Texas 2021 - 87th Regular

Texas Senate Bill SB1920 Compare Versions

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

Old	New	Differences
1	1	87R5637 GCB-D
2	2	By: Lucio S.B. No. 1920
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of historical racing pari-mutuel
8	8	wagering by licensed horse and greyhound racetracks and the
9	9	distribution of certain live, simulcast, and historical
10	10	pari-mutuel pools.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 2021.003, Occupations Code, is amended
13	13	by adding Subdivisions (17-a), (17-b), (17-c), (17-d), (17-e), and
14	14	(17-f) and amending Subdivisions (32), (33), (40), (41), and (42)
15	15	to read as follows:
16	16	(17-a) "Historical pari-mutuel wagering" means
17	17	pari-mutuel wagering on the outcomes of historical racing.
18	18	(17-b) "Historical race" means a previously conducted
19	19	horse or greyhound race or groups of horse races or of greyhound
20	20	races that were:
21	21	(A) authorized by the commission or another
22	22	racing jurisdiction and conducted in this state or another racing
23	23	jurisdiction; and
24	24	(B) concluded with official results that did not
25	25	include any scratches, disqualifications, or dead-heat finishes.
26	26	(17-c) "Historical racing" means the display,
27	27	including by graphical representation, of historical races.
28	28	(17-d) "Historical racing machine" means a peripheral
29	29	electronic device used by a historical racing totalisator system to
30	30	offer historical pari-mutuel racing.
31	31	(17-e) "Historical racing totalisator system" means a
32	32	system for registering, computing, or displaying the wagering and
33	33	payment of winnings in historical pari-mutuel wagering.
34	34	(17-f) "Historical racing totalisator system company"
35	35	means a company selling, leasing, servicing, maintaining, or
36	36	operating a historical racing totalisator system.
37	37	(32) "Pari-mutuel pool" means the total amount of
38	38	money wagered by patrons on the result of a particular race or
39	39	combination of races, divided into separate mutuel pools for win,
40	40	place, show, or combinations. The term includes pari-mutuel pools
41	41	created by pari-mutuel wagering on live and simulcast races and
42	42	pools created by pari-mutuel wagering on historical races.
43	43	(33) "Pari-mutuel voucher" means a bearer instrument,
44	44	issued by a pari-mutuel wagering machine or a historical racing
45	45	machine, that represents money owned by a wagering patron and held
46	46	by a racetrack association, including winnings from a pari-mutuel
47	47	wager.
48	48	(40) "Race" includes a live audio and visual signal of
49	49	and a graphical representation of a race.
50	50	(41) "Racetrack" means a facility licensed under this
51	51	subtitle for the conduct of pari-mutuel wagering on horse racing or
52	52	greyhound racing, including historical racing.
53	53	(42) "Racetrack association" means a person licensed
54	54	under this subtitle to conduct the following with pari-mutuel
55	55	wagering:
56	56	(A) a horse race meeting;
57	57	(B) [or] a greyhound race meeting; or
58	58	(C) a historical race [with pari-mutuel
59	59	wagering].
60	60	SECTION 2. Section 2023.001(a), Occupations Code, is
61	61	amended to read as follows:
62	62	(a) Notwithstanding any contrary provision in this
63	63	subtitle, the commission may license and regulate all aspects of
64	64	horse racing and greyhound racing in this state, including
65	65	historical racing, regardless of whether that racing involves
66	66	pari-mutuel wagering.
67	67	SECTION 3. Section 2023.004(a), Occupations Code, is
68	68	amended to read as follows:
69	69	(a) The commission shall adopt:
70	70	(1) rules for conducting horse racing or greyhound
71	71	racing in this state, including historical racing, that involves
72	72	wagering; and
73	73	(2) rules for administering this subtitle in a manner
74	74	consistent with this subtitle.
75	75	SECTION 4. Section 2025.001(d), Occupations Code, is
76	76	amended to read as follows:
77	77	(d) The commission by rule shall set fees in amounts
78	78	reasonable and necessary to cover the commission's costs of
79	79	regulating, overseeing, and licensing live, [and] simulcast, and
80	80	historical racing at racetracks.
81	81	SECTION 5. Section 2025.051, Occupations Code, is amended
82	82	to read as follows:
83	83	Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL
84	84	PENALTY. A person may not conduct wagering on a live or simulcast
85	85	horse or greyhound race meeting or on a historical race without
86	86	first obtaining a racetrack license issued by the commission. A
87	87	person who violates this section commits an offense.
88	88	SECTION 6. Section 2025.054, Occupations Code, is amended
89	89	to read as follows:
90	90	Sec. 2025.054. MANAGEMENT, CONCESSION, HISTORICAL RACING
91	91	TOTALISATOR SYSTEM, AND TOTALISATOR CONTRACTS. (a) The commission
92	92	shall require each applicant for an original racetrack license to
93	93	submit with the application for inspection and review by the
94	94	commission a copy of each management, concession, historical racing
95	95	totalisator system, and totalisator contract associated with the
96	96	proposed license at the proposed location in which the applicant
97	97	has an interest.
98	98	(b) An applicant or license holder shall advise the
99	99	commission of any change in any management, concession, historical
100	100	racing totalisator system, or totalisator contract.
101	101	(c) The criminal history record information, fingerprint,
102	102	and other information required of a license applicant under
103	103	Sections 2023.057, 2025.003, and 2025.052(a)(1)-(3) are required
104	104	of proposed totalisator firms, historical racing totalisator
105	105	system companies, concessionaires, and managers and management
106	106	firms.
107	107	SECTION 7. Section 2025.056(a), Occupations Code, is
108	108	amended to read as follows:
109	109	(a) The commission shall require a complete personal,
110	110	financial, and business background check of the applicant or of any
111	111	person who owns an interest in or exercises control over an
112	112	applicant for a racetrack license, including the partners,
113	113	stockholders, concessionaires, management personnel, management
114	114	firms, historical racing totalisator system companies, and
115	115	creditors.
116	116	SECTION 8. Section 2025.103(a), Occupations Code, is
117	117	amended to read as follows:
118	118	(a) After a racetrack association has been granted a license
119	119	to operate a racetrack and before the completion of construction at
120	120	the designated place for which the license was issued, the
121	121	commission may, on application by the racetrack association, issue
122	122	a temporary license that authorizes the racetrack association to
123	123	conduct races or offer historical racing at a location in the same
124	124	county until the earlier of:
125	125	(1) the second anniversary of the date of issuance of
126	126	the temporary license; or
127	127	(2) the completion of the permanent facility.
128	128	SECTION 9. Sections 2025.104(b) and (c), Occupations Code,
129	129	are amended to read as follows:
130	130	(b) The commission shall designate a racetrack license as an
131	131	active license if the license holder:
132	132	(1) holds live racing events or offers historical
133	133	racing at the racetrack; or
134	134	(2) makes good faith efforts to conduct live racing or
135	135	offer historical racing.
136	136	(c) The commission by rule shall provide guidance on actions
137	137	that constitute, for purposes of this subtitle, good faith efforts
138	138	to conduct live racing or offer historical racing.
139	139	SECTION 10. Sections 2025.105(b) and (c), Occupations Code,
140	140	are amended to read as follows:
141	141	(b) In determining whether to renew an inactive license, the
142	142	commission shall consider:
143	143	(1) the inactive license holder's:
144	144	(A) financial stability;
145	145	(B) ability to conduct live racing or offer
146	146	historical racing;
147	147	(C) ability to construct and maintain a
148	148	racetrack; and
149	149	(D) other good faith efforts to conduct live
150	150	racing or offer historical racing; and
151	151	(2) other necessary factors considered in the issuance
152	152	of the original license.
153	153	(c) The commission may refuse to renew an inactive license
154	154	if, after notice and a hearing, the commission determines that:
155	155	(1) renewal of the license is not in the best interests
156	156	of the racing industry or the public; or
157	157	(2) the license holder has failed to make a good faith
158	158	effort to conduct live racing or offer historical racing.
159	159	SECTION 11. Section 2026.002, Occupations Code, is amended
160	160	to read as follows:
161	161	Sec. 2026.002. PREVENTION OF SUBTERFUGE IN RACETRACK
162	162	OWNERSHIP OR OPERATION. This subtitle shall be liberally construed
163	163	to prevent subterfuge in the ownership and operation of a racetrack
164	164	or in the offering of historical racing.
165	165	SECTION 12. Section 2026.151(a), Occupations Code, is
166	166	amended to read as follows:
167	167	(a) All concession, management, historical racing
168	168	totalisator system, and totalisator contracts submitted by an
169	169	applicant under Section 2025.054 must have the prior approval of
170	170	the commission.
171	171	SECTION 13. Section 2026.152(a), Occupations Code, is
172	172	amended to read as follows:
173	173	(a) On receipt of a plan for the security of a racetrack, or
174	174	a copy of a concession, management, historical racing totalisator
175	175	system, or totalisator contract for review under Section 2026.151,
176	176	the commission shall review the security plan or contract in an
177	177	executive session. Documents submitted by an applicant to the
178	178	commission under this section or Section 2025.052 or 2025.054 are
179	179	subject to discovery in a suit brought under this subtitle but are
180	180	not public records and are not subject to Chapter 552, Government
181	181	Code.
182	182	SECTION 14. Section 2027.001(a), Occupations Code, is
183	183	amended to read as follows:
184	184	(a) The commission shall adopt rules to regulate wagering on
185	185	horse races and greyhound races, including historical races, under
186	186	the system known as pari-mutuel wagering.
187	187	SECTION 15. Chapter 2027, Occupations Code, is amended by
188	188	adding Subchapter C-1 to read as follows:
189	189	SUBCHAPTER C-1. PARI-MUTUEL WAGERING ON HISTORICAL RACES
190	190	Sec. 2027.151. HISTORICAL PARI-MUTUEL WAGERING RULES. The
191	191	commission shall adopt rules to regulate pari-mutuel wagering on
192	192	historical races.
193	193	Sec. 2027.152. HISTORICAL RACING. A racetrack association
194	194	may offer historical racing, subject to the requirements of this
195	195	subchapter.
196	196	Sec. 2027.153. REQUIREMENTS AND LIMITATIONS ON HISTORICAL
197	197	RACING MACHINES. (a) The commission may not require the use of a
198	198	particular brand or model of historical racing machine.
199	199	(b) A historical racing machine may not display any
200	200	information that would allow a patron to identify the historical
201	201	race on which the patron is wagering, including the location of the
202	202	race, the date on which the race was run, the names of the animals in
203	203	the race, or the names of the jockeys that participated in the race
204	204	before the patron places a wager on the machine. This subsection
205	205	does not prohibit a historical racing machine from displaying
206	206	non-identifying race information in written or graphical form.
207	207	(c) After a patron finalizes the patron's wager selections
208	208	on a historical racing machine, the machine must display:
209	209	(1) the race, a portion of the race, or a graphical
210	210	representation of the race; and
211	211	(2) the official results and identity of the race.
212	212	(d) A racetrack association offering wagering on a
213	213	historical racing machine that has a complete malfunction during
214	214	use by a patron shall fully refund the balance of the patron's wager
215	215	on the machine at the time of the malfunction, as verified by the
216	216	historical racing totalisator system.
217	217	(e) To prevent fraud or liability for malfunction of a
218	218	significant portion of the historical racing machines at one
219	219	location, a racetrack association shall ensure that all historical
220	220	race information used by each historical racing machine at the
221	221	location is stored on the machine or a server located within the
222	222	association's enclosure.
223	223	(f) A racetrack association shall ensure that:
224	224	(1) a single historical racing totalisator system
225	225	controls not more than 40 percent of the historical racing machines
226	226	at the association's racetrack; and
227	227	(2) a person does not have a financial interest in or
228	228	exercise control over one or more historical racing totalisator
229	229	systems that control more than 40 percent of the historical racing
230	230	machines at the racetrack.
231	231	Sec. 2027.154. REQUIREMENTS AND LIMITATIONS ON HISTORICAL
232	232	RACING TOTALISATOR SYSTEMS. (a) The commission may not require the
233	233	use of a particular brand or model of historical racing totalisator
234	234	system.
235	235	(b) A historical racing totalisator system may be operated
236	236	only within a racetrack association's enclosure. Pari-mutuel
237	237	wagering on historical racing may not be offered on a historical
238	238	racing totalisator system that is connected to the Internet or
239	239	another offsite location.
240	240	(c) Pari-mutuel wagering on historical racing may be
241	241	offered only on historical racing machines controlled by a
242	242	historical racing totalisator system approved by the commission.
243	243	Sec. 2027.155. REQUEST FOR COMMISSION APPROVAL OF
244	244	HISTORICAL RACING TOTALISATOR SYSTEM. (a) A historical racing
245	245	totalisator company may request commission approval of a historical
246	246	racing totalisator system for use in offering historical racing at
247	247	a racetrack.
248	248	(b) A request for commission approval submitted under this
249	249	section must be accompanied by a certification and associated
250	250	report issued by an independent testing laboratory verifying that:
251	251	(1) the laboratory tested the historical racing
252	252	totalisator system to ensure its integrity and proper working
253	253	order; and
254	254	(2) the system and the proposed wagers to be offered
255	255	through the system meet all applicable state laws and commission
256	256	rules for use in offering historical racing at a racetrack.
257	257	Sec. 2027.156. CONSTRUCTION OF LAWS RELATED TO HISTORICAL
258	258	RACING. (a) No provision of this subtitle may be construed to
259	259	allow pari-mutuel wagering on historical racing, the offer of
260	260	historical racing, or the use of historical racing machines at any
261	261	location other than a racetrack licensed under this subtitle.
262	262	(b) No provision of this subtitle may be construed to
263	263	prohibit pari-mutuel wagering on:
264	264	(1) a historical horse race offered at a greyhound
265	265	racetrack licensed under this subtitle; or
266	266	(2) a historical greyhound race offered at a horse
267	267	racetrack licensed under this subtitle.
268	268	Sec. 2027.157. HISTORICAL RACING PARI-MUTUEL POOLS; SEED
269	269	POOLS. (a) Except as otherwise provided by Subsection (c), a
270	270	racetrack association shall pay patrons who win historical racing
271	271	wagers exclusively from the pari-mutuel pools created by wagers
272	272	placed on historical racing.
273	273	(b) A racetrack association may not:
274	274	(1) conduct historical racing in a manner that allows
275	275	patrons to wager against the racetrack association or that renders
276	276	the association's compensation dependent on the outcome of any
277	277	particular historical race or the success of any particular wager
278	278	on historical racing;
279	279	(2) pay a winning wager in an amount that exceeds the
280	280	amount available in the applicable historical racing pari-mutuel
281	281	pool; or
282	282	(3) pay a patron using any consideration other than
283	283	cash or a pari-mutuel voucher.
284	284	(c) A racetrack association shall maintain and fund seed
285	285	pools as necessary to ensure a sufficient amount of money is
286	286	available to pay a patron the minimum payment for a winning wager
287	287	specified by the historical racing machine through which the patron
288	288	places the wager. A historical racing totalisator system may
289	289	assign a percentage of each historical racing wager to fund seed
290	290	pools.
291	291	(d) A racetrack association may provide funding for the
292	292	initial seed pool for each type of wager and may be refunded an
293	293	amount equal to the amount of the initial funding after the
294	294	historical racing pari-mutuel pool is fully funded. Except for
295	295	amounts used to fund seed pools under Subsection (c), a racetrack
296	296	association may not receive any funding for the initial seed pool
297	297	from any person, including any historical racing totalisator system
298	298	company.
299	299	SECTION 16. Section 2028.001(a), Occupations Code, is
300	300	amended to read as follows:
301	301	(a) For any organization that receives funds generated by
302	302	live, [or] simulcast, or historical [pari-mutuel] racing with
303	303	pari-mutuel wagering, the commission shall adopt reporting,
304	304	monitoring, and auditing requirements or other appropriate
305	305	performance measures for:
306	306	(1) any funds distributed to or used by the
307	307	organization; and
308	308	(2) any function or service provided by the
309	309	expenditure of the funds described by Subdivision (1).
310	310	SECTION 17. Section 2028.002(a), Occupations Code, is
311	311	amended to read as follows:
312	312	(a) An organization that receives funds generated by live,
313	313	[or] simulcast, or historical [pari-mutuel] racing with
314	314	pari-mutuel wagering shall annually file with the commission a copy
315	315	of an audit report prepared by an independent certified public
316	316	accountant. The audit must include a verification of any
317	317	performance report sent to or required by the commission.
318	318	SECTION 18. Section 2028.101(b), Occupations Code, is
319	319	amended to read as follows:
320	320	(b) The total maximum deduction under Subsection (a) is:
321	321	(1) 18 percent from a regular wagering pool or
322	322	historical racing pari-mutuel pool;
323	323	(2) 21 percent from a multiple two wagering pool; and
324	324	(3) 25 percent from a multiple three wagering pool.
325	325	SECTION 19. Sections 2028.105(b) and (c), Occupations Code,
326	326	are amended to read as follows:
327	327	(b) A horse racetrack association shall pay to the
328	328	commission for use by the appropriate state horse breed registry,
329	329	subject to commission rules, 10 percent of the total breakage from a
330	330	live, [pari-mutuel pool or a] simulcast, or historical racing
331	331	pari-mutuel pool. The appropriate state horse breed registries are
332	332	as follows:
333	333	(1) the Texas Thoroughbred Breeders Association for
334	334	Thoroughbred horses;
335	335	(2) the Texas Quarter Horse Association for quarter
336	336	horses;
337	337	(3) the Texas Appaloosa Horse Club for Appaloosa
338	338	horses;
339	339	(4) the Texas Arabian Breeders Association for Arabian
340	340	horses; and
341	341	(5) the Texas Paint Horse Breeders Association for
342	342	paint horses.
343	343	(c) A horse racetrack association shall retain 10 percent of
344	344	the total breakage from a [live pari-mutuel pool or a simulcast]
345	345	pari-mutuel pool to be used in stakes races restricted to
346	346	accredited Texas-bred horses.
347	347	SECTION 20. Section 2028.151, Occupations Code, is amended
348	348	to read as follows:
349	349	Sec. 2028.151. APPLICATION OF SUBCHAPTER. The deductions
350	350	and allocations made under this subchapter apply to live,
351	351	simulcast, and historical racing pari-mutuel pools, except as
352	352	otherwise specifically provided by this subchapter.
353	353	SECTION 21. Section 2028.152, Occupations Code, is amended
354	354	to read as follows:
355	355	Sec. 2028.152. DISTRIBUTION OF LIVE OR SIMULCAST
356	356	PARI-MUTUEL POOL. Each greyhound racetrack association shall
357	357	distribute all money deposited in any live or simulcast pari-mutuel
358	358	pool to the winning ticket holders who present tickets for payment
359	359	not later than the 60th day after the closing day of the greyhound
360	360	race meeting at which the pool was formed less:
361	361	(1) an amount paid as a commission of 18 percent of the
362	362	total deposits in pools resulting from regular win, place, and show
363	363	wagering;
364	364	(2) an amount not to exceed 21 percent of the total
365	365	deposits in pools resulting from multiple two wagering; and
366	366	(3) an amount not to exceed 25 percent of the total
367	367	deposits in pools resulting from multiple three wagering.
368	368	SECTION 22. Section 2028.154, Occupations Code, is amended
369	369	by amending Subsection (a) and adding Subsection (a-1) to read as
370	370	follows:
371	371	(a) A greyhound racetrack association shall pay 50 percent
372	372	of the breakage to the appropriate state greyhound breed registry.
373	373	Of that breakage percentage:
374	374	(1) 25 percent is to be used in stakes races; and
375	375	(2) 25 percent of that total breakage from a live
376	376	[pari-mutuel pool] or [a] simulcast pari-mutuel pool is to be paid
377	377	to the commission for deposit into the Texas-bred incentive fund
378	378	established under Section 2028.301.
379	379	(a-1) The commission shall distribute the money collected
380	380	under this section and deposited into the fund to the state
381	381	greyhound breed registry for use in accordance with this section
382	382	and commission rules.
383	383	SECTION 23. Section 2028.155(a), Occupations Code, is
384	384	amended to read as follows:
385	385	(a) The purse in a live or simulcast greyhound race may not
386	386	be less than 4.7 percent of the total deposited in each pari-mutuel
387	387	pool.
388	388	SECTION 24. Subchapter D, Chapter 2028, Occupations Code,
389	389	is amended by adding Section 2028.156 to read as follows:
390	390	Sec. 2028.156. DISTRIBUTION OF HISTORICAL RACING
391	391	PARI-MUTUEL POOL. A greyhound racetrack association may receive as
392	392	compensation an amount not to exceed 18 percent of the
393	393	association's historical racing pari-mutuel pools.
394	394	SECTION 25. Chapter 2028, Occupations Code, is amended by
395	395	adding Subchapter E-1 to read as follows:
396	396	SUBCHAPTER E-1. GENERAL DEDUCTIONS FROM HISTORICAL RACING
397	397	PARI-MUTUEL POOLS
398	398	Sec. 2028.231. SET-ASIDE FROM HISTORICAL RACING
399	399	PARI-MUTUEL POOL. A horse or greyhound racetrack association shall
400	400	set aside for this state from each pari-mutuel pool created by
401	401	historical racing offered at the racetrack an amount equal to 1.25
402	402	percent of that pool.
403	403	SECTION 26. As soon as practical after the effective date of
404	404	this Act, the Texas Racing Commission shall adopt the rules and
405	405	procedures necessary to implement the changes in law made by this
406	406	Act.
407	407	SECTION 27. This Act takes effect September 1, 2021.