51 | 47 | | (82) "Purpose-driven pari-mutuel wagering" means |
---|
52 | 48 | | wagering on a greyhound race or horse race, whether running or |
---|
53 | 49 | | harness, that: |
---|
54 | 50 | | (A) was previously conducted at a facility |
---|
55 | 51 | | licensed to offer pari-mutuel wagering on the outcome of greyhound |
---|
56 | 52 | | or horse races; |
---|
57 | 53 | | (B) concluded with official results; and |
---|
58 | 54 | | (C) concluded without a scratch, |
---|
59 | 55 | | disqualification, or dead-heat finish. |
---|
60 | 56 | | (83) "Purpose-driven pari-mutuel pool" means the |
---|
61 | 57 | | total amount of money wagered by patrons within the enclosure of a |
---|
62 | 58 | | racetrack association on the results of a previously run race. |
---|
63 | 59 | | (84) "Purpose-driven pari-mutuel wagering system |
---|
64 | 60 | | provider" means a person, company, or association that contracts |
---|
65 | 61 | | with a racetrack association to provide the necessary systems and |
---|
66 | 62 | | hardware to conduct purpose-driven pari-mutuel wagering. |
---|
67 | 63 | | SECTION 2. Section 3.02(a), Texas Racing Act (Article 179e, |
---|
68 | 64 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
---|
69 | 65 | | (a) The commission shall regulate and supervise every race |
---|
70 | 66 | | meeting in this state involving wagering on the result of live, |
---|
71 | 67 | | simulcast, or previously run greyhound or horse races [racing]. |
---|
72 | 68 | | All persons and things relating to the operation of those meetings |
---|
73 | 69 | | are subject to regulation and supervision by the commission. The |
---|
74 | 70 | | commission shall adopt rules for conducting greyhound or horse |
---|
75 | 71 | | racing in this state involving wagering and shall adopt other rules |
---|
76 | 72 | | to administer this Act that are consistent with this Act. The |
---|
77 | 73 | | commission shall also make rules, issue licenses, and take any |
---|
78 | 74 | | other necessary action relating exclusively to horse racing or to |
---|
79 | 75 | | greyhound racing. |
---|
80 | 76 | | SECTION 3. Section 3.021(a), Texas Racing Act (Article |
---|
81 | 77 | | 179e, Vernon's Texas Civil Statutes), is amended to read as |
---|
82 | 78 | | follows: |
---|
83 | 79 | | (a) Any provision in this Act to the contrary |
---|
84 | 80 | | notwithstanding, the commission may license and regulate all |
---|
85 | 81 | | aspects of greyhound racing and horse racing offered in this state, |
---|
86 | 82 | | whether or not that racing involves pari-mutuel wagering. |
---|
87 | 83 | | SECTION 4. Section 3.09, Texas Racing Act (Article 179e, |
---|
88 | 84 | | Vernon's Texas Civil Statutes), is amended by adding Subsection (c) |
---|
89 | 85 | | to read as follows: |
---|
90 | 86 | | (c) A pari-mutuel pool may be funded with money allocated to |
---|
91 | 87 | | initiate the pool or a guaranteed amount. |
---|
92 | 88 | | SECTION 5. Section 6.01, Texas Racing Act (Article 179e, |
---|
93 | 89 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
---|
94 | 90 | | Sec. 6.01. LICENSE REQUIRED. A person may not conduct |
---|
95 | 91 | | wagering on a greyhound race or a horse race [meeting] without first |
---|
96 | 92 | | obtaining a racetrack license from the commission. A person who |
---|
97 | 93 | | violates this section commits an offense. |
---|
98 | 94 | | SECTION 6. Sections 6.03(a) and (b), Texas Racing Act |
---|
99 | 95 | | (Article 179e, Vernon's Texas Civil Statutes), are amended to read |
---|
100 | 96 | | as follows: |
---|
101 | 97 | | (a) The commission shall require each applicant for an |
---|
102 | 98 | | original racetrack license to pay the required application fee and |
---|
103 | 99 | | to submit an application, on a form prescribed by the commission, |
---|
104 | 100 | | containing the following information: |
---|
105 | 101 | | (1) if the applicant is an individual, the full name of |
---|
106 | 102 | | the applicant, the applicant's date of birth, a physical |
---|
107 | 103 | | description of the applicant, the applicant's current address and |
---|
108 | 104 | | telephone number, and a statement by the applicant disclosing any |
---|
109 | 105 | | arrest or conviction for a felony or for a misdemeanor, except a |
---|
110 | 106 | | misdemeanor under Subtitle C, Title 7, Transportation Code, [the |
---|
111 | 107 | | Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's |
---|
112 | 108 | | Texas Civil Statutes)] or a similar misdemeanor traffic offense; |
---|
113 | 109 | | (2) if the applicant is a corporation: |
---|
114 | 110 | | (A) the state in which it is incorporated, the |
---|
115 | 111 | | names and addresses of the corporation's agents for service of |
---|
116 | 112 | | process in this state, the names and addresses of its officers and |
---|
117 | 113 | | directors, the names and addresses of its stockholders, and, for |
---|
118 | 114 | | each individual named under this subdivision, the individual's date |
---|
119 | 115 | | of birth, current address and telephone number, and physical |
---|
120 | 116 | | description, and a statement disclosing any arrest or conviction |
---|
121 | 117 | | for a felony or for a misdemeanor, except a misdemeanor under |
---|
122 | 118 | | Subtitle C, Title 7, Transportation Code, [the Uniform Act |
---|
123 | 119 | | Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil |
---|
124 | 120 | | Statutes)] or a similar misdemeanor traffic offense; and |
---|
125 | 121 | | (B) identification of any other beneficial owner |
---|
126 | 122 | | of shares in the applicant that bear voting rights, absolute or |
---|
127 | 123 | | contingent, any other person that directly or indirectly exercises |
---|
128 | 124 | | any participation in the applicant, and any other ownership |
---|
129 | 125 | | interest in the applicant that the applicant making its best effort |
---|
130 | 126 | | is able to identify; |
---|
131 | 127 | | (3) if the applicant is an unincorporated business |
---|
132 | 128 | | association: |
---|
133 | 129 | | (A) the names and addresses of each of its |
---|
134 | 130 | | members and, for each individual named under this subdivision, the |
---|
135 | 131 | | individual's date of birth, current address and telephone number, |
---|
136 | 132 | | and physical description, and a statement disclosing any arrest or |
---|
137 | 133 | | conviction for a felony or for a misdemeanor, except a misdemeanor |
---|
138 | 134 | | under Subtitle C, Title 7, Transportation Code, [the Uniform Act |
---|
139 | 135 | | Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil |
---|
140 | 136 | | Statutes)] or a similar misdemeanor traffic offense; and |
---|
141 | 137 | | (B) identification of any other person that |
---|
142 | 138 | | exercises voting rights in the applicant or that directly or |
---|
143 | 139 | | indirectly exercises any participation in the applicant and any |
---|
144 | 140 | | other ownership interest in the applicant that the applicant making |
---|
145 | 141 | | its best effort is able to identify; |
---|
146 | 142 | | (4) the exact location at which a race meeting is to be |
---|
147 | 143 | | conducted; |
---|
148 | 144 | | (5) if the racing facility is in existence, whether it |
---|
149 | 145 | | is owned by the applicant and, if leased to the applicant, the name |
---|
150 | 146 | | and address of the owner and, if the owner is a corporation or |
---|
151 | 147 | | unincorporated business association, the names and addresses of its |
---|
152 | 148 | | officers and directors, its stockholders and members, if any, and |
---|
153 | 149 | | its agents for service of process in this state; |
---|
154 | 150 | | (6) if construction of the racing facility has not |
---|
155 | 151 | | been initiated, whether it is to be owned by the applicant and, if |
---|
156 | 152 | | it is to be leased to the applicant, the name and address of the |
---|
157 | 153 | | prospective owner and, if the owner is a corporation or |
---|
158 | 154 | | unincorporated business association, the names and addresses of its |
---|
159 | 155 | | officers and directors, the names and addresses of its |
---|
160 | 156 | | stockholders, the names and addresses of its members, if any, and |
---|
161 | 157 | | the names and addresses of its agents for service of process in this |
---|
162 | 158 | | state; |
---|
163 | 159 | | (7) identification of any other beneficial owner of |
---|
164 | 160 | | shares that bear voting rights, absolute or contingent, in the |
---|
165 | 161 | | owner or prospective owner of the racing facility, or any other |
---|
166 | 162 | | person that directly or indirectly exercises any participation in |
---|
167 | 163 | | the owner or prospective owner and all other ownership interest in |
---|
168 | 164 | | the owner or prospective owner that the applicant making its best |
---|
169 | 165 | | effort is able to identify; |
---|
170 | 166 | | (8) a detailed statement of the assets and liabilities |
---|
171 | 167 | | of the applicant; |
---|
172 | 168 | | (9) the kind of racing to be conducted and the dates |
---|
173 | 169 | | requested; |
---|
174 | 170 | | (10) proof of residency as required by Section 6.06 of |
---|
175 | 171 | | this Act; |
---|
176 | 172 | | (11) a copy of each management, concession, [and] |
---|
177 | 173 | | totalisator contract, and purpose-driven pari-mutuel wagering |
---|
178 | 174 | | system provider contract dealing with the proposed license at the |
---|
179 | 175 | | proposed location in which the applicant has an interest for |
---|
180 | 176 | | inspection and review by the commission; the applicant or licensee |
---|
181 | 177 | | shall advise the commission of any change in any management, |
---|
182 | 178 | | concession, [or] totalisator contract, or purpose-driven |
---|
183 | 179 | | pari-mutuel wagering system provider contract; all management, |
---|
184 | 180 | | concession, [and] totalisator contracts, and purpose-driven |
---|
185 | 181 | | pari-mutuel wagering system provider contracts must have prior |
---|
186 | 182 | | approval of the commission; the same fingerprint, criminal records |
---|
187 | 183 | | history, and other information required of license applicants |
---|
188 | 184 | | pursuant to Sections 5.03 and 5.04 and Subdivisions (1) through (3) |
---|
189 | 185 | | of this subsection shall be required of proposed totalisator firms, |
---|
190 | 186 | | purpose-driven pari-mutuel wagering system providers, |
---|
191 | 187 | | concessionaires, and managers and management firms; and |
---|
192 | 188 | | (12) any other information required by the commission. |
---|
193 | 189 | | (b) When the commission receives a plan for the security of |
---|
194 | 190 | | a racetrack facility, or a copy of a management, concession, [or] |
---|
195 | 191 | | totalisator contract, or purpose-driven pari-mutuel wagering |
---|
196 | 192 | | system provider contract for review under Subdivision (11) of |
---|
197 | 193 | | Subsection (a) of this section, the commission shall review the |
---|
198 | 194 | | contract or security plan in an executive session. Documents |
---|
199 | 195 | | submitted to the commission under this section by an applicant are |
---|
200 | 196 | | subject to discovery in a suit brought under this Act but are not |
---|
201 | 197 | | public records and are not subject to Chapter 552, Government Code |
---|
202 | 198 | | [424, Acts of the 63rd Legislature, Regular Session, 1973 (Article |
---|
203 | 199 | | 6252-17a, Vernon's Texas Civil Statutes)]. In reviewing and |
---|
204 | 200 | | approving contracts under this subsection, the commission shall |
---|
205 | 201 | | attempt to ensure the involvement of minority owned businesses |
---|
206 | 202 | | whenever possible. |
---|
207 | 203 | | SECTION 7. Section 6.04, Texas Racing Act (Article 179e, |
---|
208 | 204 | | Vernon's Texas Civil Statutes), is amended by adding Subsections |
---|
209 | 205 | | (e) and (f) to read as follows: |
---|
210 | 206 | | (e) A racetrack association licensed to offer pari-mutuel |
---|
211 | 207 | | wagering on horse races, whether live or simulcast, and granted |
---|
212 | 208 | | live or simulcast race dates may offer purpose-driven pari-mutuel |
---|
213 | 209 | | wagering on any day during the calendar year. |
---|
214 | 210 | | (f) A racetrack association licensed to offer pari-mutuel |
---|
215 | 211 | | wagering on greyhound races, whether live or simulcast, and granted |
---|
216 | 212 | | live or simulcast race dates may offer purpose-driven pari-mutuel |
---|
217 | 213 | | wagering on any day during the calendar year. |
---|
218 | 214 | | SECTION 8. Section 6.08(b)(3), Texas Racing Act (Article |
---|
219 | 215 | | 179e, Vernon's Texas Civil Statutes), is amended to read as |
---|
220 | 216 | | follows: |
---|
221 | 217 | | (3) The horse racetrack [racing] association shall |
---|
222 | 218 | | transfer the amount set aside for purses from any live, |
---|
223 | 219 | | purpose-driven, and simulcast pools and shall deposit the amounts |
---|
224 | 220 | | in purse accounts maintained by breed by the horsemen's |
---|
225 | 221 | | organization in one or more federally insured depositories. Legal |
---|
226 | 222 | | title to purse accounts is vested in the horsemen's organization. |
---|
227 | 223 | | The horsemen's organization may contract with a racetrack [an] |
---|
228 | 224 | | association to manage and control the purse accounts and to make |
---|
229 | 225 | | disbursements from the purse accounts: |
---|
230 | 226 | | (A) to an owner whose horse won a purse; |
---|
231 | 227 | | (B) to the horsemen's organization for its |
---|
232 | 228 | | expenses; or |
---|
233 | 229 | | (C) for other disbursements as provided by |
---|
234 | 230 | | contract between the horsemen's organization and the association. |
---|
235 | 231 | | SECTION 9. Section 6.08, Texas Racing Act (Article 179e, |
---|
236 | 232 | | Vernon's Texas Civil Statutes), is amended by amending Subsections |
---|
237 | 233 | | (i) and (j) and adding Subsections (o) and (p) to read as follows: |
---|
238 | 234 | | (i) Ten percent of the total breakage from a live |
---|
239 | 235 | | pari-mutuel pool, purpose-driven pari-mutuel pool, or a simulcast |
---|
240 | 236 | | pari-mutuel pool is to be paid to the commission for use by the |
---|
241 | 237 | | appropriate state horse breed registry, subject to rules |
---|
242 | 238 | | promulgated by the commission. The appropriate breed registry for |
---|
243 | 239 | | Thoroughbred horses is the Texas Thoroughbred [Breeders] |
---|
244 | 240 | | Association, for quarter horses is the Texas Quarter Horse |
---|
245 | 241 | | Association, for Appaloosa horses is the Texas Appaloosa Horse |
---|
246 | 242 | | Club, for Arabian horses is the Texas Arabian Breeders Association, |
---|
247 | 243 | | and for paint horses is the Texas Paint Horse Breeders Association. |
---|
248 | 244 | | (j) Ten percent of the total breakage from a live |
---|
249 | 245 | | pari-mutuel pool, purpose-driven pari-mutuel pool, or a simulcast |
---|
250 | 246 | | pari-mutuel pool is to be retained by the racetrack association to |
---|
251 | 247 | | be used in stakes races restricted to accredited Texas-bred horses. |
---|
252 | 248 | | The appropriate state horse breed registry shall pay out the |
---|
253 | 249 | | remaining 80 percent of the total breakage as follows: |
---|
254 | 250 | | (1) 40 percent of the remaining breakage is allocated |
---|
255 | 251 | | to the owners of the accredited Texas-bred horses that finish |
---|
256 | 252 | | first, second, or third; |
---|
257 | 253 | | (2) 40 percent is allocated to the breeders of the |
---|
258 | 254 | | accredited Texas-bred horses that finish first, second, or third; |
---|
259 | 255 | | and |
---|
260 | 256 | | (3) 20 percent is allocated to the owner of the |
---|
261 | 257 | | stallion standing in this state at the time of conception whose |
---|
262 | 258 | | Texas-bred get finish first, second, or third. |
---|
263 | 259 | | (o) A racetrack association may not begin offering |
---|
264 | 260 | | purpose-driven pari-mutuel wagering until the association |
---|
265 | 261 | | executes: |
---|
266 | 262 | | (1) a valid contract with the officially recognized |
---|
267 | 263 | | horsemen's organization to establish the portion of the |
---|
268 | 264 | | association's commission on purpose-driven pari-mutuel pools that |
---|
269 | 265 | | will be set aside for purses; and |
---|
270 | 266 | | (2) a valid contract with the official breed |
---|
271 | 267 | | registries to establish the portion of the association's commission |
---|
272 | 268 | | on purpose-driven pari-mutuel pools that will be set aside for |
---|
273 | 269 | | breeder incentives. |
---|
274 | 270 | | (p) The commission shall be the final arbiter of any |
---|
275 | 271 | | disagreements between a racetrack association and the horsemen's |
---|
276 | 272 | | organization, or between a racetrack association and the official |
---|
277 | 273 | | breed registries when reaching the terms of a valid contract. |
---|
278 | 274 | | SECTION 10. Section 6.09, Texas Racing Act (Article 179e, |
---|
343 | 338 | | (c) At any time purpose-driven pari-mutuel wagering is |
---|
344 | 339 | | offered, each racetrack association shall contract with 10 |
---|
345 | 340 | | nonprofit corporations to provide contributions to the |
---|
346 | 341 | | corporations from purpose-driven pari-mutuel wagering. A contract |
---|
347 | 342 | | with a nonprofit corporation may be for a term of 30 days or more. |
---|
348 | 343 | | (d) Any nonprofit corporation registered under 26 U.S.C. |
---|
349 | 344 | | Section 501(c)(3) that has operations in this state and that filed |
---|
350 | 345 | | an Internal Revenue Service Form 990 in the previous calendar year |
---|
351 | 346 | | is eligible to participate. The commission shall adopt rules on the |
---|
352 | 347 | | application process and selection criteria under this section. |
---|
353 | 348 | | (e) Of the 10 nonprofit corporations contracted under |
---|
354 | 349 | | Subsection (c): |
---|
355 | 350 | | (1) at least one must benefit law enforcement |
---|
356 | 351 | | programs; |
---|
357 | 352 | | (2) at least one must benefit veterans of the armed |
---|
358 | 353 | | forces of this state or the United States; and |
---|
359 | 354 | | (3) not more than three may benefit the racing |
---|
360 | 355 | | industry. |
---|
361 | 356 | | SECTION 13. Section 6.11(a), Texas Racing Act (Article |
---|
362 | 357 | | 179e, Vernon's Texas Civil Statutes), is amended to read as |
---|
363 | 358 | | follows: |
---|
364 | 359 | | (a) In no event shall the purse in a greyhound race be less |
---|
365 | 360 | | than a minimum of 4.7 percent of the total deposited in each live or |
---|
366 | 361 | | simulcast pool. |
---|
367 | 362 | | SECTION 14. Section 6.14(a), Texas Racing Act (Article |
---|
368 | 363 | | 179e, Vernon's Texas Civil Statutes), is amended to read as |
---|
369 | 364 | | follows: |
---|
370 | 365 | | (a) A racetrack [An] association may not conduct greyhound |
---|
371 | 366 | | or horse racing or offer pari-mutuel wagering on greyhound or horse |
---|
372 | 367 | | races, whether live, simulcast, or purpose-driven, at any place |
---|
373 | 368 | | other than the place designated in the license except as provided by |
---|
374 | 369 | | this section or by Section 6.15 of this Act. However, if the |
---|
375 | 370 | | racetrack or enclosure designated in the license becomes unsuitable |
---|
376 | 371 | | for racing because of fire, flood, or other catastrophe, the |
---|
377 | 372 | | affected association, with the prior approval of the commission, |
---|
378 | 373 | | may conduct a race meeting or any remaining portion of a meeting |
---|
379 | 374 | | temporarily at any other racetrack licensed by the commission to |
---|
380 | 375 | | conduct the same type of racing as may be conducted by the affected |
---|
381 | 376 | | association if the licensee of the other racetrack also consents to |
---|
382 | 377 | | the usage. |
---|
383 | 378 | | SECTION 15. Section 11.01(a), Texas Racing Act (Article |
---|
384 | 379 | | 179e, Vernon's Texas Civil Statutes), is amended to read as |
---|
385 | 380 | | follows: |
---|
386 | 381 | | (a) Pari-mutuel wagering on the outcome of greyhound races |
---|
387 | 382 | | and horse races, whether live, simulcast, or previously run, is |
---|
388 | 383 | | authorized under this Act. The commission shall adopt rules to |
---|
389 | 384 | | regulate wagering on the outcome of greyhound races and horse |
---|
390 | 385 | | races, whether live, simulcast, or previously run, under the system |
---|
391 | 386 | | known as pari-mutuel wagering. Wagering may be conducted only by a |
---|
392 | 387 | | racetrack [an] association within its enclosure. A person may not |
---|
393 | 388 | | accept, in person, by telephone, or over the Internet, a wager for a |
---|
394 | 389 | | horse race or greyhound race conducted inside or outside this state |
---|
395 | 390 | | from a person in this state unless the wager is authorized under |
---|
396 | 391 | | this Act. |
---|
397 | 392 | | SECTION 16. Section 11.04(a), Texas Racing Act (Article |
---|
398 | 393 | | 179e, Vernon's Texas Civil Statutes), is amended to read as |
---|
399 | 394 | | follows: |
---|
400 | 395 | | (a) Only a person inside the enclosure where [both] live or |
---|
401 | 396 | | [and] simulcast race meetings are authorized may wager on the |
---|
402 | 397 | | results [result] of [a] live, previously run, or simulcast races |
---|
403 | 398 | | [race] presented by the racetrack association in accordance with |
---|
404 | 399 | | commission rules. Except as provided by this section, a person may |
---|
405 | 400 | | not place, in person, by telephone, or over the Internet, a wager |
---|
406 | 401 | | for a horse race or greyhound race conducted inside or outside this |
---|
407 | 402 | | state. The commission shall adopt rules to prohibit wagering by |
---|
408 | 403 | | employees of the commission and to regulate wagering by persons |
---|
409 | 404 | | licensed under this Act. |
---|
410 | 405 | | SECTION 17. Section 6.09(e), Texas Racing Act (Article |
---|
411 | 406 | | 179e, Vernon's Texas Civil Statutes), is repealed. |
---|
412 | 407 | | SECTION 18. As soon as practicable after the effective date |
---|
413 | 408 | | of this Act, the Texas Racing Commission shall adopt the rules |
---|
414 | 409 | | necessary to implement the changes in law made by this Act. |
---|
415 | 410 | | SECTION 19. This Act takes effect September 1, 2017. |
---|