Texas 2023 - 88th Regular

Texas House Bill HB4115 Compare Versions

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1	1	88R25685 BEE-D
2	2	By: Thompson of Harris, Bell of Montgomery H.B. No. 4115
3	3	Substitute the following for H.B. No. 4115:
4	4	By: Goldman C.S.H.B. No. 4115
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to eligibility for membership on and the regulation of
10	10	horse racing by the Texas Racing Commission and a prohibition on the
11	11	conduct of greyhound or other dog racing as live events in this
12	12	state; creating a criminal offense; authorizing a fee.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	ARTICLE 1. MEMBERSHIP ON AND REGULATION OF HORSE RACING BY TEXAS
15	15	RACING COMMISSION
16	16	SECTION 1.001. Section 2021.003, Occupations Code, is
17	17	amended by adding Subdivision (29-a) to read as follows:
18	18	(29-a) "Occupational license" means a license issued
19	19	to an individual to conduct activities prescribed for that license
20	20	in the commission rules.
21	21	SECTION 1.002. Section 2021.006, Occupations Code, is
22	22	amended to read as follows:
23	23	Sec. 2021.006. RELEASE OF CIVIL LIABILITY. A commission
24	24	member, a commission employee, a person contracted by the
25	25	commission, a steward or judge, a racetrack association, a
26	26	horsemen's organization, or any other person regulated under this
27	27	subtitle is not liable for a cause of action that arises out of that
28	28	person's performance or exercise of discretion in the
29	29	implementation or enforcement of this subtitle or a rule adopted
30	30	under this subtitle if the person has acted in good faith.
31	31	SECTION 1.003. Section 2022.004(e), Occupations Code, is
32	32	amended to read as follows:
33	33	(e) A person is not eligible for appointment as a commission
34	34	member or to be designated to serve as an ex officio member's
35	35	designee as described by Section 2022.001(b) if:
36	36	(1) the person or the person's spouse:
37	37	(A) is licensed by the commission, except as a
38	38	commissioner;
39	39	(B) is employed by the commission or participates
40	40	in the management of a business entity or other organization
41	41	regulated by the commission or receiving funds from or through the
42	42	commission;
43	43	(C) owns or controls, directly or indirectly,
44	44	more than a 10 percent interest in a business entity or other
45	45	organization regulated by the commission or receiving funds from or
46	46	through the commission; or
47	47	(D) uses or receives a substantial amount of
48	48	tangible goods, services, or funds from or through the commission,
49	49	other than compensation or reimbursement authorized by law for
50	50	commission membership, attendance, or expenses; or
51	51	(2) the person:
52	52	(A) owns any financial interest in a racetrack or
53	53	its operation or is related within the second degree by affinity or
54	54	the third degree by consanguinity, as determined under Subchapter
55	55	B, Chapter 573, Government Code, to a person who owns any financial
56	56	interest in a racetrack or its operation; or
57	57	(B) has been convicted of a felony [or of any
58	58	crime involving moral turpitude].
59	59	SECTION 1.004. The heading to Section 2022.052, Occupations
60	60	Code, is amended to read as follows:
61	61	Sec. 2022.052. EMPLOYEES; RESTRICTIONS ON EMPLOYMENT;
62	62	CONTRACTING.
63	63	SECTION 1.005. Sections 2022.052(a) and (c), Occupations
64	64	Code, are amended to read as follows:
65	65	(a) The commission shall hire employees or contract with
66	66	persons as necessary to administer this subtitle.
67	67	(c) The commission may not employ or continue to employ or
68	68	contract with or continue to contract with a person who:
69	69	(1) owns or controls a financial interest in a
70	70	commission license holder;
71	71	(2) is employed by or serves as a paid consultant to a
72	72	commission license holder, an official state breed registry, or a
73	73	Texas trade association, as defined by Section 2022.004(a), in the
74	74	field of horse [or greyhound] racing or breeding;
75	75	(3) owns or leases a race animal that participates in
76	76	pari-mutuel racing in this state;
77	77	(4) accepts or is entitled to any part of the purse or
78	78	Texas-bred incentive award to be paid on a horse [or a greyhound] in
79	79	a race conducted in this state; or
80	80	(5) resides with or is related within the first degree
81	81	by affinity or consanguinity to a person subject to a
82	82	disqualification prescribed by this subsection.
83	83	SECTION 1.006. Subchapter B, Chapter 2022, Occupations
84	84	Code, is amended by adding Section 2022.0515 to read as follows:
85	85	Sec. 2022.0515. GRANTS. The executive director may apply
86	86	for and receive any grant applicable to the implementation or
87	87	enforcement of this subtitle or a rule adopted under this subtitle.
88	88	SECTION 1.007. Chapter 2022, Occupations Code, is amended
89	89	by adding Subchapter D to read as follows:
90	90	SUBCHAPTER D. TEXAS EQUINE EDUCATION AND RESEARCH COUNCIL AND
91	91	ESCROW ACCOUNT
92	92	Sec. 2022.151. DEFINITIONS. In this subchapter:
93	93	(1) "Council" means the Texas equine education and
94	94	research council.
95	95	(2) "Escrow account" means the Texas equine education
96	96	and research escrow account.
97	97	Sec. 2022.152. TEXAS EQUINE EDUCATION AND RESEARCH ESCROW
98	98	ACCOUNT. The Texas equine education and research escrow account is
99	99	a special account in the general revenue fund. Money deposited to
100	100	the credit of the escrow account may be used only for the purposes
101	101	described in this subchapter.
102	102	Sec. 2022.153. TEXAS EQUINE EDUCATION AND RESEARCH COUNCIL.
103	103	(a) The Texas equine education and research council is composed of:
104	104	(1) the executive director; and
105	105	(2) one representative designated by each of the
106	106	following entities:
107	107	(A) Texas A&M Veterinary Medical Diagnostic
108	108	Laboratory;
109	109	(B) Texas A&M AgriLife Extension Service;
110	110	(C) Texas A&M School of Veterinary Medicine &
111	111	Biomedical Sciences;
112	112	(D) Texas Animal Health Commission; and
113	113	(E) Department of State Health Services.
114	114	(b) The executive director serves as the council's
115	115	presiding officer.
116	116	SECTION 1.008. Sections 2023.053(c) and (f), Occupations
117	117	Code, are amended to read as follows:
118	118	(c) Any unappropriated money exceeding $2 million
119	119	[$750,000] that remains in the fund at the close of each state
120	120	fiscal biennium shall be transferred to the general revenue fund
121	121	and may be appropriated for any purpose.
122	122	(f) This section does not apply to money deposited into the
123	123	Texas-bred escrow account [incentive fund] established under
124	124	Section 2028.301.
125	125	SECTION 1.009. Section 2023.061(a), Occupations Code, is
126	126	amended to read as follows:
127	127	(a) Not later than January 31 of each year, the commission
128	128	may [shall] file a report with the governor, lieutenant governor,
129	129	and speaker of the house of representatives. The report may
130	130	include, to the extent the commission considers appropriate:
131	131	(1) descriptions of changes to commission programs;
132	132	and
133	133	(2) recommendations to the governor and the
134	134	legislature.
135	135	SECTION 1.010. Section 2024.055(b), Occupations Code, is
136	136	amended to read as follows:
137	137	(b) This section does not apply to money deposited into the
138	138	Texas-bred escrow account [incentive fund] established under
139	139	Section 2028.301.
140	140	SECTION 1.011. Section 2025.001, Occupations Code, is
141	141	amended by adding Subsection (a-1) to read as follows:
142	142	(a-1) The commission shall comply with Chapter 53 in the
143	143	administration of the commission's licensing program.
144	144	SECTION 1.012. Section 2025.103(a), Occupations Code, is
145	145	amended to read as follows:
146	146	(a) After a racetrack association has been granted a license
147	147	to operate a racetrack and before the completion of construction at
148	148	the designated place for which the license was issued, the
149	149	commission may, on application by the racetrack association, issue
150	150	a temporary license that authorizes the racetrack association to
151	151	conduct races at a location in the same county until the earlier of:
152	152	(1) the fifth [second] anniversary of the date of
153	153	issuance of the temporary license; or
154	154	(2) the completion of the permanent facility.
155	155	SECTION 1.013. Section 2025.262, Occupations Code, is
156	156	amended to read as follows:
157	157	Sec. 2025.262. GROUNDS FOR DENIAL, REVOCATION, AND
158	158	SUSPENSION OF OCCUPATIONAL LICENSE. The commission may refuse to
159	159	issue any original or renewal license under this subchapter or may
160	160	revoke or suspend the license if, after notice and hearing, the
161	161	commission finds that the applicant or license holder, as
162	162	appropriate:
163	163	(1) has been convicted of a violation of this subtitle
164	164	or a commission rule or has aided, abetted, or conspired to commit a
165	165	violation of this subtitle or a commission rule;
166	166	(2) has been convicted of a felony [or a crime
167	167	involving moral turpitude] that is reasonably related to the
168	168	person's present fitness to hold a license under this subtitle;
169	169	(3) has violated or has caused to be violated this
170	170	subtitle or a commission rule in a manner that involves moral
171	171	turpitude, as distinguished from a technical violation of this
172	172	subtitle or a rule;
173	173	(4) is unqualified, by experience or otherwise, to
174	174	perform the duties required of a license holder under this
175	175	subtitle;
176	176	(5) failed to answer or has falsely or incorrectly
177	177	answered a question in an original or renewal application;
178	178	(6) fails to disclose the true ownership or interest
179	179	in a horse [or greyhound] as required by commission rules;
180	180	(7) is indebted to this state for any fee or for the
181	181	payment of a penalty imposed by this subtitle or a commission rule;
182	182	(8) is not of good moral character or the person's
183	183	reputation as a peaceable, law-abiding citizen in the community
184	184	where the person resides is bad;
185	185	(9) is in the habit of using alcoholic beverages to an
186	186	excess or uses a controlled substance as defined in Chapter 481,
187	187	Health and Safety Code, or a dangerous drug as defined in Chapter
188	188	483, Health and Safety Code, or is mentally incapacitated;
189	189	(10) may be excluded from an enclosure under this
190	190	subtitle;
191	191	(11) has improperly used a temporary pass, license
192	192	certificate, credential, or identification card issued under this
193	193	subtitle;
194	194	(12) resides with a person whose license was revoked
195	195	for cause during the 12 months preceding the date of the present
196	196	application;
197	197	(13) has failed or refused to furnish a true copy of
198	198	the application to the commission's district office in the district
199	199	in which the premises for which the license is sought are located;
200	200	or
201	201	(14) is engaged or has engaged in activities or
202	202	practices that are detrimental to the best interests of the public
203	203	and the sport of horse racing [or greyhound racing].
204	204	SECTION 1.014. Section 2026.008(b), Occupations Code, is
205	205	amended to read as follows:
206	206	(b) The commission shall adopt rules relating to:
207	207	(1) the approval of plans and specifications;
208	208	(2) the contents of plans and specifications,
209	209	including a requirement that a plan incorporate proposals for the
210	210	racetrack to support state emergency management activities under
211	211	Chapter 418, Government Code;
212	212	(3) the maintenance of records to ensure compliance
213	213	with approved plans and specifications;
214	214	(4) the content and filing of construction progress
215	215	reports by the racetrack association to the commission;
216	216	(5) the inspection by the commission or others;
217	217	(6) the method for making a change or amendment to an
218	218	approved plan or specification; and
219	219	(7) any other method of supervision or oversight
220	220	necessary.
221	221	SECTION 1.015. Section 2026.051, Occupations Code, is
222	222	amended to read as follows:
223	223	Sec. 2026.051. COMMISSION RULES REGARDING EXCLUSION OR
224	224	EJECTION. The commission shall adopt rules providing for the
225	225	exclusion or ejection from an enclosure where horse [or greyhound]
226	226	races are conducted, or from specified portions of an enclosure, of
227	227	a person:
228	228	(1) who has engaged in bookmaking, touting, or illegal
229	229	wagering;
230	230	(2) whose income is from illegal activities or
231	231	enterprises;
232	232	(3) who has been convicted of a violation of this
233	233	subtitle;
234	234	(4) who has been convicted of theft;
235	235	(5) who has been convicted under the penal law of
236	236	another jurisdiction for committing an act that would have
237	237	constituted a violation of any rule described in this section;
238	238	(6) who has committed a corrupt or fraudulent act in
239	239	connection with horse [or greyhound] racing or pari-mutuel wagering
240	240	or who has committed any act tending or intended to corrupt horse
241	241	[or greyhound] racing or pari-mutuel wagering;
242	242	(7) who is under suspension or has been excluded or
243	243	ejected from a racetrack by the commission or a steward in this
244	244	state or by a corresponding authority in another state because of
245	245	corrupt or fraudulent practices or other acts detrimental to
246	246	racing;
247	247	(8) who has submitted a forged pari-mutuel ticket or
248	248	has altered or forged a pari-mutuel ticket for cashing or who has
249	249	cashed or caused to be cashed an altered, raised, or forged
250	250	pari-mutuel ticket;
251	251	(9) who has been convicted of committing a lewd or
252	252	lascivious act [or other crime involving moral turpitude];
253	253	(10) who is guilty of boisterous or disorderly conduct
254	254	while inside an enclosure;
255	255	(11) who is an agent or habitual associate of a person
256	256	excludable under this section; or
257	257	(12) who has been convicted of a felony.
258	258	SECTION 1.016. Sections 2028.103(a) and (a-1), Occupations
259	259	Code, are amended to read as follows:
260	260	(a) A horse racetrack association shall set aside for the
261	261	Texas-bred program and pay to the commission an amount equal to one
262	262	percent of a live multiple two wagering pool and a live multiple
263	263	three wagering pool. From the set-aside amounts:
264	264	(1) the greater of two percent or $50,000 shall be set
265	265	aside for purposes of Subchapter D, Chapter 2022 [F, Chapter 88,
266	266	Education Code]; and
267	267	(2) the remaining amount shall be allocated as
268	268	follows:
269	269	(A) 10 percent may be used by the appropriate
270	270	state horse breed registry for administration; and
271	271	(B) the remainder shall be used for awards.
272	272	(a-1) The commission shall deposit money paid to the
273	273	commission under Subsection (a) into the Texas-bred escrow account
274	274	[incentive fund] established under Section 2028.301. The
275	275	commission shall distribute the money collected under this section
276	276	and deposited into the fund to the appropriate state horse breed
277	277	registries for the Texas-bred program in accordance with rules
278	278	adopted under Subsection (c).
279	279	SECTION 1.017. Sections 2028.105(d) and (d-1), Occupations
280	280	Code, are amended to read as follows:
281	281	(d) The horse racetrack association shall pay to the
282	282	commission for deposit into the Texas-bred escrow account
283	283	[incentive fund] established under Section 2028.301 and
284	284	distribution to the appropriate state horse breed registry the
285	285	remaining 80 percent of the total breakage to be allocated as
286	286	follows:
287	287	(1) 40 percent to the owners of the accredited
288	288	Texas-bred horses that finish first, second, or third;
289	289	(2) 40 percent to the breeders of accredited
290	290	Texas-bred horses that finish first, second, or third; and
291	291	(3) 20 percent to the owner of the stallion standing in
292	292	this state at the time of conception whose Texas-bred get finish
293	293	first, second, or third.
294	294	(d-1) The commission shall deposit the portions of total
295	295	breakage paid to the commission under Subsections (b) and (d) into
296	296	the Texas-bred escrow account [incentive fund] established under
297	297	Section 2028.301. The commission shall distribute the money
298	298	collected under this section and deposited into the fund to the
299	299	appropriate state horse breed registries in accordance with this
300	300	section and with rules adopted by the commission under Section
301	301	2028.103.
302	302	SECTION 1.018. Section 2028.202(a-1), Occupations Code, is
303	303	amended to read as follows:
304	304	(a-1) A racetrack association shall pay to the commission
305	305	for deposit into the Texas-bred escrow account [incentive fund]
306	306	established under Section 2028.301 the shares to be distributed
307	307	under Subsections (a)(3) and (a)(4) for the Texas-bred program.
308	308	The commission shall distribute the money collected under this
309	309	section and deposited into the fund to the appropriate state breed
310	310	registries for use under the Texas-bred program.
311	311	SECTION 1.019. Section 2028.301, Occupations Code, is
312	312	amended to read as follows:
313	313	Sec. 2028.301. TEXAS-BRED ESCROW ACCOUNT [INCENTIVE FUND].
314	314	(a) The comptroller [commission] shall deposit the state's share
315	315	of the simulcast pari-mutuel pool [money set aside for the
316	316	Texas-bred program or set aside] for use by state breed registries
317	317	under this chapter into a trust fund [an escrow account] in the
318	318	state treasury [in the registry of the commission] to be known as
319	319	the Texas-bred escrow account. Money in the account may not be
320	320	appropriated for state expenditure [incentive fund].
321	321	(b) The commission shall distribute money from the
322	322	Texas-bred escrow account [incentive fund] in accordance with this
323	323	chapter and commission rules.
324	324	SECTION 1.020. Subchapter A, Chapter 2029, Occupations
325	325	Code, is amended by adding Section 2029.0015 to read as follows:
326	326	Sec. 2029.0015. TRANSFER OF ALLOCATED RACE DATE. (a) A
327	327	class 2 racetrack may submit to the commission an application to
328	328	transfer to a class 1 racetrack a race date the commission allocated
329	329	to the class 2 racetrack under Section 2029.001. The horsemen's
330	330	organization must agree to the transfer before the application is
331	331	submitted.
332	332	(b) The commission:
333	333	(1) shall approve or disapprove an application
334	334	submitted under Subsection (a) not later than the 10th day after the
335	335	date the application is submitted; and
336	336	(2) may not charge a fee for the submitted
337	337	application.
338	338	SECTION 1.021. Section 2033.002, Occupations Code, is
339	339	amended to read as follows:
340	340	Sec. 2033.002. UNLAWFUL RACING. A person commits an
341	341	offense if:
342	342	(1) the person participates in, permits, or conducts a
343	343	horse [or greyhound] race at a racetrack without a permit issued
344	344	under Chapter 751, Health and Safety Code;
345	345	(2) the person wagers on the partial or final outcome
346	346	of the horse [or greyhound] race or knows or reasonably should know
347	347	that another person is betting on the partial or final outcome of
348	348	the race; and
349	349	(3) the race is not part of a performance or race
350	350	meeting conducted under this subtitle or commission rule.
351	351	SECTION 1.022. Section 2033.004(a), Occupations Code, is
352	352	amended to read as follows:
353	353	(a) A person commits an offense if the person:
354	354	(1) conducts a horse [or greyhound] race without:
355	355	(A) a racetrack license; or
356	356	(B) a permit issued under Chapter 751, Health and
357	357	Safety Code; and
358	358	(2) knows or reasonably should know that another
359	359	person is betting on the final or partial outcome of the race.
360	360	SECTION 1.023. Section 2033.014, Occupations Code, is
361	361	amended by adding Subsection (a-1) to read as follows:
362	362	(a-1) A person commits an offense if the person:
363	363	(1) seeks to enter, train, or ride a horse for a horse
364	364	race that is part of a performance or race meeting conducted under
365	365	this subtitle or commission rule; and
366	366	(2) knows or reasonably should know that the horse has
367	367	participated in a performance or race meeting in this state that was
368	368	not conducted:
369	369	(A) under this subtitle or commission rule; or
370	370	(B) under a permit issued under Chapter 751,
371	371	Health and Safety Code.
372	372	SECTION 1.024. Sections 2033.101(a) and (b), Occupations
373	373	Code, are amended to read as follows:
374	374	(a) The executive director may issue a cease and desist
375	375	order if the executive director reasonably believes a person
376	376	[racetrack association or other license holder] is engaging or is
377	377	likely to engage in conduct that violates this subtitle or a
378	378	commission rule.
379	379	(b) On issuance of a cease and desist order, the executive
380	380	director shall serve a proposed cease and desist order on the person
381	381	[racetrack association or other license holder] by personal
382	382	delivery or registered or certified mail, return receipt requested,
383	383	to the person's last known address.
384	384	SECTION 1.025. Section 2033.104, Occupations Code, is
385	385	amended to read as follows:
386	386	Sec. 2033.104. EMERGENCY CEASE AND DESIST ORDER; SEIZURE OF
387	387	AFFECTED ANIMALS. (a) The executive director may issue an
388	388	emergency cease and desist order if the executive director
389	389	reasonably believes a person [racetrack association or other
390	390	license holder] is engaged in a continuing activity that:
391	391	(1) violates this subtitle or a commission rule in a
392	392	manner that threatens immediate and irreparable public harm; or
393	393	(2) involves suspected cruelty to an animal in
394	394	violation of commission rule or Section 42.09 or 42.092, Penal
395	395	Code.
396	396	(b) After issuing an emergency cease and desist order, the
397	397	executive director shall serve on the person [racetrack association
398	398	or other license holder] by personal delivery or registered or
399	399	certified mail, return receipt requested, to the person's last
400	400	known address, an order stating the specific charges and requiring
401	401	the person immediately to cease and desist from the conduct that
402	402	violates this subtitle or a commission rule. The order must contain
403	403	a notice that a request for hearing may be filed under this section.
404	404	(c) On issuance of an emergency cease and desist order, the
405	405	executive director may authorize the seizure of any animal
406	406	suspected of being or to have been subject to cruelty to an animal
407	407	in violation of commission rule or Section 42.09 or 42.092, Penal
408	408	Code. An emergency cease and desist order issued under Subsection
409	409	(a)(2) satisfies the evidence requirement for a showing of probable
410	410	cause for purposes of Section 821.022, Health and Safety Code.
411	411	SECTION 1.026. Section 2034.001(c), Occupations Code, is
412	412	amended to read as follows:
413	413	(c) The commission's rules must require state-of-the-art
414	414	testing methods. The testing may:
415	415	(1) be conducted [prerace or postrace] as determined
416	416	by the commission; and
417	417	(2) be by an invasive or noninvasive method.
418	418	SECTION 1.027. The following provisions of the Occupations
419	419	Code are repealed:
420	420	(1) Section 2021.003(19);
421	421	(2) Section 2023.053(e);
422	422	(3) Sections 2023.061(b) and (c);
423	423	(4) Section 2025.001(a);
424	424	(5) Section 2025.260;
425	425	(6) Section 2026.011; and
426	426	(7) Section 2028.2041(c).
427	427	SECTION 1.028. Section 2021.006, Occupations Code, as
428	428	amended by this Act, applies only to a cause of action that accrues
429	429	on or after the effective date of this Act.
430	430	SECTION 1.029. The term of a person who is serving as a
431	431	member of the Texas Racing Commission immediately before the
432	432	effective date of this Act and who is ineligible for appointment
433	433	under Section 2022.004(e), Occupations Code, as amended by this
434	434	Act, expires on the effective date of this Act.
435	435	SECTION 1.030. On September 1, 2023, money in the
436	436	Texas-bred incentive fund is transferred to the Texas-bred escrow
437	437	account, and the Texas-bred incentive fund is abolished.
438	438	SECTION 1.031. The changes in law made by this Act apply
439	439	only to an offense committed on or after the effective date of this
440	440	Act. An offense committed before the effective date of this Act is
441	441	governed by the law in effect on the date the offense was committed,
442	442	and the former law is continued in effect for that purpose. For
443	443	purposes of this section, an offense was committed before the
444	444	effective date of this Act if any element of the offense occurred
445	445	before that date.
446	446	ARTICLE 2. PROHIBITION ON CONDUCT OF GREYHOUND AND OTHER DOG RACING
447	447	AS LIVE EVENTS
448	448	SECTION 2.001. Section 481.172(a), Government Code, is
449	449	amended to read as follows:
450	450	(a) The office shall:
451	451	(1) as the primary state governmental entity
452	452	responsible for out-of-state tourism marketing and promotion
453	453	efforts, promote and advertise within the United States and in
454	454	foreign countries, by radio, television, newspaper, the Internet,
455	455	and other means considered appropriate, tourism in this state by
456	456	non-Texans, including persons from foreign countries, and
457	457	distribute promotional materials through appropriate distribution
458	458	channels;
459	459	(2) represent the state in domestic and international
460	460	travel trade shows, trade missions, and seminars;
461	461	(3) encourage travel by Texans to this state's scenic,
462	462	historical, cultural, natural, agricultural, educational,
463	463	recreational, and other attractions;
464	464	(4) conduct a public relations campaign to create a
465	465	responsible and accurate national and international image of this
466	466	state;
467	467	(5) use current market research to develop a tourism
468	468	marketing plan to increase travel to the state by domestic and
469	469	international visitors;
470	470	(6) develop methods to attract tourist attractions to
471	471	the state;
472	472	(7) assist communities to develop tourist
473	473	attractions;
474	474	(8) not later than December 31, 2003, enter into a
475	475	memorandum of understanding with the Parks and Wildlife Department,
476	476	the Texas Department of Transportation, the Texas Historical
477	477	Commission, and the Texas Commission on the Arts to direct the
478	478	efforts of those agencies in all matters relating to tourism;
479	479	(9) promote and encourage the horse racing [and
480	480	greyhound racing] industry, if funds are appropriated for the
481	481	promotion or encouragement; and
482	482	(10) promote the sports industry and related
483	483	industries in this state, including promoting this state as a host
484	484	for national and international amateur athletic competition and
485	485	promoting sports or fitness programs for the residents of this
486	486	state, if funds are appropriated for the promotion.
487	487	SECTION 2.002. The heading to Section 751.0021, Health and
488	488	Safety Code, is amended to read as follows:
489	489	Sec. 751.0021. APPLICABILITY TO CERTAIN HORSE [AND
490	490	GREYHOUND] RACES.
491	491	SECTION 2.003. Section 751.0021(a), Health and Safety Code,
492	492	is amended to read as follows:
493	493	(a) This chapter applies to a horse [or greyhound] race that
494	494	attracts or is expected to attract at least 100 persons, except that
495	495	this chapter does not apply if the race is held at a location at
496	496	which pari-mutuel wagering is authorized under Subtitle A-1, Title
497	497	13, Occupations Code (Texas Racing Act).
498	498	SECTION 2.004. Section 2021.002, Occupations Code, is
499	499	amended to read as follows:
500	500	Sec. 2021.002. PURPOSE. The purpose of this subtitle is to
501	501	provide for the strict regulation of horse racing [and greyhound
502	502	racing] and the control of pari-mutuel wagering in connection with
503	503	that racing.
504	504	SECTION 2.005. Sections 2021.003(30), (34), (41), (42),
505	505	(44), and (54), Occupations Code, are amended to read as follows:
506	506	(30) "Outstanding ticket" means a pari-mutuel ticket
507	507	not presented for payment before the end of the horse racing day [or
508	508	greyhound racing day] for which the ticket was purchased.
509	509	(34) "Pari-mutuel wagering" means the form of wagering
510	510	on the outcome of horse racing [or greyhound racing] in which
511	511	persons who wager purchase tickets of various denominations on an
512	512	animal or animals and all wagers for each race are pooled and held
513	513	by the racetrack association for distribution of the total amount,
514	514	less the deductions authorized by this subtitle, to holders of
515	515	tickets on the winning animals.
516	516	(41) "Racetrack" means a facility licensed under this
517	517	subtitle for the conduct of pari-mutuel wagering on horse racing
518	518	[or greyhound racing].
519	519	(42) "Racetrack association" means a person licensed
520	520	under this subtitle to conduct a horse race meeting [or a greyhound
521	521	race meeting] with pari-mutuel wagering.
522	522	(44) "Regular wagering" means wagering on a single
523	523	horse [or greyhound] in a single race. The term includes wagering on
524	524	the win pool, the place pool, or the show pool.
525	525	(54) "Trainer" means a person who is licensed by the
526	526	commission to train horses [or greyhounds].
527	527	SECTION 2.006. Chapter 2021, Occupations Code, is amended
528	528	by adding Section 2021.010 to read as follows:
529	529	Sec. 2021.010. GREYHOUND RACING PROHIBITED. Greyhound
530	530	racing conducted as a live racing event, or any other form of dog
531	531	racing, is prohibited in this state.
532	532	SECTION 2.007. Section 2022.001(c), Occupations Code, is
533	533	amended to read as follows:
534	534	(c) Of the appointed commission members:
535	535	(1) five members must be representatives of the
536	536	general public and have general knowledge of business or
537	537	agribusiness; and
538	538	(2) one additional member must have special knowledge
539	539	or experience related to horse racing[; and
540	540	[(3) one additional member must have special knowledge
541	541	or experience related to greyhound racing].
542	542	SECTION 2.008. Section 2022.004(b), Occupations Code, is
543	543	amended to read as follows:
544	544	(b) A person may not be a commission member and may not be a
545	545	commission employee employed in a "bona fide executive,
546	546	administrative, or professional capacity," as that phrase is used
547	547	for purposes of establishing an exemption to the overtime
548	548	provisions of the federal Fair Labor Standards Act of 1938 (29
549	549	U.S.C. Section 201 et seq.), if:
550	550	(1) the person is an officer, employee, or paid
551	551	consultant of a Texas trade association in the field of horse [or
552	552	greyhound] racing or breeding; or
553	553	(2) the person's spouse is an officer, manager, or paid
554	554	consultant of a Texas trade association in the field of horse [or
555	555	greyhound] racing or breeding.
556	556	SECTION 2.009. The heading to Subchapter A, Chapter 2023,
557	557	Occupations Code, is amended to read as follows:
558	558	SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO
559	559	HORSE RACING [AND GREYHOUND RACING]
560	560	SECTION 2.010. Section 2023.001, Occupations Code, is
561	561	amended to read as follows:
562	562	Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF
563	563	HORSE RACING [AND GREYHOUND RACING]. (a) Notwithstanding any
564	564	contrary provision in this subtitle, the commission may license and
565	565	regulate all aspects of horse racing [and greyhound racing] in this
566	566	state, regardless of whether that racing involves pari-mutuel
567	567	wagering.
568	568	(b) The commission, in adopting rules and in the supervision
569	569	and conduct of racing, shall consider the effect of a proposed
570	570	commission action on the state's agricultural, horse breeding, and
571	571	horse training[, greyhound breeding, and greyhound training]
572	572	industry.
573	573	SECTION 2.011. Section 2023.002, Occupations Code, is
574	574	amended to read as follows:
575	575	Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT
576	576	RACE MEETINGS. (a) The commission shall regulate and supervise
577	577	each race meeting in this state that involves wagering on the result
578	578	of horse racing [or greyhound racing]. Each person and thing
579	579	relating to the operation of a race meeting is subject to regulation
580	580	and supervision by the commission.
581	581	(b) The commission shall adopt rules, issue licenses, and
582	582	take any other necessary action relating exclusively to horse
583	583	racing [or greyhound racing].
584	584	SECTION 2.012. Section 2023.004(a), Occupations Code, is
585	585	amended to read as follows:
586	586	(a) The commission shall adopt:
587	587	(1) rules for conducting horse racing [or greyhound
588	588	racing] in this state that involves wagering; and
589	589	(2) rules for administering this subtitle in a manner
590	590	consistent with this subtitle.
591	591	SECTION 2.013. Section 2023.101, Occupations Code, is
592	592	amended to read as follows:
593	593	Sec. 2023.101. EMPLOYMENT OF STEWARDS [AND JUDGES]. (a) A
594	594	horse race meeting must be supervised by three stewards[, and a
595	595	greyhound race meeting must be supervised by three judges].
596	596	(b) The commission shall employ each steward [and judge] for
597	597	the supervision of a horse race [or greyhound race] meeting.
598	598	(c) The commission shall designate one steward [or judge, as
599	599	appropriate,] as the presiding steward [or judge] for each race
600	600	meeting.
601	601	(d) Following the completion of a race meeting, a racetrack
602	602	association may submit to the commission for the commission's
603	603	review written comments regarding the job performance of the
604	604	stewards [and judges]. A racetrack association's comments
605	605	submitted under this section are not binding, in any way, on the
606	606	commission.
607	607	SECTION 2.014. Section 2024.055(a), Occupations Code, is
608	608	amended to read as follows:
609	609	(a) The comptroller shall deposit the state's share of each
610	610	pari-mutuel pool from horse racing [and greyhound racing] in the
611	611	general revenue fund.
612	612	SECTION 2.015. Section 2025.051, Occupations Code, is
613	613	amended to read as follows:
614	614	Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL
615	615	PENALTY. A person may not conduct wagering on a horse [or
616	616	greyhound] race meeting without first obtaining a racetrack license
617	617	issued by the commission. A person who violates this section
618	618	commits an offense.
619	619	SECTION 2.016. Section 2025.053(b), Occupations Code, is
620	620	amended to read as follows:
621	621	(b) The commission shall set application fees in amounts
622	622	reasonable and necessary to cover the costs of administering this
623	623	subtitle. The commission by rule shall establish a schedule of
624	624	application fees for the various types and classifications of
625	625	racetracks using minimum application fees. The minimum application
626	626	fee[:
627	627	[(1) for a horse racetrack] is:
628	628	(1) [(A)] $15,000 for a class 1 racetrack;
629	629	(2) [(B)] $7,500 for a class 2 racetrack;
630	630	(3) [(C)] $2,500 for a class 3 racetrack; and
631	631	(4) [(D)] $1,500 for a class 4 racetrack[; and
632	632	[(2) for a greyhound racetrack is $20,000].
633	633	SECTION 2.017. Section 2025.101(c), Occupations Code, is
634	634	amended to read as follows:
635	635	(c) The commission may not issue a license to operate a
636	636	class 1 or class 2 racetrack [or a greyhound racetrack] to a
637	637	corporation unless:
638	638	(1) the corporation is incorporated under the laws of
639	639	this state; and
640	640	(2) a majority of any of its corporate stock is owned
641	641	at all times by individuals who meet the residency qualifications
642	642	prescribed by Section 2025.201 for individual applicants.
643	643	SECTION 2.018. Section 2025.102(b), Occupations Code, is
644	644	amended to read as follows:
645	645	(b) In determining whether to grant or deny an application
646	646	for any class of racetrack license, the commission may consider:
647	647	(1) the applicant's financial stability;
648	648	(2) the applicant's resources for supplementing the
649	649	purses for races for various breeds;
650	650	(3) the location of the proposed racetrack;
651	651	(4) the effect of the proposed racetrack on traffic
652	652	flow;
653	653	(5) facilities for patrons and occupational license
654	654	holders;
655	655	(6) facilities for race animals;
656	656	(7) availability to the racetrack of support services
657	657	and emergency services;
658	658	(8) the experience of the applicant's employees;
659	659	(9) the potential for conflict with other licensed
660	660	race meetings;
661	661	(10) the anticipated effect of the race meeting on the
662	662	horse [or greyhound] breeding industry in this state; and
663	663	(11) the anticipated effect of the race meeting on the
664	664	state and local economy from tourism, increased employment, and
665	665	other sources.
666	666	SECTION 2.019. Sections 2025.201(a) and (c), Occupations
667	667	Code, are amended to read as follows:
668	668	(a) The commission may refuse to issue a racetrack license
669	669	or may revoke or suspend a license if, after notice and hearing, the
670	670	commission finds that the applicant or license holder, as
671	671	appropriate:
672	672	(1) has been convicted of a violation of this subtitle
673	673	or a commission rule, or has aided, abetted, or conspired to commit
674	674	a violation of this subtitle or a commission rule;
675	675	(2) has been convicted of a felony or a crime involving
676	676	moral turpitude, including a conviction for which the punishment
677	677	received was a suspended sentence, probation, or a nonadjudicated
678	678	conviction, that is reasonably related to the person's present
679	679	fitness to hold a license under this subtitle;
680	680	(3) has violated or has caused to be violated this
681	681	subtitle or a commission rule in a manner that involves moral
682	682	turpitude, as distinguished from a technical violation of this
683	683	subtitle or a rule;
684	684	(4) is unqualified, by experience or otherwise, to
685	685	perform the duties required of a license holder under this
686	686	subtitle;
687	687	(5) failed to answer or falsely or incorrectly
688	688	answered a question in an application;
689	689	(6) fails to disclose the true ownership or interest
690	690	in a horse [or greyhound] as required by commission rules;
691	691	(7) is indebted to this state for any fee or for the
692	692	payment of a penalty imposed by this subtitle or a commission rule;
693	693	(8) is not of good moral character or the person's
694	694	reputation as a peaceable, law-abiding citizen in the community
695	695	where the person resides is bad;
696	696	(9) is not at least the minimum age necessary to
697	697	purchase alcoholic beverages in this state;
698	698	(10) is in the habit of using alcoholic beverages to an
699	699	excess or uses a controlled substance as defined by Chapter 481,
700	700	Health and Safety Code, or a dangerous drug as defined in Chapter
701	701	483, Health and Safety Code, or is mentally incapacitated;
702	702	(11) may be excluded from an enclosure under this
703	703	subtitle;
704	704	(12) has not been a United States citizen residing in
705	705	this state for the 10 consecutive years preceding the filing of the
706	706	application;
707	707	(13) has improperly used a credential, including a
708	708	license certificate or identification card, issued under this
709	709	subtitle;
710	710	(14) resides with a person whose license was revoked
711	711	for cause during the 12 months preceding the date of the present
712	712	application;
713	713	(15) has failed or refused to furnish a true copy of
714	714	the application to the commission's district office in the district
715	715	in which the premises for which the license is sought are located;
716	716	(16) is engaged or has engaged in activities or
717	717	practices the commission determines are detrimental to the best
718	718	interests of the public and the sport of horse racing [or greyhound
719	719	racing]; or
720	720	(17) fails to fully disclose the true owners of all
721	721	interests, beneficial or otherwise, in a proposed racetrack.
722	722	(c) The commission may refuse to issue a license or may
723	723	suspend or revoke a license of a license holder under this
724	724	subchapter who knowingly or intentionally allows access to an
725	725	enclosure where horse races [or greyhound races] are conducted to a
726	726	person:
727	727	(1) who has engaged in bookmaking, touting, or illegal
728	728	wagering;
729	729	(2) whose income is from illegal activities or
730	730	enterprises; or
731	731	(3) who has been convicted of a violation of this
732	732	subtitle.
733	733	SECTION 2.020. Section 2026.003(a), Occupations Code, is
734	734	amended to read as follows:
735	735	(a) The commission by rule shall require that each racetrack
736	736	association that holds a license for a class 1 racetrack or[,] class
737	737	2 racetrack[, or greyhound racetrack] annually file with the
738	738	commission a detailed financial statement that:
739	739	(1) contains the names and addresses of all
740	740	stockholders, members, and owners of any interest in the racetrack;
741	741	(2) indicates compliance during the filing period with
742	742	Section 2025.101; and
743	743	(3) includes any other information required by the
744	744	commission.
745	745	SECTION 2.021. Section 2026.004(a), Occupations Code, is
746	746	amended to read as follows:
747	747	(a) Except as provided by this section, Section 2026.005, or
748	748	Section 2025.103, a racetrack association may not conduct horse
749	749	racing [or greyhound racing] at any place other than the place
750	750	designated in the license.
751	751	SECTION 2.022. Section 2027.001(a), Occupations Code, is
752	752	amended to read as follows:
753	753	(a) The commission shall adopt rules to regulate wagering on
754	754	horse races [and greyhound races] under the system known as
755	755	pari-mutuel wagering.
756	756	SECTION 2.023. Section 2027.006(a), Occupations Code, is
757	757	amended to read as follows:
758	758	(a) A person who claims to be entitled to any part of a
759	759	distribution from a pari-mutuel pool may, not later than the first
760	760	anniversary of the day the ticket was purchased, file with the
761	761	appropriate racetrack association a claim for the money accompanied
762	762	by a substantial portion of the pari-mutuel ticket sufficient to
763	763	identify the racetrack association, race, or horse [or greyhound]
764	764	involved, amount wagered, and type of ticket.
765	765	SECTION 2.024. Section 2028.051, Occupations Code, is
766	766	amended to read as follows:
767	767	Sec. 2028.051. SET-ASIDE FROM LIVE PARI-MUTUEL POOL. A
768	768	horse [or greyhound] racetrack association shall set aside for this
769	769	state from each live pari-mutuel pool at the racetrack an amount
770	770	equal to:
771	771	(1) one percent of each live pari-mutuel pool from the
772	772	total amount of all of the racetrack association's live pari-mutuel
773	773	pools in a calendar year in excess of $100 million but less than
774	774	$200 million;
775	775	(2) two percent of each live pari-mutuel pool from the
776	776	total amount of all of the racetrack association's live pari-mutuel
777	777	pools in a calendar year in excess of $200 million but less than
778	778	$300 million;
779	779	(3) three percent of each live pari-mutuel pool from
780	780	the total amount of all of the racetrack association's live
781	781	pari-mutuel pools in a calendar year in excess of $300 million but
782	782	less than $400 million;
783	783	(4) four percent of each live pari-mutuel pool from
784	784	the total amount of all of the racetrack association's live
785	785	pari-mutuel pools in a calendar year in excess of $400 million but
786	786	less than $500 million; and
787	787	(5) five percent of each live pari-mutuel pool from
788	788	the total amount of all of the racetrack association's live
789	789	pari-mutuel pools in a calendar year in excess of $500 million.
790	790	SECTION 2.025. Section 2028.202(a), Occupations Code, is
791	791	amended to read as follows:
792	792	(a) A racetrack association shall distribute from the total
793	793	amount deducted as provided by Section [Sections] 2028.101 [and
794	794	2028.152] from each simulcast pari-mutuel pool and each simulcast
795	795	cross-species pari-mutuel pool the following shares:
796	796	(1) an amount equal to one percent of each simulcast
797	797	pari-mutuel pool to the commission for the administration of this
798	798	subtitle;
799	799	(2) an amount equal to 1.25 percent of each simulcast
800	800	cross-species pari-mutuel pool to the commission for the
801	801	administration of this subtitle;
802	802	(3) for a horse racetrack association, an amount equal
803	803	to one percent of a multiple two wagering pool or multiple three
804	804	wagering pool as the amount set aside for the Texas-bred program to
805	805	be used as provided by Section 2028.103;
806	806	[(4) for a greyhound racetrack association, an amount
807	807	equal to one percent of a multiple two wagering pool or a multiple
808	808	three wagering pool as the amount set aside for the Texas-bred
809	809	program for greyhound races, to be distributed and used in
810	810	accordance with commission rules adopted to promote greyhound
811	811	breeding in this state;] and
812	812	(4) [(5)] the remainder as the amount set aside for
813	813	purses, expenses, the sending track, and the receiving location
814	814	under a contract approved by the commission between the sending
815	815	track and the receiving location.
816	816	SECTION 2.026. The heading to Chapter 2030, Occupations
817	817	Code, is amended to read as follows:
818	818	CHAPTER 2030. TEXAS-BRED HORSES [AND GREYHOUNDS]
819	819	SECTION 2.027. Section 2035.001(a), Occupations Code, is
820	820	amended to read as follows:
821	821	(a) The commission may not issue a racetrack license or
822	822	accept a license application for a racetrack to be located in a
823	823	county until the commissioners court has certified to the secretary
824	824	of state that the qualified voters of the county have approved the
825	825	legalization of pari-mutuel wagering on horse races [or greyhound
826	826	races] in the county at an election held under this chapter.
827	827	SECTION 2.028. Section 2035.002, Occupations Code, is
828	828	amended to read as follows:
829	829	Sec. 2035.002. INITIATION OF LEGALIZATION ELECTION. The
830	830	commissioners court:
831	831	(1) may, on its own motion by a majority vote of its
832	832	members, order an election to approve the legalization of
833	833	pari-mutuel wagering on horse races [or greyhound races]; and
834	834	(2) shall order an election on presentation of a
835	835	petition meeting the requirements of this chapter.
836	836	SECTION 2.029. Section 2035.005, Occupations Code, is
837	837	amended to read as follows:
838	838	Sec. 2035.005. CONTENTS OF PETITION APPLICATION. To be
839	839	valid, the petition application must contain:
840	840	(1) a heading, as follows: "Application for a Petition
841	841	for a Local Option Election to Approve the Legalization of
842	842	Pari-mutuel Wagering on Horse Races" [or "Application for a
843	843	Petition for a Local Option Election to Approve the Legalization of
844	844	Pari-mutuel Wagering on Greyhound Races," as appropriate];
845	845	(2) a statement of the issue to be voted on, as
846	846	follows: "Legalizing pari-mutuel wagering on horse races in
847	847	__________ County" [or "Legalizing pari-mutuel wagering on
848	848	greyhound races in __________ County," as appropriate];
849	849	(3) a statement immediately above the signatures of
850	850	the applicants, as follows: "It is the hope, purpose, and intent of
851	851	the applicants whose signatures appear below that pari-mutuel
852	852	wagering on horse races be legalized in __________ County" [or "It
853	853	is the hope, purpose, and intent of the applicants whose signatures
854	854	appear below that pari-mutuel wagering on greyhound races be
855	855	legalized in __________ County," as appropriate]; and
856	856	(4) the printed name, signature, residence address,
857	857	and voter registration certificate number of each applicant.
858	858	SECTION 2.030. Section 2035.006, Occupations Code, is
859	859	amended to read as follows:
860	860	Sec. 2035.006. CONTENTS OF PETITION. To be valid, the
861	861	petition must contain:
862	862	(1) a heading, as follows: "Petition for a Local
863	863	Option Election to Approve the Legalization of Pari-mutuel Wagering
864	864	on Horse Races" [or "Petition for a Local Option Election to Approve
865	865	the Legalization of Pari-mutuel Wagering on Greyhound Races," as
866	866	appropriate];
867	867	(2) a statement of the issue to be voted on, in the
868	868	same words used in the application;
869	869	(3) a statement immediately above the signatures of
870	870	the petitioners, as follows: "It is the hope, purpose, and intent of
871	871	the petitioners whose signatures appear below that pari-mutuel
872	872	wagering on horse races be legalized in __________ County" [or "It
873	873	is the hope, purpose, and intent of the petitioners whose
874	874	signatures appear below that pari-mutuel wagering on greyhound
875	875	races be legalized in __________ County," as appropriate];
876	876	(4) lines and spaces for the names, signatures,
877	877	addresses, and voter registration certificate numbers of the
878	878	petitioners; and
879	879	(5) the date of issuance, the serial number, and the
880	880	seal of the county clerk on each page.
881	881	SECTION 2.031. Section 2035.015, Occupations Code, is
882	882	amended to read as follows:
883	883	Sec. 2035.015. BALLOT PROPOSITION. The ballots for an
884	884	election under this subchapter shall be printed to permit voting
885	885	for or against the proposition: "Legalizing pari-mutuel wagering on
886	886	horse races in __________ County," ["Legalizing pari-mutuel
887	887	wagering on greyhound races in __________ County,"] or "Authorizing
888	888	pari-mutuel wagering on simulcast races in _____ County," as
889	889	appropriate.
890	890	SECTION 2.032. Section 2035.016, Occupations Code, is
891	891	amended to read as follows:
892	892	Sec. 2035.016. CERTIFICATION OF ELECTION RESULTS. If a
893	893	majority of the votes cast in the election favor the legalization of
894	894	pari-mutuel wagering on horse races [or greyhound races] in the
895	895	county, or the authorization of pari-mutuel wagering on simulcast
896	896	races in the county, as appropriate, the commissioners court shall
897	897	certify that fact to the secretary of state not later than the 10th
898	898	day after the date of the canvass of the returns.
899	899	SECTION 2.033. Section 2035.105, Occupations Code, is
900	900	amended to read as follows:
901	901	Sec. 2035.105. BALLOT PROPOSITION. The ballots for an
902	902	election under this subchapter shall be printed to permit voting
903	903	for or against the proposition: "Rescinding the legalization of
904	904	pari-mutuel wagering on horse races in __________ County" [or
905	905	"Rescinding the legalization of pari-mutuel wagering on greyhound
906	906	races in __________ County," as appropriate].
907	907	SECTION 2.034. Section 11.23(h), Tax Code, is amended to
908	908	read as follows:
909	909	(h) County Fair Associations. A county fair association
910	910	organized to hold agricultural fairs and encourage agricultural
911	911	pursuits is entitled to an exemption from taxation of the land and
912	912	buildings that it owns and uses to hold agricultural fairs. An
913	913	association that holds a license issued after January 1, 2001,
914	914	under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act),
915	915	to conduct a horse race meeting [or a greyhound race meeting] with
916	916	pari-mutuel wagering is not entitled to an exemption under this
917	917	subsection. Land or a building used to conduct a horse race meeting
918	918	[or a greyhound race meeting] with pari-mutuel wagering under a
919	919	license issued after January 1, 2001, under that subtitle may not be
920	920	exempted under this subsection. To qualify for an exemption under
921	921	this subsection, a county fair association must:
922	922	(1) be a nonprofit corporation governed by Chapter 22,
923	923	Business Organizations Code;
924	924	(2) be exempt from federal income taxes as an
925	925	organization described by Section 501(c)(3), (4), or (5), Internal
926	926	Revenue Code of 1986;
927	927	(3) qualify for an exemption from the franchise tax
928	928	under Section 171.060; and
929	929	(4) meet the requirements of a charitable organization
930	930	provided by Sections 11.18(e) and (f), for which purpose the
931	931	functions for which the association is organized are considered to
932	932	be charitable functions.
933	933	SECTION 2.035. The following provisions of the Occupations
934	934	Code are repealed:
935	935	(1) Sections 2021.003(15), (16), (17), (22), and (35);
936	936	(2) Section 2023.054;
937	937	(3) Subchapter D, Chapter 2025;
938	938	(4) Section 2026.010;
939	939	(5) Section 2027.056;
940	940	(6) Subchapter D, Chapter 2028;
941	941	(7) Sections 2028.202(b), (c), (d), and (e);
942	942	(8) Section 2028.205;
943	943	(9) Subchapter B, Chapter 2029; and
944	944	(10) Subchapter B, Chapter 2030.
945	945	SECTION 2.036. (a) Greyhound purse funds held by any
946	946	greyhound racetrack association on September 1, 2023, shall be
947	947	transferred to the Texas Racing Commission for deposit into an
948	948	escrow account in the commission's registry. Any horse breed
949	949	registry that holds greyhound purse funds on September 1, 2023,
950	950	shall retain those funds, and those funds may only be used for live
951	951	horse race purses. The commission by rule shall determine the
952	952	allocation of greyhound purse funds transferred to the commission
953	953	under this subsection.
954	954	(b) A racetrack association conducting live horse racing in
955	955	this state on or after September 1, 2023, may apply to the Texas
956	956	Racing Commission for allocation of purse funds described by
957	957	Subsection (a) of this section to be used for purses at the
958	958	association's racetrack during the calendar year for which the
959	959	purse funds are requested. A commission decision relating to the
960	960	allocation of purse funds is final.
961	961	SECTION 2.037. (a) On or before January 1, 2024, a
962	962	greyhound racetrack association may submit an application to the
963	963	Texas Racing Commission to convert the association's greyhound
964	964	racetrack license to a class 2 or class 3 racetrack license, as
965	965	classified under Subchapter C, Chapter 2026, Occupations Code, for
966	966	horse racing.
967	967	(b) The Texas Racing Commission shall approve an
968	968	application submitted under Subsection (a) of this section if:
969	969	(1) the applicant is in good standing with the
970	970	commission;
971	971	(2) information related to the applicant on file with
972	972	the commission is current, complete, and accurate; and
973	973	(3) the applicant pays a fee of $25,000 for the
974	974	commission's review of the application.
975	975	(c) An applicant approved under this section must complete
976	976	the conversion of the greyhound racetrack facility to a horse
977	977	racetrack facility not later than December 31, 2027.
978	978	SECTION 2.038. As soon as practicable after the effective
979	979	date of this Act, the Texas Racing Commission shall adopt the rules
980	980	necessary to implement this article.
981	981	ARTICLE 3. EFFECTIVE DATE
982	982	SECTION 3.001. This Act takes effect September 1, 2023.