Texas 2025 - 89th Regular

Texas House Bill HB4757 Compare Versions

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

Old	New	Differences
1	1	89R15801 BEE-F
2	2	By: Thompson H.B. No. 4757
3	3
4	4
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 2022.0516 to read as follows:
85	85	Sec. 2022.0516. 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. Section 2023.053(f), Occupations Code, is
117	117	amended to read as follows:
118	118	(f) This section does not apply to money deposited into the
119	119	Texas-bred escrow account [incentive fund] established under
120	120	Section 2028.301.
121	121	SECTION 1.009. Section 2023.061(a), Occupations Code, is
122	122	amended to read as follows:
123	123	(a) Not later than January 31 of each year, the commission
124	124	may [shall] file a report with the governor, lieutenant governor,
125	125	and speaker of the house of representatives. The report may
126	126	include, to the extent the commission considers appropriate:
127	127	(1) descriptions of changes to commission programs;
128	128	and
129	129	(2) recommendations to the governor and the
130	130	legislature.
131	131	SECTION 1.010. Section 2024.055(b), Occupations Code, is
132	132	amended to read as follows:
133	133	(b) This section does not apply to money deposited into the
134	134	Texas-bred escrow account [incentive fund] established under
135	135	Section 2028.301.
136	136	SECTION 1.011. Section 2025.103(a), Occupations Code, is
137	137	amended to read as follows:
138	138	(a) After a racetrack association has been granted a license
139	139	to operate a racetrack and before the completion of construction at
140	140	the designated place for which the license was issued, the
141	141	commission may, on application by the racetrack association, issue
142	142	a temporary license that authorizes the racetrack association to
143	143	conduct races at a location in the same county until the earlier of:
144	144	(1) the fifth [second] anniversary of the date of
145	145	issuance of the temporary license; or
146	146	(2) the completion of the permanent facility.
147	147	SECTION 1.012. Section 2025.262, Occupations Code, is
148	148	amended to read as follows:
149	149	Sec. 2025.262. GROUNDS FOR DENIAL, REVOCATION, AND
150	150	SUSPENSION OF OCCUPATIONAL LICENSE. The commission may refuse to
151	151	issue any original or renewal license under this subchapter or may
152	152	revoke or suspend the license if, after notice and hearing, the
153	153	commission finds that the applicant or license holder, as
154	154	appropriate:
155	155	(1) has been convicted of a violation of this subtitle
156	156	or a commission rule or has aided, abetted, or conspired to commit a
157	157	violation of this subtitle or a commission rule;
158	158	(2) has been convicted of a felony [or a crime
159	159	involving moral turpitude] that is reasonably related to the
160	160	person's present fitness to hold a license under this subtitle;
161	161	(3) has violated or has caused to be violated this
162	162	subtitle or a commission rule in a manner that involves moral
163	163	turpitude, as distinguished from a technical violation of this
164	164	subtitle or a rule;
165	165	(4) is unqualified, by experience or otherwise, to
166	166	perform the duties required of a license holder under this
167	167	subtitle;
168	168	(5) failed to answer or has falsely or incorrectly
169	169	answered a question in an original or renewal application;
170	170	(6) fails to disclose the true ownership or interest
171	171	in a horse [or greyhound] as required by commission rules;
172	172	(7) is indebted to this state for any fee or for the
173	173	payment of a penalty imposed by this subtitle or a commission rule;
174	174	(8) is not of good moral character or the person's
175	175	reputation as a peaceable, law-abiding citizen in the community
176	176	where the person resides is bad;
177	177	(9) is in the habit of using alcoholic beverages to an
178	178	excess or uses a controlled substance as defined in Chapter 481,
179	179	Health and Safety Code, or a dangerous drug as defined in Chapter
180	180	483, Health and Safety Code, or is mentally incapacitated;
181	181	(10) may be excluded from an enclosure under this
182	182	subtitle;
183	183	(11) has improperly used a temporary pass, license
184	184	certificate, credential, or identification card issued under this
185	185	subtitle;
186	186	(12) resides with a person whose license was revoked
187	187	for cause during the 12 months preceding the date of the present
188	188	application;
189	189	(13) has failed or refused to furnish a true copy of
190	190	the application to the commission's district office in the district
191	191	in which the premises for which the license is sought are located;
192	192	or
193	193	(14) is engaged or has engaged in activities or
194	194	practices that are detrimental to the best interests of the public
195	195	and the sport of horse racing [or greyhound racing].
196	196	SECTION 1.013. Section 2026.008(b), Occupations Code, is
197	197	amended to read as follows:
198	198	(b) The commission shall adopt rules relating to:
199	199	(1) the approval of plans and specifications;
200	200	(2) the contents of plans and specifications,
201	201	including a requirement that a plan incorporate proposals for the
202	202	racetrack to support state emergency management activities under
203	203	Chapter 418, Government Code;
204	204	(3) the maintenance of records to ensure compliance
205	205	with approved plans and specifications;
206	206	(4) the content and filing of construction progress
207	207	reports by the racetrack association to the commission;
208	208	(5) the inspection by the commission or others;
209	209	(6) the method for making a change or amendment to an
210	210	approved plan or specification; and
211	211	(7) any other method of supervision or oversight
212	212	necessary.
213	213	SECTION 1.014. Section 2026.051, Occupations Code, is
214	214	amended to read as follows:
215	215	Sec. 2026.051. COMMISSION RULES REGARDING EXCLUSION OR
216	216	EJECTION. The commission shall adopt rules providing for the
217	217	exclusion or ejection from an enclosure where horse [or greyhound]
218	218	races are conducted, or from specified portions of an enclosure, of
219	219	a person:
220	220	(1) who has engaged in bookmaking, touting, or illegal
221	221	wagering;
222	222	(2) whose income is from illegal activities or
223	223	enterprises;
224	224	(3) who has been convicted of a violation of this
225	225	subtitle;
226	226	(4) who has been convicted of theft;
227	227	(5) who has been convicted under the penal law of
228	228	another jurisdiction for committing an act that would have
229	229	constituted a violation of any rule described in this section;
230	230	(6) who has committed a corrupt or fraudulent act in
231	231	connection with horse [or greyhound] racing or pari-mutuel wagering
232	232	or who has committed any act tending or intended to corrupt horse
233	233	[or greyhound] racing or pari-mutuel wagering;
234	234	(7) who is under suspension or has been excluded or
235	235	ejected from a racetrack by the commission or a steward in this
236	236	state or by a corresponding authority in another state because of
237	237	corrupt or fraudulent practices or other acts detrimental to
238	238	racing;
239	239	(8) who has submitted a forged pari-mutuel ticket or
240	240	has altered or forged a pari-mutuel ticket for cashing or who has
241	241	cashed or caused to be cashed an altered, raised, or forged
242	242	pari-mutuel ticket;
243	243	(9) who has been convicted of committing a lewd or
244	244	lascivious act [or other crime involving moral turpitude];
245	245	(10) who is guilty of boisterous or disorderly conduct
246	246	while inside an enclosure;
247	247	(11) who is an agent or habitual associate of a person
248	248	excludable under this section; or
249	249	(12) who has been convicted of a felony.
250	250	SECTION 1.015. Sections 2028.103(a) and (a-1), Occupations
251	251	Code, are amended to read as follows:
252	252	(a) A horse racetrack association shall set aside for the
253	253	Texas-bred program and pay to the commission an amount equal to one
254	254	percent of a live multiple two wagering pool and a live multiple
255	255	three wagering pool. From the set-aside amounts:
256	256	(1) the greater of two percent or $50,000 shall be set
257	257	aside for purposes of Subchapter D, Chapter 2022 [F, Chapter 88,
258	258	Education Code]; and
259	259	(2) the remaining amount shall be allocated as
260	260	follows:
261	261	(A) 10 percent may be used by the appropriate
262	262	state horse breed registry for administration; and
263	263	(B) the remainder shall be used for awards.
264	264	(a-1) The commission shall deposit money paid to the
265	265	commission under Subsection (a) into the Texas-bred escrow account
266	266	[incentive fund] established under Section 2028.301. The
267	267	commission shall distribute the money collected under this section
268	268	and deposited into the fund to the appropriate state horse breed
269	269	registries for the Texas-bred program in accordance with rules
270	270	adopted under Subsection (c).
271	271	SECTION 1.016. Sections 2028.105(d) and (d-1), Occupations
272	272	Code, are amended to read as follows:
273	273	(d) The horse racetrack association shall pay to the
274	274	commission for deposit into the Texas-bred escrow account
275	275	[incentive fund] established under Section 2028.301 and
276	276	distribution to the appropriate state horse breed registry the
277	277	remaining 80 percent of the total breakage to be allocated as
278	278	follows:
279	279	(1) 40 percent to the owners of the accredited
280	280	Texas-bred horses that finish first, second, or third;
281	281	(2) 40 percent to the breeders of accredited
282	282	Texas-bred horses that finish first, second, or third; and
283	283	(3) 20 percent to the owner of the stallion standing in
284	284	this state at the time of conception whose Texas-bred get finish
285	285	first, second, or third.
286	286	(d-1) The commission shall deposit the portions of total
287	287	breakage paid to the commission under Subsections (b) and (d) into
288	288	the Texas-bred escrow account [incentive fund] established under
289	289	Section 2028.301. The commission shall distribute the money
290	290	collected under this section and deposited into the fund to the
291	291	appropriate state horse breed registries in accordance with this
292	292	section and with rules adopted by the commission under Section
293	293	2028.103.
294	294	SECTION 1.017. Section 2028.202(a-1), Occupations Code, is
295	295	amended to read as follows:
296	296	(a-1) A racetrack association shall pay to the commission
297	297	for deposit into the Texas-bred escrow account [incentive fund]
298	298	established under Section 2028.301 the shares to be distributed
299	299	under Subsections (a)(3) and (a)(4) for the Texas-bred program.
300	300	The commission shall distribute the money collected under this
301	301	section and deposited into the fund to the appropriate state breed
302	302	registries for use under the Texas-bred program.
303	303	SECTION 1.018. Section 2028.301, Occupations Code, is
304	304	amended to read as follows:
305	305	Sec. 2028.301. TEXAS-BRED ESCROW ACCOUNT [INCENTIVE FUND].
306	306	(a) The comptroller [commission] shall deposit the state's share
307	307	of the simulcast pari-mutuel pool [money set aside for the
308	308	Texas-bred program or set aside] for use by state breed registries
309	309	under this chapter into a trust fund [an escrow account] in the
310	310	state treasury [in the registry of the commission] to be known as
311	311	the Texas-bred escrow account. Money in the account may not be
312	312	appropriated for state expenditure [incentive fund].
313	313	(b) The commission shall distribute money from the
314	314	Texas-bred escrow account [incentive fund] in accordance with this
315	315	chapter and commission rules.
316	316	SECTION 1.019. Subchapter A, Chapter 2029, Occupations
317	317	Code, is amended by adding Section 2029.0015 to read as follows:
318	318	Sec. 2029.0015. TRANSFER OF ALLOCATED RACE DATE. (a) A
319	319	class 2 racetrack may submit to the commission an application to
320	320	transfer to a class 1 racetrack a race date the commission allocated
321	321	to the class 2 racetrack under Section 2029.001. The horsemen's
322	322	organization must agree to the transfer before the application is
323	323	submitted.
324	324	(b) The commission:
325	325	(1) shall approve or disapprove an application
326	326	submitted under Subsection (a) not later than the 10th day after the
327	327	date the application is submitted; and
328	328	(2) may not charge a fee for the submitted
329	329	application.
330	330	SECTION 1.020. Section 2033.002, Occupations Code, is
331	331	amended to read as follows:
332	332	Sec. 2033.002. UNLAWFUL RACING. A person commits an
333	333	offense if:
334	334	(1) the person participates in, permits, or conducts a
335	335	horse [or greyhound] race at a racetrack without a permit issued
336	336	under Chapter 751, Health and Safety Code;
337	337	(2) the person wagers on the partial or final outcome
338	338	of the horse [or greyhound] race or knows or reasonably should know
339	339	that another person is betting on the partial or final outcome of
340	340	the race; and
341	341	(3) the race is not part of a performance or race
342	342	meeting conducted under this subtitle or commission rule.
343	343	SECTION 1.021. Section 2033.004(a), Occupations Code, is
344	344	amended to read as follows:
345	345	(a) A person commits an offense if the person:
346	346	(1) conducts a horse [or greyhound] race without:
347	347	(A) a racetrack license; or
348	348	(B) a permit issued under Chapter 751, Health and
349	349	Safety Code; and
350	350	(2) knows or reasonably should know that another
351	351	person is betting on the final or partial outcome of the race.
352	352	SECTION 1.022. Section 2033.014, Occupations Code, is
353	353	amended by adding Subsection (a-1) to read as follows:
354	354	(a-1) A person commits an offense if the person:
355	355	(1) seeks to enter, train, or ride a horse for a horse
356	356	race that is part of a performance or race meeting conducted under
357	357	this subtitle or commission rule; and
358	358	(2) knows or reasonably should know that the horse has
359	359	participated in a performance or race meeting in this state that was
360	360	not conducted:
361	361	(A) under this subtitle or commission rule; or
362	362	(B) under a permit issued under Chapter 751,
363	363	Health and Safety Code.
364	364	SECTION 1.023. Sections 2033.101(a) and (b), Occupations
365	365	Code, are amended to read as follows:
366	366	(a) The executive director may issue a cease and desist
367	367	order if the executive director reasonably believes a person
368	368	[racetrack association or other license holder] is engaging or is
369	369	likely to engage in conduct that violates this subtitle or a
370	370	commission rule.
371	371	(b) On issuance of a cease and desist order, the executive
372	372	director shall serve a proposed cease and desist order on the person
373	373	[racetrack association or other license holder] by personal
374	374	delivery or registered or certified mail, return receipt requested,
375	375	to the person's last known address.
376	376	SECTION 1.024. Section 2033.104, Occupations Code, is
377	377	amended to read as follows:
378	378	Sec. 2033.104. EMERGENCY CEASE AND DESIST ORDER; SEIZURE OF
379	379	AFFECTED ANIMALS. (a) The executive director may issue an
380	380	emergency cease and desist order if the executive director
381	381	reasonably believes a person [racetrack association or other
382	382	license holder] is engaged in a continuing activity that:
383	383	(1) violates this subtitle or a commission rule in a
384	384	manner that threatens immediate and irreparable public harm; or
385	385	(2) involves suspected cruelty to an animal in
386	386	violation of commission rule or Section 42.09 or 42.092, Penal
387	387	Code.
388	388	(b) After issuing an emergency cease and desist order, the
389	389	executive director shall serve on the person [racetrack association
390	390	or other license holder] by personal delivery or registered or
391	391	certified mail, return receipt requested, to the person's last
392	392	known address, an order stating the specific charges and requiring
393	393	the person immediately to cease and desist from the conduct that
394	394	violates this subtitle or a commission rule. The order must contain
395	395	a notice that a request for hearing may be filed under this section.
396	396	(c) On issuance of an emergency cease and desist order, the
397	397	executive director may authorize the seizure of any animal
398	398	suspected of being or to have been subject to cruelty to an animal
399	399	in violation of commission rule or Section 42.09 or 42.092, Penal
400	400	Code. An emergency cease and desist order issued under Subsection
401	401	(a)(2) satisfies the evidence requirement for a showing of probable
402	402	cause for purposes of Section 821.022, Health and Safety Code.
403	403	SECTION 1.025. Section 2034.001(c), Occupations Code, is
404	404	amended to read as follows:
405	405	(c) The commission's rules must require state-of-the-art
406	406	testing methods. The testing may:
407	407	(1) be conducted [prerace or postrace] as determined
408	408	by the commission; and
409	409	(2) be by an invasive or noninvasive method.
410	410	SECTION 1.026. The following provisions of the Occupations
411	411	Code are repealed:
412	412	(1) Section 2021.003(19);
413	413	(2) Sections 2023.061(b) and (c);
414	414	(3) Section 2025.001(a);
415	415	(4) Section 2026.011; and
416	416	(5) Section 2028.2041(c).
417	417	SECTION 1.027. Section 2021.006, Occupations Code, as
418	418	amended by this Act, applies only to a cause of action that accrues
419	419	on or after the effective date of this Act.
420	420	SECTION 1.028. The term of a person who is serving as a
421	421	member of the Texas Racing Commission immediately before the
422	422	effective date of this Act and who is ineligible for appointment
423	423	under Section 2022.004(e), Occupations Code, as amended by this
424	424	Act, expires on the effective date of this Act.
425	425	SECTION 1.029. On September 1, 2025, money in the
426	426	Texas-bred incentive fund is transferred to the Texas-bred escrow
427	427	account, and the Texas-bred incentive fund is abolished.
428	428	SECTION 1.030. The changes in law made by this Act apply
429	429	only to an offense committed on or after the effective date of this
430	430	Act. An offense committed before the effective date of this Act is
431	431	governed by the law in effect on the date the offense was committed,
432	432	and the former law is continued in effect for that purpose. For
433	433	purposes of this section, an offense was committed before the
434	434	effective date of this Act if any element of the offense occurred
435	435	before that date.
436	436	ARTICLE 2. PROHIBITION ON CONDUCT OF GREYHOUND AND OTHER DOG RACING
437	437	AS LIVE EVENTS
438	438	SECTION 2.001. Section 481.172(a), Government Code, is
439	439	amended to read as follows:
440	440	(a) The office shall:
441	441	(1) as the primary state governmental entity
442	442	responsible for out-of-state tourism marketing and promotion
443	443	efforts, promote and advertise within the United States and in
444	444	foreign countries, by radio, television, newspaper, the Internet,
445	445	and other means considered appropriate, tourism in this state by
446	446	non-Texans, including persons from foreign countries, and
447	447	distribute promotional materials through appropriate distribution
448	448	channels;
449	449	(2) represent the state in domestic and international
450	450	travel trade shows, trade missions, and seminars;
451	451	(3) encourage travel by Texans to this state's scenic,
452	452	historical, cultural, natural, agricultural, educational,
453	453	recreational, and other attractions;
454	454	(4) conduct a public relations campaign to create a
455	455	responsible and accurate national and international image of this
456	456	state;
457	457	(5) use current market research to develop a tourism
458	458	marketing plan to increase travel to the state by domestic and
459	459	international visitors;
460	460	(6) develop methods to attract tourist attractions to
461	461	the state;
462	462	(7) assist communities to develop tourist
463	463	attractions;
464	464	(8) not later than December 31, 2003, enter into a
465	465	memorandum of understanding with the Parks and Wildlife Department,
466	466	the Texas Department of Transportation, the Texas Historical
467	467	Commission, and the Texas Commission on the Arts to direct the
468	468	efforts of those agencies in all matters relating to tourism;
469	469	(9) promote and encourage the horse racing [and
470	470	greyhound racing] industry, if funds are appropriated for the
471	471	promotion or encouragement; and
472	472	(10) promote the sports industry and related
473	473	industries in this state, including promoting this state as a host
474	474	for national and international amateur athletic competition and
475	475	promoting sports or fitness programs for the residents of this
476	476	state, if funds are appropriated for the promotion.
477	477	SECTION 2.002. The heading to Section 751.0021, Health and
478	478	Safety Code, is amended to read as follows:
479	479	Sec. 751.0021. APPLICABILITY TO CERTAIN HORSE [AND
480	480	GREYHOUND] RACES.
481	481	SECTION 2.003. Section 751.0021(a), Health and Safety Code,
482	482	is amended to read as follows:
483	483	(a) This chapter applies to a horse [or greyhound] race that
484	484	attracts or is expected to attract at least 100 persons, except that
485	485	this chapter does not apply if the race is held at a location at
486	486	which pari-mutuel wagering is authorized under Subtitle A-1, Title
487	487	13, Occupations Code (Texas Racing Act).
488	488	SECTION 2.004. Section 2021.002, Occupations Code, is
489	489	amended to read as follows:
490	490	Sec. 2021.002. PURPOSE. The purpose of this subtitle is to
491	491	provide for the strict regulation of horse racing [and greyhound
492	492	racing] and the control of pari-mutuel wagering in connection with
493	493	that racing.
494	494	SECTION 2.005. Sections 2021.003(30), (34), (41), (42),
495	495	(44), and (54), Occupations Code, are amended to read as follows:
496	496	(30) "Outstanding ticket" means a pari-mutuel ticket
497	497	not presented for payment before the end of the horse racing day [or
498	498	greyhound racing day] for which the ticket was purchased.
499	499	(34) "Pari-mutuel wagering" means the form of wagering
500	500	on the outcome of horse racing [or greyhound racing] in which
501	501	persons who wager purchase tickets of various denominations on an
502	502	animal or animals and all wagers for each race are pooled and held
503	503	by the racetrack association for distribution of the total amount,
504	504	less the deductions authorized by this subtitle, to holders of
505	505	tickets on the winning animals.
506	506	(41) "Racetrack" means a facility licensed under this
507	507	subtitle for the conduct of pari-mutuel wagering on horse racing
508	508	[or greyhound racing].
509	509	(42) "Racetrack association" means a person licensed
510	510	under this subtitle to conduct a horse race meeting [or a greyhound
511	511	race meeting] with pari-mutuel wagering.
512	512	(44) "Regular wagering" means wagering on a single
513	513	horse [or greyhound] in a single race. The term includes wagering on
514	514	the win pool, the place pool, or the show pool.
515	515	(54) "Trainer" means a person who is licensed by the
516	516	commission to train horses [or greyhounds].
517	517	SECTION 2.006. Chapter 2021, Occupations Code, is amended
518	518	by adding Section 2021.010 to read as follows:
519	519	Sec. 2021.010. GREYHOUND RACING PROHIBITED. Greyhound
520	520	racing conducted as a live racing event, or any other form of dog
521	521	racing, is prohibited in this state.
522	522	SECTION 2.007. Section 2022.001(c), Occupations Code, is
523	523	amended to read as follows:
524	524	(c) Of the appointed commission members:
525	525	(1) five members must be representatives of the
526	526	general public and have general knowledge of business or
527	527	agribusiness; and
528	528	(2) one additional member must have special knowledge
529	529	or experience related to horse racing[; and
530	530	[(3) one additional member must have special knowledge
531	531	or experience related to greyhound racing].
532	532	SECTION 2.008. Section 2022.004(b), Occupations Code, is
533	533	amended to read as follows:
534	534	(b) A person may not be a commission member and may not be a
535	535	commission employee employed in a "bona fide executive,
536	536	administrative, or professional capacity," as that phrase is used
537	537	for purposes of establishing an exemption to the overtime
538	538	provisions of the federal Fair Labor Standards Act of 1938 (29
539	539	U.S.C. Section 201 et seq.), if:
540	540	(1) the person is an officer, employee, or paid
541	541	consultant of a Texas trade association in the field of horse [or
542	542	greyhound] racing or breeding; or
543	543	(2) the person's spouse is an officer, manager, or paid
544	544	consultant of a Texas trade association in the field of horse [or
545	545	greyhound] racing or breeding.
546	546	SECTION 2.009. The heading to Subchapter A, Chapter 2023,
547	547	Occupations Code, is amended to read as follows:
548	548	SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO
549	549	HORSE RACING [AND GREYHOUND RACING]
550	550	SECTION 2.010. Section 2023.001, Occupations Code, is
551	551	amended to read as follows:
552	552	Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF
553	553	HORSE RACING [AND GREYHOUND RACING]. (a) Notwithstanding any
554	554	contrary provision in this subtitle, the commission may license and
555	555	regulate all aspects of horse racing [and greyhound racing] in this
556	556	state, regardless of whether that racing involves pari-mutuel
557	557	wagering.
558	558	(b) The commission, in adopting rules and in the supervision
559	559	and conduct of racing, shall consider the effect of a proposed
560	560	commission action on the state's agricultural, horse breeding, and
561	561	horse training[, greyhound breeding, and greyhound training]
562	562	industry.
563	563	SECTION 2.011. Section 2023.002, Occupations Code, is
564	564	amended to read as follows:
565	565	Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT
566	566	RACE MEETINGS. (a) The commission shall regulate and supervise
567	567	each race meeting in this state that involves wagering on the result
568	568	of horse racing [or greyhound racing]. Each person and thing
569	569	relating to the operation of a race meeting is subject to regulation
570	570	and supervision by the commission.
571	571	(b) The commission shall adopt rules, issue licenses, and
572	572	take any other necessary action relating exclusively to horse
573	573	racing [or greyhound racing].
574	574	SECTION 2.012. Section 2023.004(a), Occupations Code, is
575	575	amended to read as follows:
576	576	(a) The commission shall adopt:
577	577	(1) rules for conducting horse racing [or greyhound
578	578	racing] in this state that involves wagering; and
579	579	(2) rules for administering this subtitle in a manner
580	580	consistent with this subtitle.
581	581	SECTION 2.013. Section 2023.101, Occupations Code, is
582	582	amended to read as follows:
583	583	Sec. 2023.101. EMPLOYMENT OF STEWARDS [AND JUDGES]. (a) A
584	584	horse race meeting must be supervised by three stewards[, and a
585	585	greyhound race meeting must be supervised by three judges].
586	586	(b) The commission shall employ each steward [and judge] for
587	587	the supervision of a horse race [or greyhound race] meeting.
588	588	(c) The commission shall designate one steward [or judge, as
589	589	appropriate,] as the presiding steward [or judge] for each race
590	590	meeting.
591	591	(d) Following the completion of a race meeting, a racetrack
592	592	association may submit to the commission for the commission's
593	593	review written comments regarding the job performance of the
594	594	stewards [and judges]. A racetrack association's comments
595	595	submitted under this section are not binding, in any way, on the
596	596	commission.
597	597	SECTION 2.014. Section 2024.055(a), Occupations Code, is
598	598	amended to read as follows:
599	599	(a) The comptroller shall deposit the state's share of each
600	600	pari-mutuel pool from horse racing [and greyhound racing] in the
601	601	general revenue fund.
602	602	SECTION 2.015. Section 2025.051, Occupations Code, is
603	603	amended to read as follows:
604	604	Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL
605	605	PENALTY. A person may not conduct wagering on a horse [or
606	606	greyhound] race meeting without first obtaining a racetrack license
607	607	issued by the commission. A person who violates this section
608	608	commits an offense.
609	609	SECTION 2.016. Section 2025.053(b), Occupations Code, is
610	610	amended to read as follows:
611	611	(b) The commission shall set application fees in amounts
612	612	reasonable and necessary to cover the costs of administering this
613	613	subtitle. The commission by rule shall establish a schedule of
614	614	application fees for the various types and classifications of
615	615	racetracks using minimum application fees. The minimum application
616	616	fee[:
617	617	[(1) for a horse racetrack] is:
618	618	(1) [(A)] $15,000 for a class 1 racetrack;
619	619	(2) [(B)] $7,500 for a class 2 racetrack;
620	620	(3) [(C)] $2,500 for a class 3 racetrack; and
621	621	(4) [(D)] $1,500 for a class 4 racetrack[; and
622	622	[(2) for a greyhound racetrack is $20,000].
623	623	SECTION 2.017. Section 2025.101(c), Occupations Code, is
624	624	amended to read as follows:
625	625	(c) The commission may not issue a license to operate a
626	626	class 1 or class 2 racetrack [or a greyhound racetrack] to a
627	627	corporation unless:
628	628	(1) the corporation is incorporated under the laws of
629	629	this state; and
630	630	(2) a majority of any of its corporate stock is owned
631	631	at all times by individuals who meet the residency qualifications
632	632	prescribed by Section 2025.201 for individual applicants.
633	633	SECTION 2.018. Section 2025.102(b), Occupations Code, is
634	634	amended to read as follows:
635	635	(b) In determining whether to grant or deny an application
636	636	for any class of racetrack license, the commission may consider:
637	637	(1) the applicant's financial stability;
638	638	(2) the applicant's resources for supplementing the
639	639	purses for races for various breeds;
640	640	(3) the location of the proposed racetrack;
641	641	(4) the effect of the proposed racetrack on traffic
642	642	flow;
643	643	(5) facilities for patrons and occupational license
644	644	holders;
645	645	(6) facilities for race animals;
646	646	(7) availability to the racetrack of support services
647	647	and emergency services;
648	648	(8) the experience of the applicant's employees;
649	649	(9) the potential for conflict with other licensed
650	650	race meetings;
651	651	(10) the anticipated effect of the race meeting on the
652	652	horse [or greyhound] breeding industry in this state; and
653	653	(11) the anticipated effect of the race meeting on the
654	654	state and local economy from tourism, increased employment, and
655	655	other sources.
656	656	SECTION 2.019. Sections 2025.201(a) and (c), Occupations
657	657	Code, are amended to read as follows:
658	658	(a) The commission may refuse to issue a racetrack license
659	659	or may revoke or suspend a license if, after notice and hearing, the
660	660	commission finds that the applicant or license holder, as
661	661	appropriate:
662	662	(1) has been convicted of a violation of this subtitle
663	663	or a commission rule, or has aided, abetted, or conspired to commit
664	664	a violation of this subtitle or a commission rule;
665	665	(2) has been convicted of a felony or a crime involving
666	666	moral turpitude, including a conviction for which the punishment
667	667	received was a suspended sentence, probation, or a nonadjudicated
668	668	conviction, that is reasonably related to the person's present
669	669	fitness to hold a license under this subtitle;
670	670	(3) has violated or has caused to be violated this
671	671	subtitle or a commission rule in a manner that involves moral
672	672	turpitude, as distinguished from a technical violation of this
673	673	subtitle or a rule;
674	674	(4) is unqualified, by experience or otherwise, to
675	675	perform the duties required of a license holder under this
676	676	subtitle;
677	677	(5) failed to answer or falsely or incorrectly
678	678	answered a question in an application;
679	679	(6) fails to disclose the true ownership or interest
680	680	in a horse [or greyhound] as required by commission rules;
681	681	(7) is indebted to this state for any fee or for the
682	682	payment of a penalty imposed by this subtitle or a commission rule;
683	683	(8) is not of good moral character or the person's
684	684	reputation as a peaceable, law-abiding citizen in the community
685	685	where the person resides is bad;
686	686	(9) is not at least the minimum age necessary to
687	687	purchase alcoholic beverages in this state;
688	688	(10) is in the habit of using alcoholic beverages to an
689	689	excess or uses a controlled substance as defined by Chapter 481,
690	690	Health and Safety Code, or a dangerous drug as defined in Chapter
691	691	483, Health and Safety Code, or is mentally incapacitated;
692	692	(11) may be excluded from an enclosure under this
693	693	subtitle;
694	694	(12) has not been a United States citizen residing in
695	695	this state for the 10 consecutive years preceding the filing of the
696	696	application;
697	697	(13) has improperly used a credential, including a
698	698	license certificate or identification card, issued under this
699	699	subtitle;
700	700	(14) resides with a person whose license was revoked
701	701	for cause during the 12 months preceding the date of the present
702	702	application;
703	703	(15) has failed or refused to furnish a true copy of
704	704	the application to the commission's district office in the district
705	705	in which the premises for which the license is sought are located;
706	706	(16) is engaged or has engaged in activities or
707	707	practices the commission determines are detrimental to the best
708	708	interests of the public and the sport of horse racing [or greyhound
709	709	racing]; or
710	710	(17) fails to fully disclose the true owners of all
711	711	interests, beneficial or otherwise, in a proposed racetrack.
712	712	(c) The commission may refuse to issue a license or may
713	713	suspend or revoke a license of a license holder under this
714	714	subchapter who knowingly or intentionally allows access to an
715	715	enclosure where horse races [or greyhound races] are conducted to a
716	716	person:
717	717	(1) who has engaged in bookmaking, touting, or illegal
718	718	wagering;
719	719	(2) whose income is from illegal activities or
720	720	enterprises; or
721	721	(3) who has been convicted of a violation of this
722	722	subtitle.
723	723	SECTION 2.020. Section 2026.003(a), Occupations Code, is
724	724	amended to read as follows:
725	725	(a) The commission by rule shall require that each racetrack
726	726	association that holds a license for a class 1 racetrack or[,] class
727	727	2 racetrack[, or greyhound racetrack] annually file with the
728	728	commission a detailed financial statement that:
729	729	(1) contains the names and addresses of all
730	730	stockholders, members, and owners of any interest in the racetrack;
731	731	(2) indicates compliance during the filing period with
732	732	Section 2025.101; and
733	733	(3) includes any other information required by the
734	734	commission.
735	735	SECTION 2.021. Section 2026.004(a), Occupations Code, is
736	736	amended to read as follows:
737	737	(a) Except as provided by this section, Section 2026.005, or
738	738	Section 2025.103, a racetrack association may not conduct horse
739	739	racing [or greyhound racing] at any place other than the place
740	740	designated in the license.
741	741	SECTION 2.022. Section 2027.001(a), Occupations Code, is
742	742	amended to read as follows:
743	743	(a) The commission shall adopt rules to regulate wagering on
744	744	horse races [and greyhound races] under the system known as
745	745	pari-mutuel wagering.
746	746	SECTION 2.023. Section 2027.006(a), Occupations Code, is
747	747	amended to read as follows:
748	748	(a) A person who claims to be entitled to any part of a
749	749	distribution from a pari-mutuel pool may, not later than the first
750	750	anniversary of the day the ticket was purchased, file with the
751	751	appropriate racetrack association a claim for the money accompanied
752	752	by a substantial portion of the pari-mutuel ticket sufficient to
753	753	identify the racetrack association, race, or horse [or greyhound]
754	754	involved, amount wagered, and type of ticket.
755	755	SECTION 2.024. Section 2028.051, Occupations Code, is
756	756	amended to read as follows:
757	757	Sec. 2028.051. SET-ASIDE FROM LIVE PARI-MUTUEL POOL. A
758	758	horse [or greyhound] racetrack association shall set aside for this
759	759	state from each live pari-mutuel pool at the racetrack an amount
760	760	equal to:
761	761	(1) one percent of each live pari-mutuel pool from the
762	762	total amount of all of the racetrack association's live pari-mutuel
763	763	pools in a calendar year in excess of $100 million but less than
764	764	$200 million;
765	765	(2) two percent of each live pari-mutuel pool from the
766	766	total amount of all of the racetrack association's live pari-mutuel
767	767	pools in a calendar year in excess of $200 million but less than
768	768	$300 million;
769	769	(3) three percent of each live pari-mutuel pool from
770	770	the total amount of all of the racetrack association's live
771	771	pari-mutuel pools in a calendar year in excess of $300 million but
772	772	less than $400 million;
773	773	(4) four percent of each live pari-mutuel pool from
774	774	the total amount of all of the racetrack association's live
775	775	pari-mutuel pools in a calendar year in excess of $400 million but
776	776	less than $500 million; and
777	777	(5) five percent of each live pari-mutuel pool from
778	778	the total amount of all of the racetrack association's live
779	779	pari-mutuel pools in a calendar year in excess of $500 million.
780	780	SECTION 2.025. Section 2028.202(a), Occupations Code, is
781	781	amended to read as follows:
782	782	(a) A racetrack association shall distribute from the total
783	783	amount deducted as provided by Section [Sections] 2028.101 [and
784	784	2028.152] from each simulcast pari-mutuel pool and each simulcast
785	785	cross-species pari-mutuel pool the following shares:
786	786	(1) an amount equal to one percent of each simulcast
787	787	pari-mutuel pool to the commission for the administration of this
788	788	subtitle;
789	789	(2) an amount equal to 1.25 percent of each simulcast
790	790	cross-species pari-mutuel pool to the commission for the
791	791	administration of this subtitle;
792	792	(3) for a horse racetrack association, an amount equal
793	793	to one percent of a multiple two wagering pool or multiple three
794	794	wagering pool as the amount set aside for the Texas-bred program to
795	795	be used as provided by Section 2028.103;
796	796	[(4) for a greyhound racetrack association, an amount
797	797	equal to one percent of a multiple two wagering pool or a multiple
798	798	three wagering pool as the amount set aside for the Texas-bred
799	799	program for greyhound races, to be distributed and used in
800	800	accordance with commission rules adopted to promote greyhound
801	801	breeding in this state;] and
802	802	(4) [(5)] the remainder as the amount set aside for
803	803	purses, expenses, the sending track, and the receiving location
804	804	under a contract approved by the commission between the sending
805	805	track and the receiving location.
806	806	SECTION 2.026. The heading to Chapter 2030, Occupations
807	807	Code, is amended to read as follows:
808	808	CHAPTER 2030. TEXAS-BRED HORSES [AND GREYHOUNDS]
809	809	SECTION 2.027. Section 2035.001(a), Occupations Code, is
810	810	amended to read as follows:
811	811	(a) The commission may not issue a racetrack license or
812	812	accept a license application for a racetrack to be located in a
813	813	county until the commissioners court has certified to the secretary
814	814	of state that the qualified voters of the county have approved the
815	815	legalization of pari-mutuel wagering on horse races [or greyhound
816	816	races] in the county at an election held under this chapter.
817	817	SECTION 2.028. Section 2035.002, Occupations Code, is
818	818	amended to read as follows:
819	819	Sec. 2035.002. INITIATION OF LEGALIZATION ELECTION. The
820	820	commissioners court:
821	821	(1) may, on its own motion by a majority vote of its
822	822	members, order an election to approve the legalization of
823	823	pari-mutuel wagering on horse races [or greyhound races]; and
824	824	(2) shall order an election on presentation of a
825	825	petition meeting the requirements of this chapter.
826	826	SECTION 2.029. Section 2035.005, Occupations Code, is
827	827	amended to read as follows:
828	828	Sec. 2035.005. CONTENTS OF PETITION APPLICATION. To be
829	829	valid, the petition application must contain:
830	830	(1) a heading, as follows: "Application for a Petition
831	831	for a Local Option Election to Approve the Legalization of
832	832	Pari-mutuel Wagering on Horse Races" [or "Application for a
833	833	Petition for a Local Option Election to Approve the Legalization of
834	834	Pari-mutuel Wagering on Greyhound Races," as appropriate];
835	835	(2) a statement of the issue to be voted on, as
836	836	follows: "Legalizing pari-mutuel wagering on horse races in
837	837	__________ County" [or "Legalizing pari-mutuel wagering on
838	838	greyhound races in __________ County," as appropriate];
839	839	(3) a statement immediately above the signatures of
840	840	the applicants, as follows: "It is the hope, purpose, and intent of
841	841	the applicants whose signatures appear below that pari-mutuel
842	842	wagering on horse races be legalized in __________ County" [or "It
843	843	is the hope, purpose, and intent of the applicants whose signatures
844	844	appear below that pari-mutuel wagering on greyhound races be
845	845	legalized in __________ County," as appropriate]; and
846	846	(4) the printed name, signature, residence address,
847	847	and voter registration certificate number of each applicant.
848	848	SECTION 2.030. Section 2035.006, Occupations Code, is
849	849	amended to read as follows:
850	850	Sec. 2035.006. CONTENTS OF PETITION. To be valid, the
851	851	petition must contain:
852	852	(1) a heading, as follows: "Petition for a Local
853	853	Option Election to Approve the Legalization of Pari-mutuel Wagering
854	854	on Horse Races" [or "Petition for a Local Option Election to Approve
855	855	the Legalization of Pari-mutuel Wagering on Greyhound Races," as
856	856	appropriate];
857	857	(2) a statement of the issue to be voted on, in the
858	858	same words used in the application;
859	859	(3) a statement immediately above the signatures of
860	860	the petitioners, as follows: "It is the hope, purpose, and intent of
861	861	the petitioners whose signatures appear below that pari-mutuel
862	862	wagering on horse races be legalized in __________ County" [or "It
863	863	is the hope, purpose, and intent of the petitioners whose
864	864	signatures appear below that pari-mutuel wagering on greyhound
865	865	races be legalized in __________ County," as appropriate];
866	866	(4) lines and spaces for the names, signatures,
867	867	addresses, and voter registration certificate numbers of the
868	868	petitioners; and
869	869	(5) the date of issuance, the serial number, and the
870	870	seal of the county clerk on each page.
871	871	SECTION 2.031. Section 2035.015, Occupations Code, is
872	872	amended to read as follows:
873	873	Sec. 2035.015. BALLOT PROPOSITION. The ballots for an
874	874	election under this subchapter shall be printed to permit voting
875	875	for or against the proposition: "Legalizing pari-mutuel wagering on
876	876	horse races in __________ County," ["Legalizing pari-mutuel
877	877	wagering on greyhound races in __________ County,"] or "Authorizing
878	878	pari-mutuel wagering on simulcast races in _____ County," as
879	879	appropriate.
880	880	SECTION 2.032. Section 2035.016, Occupations Code, is
881	881	amended to read as follows:
882	882	Sec. 2035.016. CERTIFICATION OF ELECTION RESULTS. If a
883	883	majority of the votes cast in the election favor the legalization of
884	884	pari-mutuel wagering on horse races [or greyhound races] in the
885	885	county, or the authorization of pari-mutuel wagering on simulcast
886	886	races in the county, as appropriate, the commissioners court shall
887	887	certify that fact to the secretary of state not later than the 10th
888	888	day after the date of the canvass of the returns.
889	889	SECTION 2.033. Section 2035.105, Occupations Code, is
890	890	amended to read as follows:
891	891	Sec. 2035.105. BALLOT PROPOSITION. The ballots for an
892	892	election under this subchapter shall be printed to permit voting
893	893	for or against the proposition: "Rescinding the legalization of
894	894	pari-mutuel wagering on horse races in __________ County" [or
895	895	"Rescinding the legalization of pari-mutuel wagering on greyhound
896	896	races in __________ County," as appropriate].
897	897	SECTION 2.034. Section 11.23(h), Tax Code, is amended to
898	898	read as follows:
899	899	(h) County Fair Associations. A county fair association
900	900	organized to hold agricultural fairs and encourage agricultural
901	901	pursuits is entitled to an exemption from taxation of the land and
902	902	buildings that it owns and uses to hold agricultural fairs. An
903	903	association that holds a license issued after January 1, 2001,
904	904	under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act),
905	905	to conduct a horse race meeting [or a greyhound race meeting] with
906	906	pari-mutuel wagering is not entitled to an exemption under this
907	907	subsection. Land or a building used to conduct a horse race meeting
908	908	[or a greyhound race meeting] with pari-mutuel wagering under a
909	909	license issued after January 1, 2001, under that subtitle may not be
910	910	exempted under this subsection. To qualify for an exemption under
911	911	this subsection, a county fair association must:
912	912	(1) be a nonprofit corporation governed by Chapter 22,
913	913	Business Organizations Code;
914	914	(2) be exempt from federal income taxes as an
915	915	organization described by Section 501(c)(3), (4), or (5), Internal
916	916	Revenue Code of 1986;
917	917	(3) qualify for an exemption from the franchise tax
918	918	under Section 171.060; and
919	919	(4) meet the requirements of a charitable organization
920	920	provided by Sections 11.18(e) and (f), for which purpose the
921	921	functions for which the association is organized are considered to
922	922	be charitable functions.
923	923	SECTION 2.035. The following provisions of the Occupations
924	924	Code are repealed:
925	925	(1) Sections 2021.003(15), (16), (17), (22), and (35);
926	926	(2) Section 2023.054;
927	927	(3) Subchapter D, Chapter 2025;
928	928	(4) Section 2026.010;
929	929	(5) Section 2027.056;
930	930	(6) Subchapter D, Chapter 2028;
931	931	(7) Sections 2028.202(b), (c), (d), and (e);
932	932	(8) Section 2028.205;
933	933	(9) Subchapter B, Chapter 2029; and
934	934	(10) Subchapter B, Chapter 2030.
935	935	SECTION 2.036. (a) Greyhound purse funds held by any
936	936	greyhound racetrack association on September 1, 2025, shall be
937	937	transferred to the Texas Racing Commission for deposit into an
938	938	escrow account in the commission's registry. Any horse breed
939	939	registry that holds greyhound purse funds on September 1, 2025,
940	940	shall retain those funds, and those funds may only be used for live
941	941	horse race purses. The commission by rule shall determine the
942	942	allocation of greyhound purse funds transferred to the commission
943	943	under this subsection.
944	944	(b) A racetrack association conducting live horse racing in
945	945	this state on or after September 1, 2025, may apply to the Texas
946	946	Racing Commission for allocation of purse funds described by
947	947	Subsection (a) of this section to be used for purses at the
948	948	association's racetrack during the calendar year for which the
949	949	purse funds are requested. A commission decision relating to the
950	950	allocation of purse funds is final.
951	951	SECTION 2.037. (a) On or before January 1, 2026, a
952	952	greyhound racetrack association may submit an application to the
953	953	Texas Racing Commission to convert the association's greyhound
954	954	racetrack license to a class 2 or class 3 racetrack license, as
955	955	classified under Subchapter C, Chapter 2026, Occupations Code, for
956	956	horse racing.
957	957	(b) The Texas Racing Commission shall approve an
958	958	application submitted under Subsection (a) of this section if:
959	959	(1) the applicant is in good standing with the
960	960	commission;
961	961	(2) information related to the applicant on file with
962	962	the commission is current, complete, and accurate; and
963	963	(3) the applicant pays a fee of $25,000 for the
964	964	commission's review of the application.
965	965	(c) An applicant approved under this section must complete
966	966	the conversion of the greyhound racetrack facility to a horse
967	967	racetrack facility not later than December 31, 2029.
968	968	SECTION 2.038. As soon as practicable after the effective
969	969	date of this Act, the Texas Racing Commission shall adopt the rules
970	970	necessary to implement this article.
971	971	ARTICLE 3. EFFECTIVE DATE
972	972	SECTION 3.001. This Act takes effect September 1, 2025.