+ corporations an amount equal to one percent.
343338 (c) At any time purpose-driven pari-mutuel wagering is
344339 offered, each racetrack association shall contract with 10
345340 nonprofit corporations to provide contributions to the
346341 corporations from purpose-driven pari-mutuel wagering. A contract
347342 with a nonprofit corporation may be for a term of 30 days or more.
348343 (d) Any nonprofit corporation registered under 26 U.S.C.
349344 Section 501(c)(3) that has operations in this state and that filed
350345 an Internal Revenue Service Form 990 in the previous calendar year
351346 is eligible to participate. The commission shall adopt rules on the
352347 application process and selection criteria under this section.
353348 (e) Of the 10 nonprofit corporations contracted under
354349 Subsection (c):
355350 (1) at least one must benefit law enforcement
356351 programs;
357352 (2) at least one must benefit veterans of the armed
358353 forces of this state or the United States; and
359354 (3) not more than three may benefit the racing
360355 industry.
361356 SECTION 13. Section 6.11(a), Texas Racing Act (Article
362357 179e, Vernon's Texas Civil Statutes), is amended to read as
363358 follows:
364359 (a) In no event shall the purse in a greyhound race be less
365360 than a minimum of 4.7 percent of the total deposited in each live or
366361 simulcast pool.
367362 SECTION 14. Section 6.14(a), Texas Racing Act (Article
368363 179e, Vernon's Texas Civil Statutes), is amended to read as
369364 follows:
370365 (a) A racetrack [An] association may not conduct greyhound
371366 or horse racing or offer pari-mutuel wagering on greyhound or horse
372367 races, whether live, simulcast, or purpose-driven, at any place
373368 other than the place designated in the license except as provided by
374369 this section or by Section 6.15 of this Act. However, if the
375370 racetrack or enclosure designated in the license becomes unsuitable
376371 for racing because of fire, flood, or other catastrophe, the
377372 affected association, with the prior approval of the commission,
378373 may conduct a race meeting or any remaining portion of a meeting
379374 temporarily at any other racetrack licensed by the commission to
380375 conduct the same type of racing as may be conducted by the affected
381376 association if the licensee of the other racetrack also consents to
382377 the usage.
383378 SECTION 15. Section 11.01(a), Texas Racing Act (Article
384379 179e, Vernon's Texas Civil Statutes), is amended to read as
385380 follows:
386381 (a) Pari-mutuel wagering on the outcome of greyhound races
387382 and horse races, whether live, simulcast, or previously run, is
388383 authorized under this Act. The commission shall adopt rules to
389384 regulate wagering on the outcome of greyhound races and horse
390385 races, whether live, simulcast, or previously run, under the system
391386 known as pari-mutuel wagering. Wagering may be conducted only by a
392387 racetrack [an] association within its enclosure. A person may not
393388 accept, in person, by telephone, or over the Internet, a wager for a
394389 horse race or greyhound race conducted inside or outside this state
395390 from a person in this state unless the wager is authorized under
396391 this Act.
397392 SECTION 16. Section 11.04(a), Texas Racing Act (Article
398393 179e, Vernon's Texas Civil Statutes), is amended to read as
399394 follows:
400395 (a) Only a person inside the enclosure where [both] live or
401396 [and] simulcast race meetings are authorized may wager on the
402397 results [result] of [a] live, previously run, or simulcast races
403398 [race] presented by the racetrack association in accordance with
404399 commission rules. Except as provided by this section, a person may
405400 not place, in person, by telephone, or over the Internet, a wager
406401 for a horse race or greyhound race conducted inside or outside this
407402 state. The commission shall adopt rules to prohibit wagering by
408403 employees of the commission and to regulate wagering by persons
409404 licensed under this Act.
410405 SECTION 17. Section 6.09(e), Texas Racing Act (Article
411406 179e, Vernon's Texas Civil Statutes), is repealed.
412407 SECTION 18. As soon as practicable after the effective date
413408 of this Act, the Texas Racing Commission shall adopt the rules
414409 necessary to implement the changes in law made by this Act.
415410 SECTION 19. This Act takes effect September 1, 2017.