Texas Vernon's Texas Civil Statutes - Article 179e. Texas Racing Act
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Art. 179e. TEXAS RACING ACT.
ARTICLE 1. GENERAL PROVISIONS
Short title
Sec. 1.01. This Act may be cited as the Texas Racing Act.
Purpose
Sec. 1.02. The purpose of this Act is to provide for the
strict regulation of horse racing and greyhound racing and the
control of pari-mutuel wagering in connection with that racing.
Definitions
Sec. 1.03. In this Act:
(1) "Person" includes any individual or entity capable of
holding a legal or beneficial interest in property.
(2) "Association" means a person licensed under this Act to
conduct a horse race meeting or a greyhound race meeting with
pari-mutuel wagering.
(3) "Commission" means the Texas Racing Commission.
(4) "Comptroller" means the comptroller of public accounts.
(5) "Executive secretary" means the executive secretary of
the Texas Racing Commission.
(6) "Horse race meeting" means the conducting of horse races
on a day or during a period of consecutive or nonconsecutive days.
(7) "Thoroughbred horse" means a horse that is registered by
the Jockey Club.
(8) "Thoroughbred racing" means the form of horse racing in
which Thoroughbred horses mounted by jockeys engage in a race.
(9) "Quarter horse" means a horse that is registered by the
American Quarter Horse Association.
(10) "Quarter horse racing" means the form of horse racing
in which quarter horses mounted by jockeys engage in a race.
(11) "Appaloosa horse" means a horse that is registered by
the Appaloosa Horse Club.
(12) "Appaloosa racing" means the form of horse racing in
which Appaloosa horses mounted by jockeys engage in a race.
(13) "Arabian horse" means a horse that is registered by the
Arabian Horse Registry of America or by the Canadian Arabian Horse
Registry.
(14) "Arabian racing" means the form of horse racing in
which Arabian horses sanctioned for racing by the Texas Arabian
Breeders Association, while mounted by jockeys, engage in a race.
(15) "Paint horse" means a horse that is registered by The
American Paint Horse Association.
(16) "Paint horse racing" means the form of horse racing in
which paint horses mounted by jockeys engage in a race.
(17) "Enclosure" means all areas of a racing association's
grounds, including the parking area, to which admission ordinarily
can be obtained only on payment of an admission fee or presentation
of official credentials.
(18) "Pari-mutuel wagering" means the form of wagering on
the outcome of greyhound or horse racing in which those who wager
purchase tickets of various denominations on an animal or animals
and all wagers for each race are pooled and held by the racing
association for distribution of the total amount, less the
deductions authorized by this Act, to holders of tickets on the
winning animals.
(19) "Pari-mutuel pool" means the total amount of money
wagered by patrons on the result of a particular race or combination
of races, the total being divided into separate mutuel pools for
win, place, show, or combinations.
(20) "Breakage" means the odd cents by which the amount
payable on each dollar wagered exceeds a multiple of 10 cents,
except in the event a minus pool occurs, in which case the breakage
shall be in multiples of five cents.
(21) "Texas-bred horse" means a horse qualified under the
rules of the commission that is:
(A) sired by a stallion standing in Texas at the time of
conception and foaled by a mare in Texas;
(B) foaled by a mare bred outside Texas and brought into
Texas to foal at any time in the mare's lifetime if the mare is bred
back to a stallion standing in Texas; or
(C) a Thoroughbred or Arabian horse foaled in Texas by an
accredited Texas-bred mare if the mare was bred outside Texas and
returned to Texas on or before August 15 of the calendar year of
conception.
(22) "Accredited Texas-bred horse" means a Texas-bred horse
that meets the accreditation requirements of the state breed
registry of that breed of horse.
(23) "Mixed racing" means a race in which different breeds
of horses participate.
(24) "State horse breed registry" means a designated
association administering accredited Texas-bred requirements for
its specific breed of horses.
(25) "Racetrack" means a facility that is licensed under
this Act for the conduct of pari-mutuel wagering on greyhound
racing or horse racing.
(26) "Horse racing day" means the 24-hour period ending at
12 midnight.
(27) "Clerk of scales" means a racetrack official who is
responsible for weighing a jockey before and after a race.
(28) "Jockey" or "apprentice jockey" means a professional
rider licensed by the commission to ride horse races.
(29) Repealed by Acts 1991, 72nd Leg., ch. 386, Sec. 74(a),
eff. Aug. 26, 1991.
(30) "Official starter" means a racetrack official who is in
charge of the start of a race.
(31) "Paddock judge" means a racetrack official who
supervises animals entered in a race while the animals are
assembled before the beginning of a race in an enclosure on the
grounds of a racetrack.
(32) "Patrol judge" means a racetrack official who is
stationed at a set point along the racetrack to monitor the running
of a race.
(33) "Placing official" means a racetrack official who
records the order of the finish of a race.
(34) "Stable foreman" means the person in charge of the
building in which horses are lodged and fed.
(35) "Steward" means a racing official with general
authority and supervision over:
(A) the conduct of a licensed race meeting; and
(B) all licensees at a racetrack during a race meeting.
(36) "Trainer" means a person who is licensed by the
commission to train racehorses.
(37) "Handicapper" means a person who predicts the winner of
a horse race.
(38) "Authorized agent" means a person appointed by an owner
of a horse to represent the owner. The term is limited to a person
who is appointed by a written instrument that is acknowledged and
approved by the commission.
(39) "Horseshoe inspector" means a racetrack official who
inspects the shoes of the horses entered in a race.
(40) "Jockey room custodian" means a person who maintains
the premises of a room in which jockeys prepare for a race.
(41) "Timer" means a racetrack official who times the
running of a race.
(42) "Veterinarian" means a person licensed under The
Veterinary Licensing Act (Article 7465a, Vernon's Texas Civil
Statutes).
(43) "Concessionaire" means a person licensed by the
commission to sell refreshments or souvenirs at a racetrack.
(44) "Combination" means a combination of races.
(45) "Regular wagering" means wagering on a single horse or
greyhound in a single race. The term includes wagering on the win
pool, the place pool, or the show pool.
(46) "Multiple wagering" means wagering on two or more
animals in one race or on one or more animals in more than one race.
"Multiple two wagering" means wagering on two animals in one or more
races. "Multiple three wagering" means wagering on three or more
animals in one or more races.
(47) "Greyhound" means a purebred greyhound dog registered
by the National Greyhound Association.
(48) "Greyhound racing" means any race in which two or more
greyhounds engage in a contest of speed or endurance or pursue a
mechanical lure.
(49) "Enclosure--public" means the areas of the grounds of
an association to which a member of the public is admitted by
payment of an admission fee or on presentation of authorized
credentials, but excludes restricted areas such as the racetrack,
the receiving area, and the area in which the animals are housed.
(50) "Greyhound racing days" means days on which a permitted
association conducts greyhound racing. "One racing day" means a
period commencing at noon and ending at 2 a.m. the next calendar
day, except in the case of days on which there are matinee races.
(51) "Greyhound matinee race" means any performance
starting between 10 a.m. and 5 p.m. on any day other than Sunday.
(52) "Performance" means the consecutive running of not
more than 13 greyhound races.
(53) "Judge" means an executive official of a greyhound
racetrack.
(54) "Nonprofit corporation" means a corporation organized
under Subdivision 7, Article 1302, Revised Statutes, or organized
under the Texas Non-Profit Corporation Act (Article 1396-1.01 et
seq., Vernon's Texas Civil Statutes) that:
(A) does not distribute any of its income to its members,
officers, or governing body, other than as reasonable compensation
for services;
(B) has a governing body or officers elected by a vote of
members or by a vote of delegates elected by the members; and
(C) has obtained an exemption under Section 501 of the
Internal Revenue Code (26 U.S.C. Section 501).
(55) "Mixed meet" means a live horse race meeting that
includes races by more than one breed of horse.
(56) "Texas-owned horse" means a horse owned by a bona fide
resident of this state as determined by the rules of the commission.
(57) "National historic district" means a district included
in or eligible for inclusion in the National Register of Historic
Places created under the National Historic Preservation Act, 16
U.S.C. Section 470 et seq.
(58) "Corporation" means an incorporated entity, either for
profit or not for profit.
(59) "Applicant" means a person with a legal, equitable, or
beneficial interest in a license application.
(60) "Maiden" means a horse that has never won a race at a
race meeting authorized by the commission or by another racing
jurisdiction.
(61) "Simulcast" means the telecast or other transmission
of live audio and visual signals of a race, transmitted from a
sending track to a receiving location, for the purpose of wagering
conducted on the race at the receiving location.
(62) "Live pari-mutuel pool" means the total amount of money
wagered by patrons on the result of a particular live race or
combination of live races within the enclosure of the racetrack
association where the race is being run.
(63) "Simulcast pari-mutuel pool" means the total amount of
money wagered by patrons at a licensed racetrack association in
Texas on the result of a particular simulcast race or combination of
simulcast races.
(64) "Receiving location" means a licensed racetrack
association in this state that has been allocated live and
simulcast race dates or a facility not located in this state that is
authorized to conduct wagering under the law of the jurisdiction in
which it is located.
(65) "Credential" means any license, certificate,
identification card, or other document indicating or representing
authority or permission under this Act.
(66) "Sending track" means any licensed track for racing in
this state or out-of-state from which a race is transmitted.
(67) "Racetrack facility" means a facility operated by an
association within its enclosure for the purpose of presenting
races for pari-mutuel wagering.
(68) "Child" means a person younger than 16 years of age.
(69) "Minor" means a person younger than 21 years of age.
(70) "Contraband" means:
(A) any item or thing the possession of which is unlawful
under this Act, a commission rule, or other law;
(B) any item or thing that might reasonably have the effect
of unnaturally depressing, stimulating, or exciting an animal
during a race in a manner contrary to this Act or commission rule,
including a prohibited device or substance; or
(C) a document, including a credential or forged ticket,
possessed by an individual or used by an individual in violation of
this Act or a commission rule.
(71) "Prohibited device" means:
(A) a spur or an electrical or other device prohibited by a
commission rule regulating the unlawful influence of a race; or
(B) a device specifically designed, made, or adapted to
influence or affect the outcome of a race in a manner contrary to
this Act or a commission rule.
(72) "Prohibited substance" means a drug, chemical, or
other substance that:
(A) in its use or intended use, is reasonably capable of
influencing or affecting the outcome of a race in a manner contrary
to this Act or a commission rule; and
(B) is prohibited by a commission rule regulating the
unlawful influence of a race.
(73) "Unlawful touting" means an offense described by
Section 14.01 of this Act or a similar offense under the laws of
another state.
(74) "Race" includes a live audio and visual signal of a
race.
(75) "Outstanding ticket" means a pari-mutuel ticket not
presented for payment before the end of the greyhound racing or
horse racing day for which the ticket was purchased.
(76) "Pari-mutuel voucher" means a bearer instrument issued
by a pari-mutuel wagering machine that represents money owned by a
wagering patron and held by an association, including winnings from
a pari-mutuel wager.
(77) "Horsemen's organization" means an organization
recognized by the commission that represents horse owners and
trainers in negotiating and contracting with associations on
subjects relating to racing and in representing and advocating the
interests of horse owners and trainers before administrative,
legislative, and judicial forums.
(78) "Cross-species simulcast signal" means a simulcast
signal of a horse race at a greyhound racetrack facility or a
simulcast signal of a greyhound race at a horse racetrack facility.
ARTICLE 2. TEXAS RACING COMMISSION
Creation
Sec. 2.01. The Texas Racing Commission is created.
Membership
Sec. 2.02. (a) The commission consists of seven members
appointed by the governor with the advice and consent of the senate
and two ex officio members who shall have the right to vote. The ex
officio members are:
(1) the chairman of the Public Safety Commission or a member
of the Public Safety Commission designated by the chairman of the
Public Safety Commission; and
(2) the comptroller of public accounts or the comptroller's
designee.
(b) Appointments to the commission shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointees.
(c) In making appointments to the commission, the governor
shall attempt to reflect the minority groups found in the state's
general populace.
Term of office
Sec. 2.03. (a) Appointed members hold office for staggered
terms of six years with two or three members' terms expiring
February 1 of each odd-numbered year. A member holds office until
that member's successor is appointed and qualifies.
(b) The ex officio members hold office on the commission for
the time for which they hold their other offices.
Residence requirement
Sec. 2.04. An appointed member is not eligible to be a member
of the commission unless that appointee has been a resident of this
state for at least 10 consecutive years immediately before
appointment.
Eligibility
Sec. 2.05. (a) Five of the appointed members of the
commission must be representatives of the general public and have
general knowledge of business or agribusiness. At least one of
those appointed members may be a veterinarian, and being licensed
as a veterinarian satisfies the requirement that the person have
general knowledge of business or agribusiness. One additional
appointed member must have special knowledge or experience related
to greyhound racing and one additional appointed member must have
special knowledge or experience related to horse racing. A person
is not eligible for appointment as a member of the commission if the
person or the person's spouse:
(1) is licensed by the commission, except as a commissioner;
(2) is employed by the commission or participates in the
management of a business entity or other organization regulated by
the commission or receiving funds from or through the commission;
(3) owns or controls, directly or indirectly, more than a 10
percent interest in a business entity or other organization
regulated by the commission or receiving funds from or through the
commission; or
(4) uses or receives a substantial amount of tangible goods,
services, or funds from or through the commission, other than
compensation or reimbursement authorized by law for commission
membership, attendance, or expenses.
(b) In addition to the eligibility requirements of
Subsection (a), a person is not eligible to be an appointed member
of the commission if that person owns any financial interest in a
racetrack or its operation or if that person is related within the
second degree by affinity or the third degree by consanguinity, as
determined under Subchapter B, Chapter 573, Government Code, to a
person who owns any financial interest in a racetrack or its
operation.
(c) Each person appointed to or employed by the commission
is subject to all background checks and qualification criteria
required to hold a racetrack license or other license under this
Act.
(d) A person who has been convicted of a felony or of any
crime involving moral turpitude is not eligible for appointment to
the commission.
Financial statement
Sec. 2.06. Each appointed member of the commission and the
executive secretary of the commission is an "appointed officer of a
major state agency" within the meaning of Chapter 421, Acts of the
63rd Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's
Texas Civil Statutes). An appointee shall also file a detailed
financial statement with the secretary of state of the type
required by The Banking Department of Texas in the application for
charter for state banks. The financial statement is a public record
under Chapter 424, Acts of the 63rd Legislature, Regular Session,
1973 (Article 6252-17a, Vernon's Texas Civil Statutes).
Sec. 2.07. Repealed by Acts 1997, 75th Leg., ch. 1275, Sec.
54, eff. Sept. 1, 1997.
Conflict of interest
Sec. 2.071. (a) An officer, employee, or paid consultant of a
Texas trade association in the field of horse or greyhound racing or
breeding may not be a member of the commission or an employee of the
commission who is exempt from the state's position classification
plan or is compensated at or above the amount prescribed by the
General Appropriations Act for step 1, salary group 17, of the
position classification salary schedule.
(b) A person who is the spouse of an officer, manager, or
paid consultant of a Texas trade association in the field of horse
or greyhound racing or breeding may not be a member of the
commission and may not be an employee of the commission who is
exempt from the state's position classification plan or is
compensated at or above the amount prescribed by the General
Appropriations Act for step 1, salary group 17, of the position
classification salary schedule.
(c) For the purposes of this section, a Texas trade
association is a nonprofit association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
Lobbyist restriction
Sec. 2.072. A person may not serve as a member of the
commission or act as the general counsel to the commission if the
person is required to register as a lobbyist under Chapter 305,
Government Code, because of the person's activities for
compensation on behalf of a profession related to the operation of
the commission.
Grounds for removal
Sec. 2.073. (a) It is a ground for removal from the commission
if a member:
(1) does not have at the time of appointment the
qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
(2) does not maintain during service on the commission the
qualifications required by Section 2.02 or 2.05 of this Act;
(3) violates a prohibition established by Section 2.05,
2.071, or 2.072 of this Act;
(4) cannot because of illness or disability discharge the
member's duties for a substantial part of the term for which the
member is appointed; or
(5) is absent from more than half of the regularly scheduled
commission meetings that the member is eligible to attend during a
calendar year.
(b) The validity of an action of the commission is not
affected by the fact that it is taken when a ground for removal of a
commission member exists.
(c) If the executive secretary has knowledge that a
potential ground for removal exists, the executive secretary shall
notify the presiding officer of the commission of the potential
ground. The presiding officer shall then notify the governor and
the attorney general that a potential ground for removal exists. If
the potential ground for removal involves the presiding officer,
the executive secretary shall notify the next highest officer of
the commission, who shall notify the governor and the attorney
general that a potential ground for removal exists.
Member training
Sec. 2.074. (a) To be eligible to take office as a member of
the commission, a person appointed to the commission must complete
at least one course of a training program that complies with this
section.
(b) The training program must provide information to the
person regarding:
(1) the enabling legislation that created the commission;
(2) the programs operated by the commission;
(3) the role and functions of the commission;
(4) the rules of the commission with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the commission;
(6) the results of the most recent formal audit of the
commission;
(7) the requirements of the:
(A) open meetings law, Chapter 551, Government Code;
(B) open records law, Chapter 552, Government Code; and
(C) administrative procedure law, Chapter 2001, Government
Code;
(8) the requirements of the conflict of interests laws and
other laws relating to public officials; and
(9) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement for travel expenses incurred in attending the
training program, as provided by the General Appropriations Act and
as if the person were a member of the commission.
Expenses
Sec. 2.08. Each appointed member of the commission is
entitled to a per diem in an amount prescribed by legislative
appropriation for each day spent in performing the duties of the
office and is entitled to reimbursement for actual and necessary
expenses incurred in performing those duties. Reimbursement for
expenses under this section is subject to any applicable limitation
in the General Appropriations Act. The ex officio members are
entitled to reimbursement for expenses from their respective
agencies as provided by law for expenses incurred in the
performance of their other official duties.
Offices
Sec. 2.09. The commission shall maintain its general office
in the City of Austin. The commission may also establish branch
offices.
Presiding officer
Sec. 2.10. The governor shall designate a public member of
the commission as the presiding officer of the commission to serve
in that capacity at the pleasure of the governor.
Meetings of commission
Sec. 2.11. (a) The commission shall hold at least six regular
meetings each year on dates fixed by the commission. The commission
shall adopt rules providing for the holding of special meetings.
(b) A majority of the commission constitutes a quorum.
(c) The commission shall keep at its general office a public
record of every vote.
(d) The commission shall, by rule, develop and implement
policies that provide the public with a reasonable opportunity to
appear before the commission and to speak on any issue under the
jurisdiction of the commission.
Executive secretary; employees
Sec. 2.12. (a) The commission shall employ an executive
secretary and other employees as necessary to administer this Act.
(b) The commission may not employ or continue to employ a
person:
(1) who owns or controls a financial interest in a licensee
of the commission;
(2) who is employed by or serves as a paid consultant to a
licensee of the commission, an official breed registry, or a Texas
trade association, as defined by Section 2.071(c) of this Act, in
the field of horse or greyhound racing or breeding;
(3) who owns or leases a race animal that participates in
pari-mutuel racing in this state; or
(4) who accepts or is entitled to any part of the purse or
Texas-bred incentive award to be paid on a greyhound or a horse in a
race conducted in this state.
(c) The commission may not employ or continue to employ a
person who is residentially domiciled with or related within the
first degree by affinity or consanguinity to a person who is subject
to a disqualification prescribed by Subsection (b) of this section.
(d) The commission shall employ the executive secretary and
other employees to reflect the diversity of the population of the
state as regards race, color, handicap, sex, religion, age, and
national origin.
Executive secretary; duties
Sec. 2.13. The executive secretary shall keep the records of
the commission and shall perform other duties as required by the
commission. The executive secretary serves at the pleasure of the
commission on a full-time basis and may not hold other employment.
Legal representation
Sec. 2.14. The attorney general shall designate at least one
member of the attorney general's staff to counsel and advise the
commission and to represent the commission in legal proceedings.
The attorney general shall make available to the appropriate
prosecuting attorneys any information obtained regarding
violations of this Act.
Records
Sec. 2.15. All records of the commission that are not made
confidential by other law are open to inspection by the public
during regular office hours. All applications for a license under
this Act shall be maintained by the commission and shall be
available for public inspection during regular office hours. The
contents of the investigatory files of the commission, however, are
not public records and are confidential except in a criminal
proceeding, in a hearing conducted by the commission, on court
order, or with the consent of the party being investigated.
Department of public safety records
Sec. 2.16. (a) Except as otherwise provided by this Act, the
files, records, information, compilations, documents, photographs,
reports, summaries, and reviews of information and related matters
that are collected, retained, or compiled by the Department of
Public Safety in the discharge of its duties under this Act are
confidential and are not subject to public disclosure, but are
subject to discovery by a person that is the subject of the files,
records, information, compilations, documents, photographs,
reports, summaries, and reviews of information and related matters
that are collected, retained, or compiled by the Department of
Public Safety in the discharge of its duties under this Act.
(b) An investigation report or other document submitted by
the Department of Public Safety to the commission becomes part of
the investigative files of the commission and is subject to
discovery by a person that is the subject of the investigation
report or other document submitted by the Department of Public
Safety to the commission that is part of the investigative files of
the commission.
(c) Information that is in a form available to the public is
not privileged or confidential under this section and is subject to
public disclosure.
Annual accounting
Sec. 2.17. The commission shall prepare annually a complete
and detailed written report accounting for all funds received and
disbursed by the commission during the preceding fiscal year. The
annual report must meet the reporting requirements applicable to
financial reporting provided in the General Appropriations Act.
Funds paid to commission
Sec. 2.18. All money paid to the commission under this Act is
subject to Subchapter F, Chapter 404, Government Code.
Employment practices
Sec. 2.19. (a) The executive secretary or the executive
secretary's designee shall develop an intra-agency career ladder
program that addresses opportunities for mobility and advancement
for employees within the commission. The program shall require
intra-agency posting of all positions concurrently with any public
posting.
(b) The executive secretary or the executive secretary's
designee shall develop a system of annual performance evaluations
that are based on documented employee performance. All merit pay
for commission employees must be based on the system established
under this subsection.
(c) The executive secretary or the executive secretary's
designee shall prepare and maintain a written policy statement to
assure implementation of a program of equal employment opportunity
under which all personnel transactions are made without regard to
race, color, disability, sex, religion, age, or national origin.
The policy statement must include:
(1) personnel policies, including policies relating to
recruitment, evaluation, selection, appointment, training, and
promotion of personnel that are in compliance with the requirements
of Chapter 21, Labor Code;
(2) a comprehensive analysis of the commission workforce
that meets federal and state laws, rules, regulations, and
instructions directly promulgated from those laws, rules, and
regulations;
(3) procedures by which a determination can be made about
the extent of underuse in the commission workforce of all persons
for whom federal or state laws, rules, regulations, and
instructions directly promulgated from those laws, rules, and
regulations encourage a more equitable balance; and
(4) reasonable methods to appropriately address those areas
of underuse.
(d) A policy statement prepared under Subsection (c) of this
section must cover an annual period, be updated annually and
reviewed by the Texas Commission on Human Rights for compliance
with Subsection (c)(1) of this section, and be filed with the
governor's office.
(e) The governor's office shall deliver a biennial report to
the legislature based on the information received under Subsection
(d) of this section. The report may be made separately or as a part
of other biennial reports made to the legislature.
Standards of conduct
Sec. 2.20. The executive secretary or the executive
secretary's designee shall provide to members of the commission and
to agency employees, as often as necessary, information regarding
their qualification for office or employment under this Act and
their responsibilities under applicable laws relating to standards
of conduct for state officers or employees.
Division of responsibility
Sec. 2.21. The commission shall, by rule, develop and
implement policies that clearly separate the policymaking
responsibilities of the commission and the management
responsibilities of the executive secretary and the staff of the
commission.
Program and facility accessibility
Sec. 2.22. The commission shall comply with federal and state
laws related to program and facility accessibility. The executive
secretary shall also prepare and maintain a written plan that
describes how a person who does not speak English can be provided
reasonable access to the commission's programs and services.
Information to public
Sec. 2.23. (a) The commission shall prepare information of
public interest describing the functions of the commission and the
procedures by which complaints are filed with and resolved by the
commission. The commission shall make the information available to
the public and appropriate state agencies.
(b) The commission by rule shall establish methods by which
racetrack patrons are notified of the name, mailing address, and
telephone number of the commission for the purpose of directing
complaints to the commission. The commission may provide for that
notification:
(1) on every race performance program provided by each
racetrack association; or
(2) on signs prominently displayed in the common public
areas on the premises of each racetrack association.
Complaint handling
Sec. 2.24. (a) The commission shall keep information about
each complaint filed with the commission. The information shall
include:
(1) the date the complaint is received;
(2) the name of the complainant;
(3) the subject matter of the complaint;
(4) a record of all persons contacted in relation to the
complaint;
(5) a summary of the results of the review or investigation
of the complaint; and
(6) for complaints for which the agency took no action, an
explanation of the reason the complaint was closed without action.
(b) The commission shall keep a file about each written
complaint filed with the commission that the agency has authority
to resolve. The commission shall provide to the person filing the
complaint and the persons or entities complained about the
commission's policies and procedures pertaining to complaint
investigation and resolution. The commission, at least quarterly
and until final disposition of the complaint, shall notify the
person filing the complaint and the persons or entities complained
about of the status of the complaint unless the notice would
jeopardize an undercover investigation.
ARTICLE 3. POWERS AND DUTIES OF COMMISSION
Sec. 3.01. Repealed by Acts 1997, 75th Leg., ch. 1275, Sec.
54, eff. Sept. 1, 1997.
Regulation and supervision
Sec. 3.02. (a) The commission shall regulate and supervise
every race meeting in this state involving wagering on the result of
greyhound or horse racing. All persons and things relating to the
operation of those meetings are subject to regulation and
supervision by the commission. The commission shall adopt rules
for conducting greyhound or horse racing in this state involving
wagering and shall adopt other rules to administer this Act that are
consistent with this Act. The commission shall also make rules,
issue licenses, and take any other necessary action relating
exclusively to horse racing or to greyhound racing.
(b) The commission may establish separate sections to
review or propose rules of the commission.
(c) The commission or a section of the commission shall hold
a meeting on any proposed rule before the commission publishes the
proposed rule in the Texas Register.
(d) The commission shall post notice of a meeting under
Subsection (c) of this section at each racetrack facility. The
notice shall include an agenda of the meeting and a summary of the
proposed rule.
(e) A copy of a proposed rule published in the Texas
Register shall also be posted concurrently at each racetrack
facility.
(f) The commission or a section of the commission may
appoint a committee of experts, members of the public, or other
interested parties to advise the commission or section of the
commission about a proposed rule of the commission.
(g) The commission, in adopting rules and in the supervision
and conduct of racing, shall consider the effect of a proposed
commission action on the state's agricultural, horse breeding,
horse training, greyhound breeding, and greyhound training
industry.
Regulation by commission
Sec. 3.021. (a) Any provision in this Act to the contrary
notwithstanding, the commission may license and regulate all
aspects of greyhound racing and horse racing in this state, whether
or not that racing involves pari-mutuel wagering.
(b) To protect the health, safety, and welfare of race
animals and participants in racing, to safeguard the interest of
the general public, and to promote the orderly conduct of racing
within the state, the commission may adopt rules for the licensing
and regulation of races and workouts at racetracks that do not offer
pari-mutuel wagering and for workouts at training facilities to
secure past performances and workouts.
(c) The commission may charge an annual fee for licensing
and regulating a racetrack that does not offer pari-mutuel wagering
or a training facility in a reasonable amount that may not exceed
the actual cost of enforcing rules adopted for the licensing and
regulation of races and workouts at such a facility.
(d) The commission may not adopt rules restricting
competitive bidding or advertising by a licensee except to prohibit
false, misleading, or deceptive practices. In its rules to
prohibit false, misleading, or deceptive practices, the commission
may not include a rule that:
(1) restricts the use of any medium for advertising;
(2) restricts the use of a licensee's personal appearance or
voice in an advertisement;
(3) relates to the size or duration of an advertisement by
the licensee; or
(4) restricts the licensee's advertisement under a trade
name.
Power of entry
Sec. 3.03. A member of the commission, an authorized agent of
the commission, a commissioned officer of the Department of Public
Safety, or a peace officer of the local jurisdiction in which the
association maintains a place of business may enter any part of the
racetrack facility or any other place of business of an association
at any time for the purpose of enforcing and administering this Act.
Requirement of books and records; financial statements
Sec. 3.04. The commission shall require associations,
managers, totalisator licensees, and concessionaires to keep books
and records and to submit financial statements to the commission.
The commission shall adopt reasonable rules relating to those
matters.
Subpoena power
Sec. 3.05. (a) A member of the commission, or a duly appointed
agent of the commission, while involved in carrying out functions
under this Act, may take testimony and may require by subpoena the
attendance of witnesses and the production of books, records,
papers, correspondence, and other documents that the commission
considers advisable. Subpoenas shall be issued under the signature
of the commission or its duly appointed agent and shall be served by
any person designated by the commission. A member of the
commission, or a duly appointed agent of the commission, may
administer oaths or affirmations to witnesses appearing before the
commission or its agents.
(b) If a subpoena issued under this section is disobeyed,
the commission or its duly appointed agent may invoke the aid of a
Travis County district court in requiring compliance with the
subpoena. A Travis County district court may issue an order
requiring the person to appear and testify and to produce books,
records, papers, correspondence, and documents. Failure to obey
the order of the court shall be punished by the court as contempt.
Certified documents
Sec. 3.06. Instead of requiring an affidavit or other sworn
statement in any application or other document required to be filed
with the commission, the commission may require a certification of
the document under penalty of perjury in the form the commission may
prescribe.
Officials of race meetings
Sec. 3.07. (a) The commission shall employ all of the judges
and all of the stewards for the supervision of a horse race or
greyhound race meeting. Each horse race or greyhound race meeting
shall be supervised by three stewards for horse racing or by three
judges for greyhound racing. The commission shall designate one of
the stewards or judges as the presiding steward or judge for each
race meeting. The association, following the completion of the
race meeting, may submit written comments to the commission
regarding the job performance of the stewards and judges for the
commission's review. Comments received are not binding, in any
way, on the commission. For each race meeting, the commission shall
employ at least one state veterinarian. The commission may, by
rule, impose a fee on an association to offset the costs of
compensating the stewards, judges, and state veterinarians. The
amount of the fee for the compensation of stewards, judges, and
state veterinarians must be reasonable according to industry
standards for the compensation of those officials at other
racetracks and may not exceed the actual cost to the commission for
compensating the officials. All other racetrack officials shall be
appointed by the association, with the approval of the commission.
Compensation for those officials not compensated by the commission
shall be determined by the association.
(b) The commission shall make rules specifying the
authority and the duties of each official, including the power of
stewards or judges to impose penalties for unethical practices or
violations of racing rules. A penalty imposed by the stewards or
judges may include a fine of not more than $5,000, a suspension for
not more than one year, or both a fine and suspension. Before
imposing a penalty under this subsection, the stewards and judges
shall conduct a hearing that is consistent with constitutional due
process. A hearing conducted by a steward or judge under this
subsection is not subject to Chapter 2001, Government Code. If, in
the opinion of the stewards or judges, the allowable penalties are
not sufficient, the stewards or judges may refer the case to the
commission for further action.
(c) The commission shall require each steward or judge to
take and pass both a written examination and a medical examination
annually. The commission by rule shall prescribe the methods and
procedures for taking the examinations and the standards for
passing. Failure to pass an examination is a ground for refusal to
issue an original or renewal license to a steward or judge or for
suspension or revocation of such a license.
(d) Medication or drug testing performed on a race animal
under this Act shall be conducted by the Texas Veterinary Medical
Diagnostic Laboratory or by a laboratory operated by or in
conjunction with or by a private or public agency selected by the
commission after consultation with the Texas Veterinary Medical
Diagnostic Laboratory. Medication or drug testing performed on a
human under this Act shall be conducted by a laboratory approved by
the commission. Charges for services performed under this section
shall be forwarded to the commission for approval as to the
reasonableness of the charges for the services. Charges may
include but are not limited to expenses incurred for travel,
lodging, testing, and processing of test results. The reasonable
charges associated with medication or drug testing conducted under
this Act shall be paid by the association that receives the
services. The commission shall adopt rules for the procedures for
approving and paying laboratory charges under this section. The
commission shall determine whether the laboratory charges are
reasonable in relation to industry standards by periodically
surveying the drug testing charges of comparable laboratories in
the United States. The commission shall forward a copy of the
charges to the association that receives the services for immediate
payment.
(e) To pay the charges associated with the medication or
drug testing, an association may use the money held by the
association to pay outstanding tickets and pari-mutuel vouchers.
If additional amounts are needed to pay the charges, the
association shall pay those additional amounts. If the amount held
exceeds the amount needed to pay the charges, the association shall
pay the excess to the commission in accordance with Section 11.08 of
this Act.
(f) The association is responsible for the cost of approved
charges for animal drug testing services under this section. The
commission shall adopt rules to allocate responsibility for the
costs of human drug testing of a licensee.
(g) A steward or judge may exercise the supervisory
authority granted the steward or judge under this Act or commission
rule, including the performance of supervisory acts requiring the
exercise of discretion, on any day.
Appeal from decision of stewards or judges
Sec. 3.08. (a) Except as provided by Subsection (b) of this
section, a final decision of the stewards or judges may be appealed
to the commission in the manner provided for a contested case under
the Administrative Procedure and Texas Register Act (Article
6252-13a, Vernon's Texas Civil Statutes).
(b) A decision of the stewards or judges on a
disqualification for a foul in a race or on a finding of fact
regarding the running of a race is final and may not be appealed.
Funding
Sec. 3.09. (a) The comptroller shall deposit the state's
share of each pari-mutuel pool from horse racing and greyhound
racing in the General Revenue Fund.
(b) The commission shall deposit the money it collects under
this Act in the State Treasury to the credit of a special fund to be
known as the Texas Racing Commission fund. The Texas Racing
Commission fund may be appropriated only for the administration and
enforcement of this Act. Any unappropriated money remaining in
that special fund at the close of each fiscal biennium shall be
transferred to the General Revenue Fund and may be appropriated for
any legal purpose. The legislature may also appropriate money from
the General Revenue Fund for the administration and enforcement of
this Act. Any amount of general revenue appropriated for the
administration and enforcement of this Act in excess of the
cumulative amount deposited in the Texas Racing Commission fund
shall be reimbursed from the Texas Racing Commission fund not later
than one year after the date on which the general revenue funds are
appropriated, with 12 percent interest per year until August 31,
1993, and 6-3/4 percent interest thereafter with all payments first
attributable to interest.
Annual report
Sec. 3.10. The commission shall make a report to the
governor, lieutenant governor, and speaker of the house of
representatives not later than January 31 of each year. The report
shall cover the operations of the commission and the condition of
horse breeding and racing and greyhound breeding and racing during
the previous year. The commission shall also obtain from the
Department of Public Safety a comprehensive report of any organized
crime activities in this state which the department may wish to
report and information concerning any and all illegal gambling
which may be known to exist in the state and shall include the
report by the department in its report and shall include any
recommendations it considers appropriate.
Cooperation with peace officers
Sec. 3.11. The commission shall cooperate with all district
attorneys, criminal district attorneys, county attorneys, the
Department of Public Safety, the attorney general, and all peace
officers in enforcing this Act. Under its authority to conduct
criminal history information record checks under Section 5.04 of
this Act, the commission shall maintain and exchange pertinent
intelligence data with other states and agencies.
Reporting of violations
Sec. 3.12. The commission's rules shall allow anonymous
reporting of violations of this Act or of rules adopted by the
commission.
Recognition of organization
Sec. 3.13. (a) The commission by rule shall adopt criteria to
recognize an organization to represent members of a segment of the
racing industry, including owners, breeders, trainers, kennel
operators, or other persons involved in the racing industry, in any
interaction between the members of the organization and an
association or the commission.
(b) The commission may recognize an organization that meets
the requirements of Subsection (a) of this section.
Disciplinary actions
Sec. 3.14. The commission shall revoke, suspend, or refuse to
renew a license, place on probation a person whose license has been
suspended, or reprimand a licensee for a violation of this Act or a
rule of the commission. If a license suspension is probated, the
commission may require the licensee to report regularly to the
commission on matters that are the basis of the probation.
Hearing requirements
Sec. 3.15. If the commission proposes to suspend, revoke, or
refuse to renew a person's license, the person is entitled to a
hearing conducted by the State Office of Administrative Hearings.
Proceedings for a disciplinary action, other than those conducted
by racing stewards or judges, are governed by Chapter 2001,
Government Code. Rules of practice adopted by the commission under
Section 2001.004, Government Code, applicable to the proceedings
for a disciplinary action, other than those conducted by racing
stewards or judges, may not conflict with rules adopted by the State
Office of Administrative Hearings.
Rules relating to unlawful influences on racing
Sec. 3.16. (a) The commission shall adopt rules prohibiting a
person from unlawfully influencing or affecting the outcome of a
race, including rules relating to the use of a prohibited device or
prohibited substance at a racetrack or training facility.
(b) The commission may require prerace testing and shall
require postrace testing to determine whether a prohibited
substance has been used. The testing may be by an invasive or
noninvasive method. The commission's rules shall require
state-of-the-art testing methods.
(c) Following the discovery of a prohibited device or a
return of a test showing the presence of a prohibited substance, a
steward or judge may summarily suspend a person who has used or
administered the prohibited device or prohibited substance until a
hearing before the stewards and judges. The steward or judge may
also disqualify an animal as provided by a commission rule adopted
under this section.
(d) Except as otherwise provided, a person may appeal a
ruling of the stewards or judges to the commission. The commission
may stay a suspension during the period the matter is before the
commission.
(e) The commission may require urine samples to be frozen
for a period necessary to allow any follow-up testing to detect and
identify a prohibited substance. Any other specimen shall be
maintained for testing purposes in a manner required by commission
rule.
(f) If a test sample or specimen shows the presence of a
prohibited substance, the entire sample, including any split
portion remaining in the custody of the commission, shall be
maintained until final disposition of the matter.
(g) A licensee whose animal test shows the presence of a
prohibited substance is entitled to have a split portion of the test
sample or specimen tested at a testing facility authorized to
perform drug testing under this Act and selected by the licensee.
The commission shall adopt rules relating to split testing
procedures.
(h) The licensed trainer of an animal is:
(1) considered by law to be the absolute ensurer that no
prohibited substance has been administered to the animal; and
(2) responsible for ensuring that no prohibited substance
is administered to the animal.
(i) The commission shall adopt rules relating to the drug
testing of licensees.
(j) A person who violates a rule adopted under this section
may:
(1) have any license issued to the person by the commission
revoked or suspended; or
(2) be barred for life or any other period from applying for
or receiving a license issued by the commission or entering any
portion of a racetrack facility.
Security for fees and charges
Sec. 3.17. The commission may require an association to post
security in an amount and form determined by the commission to
adequately ensure the payment of any fees or charges due to the
state or the commission relating to pari-mutuel racing, including
charges for drug testing.
Cease and desist order
Sec. 3.18. (a) The executive secretary may issue a cease and
desist order if the executive secretary reasonably believes an
association or other licensee is engaging or is likely to engage in
conduct that violates this Act or a commission rule.
(b) On issuance of a cease and desist order, the executive
secretary shall serve on the association or other licensee by
personal delivery or registered or certified mail, return receipt
requested, to the person's last known address, a proposed cease and
desist order. The proposed order must state the specific acts or
practices alleged to violate this Act or a commission rule. The
proposed order must state its effective date. The effective date
may not be before the 21st day after the date the proposed order is
mailed or delivered. If the person against whom the proposed order
is directed requests, in writing, a hearing before the effective
date of the proposed order, the order is automatically stayed
pending final adjudication of the order. Unless the person against
whom the proposed order is directed requests, in writing, a hearing
before the effective date of the proposed order, the order takes
effect and is final and nonappealable as to that person.
(c) On receiving a request for a hearing, the executive
secretary shall serve notice of the time and place of the hearing by
personal delivery or registered or certified mail, return receipt
requested. At a hearing, the commission has the burden of proof and
must present evidence in support of the order. Each person against
whom the order is directed may cross-examine and show cause why the
order should not be issued.
(d) After the hearing, the commission shall issue or decline
to issue a cease and desist order. The proposed order may be
modified as necessary to conform to the findings at the hearing. An
order issued under this section is final for purposes of
enforcement and appeal and shall require the person to immediately
cease and desist from the conduct that violates this Act or a
commission rule.
(e) A person affected by a cease and desist order issued,
affirmed, or modified after a hearing may file a petition for
judicial review in a district court of Travis County under Chapter
2001, Government Code. A petition for judicial review does not stay
or vacate the order unless the court, after hearing, specifically
stays or vacates the order.
Emergency cease and desist order
Sec. 3.19. (a) The executive secretary may issue an emergency
cease and desist order if the executive secretary reasonably
believes an association or other licensee is engaged in a
continuing activity that violates this Act or a commission rule in a
manner that threatens immediate and irreparable public harm.
(b) After issuing an emergency cease and desist order, the
executive secretary shall serve on the association or other
licensee by personal delivery or registered or certified mail,
return receipt requested, to the person's last known address, an
order stating the specific charges and requiring the person
immediately to cease and desist from the conduct that violates this
Act or a commission rule. The order must contain a notice that a
request for hearing may be filed under this section.
(c) An association or other licensee that is the subject of
an emergency cease and desist order may request a hearing. The
request must be filed with the executive secretary not later than
the 10th day after the date the order was received or delivered. A
request for a hearing must be in writing and directed to the
executive secretary and must state the grounds for the request to
set aside or modify the order. Unless a person who is the subject of
the emergency order requests a hearing in writing before the 11th
day after the date the order is received or delivered, the emergency
order is final and nonappealable as to that person.
(d) On receiving a request for a hearing, the executive
secretary shall serve notice of the time and place of the hearing by
personal delivery or registered or certified mail, return receipt
requested. The hearing must be held not later than the 10th day
after the date the executive secretary receives the request for a
hearing unless the parties agree to a later hearing date. At the
hearing, the commission has the burden of proof and must present
evidence in support of the order. The person requesting the hearing
may cross-examine witnesses and show cause why the order should not
be affirmed. Section 2003.021(b), Government Code, does not apply
to hearings conducted under this section.
(e) An emergency cease and desist order continues in effect
unless the order is stayed by the executive secretary. The
executive secretary may impose any condition before granting a stay
of the order.
(f) After the hearing, the executive secretary shall
affirm, modify, or set aside in whole or part the emergency cease
and desist order. An order affirming or modifying the emergency
cease and desist order is final for purposes of enforcement and
appeal.
Violation of final cease and desist order
Sec. 3.20. (a) If the executive secretary reasonably believes
that a person has violated a final and enforceable cease and desist
order, the executive secretary may:
(1) initiate administrative penalty proceedings under
Article 15 of this Act;
(2) refer the matter to the attorney general for enforcement
by injunction and any other available remedy; or
(3) pursue any other action, including suspension of the
person's license, that the executive secretary considers
appropriate.
(b) If the attorney general prevails in an action brought
under Subsection (a)(2) of this section, the attorney general is
entitled to recover reasonable attorney's fees.
Injunction
Sec. 3.21. The commission may institute an action in its own
name to enjoin the violation of this Act. An action for an
injunction is in addition to any other action, proceeding, or
remedy authorized by law.
Enforcement regarding horsemen's account
Sec. 3.22. (a) The commission, by rule, shall develop a
system for monitoring the activities of managers and employees of
an association relating to the horsemen's account. The monitoring
system may include review of the financial operations of the
association, including inspections of records at the association's
offices, at any racetrack, or at any other place the association
transacts business.
(b) The executive secretary may issue an order prohibiting
the association from making any transfer from a bank account held by
the association for the conduct of its business under this Act,
pending commission review of the records of the account, if the
executive secretary reasonably believes that the association has
failed to maintain the proper amount of money in the horsemen's
account. The executive secretary shall provide in the order a
procedure for the association to pay certain expenses necessary for
the operation of the racetrack, subject to the executive
secretary's approval. An order issued under this section may be
made valid for a period not to exceed 14 days.
(c) The executive secretary may issue an order requiring the
appropriate transfers to or from the horsemen's account if, after
reviewing the association's records of its bank accounts, the
executive secretary determines there is an improper amount of money
in the horsemen's account.
ARTICLE 4. POWERS AND DUTIES OF COMPTROLLER
Books and records
Sec. 4.01. All books, records, and financial statements
required by the commission under Section 3.04 of this Act are open
to inspection by the comptroller. The comptroller by rule may
specify the form and manner in which the books, records, and
statements are to be kept and reports are to be filed that relate to
the state's share of a pari-mutuel pool.
Power of entry
Sec. 4.02. The comptroller and the authorized agents of the
comptroller may enter the office, racetrack, or other place of
business of an association or totalisator licensee at any time to
inspect books, records, or financial statements or to inspect and
test the totalisator system to determine the accuracy of
totalisator-generated reports and calculations pertaining to the
state share of the pari-mutuel pool.
Rules
Sec. 4.03. The comptroller may adopt rules for the
enforcement of the comptroller's powers and duties under this Act.
Collection of state's portion of pari-mutuel pool
Sec. 4.04. (a) The comptroller may prescribe by rule
procedures for the collection and deposit of the state's portion of
each pari-mutuel pool. The state's portion of each pool shall be
deposited by the association at the time and in the manner that the
comptroller prescribes by rule.
(b) The comptroller by rule may require each association to
post security in an amount estimated to be sufficient to cover the
amount of state money that will be collected and held by an
association between bank deposits to ensure payment of the state's
portion of the pari-mutuel pool. Cash, cashier's checks, surety
bonds, irrevocable bank letters of credit, United States Treasury
bonds that are readily convertible to cash, or irrevocable
assignments of federally insured accounts in banks, savings and
loan institutions, and credit unions are acceptable as security for
purposes of this section.
Compliance
Sec. 4.05. (a) If an association or totalisator company does
not comply with a rule adopted by the comptroller under this
article, refuses to allow access to or inspection of any of its
required books, records, or financial statements, refuses to allow
access to or inspection of the totalisator system, or becomes
delinquent for the state's portion of the pari-mutuel pool or for
any other tax collected by the comptroller, the comptroller shall
certify that fact to the commission.
(b) With regard to the state's portion of the pari-mutuel
pool and any penalties related to the state's portion, the
comptroller, acting independently of the commission, may take any
collection or enforcement actions authorized under the Tax Code
against a delinquent or dilatory taxpayer. Administrative appeals
related to the state's portion of the pari-mutuel pool or late
reporting or deposit of the state's portion shall be to the
comptroller and then to the courts as under Title 2, Tax Code. All
other administrative appeals shall be to the commission and then to
the courts.
Penalties for delayed reports and payments
Sec. 4.06. An association incurs a penalty for the late
payment of the state's portion of the pari-mutuel pool or reports
related to the payment of that portion at the rate of five percent
of the total amount due or $1,000, whichever is greater, for a
report or payment not filed on or before the time it is due. An
additional penalty equal to one percent of the amount of the state's
portion that is unpaid shall be added for each business day that the
required report or payment is late up to a maximum penalty of 12
percent. The penalty may be waived in situations in which penalties
would be waived under Section 111.103, Tax Code.
ARTICLE 5. GENERAL LICENSE PROVISIONS
Form; certificate; fees
Sec. 5.01. (a) The commission shall prescribe forms for
applications for licenses and shall provide each occupational
licensee with a license certificate or credentials.
(b) The commission shall annually prescribe reasonable
license fees for each category of license issued under this Act.
(c) The operation of a racetrack and the participation in
racing are privileges, not rights, granted only by the commission
by license and subject to reasonable and necessary conditions set
by the commission.
Judicial review
Sec. 5.02. (a) Judicial review of an order of the commission
is under the substantial evidence rule.
(b) Venue for judicial review of an order of the commission
is in a district court in Travis County.
Fingerprints
Sec. 5.03. (a) An applicant for any license under this Act
must, except as allowed under Section 7.10 of this Act, submit to
the commission a complete set of fingerprints of the individual
natural person applying for the license or, if the applicant is not
an individual natural person, a complete set of fingerprints of
each officer or director and of each person owning an interest of at
least five percent in the applicant. The Department of Public
Safety may request any person owning any interest in an applicant
for a racetrack license to submit a complete set of fingerprints.
(b) If a complete set of fingerprints is required by the
commission, the commission shall, not later than the next day after
receiving the prints, forward the prints to the Department of
Public Safety or the Federal Bureau of Investigation. If the prints
are forwarded to the Department of Public Safety, the department
shall classify the prints and check them against its fingerprint
files and shall report to the commission its findings concerning
the criminal record of the applicant or the lack of such a record. A
racetrack license may not be issued until the report is made to the
commission. A temporary occupational license may be issued before
a report is made to the commission.
(c) A peace officer of this or any other state, or any
district office of the commission, shall take the fingerprints of
an applicant for a license on forms approved and furnished by the
Department of Public Safety and shall immediately deliver them to
the commission.
Access to criminal history records
Sec. 5.04. (a) The commission is authorized to obtain any
criminal history record information that relates to each applicant
for employment by the commission and to each applicant for a license
issued by the commission and that is maintained by the Department of
Public Safety or the Federal Bureau of Investigation Identification
Division. The commission may refuse to recommend an applicant who
fails to provide a complete set of fingerprints.
(b) Repealed by Acts 1993, 73rd Leg., ch. 790, Sec. 46(8),
eff. Sept. 1, 1993.
(c) Repealed by Acts 1993, 73rd Leg., ch. 790, Sec. 46(8),
eff. Sept. 1, 1993.
Cost of criminal history check
Sec. 5.05. (a) The commission shall, in determining the
amount of a license fee, set the fee in an amount that will cover, at
least, the cost of conducting a criminal history check on the
applicant for a license.
(b) The commission shall reimburse the Department of Public
Safety for the cost of conducting a criminal history check under
this article.
ARTICLE 6. RACETRACK LICENSES
License required
Sec. 6.01. A person may not conduct wagering on a greyhound
race or a horse race meeting without first obtaining a racetrack
license from the commission. A person who violates this section
commits an offense.
Classification of horse-racing tracks
Sec. 6.02. (a) Horse-racing tracks are classified as class 1
racetracks, class 2 racetracks, class 3 racetracks, and class 4
racetracks.
(b) A class 1 racetrack is a racetrack on which live racing
is conducted for a number of days in a calendar year, the number of
days and the actual dates to be determined by the commission under
Article 8 of this Act. A class 1 racetrack may operate only in a
county with a population of not less than 1.3 million, or in a
county adjacent to a county with such a population. Not more than
three class 1 racetracks may be licensed and operated in this state.
(c) A class 2 racetrack is a racetrack on which live racing
is conducted for a number of days to be determined by the commission
under Article 8 of this Act. A class 2 racetrack is entitled to
conduct 60 days of live racing in a calendar year. An association
may request additional or fewer days of live racing. If after
receipt of a request from an association the commission determines
additional or fewer days to be economically feasible and in the best
interest of the state and the racing industry, the commission shall
grant the additional or fewer days. The commission may permit an
association that holds a class 2 racetrack license and that is
located in a national historic district to conduct horse races for
more than 60 days in a calendar year.
(d) A class 3 racetrack is a racetrack operated by a county
or a nonprofit fair under Article 12 of this Act. An association
that holds a class 3 racetrack license and that conducted horse
races in 1986 may conduct live races for a number of days not to
exceed 16 days in a calendar year on the dates selected by the
association.
(e) For purposes of this section live race dates are counted
separately from the dates on which the association presents
simulcast races.
(f) The number of race dates allowed under this section
relates only to live race dates. A racetrack may present simulcast
races on other dates as approved by the commission.
(g) A class 4 racetrack is a racetrack operated by a county
fair under Section 12.03 of this Act. An association that holds a
class 4 racetrack license may conduct live races for a number of
days not to exceed five days in a calendar year on dates selected by
the association and approved by the commission.
Application
Sec. 6.03. (a) The commission shall require each applicant
for an original racetrack license to pay the required application
fee and to submit an application, on a form prescribed by the
commission, containing the following information:
(1) if the applicant is an individual, the full name of the
applicant, the applicant's date of birth, a physical description of
the applicant, the applicant's current address and telephone
number, and a statement by the applicant disclosing any arrest or
conviction for a felony or for a misdemeanor, except a misdemeanor
under the Uniform Act Regulating Traffic on Highways (Article
6701d, Vernon's Texas Civil Statutes) or a similar misdemeanor
traffic offense;
(2) if the applicant is a corporation:
(A) the state in which it is incorporated, the names and
addresses of the corporation's agents for service of process in
this state, the names and addresses of its officers and directors,
the names and addresses of its stockholders, and, for each
individual named under this subdivision, the individual's date of
birth, current address and telephone number, and physical
description, and a statement disclosing any arrest or conviction
for a felony or for a misdemeanor, except a misdemeanor under the
Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
Texas Civil Statutes) or a similar misdemeanor traffic offense;
and
(B) identification of any other beneficial owner of shares
in the applicant that bear voting rights, absolute or contingent,
any other person that directly or indirectly exercises any
participation in the applicant, and any other ownership interest in
the applicant that the applicant making its best effort is able to
identify;
(3) if the applicant is an unincorporated business
association:
(A) the names and addresses of each of its members and, for
each individual named under this subdivision, the individual's date
of birth, current address and telephone number, and physical
description, and a statement disclosing any arrest or conviction
for a felony or for a misdemeanor, except a misdemeanor under the
Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
Texas Civil Statutes) or a similar misdemeanor traffic offense;
and
(B) identification of any other person that exercises
voting rights in the applicant or that directly or indirectly
exercises any participation in the applicant and any other
ownership interest in the applicant that the applicant making its
best effort is able to identify;
(4) the exact location at which a race meeting is to be
conducted;
(5) if the racing facility is in existence, whether it is
owned by the applicant and, if leased to the applicant, the name and
address of the owner and, if the owner is a corporation or
unincorporated business association, the names and addresses of its
officers and directors, its stockholders and members, if any, and
its agents for service of process in this state;
(6) if construction of the racing facility has not been
initiated, whether it is to be owned by the applicant and, if it is
to be leased to the applicant, the name and address of the
prospective owner and, if the owner is a corporation or
unincorporated business association, the names and addresses of its
officers and directors, the names and addresses of its
stockholders, the names and addresses of its members, if any, and
the names and addresses of its agents for service of process in this
state;
(7) identification of any other beneficial owner of shares
that bear voting rights, absolute or contingent, in the owner or
prospective owner of the racing facility, or any other person that
directly or indirectly exercises any participation in the owner or
prospective owner and all other ownership interest in the owner or
prospective owner that the applicant making its best effort is able
to identify;
(8) a detailed statement of the assets and liabilities of
the applicant;
(9) the kind of racing to be conducted and the dates
requested;
(10) proof of residency as required by Section 6.06 of this
Act;
(11) a copy of each management, concession, and totalisator
contract dealing with the proposed license at the proposed location
in which the applicant has an interest for inspection and review by
the commission; the applicant or licensee shall advise the
commission of any change in any management, concession, or
totalisator contract; all management, concession, and totalisator
contracts must have prior approval of the commission; the same
fingerprint, criminal records history, and other information
required of license applicants pursuant to Sections 5.03 and 5.04
and Subdivisions (1) through (3) of this subsection shall be
required of proposed totalisator firms, concessionaires, and
managers and management firms; and
(12) any other information required by the commission.
(b) When the commission receives a plan for the security of
a racetrack facility, or a copy of a management, concession, or
totalisator contract for review under Subdivision (11) of
Subsection (a) of this section, the commission shall review the
contract or security plan in an executive session. Documents
submitted to the commission under this section by an applicant are
subject to discovery in a suit brought under this Act but are not
public records and are not subject to Chapter 424, Acts of the 63rd
Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
Texas Civil Statutes). In reviewing and approving contracts under
this subsection, the commission shall attempt to ensure the
involvement of minority owned businesses whenever possible.
(c) The application must be sworn to by the applicant or, if
a corporation or association, by its chief executive officer.
(d) The application for an original racetrack license must
be accompanied by an application fee in the form of a cashier's
check or certified check.
(e) The minimum application fee for a horse racing track is
$15,000 for a class 1 racetrack, $7,500 for a class 2 racetrack,
$2,500 for a class 3 racetrack, and $1,500 for a class 4 racetrack.
The minimum application fee for a greyhound racing track is
$20,000. Using the minimum fees, the commission by rule shall
establish a schedule of application fees for the various types and
sizes of racing facilities. The commission shall set the
application fees in amounts that are reasonable and necessary to
cover the costs of administering this Act.
(f) If the applicant is a nonprofit corporation, only
directors and officers of the corporation must disclose the
information required under Subdivision (2) of Subsection (a) of
this section.
(g) The burden of proof is on the applicant to show
compliance with this Act and with the rules of the commission. An
applicant who does not show the necessary compliance is not
eligible for a license under this article.
(h) In considering an application for a horse racetrack
license under this section, the commission shall give additional
weight to evidence concerning an applicant who has experience
operating a horse racetrack licensed under this Act.
(i) Notwithstanding this section, if a licensed track
petitions for an upgrade in the classification of the track, the
fees and charges imposed shall be the difference between the fees
and charges previously paid and the fees and charges for the
upgraded facility classification.
Background check
Sec. 6.031. The commission shall require a complete personal,
financial, and business background check of the applicant or any
person owning an interest in or exercising control over an
applicant for a racetrack license, the partners, stockholders,
concessionaires, management personnel, management firms, and
creditors and shall refuse to issue or renew a license or approve a
concession or management contract if, in the sole discretion of the
commission, the background checks reveal anything which might be
detrimental to the public interest or the racing industry. The
commission may not hold a hearing on the application, or any part of
the application, of an applicant for a racetrack license before the
completed background check of the applicant has been on file with
the commission for at least 14 days.
Issuance of license; bond
Sec. 6.04. (a) The commission may issue a racetrack license
to a qualified person if it finds that the conduct of race meetings
at the proposed track and location will be in the public interest,
complies with all zoning laws, and complies with this Act and the
rules adopted by the commission and if the commission finds by clear
and convincing evidence that the applicant will comply with all
criminal laws of this state. In determining whether to grant or
deny an application for any class of racetrack license, the
commission may consider the following factors:
(1) the applicant's financial stability;
(2) the applicant's resources for supplementing the purses
for races for various breeds;
(3) the location of the proposed track;
(4) the effect of the proposed track on traffic flow;
(5) facilities for patrons and occupational licensees;
(6) facilities for race animals;
(7) availability to the track of support services and
emergency services;
(8) the experience of the applicant's employees;
(9) the potential for conflict with other licensed race
meetings;
(10) the anticipated effect of the race meeting on the
greyhound or horse breeding industry in this state; and
(11) the anticipated effect of the race meeting on the state
and local economy from tourism, increased employment, and other
sources.
(b) Before issuance of a license under this article, an
applicant for a racetrack license must post security in an amount
determined by the commission to adequately ensure the association's
compliance with this Act and the rules of the commission. Cash,
cashier's checks, surety bonds, irrevocable bank letters of credit,
United States Treasury bonds that are readily convertible to cash,
or irrevocable assignments of federally insured deposits in banks,
savings and loan institutions, and credit unions are acceptable as
security for purposes of this section. The security shall be
conditioned on compliance with this Act and the rules adopted under
this Act and shall be returned after the conditions of the security
are met.
(c) The commission shall not issue licenses for more than
three greyhound racetracks in this state. Those racetracks must be
located in counties that border the Gulf of Mexico.
(d) In considering an application for a class 4 racetrack
license, the commission may waive or defer compliance with the
commission's standards regarding the physical facilities or
operations of a horse racetrack. The commission may not waive or
defer compliance with standards that relate to the testing of
horses or licensees for the presence of a prohibited drug,
chemical, or other substance. If the commission defers compliance,
the commission shall, when granting the application, establish a
schedule under which the licensee must comply with the standards.
Sec. 6.05. Repealed by Acts 1991, 72nd Leg., ch. 386, Sec.
74(a), eff. Aug. 26, 1991.
Racetrack licenses; grounds for denial, revocation, and suspension
Sec. 6.06. (a) To preserve and protect the public health,
welfare, and safety, the commission shall adopt rules relating to
license applications, the financial responsibility, moral
character, and ability of applicants, and all matters relating to
the planning, construction, and operation of racetracks. The
commission may refuse to issue a racetrack license or may revoke or
suspend a license if, after notice and hearing, it has reasonable
grounds to believe and finds that:
(1) the applicant has been convicted in a court of competent
jurisdiction of a violation of this Act or any rule adopted by the
commission or that the applicant has aided, abetted, or conspired
with any person to commit such a violation;
(2) the applicant has been convicted of a felony or of any
crime involving moral turpitude, including convictions for which
the punishment received was a suspended sentence, probation, or a
nonadjudicated conviction, that is reasonably related to the
applicant's present fitness to hold a license under this Act;
(3) the applicant has violated or has caused to be violated
this Act or a rule of the commission in a manner that involves moral
turpitude, as distinguished from a technical violation of this Act
or of a rule;
(4) the applicant is unqualified, by experience or
otherwise, to perform the duties required of a licensee under this
Act;
(5) the applicant failed to answer or falsely or incorrectly
answered a question in an application;
(6) the applicant fails to disclose the true ownership or
interest in a greyhound or horse as required by the rules of the
commission;
(7) the applicant is indebted to the state for any fees or
for the payment of a penalty imposed by this Act or by a rule of the
commission;
(8) the applicant is not of good moral character or the
applicant's reputation as a peaceable, law-abiding citizen in the
community where the applicant resides is bad;
(9) the applicant has not yet attained the minimum age
necessary to purchase alcoholic beverages in this state;
(10) the applicant is in the habit of using alcoholic
beverages to an excess or uses a controlled substance as defined in
Chapter 481, Health and Safety Code, or a dangerous drug as defined
in Chapter 483, Health and Safety Code, or is mentally
incapacitated;
(11) the applicant may be excluded from a track enclosure
under this Act;
(12) the applicant has not been a United States citizen
residing in this state for the period of 10 consecutive years
immediately preceding the filing of the application;
(13) the applicant has improperly used a license
certificate, credential, or identification card issued under this
Act;
(14) the applicant is residentially domiciled with a person
whose license has been revoked for cause within the 12 months
immediately preceding the date of the present application;
(15) the applicant has failed or refused to furnish a true
copy of the application to the commission's district office in the
district in which the premises for which the permit is sought are
located;
(16) the applicant is engaged or has engaged in activities
or practices that the commission finds are detrimental to the best
interests of the public and the sport of greyhound racing or horse
racing; or
(17) the applicant fails to fully disclose the true owners
of all interests, beneficial or otherwise, in a proposed racetrack
facility.
(b) Subsection (a) of this section applies to a corporation,
partnership, limited partnership, or any other organization or
group whose application is comprised of more than one person if a
shareholder, partner, limited partner, director, or officer is
disqualified under Subsection (a) of this section.
(c) A license for operation of a class 1 or class 2 racetrack
or a greyhound racetrack may not be issued to a corporation unless
the corporation is incorporated under the laws of this state and a
majority of the stock, if any, of the corporation is owned at all
times by individuals who meet the residency qualifications
prescribed by this section for individual applicants.
(d) The majority ownership of a partnership, firm, or
association applying for or holding a license must be held by
citizens who meet the residency qualifications enumerated in this
section for individual applicants. A corporation holding a license
to operate a racetrack under this Act that violates this subsection
is subject to forfeiture of its charter, and the attorney general,
on receipt of information relating to such a violation, shall file
suit in a district court of Travis County for cancellation of the
charter and revocation of the license issued under this Act.
Subterfuge in the ownership and operation of a racetrack shall be
prevented, and this Act shall be liberally construed to carry out
this intent.
(e) The commission may condition the issuance of a license
under this article on the observance of its rules. The commission
may amend the rules at any time and may condition the continued
holding of the license on compliance with the rules as amended.
(f) The commission may refuse to issue a license or may
suspend or revoke a license of a licensee under this article who
knowingly or intentionally allows access to an enclosure where
greyhound races or horse races are conducted to a person who has
engaged in bookmaking, touting, or illegal wagering, whose income
is from illegal activities or enterprises, or who has been
convicted of a violation of this Act.
(g) A person awarded a management contract to operate a
racetrack must meet all of the requirements of this section.
(h) A person may not own more than a five percent interest in
more than two racetracks licensed under this Act.
(i) Subsections (a)(12), (c), and (d) of this section do not
apply to an applicant for or the holder of a racetrack license if
the applicant, the license holder, or the license holder's parent
company is a publicly traded company.
Regulation of inappropriate or unsafe conditions
Sec. 6.061. (a) The commission shall adopt rules implementing
this section, including rules:
(1) requiring the report of and correction of:
(A) an inappropriate condition on the premises of a
racetrack facility, including a failure to properly maintain the
facility, that interferes with the administration of this Act; or
(B) a condition on the premises of a racetrack facility that
makes the facility unsafe for a race participant, patron, or
animal; and
(2) determining the methods and manner in which the
executive secretary may determine and remedy inappropriate
conditions or unsafe facilities on the premises of a racetrack
facility, including the methods and manner in which the executive
secretary may conduct inspections of the racetrack facility and
remedy emergency situations.
(b) The executive secretary shall issue a notice of
violation to a racetrack facility on a finding that an
inappropriate or unsafe condition exists.
(c) If the executive secretary determines that an
inappropriate or unsafe condition exists at the racetrack facility,
the executive secretary shall order the racetrack facility to take
action within a specified period to remedy the inappropriate
condition or unsafe condition. In determining the period for
compliance, the executive secretary shall consider the nature and
severity of the problem and the threat to the health, safety, and
welfare of the race participants, patrons, or animals.
(d) The commission shall adopt rules requiring the
reporting of any corrective action taken by a racetrack facility in
response to an order of the executive secretary under Subsection
(c) of this section.
(e) If a racetrack facility fails to take any action as
required under Subsection (c) of this section, the executive
secretary shall initiate an enforcement action against the
racetrack facility. The executive secretary may rescind any live
or simulcast race date of any racetrack association that does not
take corrective action within the period set by the executive
secretary.
(f) The commission shall adopt rules relating to the
commission's review of an action taken under this section by the
executive secretary. A review procedure adopted under this
subsection must be consistent with Chapter 2001, Government Code.
Supervision of changes to premises
Sec. 6.062. (a) The commission shall adopt a method of
supervising and approving the construction, renovation, or
maintenance of any building or improvement on the premises of a
racetrack facility.
(b) The commission shall adopt rules relating to:
(1) the approval of plans and specifications;
(2) the contents of plans and specifications;
(3) the maintenance of records to ensure compliance with
approved plans and specifications;
(4) the content and filing of construction progress reports
by the racetrack facility to the commission;
(5) the inspection by the commission or others;
(6) the method for making a change or amendment to an
approved plan or specification; and
(7) any other method of supervision or oversight necessary.
(c) If the commission has grounds to believe that an
association has failed to comply with the requirements of this
section, a representative of the association shall appear before
the commission to consider the issue of compliance with the rules
adopted under this section.
(d) Before a building or improvement may be used by the
association, the commission shall determine whether the
construction, renovation, or maintenance of the building or
improvement was completed in accordance with the approved plans and
specifications and whether other requirements of the commission
were met.
(e) If the commission determines that the association
failed to comply with a requirement of this section or rule adopted
under this section, the commission shall initiate an enforcement
action against the association. In addition to any other
authorized enforcement action, the commission may rescind any live
or simulcast race date of any association that has failed to comply
with the requirement of this section.
Summary suspension
Sec. 6.063. (a) The commission may summarily suspend a
racetrack license if the commission determines that a racetrack at
which races or pari-mutuel wagering are conducted under the license
is being operated in a manner that constitutes an immediate threat
to the health, safety, or welfare of the participants in racing or
the patrons.
(b) After issuing a summary suspension order, the executive
secretary shall serve on the association by personal delivery or
registered or certified mail, return receipt requested, to the
licensee's last known address, an order stating the specific
charges and requiring the licensee immediately to cease and desist
from all conduct permitted by the license. The order must contain a
notice that a request for hearing may be filed under this section.
(c) An association that is the subject of a summary
suspension order may request a hearing. The request must be filed
with the executive secretary not later than the 10th day after the
date the order was received or delivered. A request for a hearing
must be in writing and directed to the executive secretary and must
state the grounds for the request to set aside or modify the order.
Unless a licensee who is the subject of the order requests a hearing
in writing before the 11th day after the date the order is received
or delivered, the order is final and nonappealable as to that
licensee.
(d) On receiving a request for a hearing, the executive
secretary shall serve notice of the time and place of the hearing by
personal delivery or registered or certified mail, return receipt
requested. The hearing must be held not later than the 10th day
after the date the executive secretary receives the request for a
hearing unless the parties agree to a later hearing date. At the
hearing, the commission has the burden of proof and must present
evidence in support of the order. The licensee requesting the
hearing may cross examine witnesses and show cause why the order
should not be affirmed. Section 2003.021(b), Government Code, does
not apply to hearings conducted under this section.
(e) A summary suspension order continues in effect unless
the order is stayed by the executive secretary. The executive
secretary may impose any condition before granting a stay of the
order.
(f) After the hearing, the executive secretary shall
affirm, modify, or set aside in whole or part the summary suspension
order. An order affirming or modifying the summary suspension
order is final for purposes of enforcement and appeal.
Lease
Sec. 6.07. (a) The commission may adopt rules to authorize an
association, as lessee, to contract for the lease of a racetrack and
the surrounding structures.
(b) The commission may not approve a lease if:
(1) it appears that the lease is a subterfuge to evade
compliance with Section 6.05 or 6.06 of this Act;
(2) the racetrack and surrounding structures do not conform
to the rules adopted under this Act; or
(3) the lessee, prospective lessee, or lessor is
disqualified from holding a racetrack license.
(c) Each lessor and lessee under this section must comply
with the disclosure requirements of Subdivision (1) of Subsection
(a) of Section 6.03 of this Act. The commission may not approve a
lease if the lessor and lessee do not provide the required
information.
Special provisions relating to horse racing: deductions from pool;
allocations of shares and breakage
Sec. 6.08. (a) An amount shall be deducted from each wagering
pool to be distributed as provided by Subsections (b) through (e) of
this section. The total maximum deduction from a regular wagering
pool is 18 percent. The total maximum deduction from a multiple two
wagering pool is 21 percent. The total maximum deduction from a
multiple three wagering pool is 25 percent.
(b)(1) A horse racing association shall set aside for purses
an amount not less than seven percent of a live regular wagering
pool or live multiple two wagering pool and not less than 8.5
percent of a live multiple three wagering pool.
(2) A horse racing association, after January 1, 1999, shall
set aside from simulcast pools for purses not less than the
following amounts from the takeout of the sending racetrack:
(A) 38.8 percent of the regular wagering pool;
(B) 33.3 percent of the multiple two wagering pool; and
(C) 34 percent of the multiple three wagering pool.
If the cost of the simulcast signal exceeds five percent of the
simulcast handle, the receiving horse racing association shall
split the cost of the signal in excess of five percent evenly with
the horsemen's organization by allocating the cost against the
purse money derived from that simulcast signal.
(3) The horse racing association shall transfer the amount
set aside for purses from any live and simulcast pools and shall
deposit the amounts in purse accounts maintained by breed by the
horsemen's organization in one or more federally insured
depositories. Legal title to purse accounts is vested in the
horsemen's organization. The horsemen's organization may contract
with an association to manage and control the purse accounts and to
make disbursements from the purse accounts:
(A) to an owner whose horse won a purse;
(B) to the horsemen's organization for its expenses; or
(C) for other disbursements as provided by contract between
the horsemen's organization and the association.
(4) An association, after January 1, 1999, may pay a portion
of the revenue set aside under this subsection to an organization
recognized under Section 3.13 of this Act, as provided by a contract
approved by the commission.
(c) Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 54,
eff. Sept. 1, 1997.
(d) A horse racing association shall set aside for the
Texas-bred program as provided by Subsection (f) of this section an
amount equal to one percent of a live multiple two wagering pool and
a live multiple three wagering pool.
(e) The remainder of the amount deducted under Subsection
(a) of this section from a regular wagering pool, a multiple two
wagering pool, or a multiple three wagering pool, after allocation
of the amounts specified in Subsections (b), (c), and (d) of this
section, shall be retained by the association as its commission.
(f) The amount of a multiple two wagering pool or a multiple
three wagering pool set aside under Subsection (d) of this section
for the Texas-bred program is in addition to any money received from
the breakage. Of the amount set aside under Subsection (d) of this
section, two percent shall be set aside for deposit in the equine
research account under Subchapter F, Chapter 88, Education Code,
and, of the remaining 98 percent, 10 percent may be used by the
appropriate breed registry for administration and the remaining 90
percent shall be used for awards.
(g) The commission shall adopt rules relating to the
accounting, audit, and distribution of all amounts set aside for
the Texas-bred program under this section.
(h) Two percent of the breakage shall be allocated to the
equine research account under Subchapter F, Chapter 51, Education
Code. The remaining 98 percent of the breakage shall constitute
"total breakage" and shall be allocated pursuant to Subsections (i)
and (j) of this section.
(i) Ten percent of the total breakage from a live
pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
the commission for use by the appropriate state horse breed
registry, subject to rules promulgated by the commission. The
appropriate breed registry for Thoroughbred horses is the Texas
Thoroughbred Breeders Association, for quarter horses is the Texas
Quarter Horse Association, for Appaloosa horses is the Texas
Appaloosa Horse Club, for Arabian horses is the Texas Arabian
Breeders Association, and for paint horses is the Texas Paint Horse
Breeders Association.
(j) Ten percent of the total breakage from a live
pari-mutuel pool or a simulcast pari-mutuel pool is to be retained
by the association to be used in stakes races restricted to
accredited Texas-bred horses. The appropriate state horse breed
registry shall pay out the remaining 80 percent of the total
breakage as follows:
(1) 40 percent of the remaining breakage is allocated to the
owners of the accredited Texas-bred horses that finish first,
second, or third;
(2) 40 percent is allocated to the breeders of the
accredited Texas-bred horses that finish first, second, or third;
and
(3) 20 percent is allocated to the owner of the stallion
standing in this state at the time of conception whose Texas-bred
get finish first, second, or third.
(k) For purposes of this section:
(1) "Horse owner" means a person who is owner of record of an
accredited Texas-bred horse at the time of a race;
(2) "Breeder" means a person who, according to the rules of
the appropriate state horse breed registry, is the breeder of the
accredited Texas-bred horse; and
(3) "Stallion owner" means a person who is owner of record,
at the time of conception, of the stallion that sired the accredited
Texas-bred horse.
(l) An association may not make a deduction or withhold any
percentage of a purse from the account into which the purse paid to
a horse owner is deposited for membership payments, dues,
assessments, or any other payments to an organization except an
organization of the horse owner's choice.
(m) If a share of the breakage cannot be distributed to the
person who is entitled to a share, the appropriate breed registry
shall retain that share.
(n) An accredited Texas-bred Thoroughbred or Arabian horse
described by Section 1.03(21)(C) of this Act is eligible for only
one-half of the incentives awarded under Subsections (f) and (j)(2)
of this section. The remaining portion shall be retained by the
appropriate state horse breed registry for general distribution at
the same meeting in accordance with Subsections (f) and (j) of this
section.
Disposition of pari-mutuel pools at greyhound races
Sec. 6.09. (a) Every association authorized under this Act to
conduct pari-mutuel wagering at a greyhound race meeting on races
run shall distribute all sums deposited in any pari-mutuel pool to
the holders of the winning tickets if those tickets are presented
for payment within 60 days after the closing day of the race meeting
at which the pool was formed, less an amount paid as a commission of
18 percent of the total deposits in pools resulting from regular
win, place, and show wagering, and an amount not to exceed 21
percent of the total deposits in pools resulting from multiple two
wagering and an amount not to exceed 25 percent of the total
deposits in pools resulting from multiple three wagering.
(b) Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 54,
eff. Sept. 1, 1997.
(c) On each racing day, the association shall pay:
(1) the fee due the state to the comptroller; and
(2) the 50 percent of the breakage due the state to the
commission.
(d) Fifty percent of the breakage is to be paid to the
appropriate state greyhound breeding registry. Of that portion of
the breakage 25 percent of that breakage is to be used in stakes
races and 25 percent of that total breakage from a live pari-mutuel
pool or a simulcast pari-mutuel pool is to be paid to the commission
for the use by the state greyhound breed registry, subject to rules
promulgated by the commission.
(e) The deductions and allocations made pursuant to this
section are applicable to live pari-mutuel pools.
(f) The commission in adopting rules relating to money paid
to the commission for use by the state greyhound breed registry
under Subsection (d) of this section shall require the award of a
grant in an amount equal to two percent of the amount paid to the
commission for use by the state greyhound breed registry to a person
for the rehabilitation of greyhounds or to locate homes for
greyhounds.
Distribution of deductions from simulcast pari-mutuel pool
Sec. 6.091. (a) An association shall distribute from the
total amount deducted as provided by Sections 6.08(a) and 6.09(a)
of this Act from each simulcast pari-mutuel pool and each simulcast
cross-species pool the following shares:
(1)(A) until January 1, 1999, an amount equal to 0.25 percent
of each simulcast pari-mutuel pool and each simulcast cross-species
simulcast pool as the amount set aside to reimburse the general
revenue fund for amounts that are appropriated for the
administration and enforcement of this Act and that are in excess of
the cumulative amount of funds deposited in the Texas Racing
Commission fund, until the excess amount and interest on the excess
amount are fully reimbursed;
(B) an amount equal to one percent of each simulcast pool as
the amount set aside for the state; and
(C) an amount equal to 1.25 percent of each cross-species
simulcast pool as the amount set aside for the state;
(2) an amount equal to 0.25 percent of each pool set aside to
reimburse the general revenue fund for amounts that are
appropriated for the administration and enforcement of this Act and
that are in excess of the cumulative amount of funds deposited in
the Texas Racing Commission fund, until the excess amount and
interest on the excess amount are fully reimbursed;
(3) if the association is a horse racing association, an
amount equal to one percent of a multiple two wagering pool or
multiple three wagering pool as the amount set aside for the
Texas-bred program to be used as provided by Section 6.08(f) of this
Act;
(4) if the association is a greyhound association, an amount
equal to one percent of a multiple two wagering pool or a multiple
three wagering pool as the amount set aside for the Texas-bred
program for greyhound races, to be distributed and used in
accordance with rules of the commission adopted to promote
greyhound breeding in this state; and
(5) the remainder as the amount set aside for purses,
expenses, the sending association, and the receiving location
pursuant to a contract approved by the commission between the
sending association and the receiving location.
(b) Section 6.09(b)(1) of this Act does not apply to amounts
deducted from a simulcast pari-mutuel pool in a greyhound race.
(c) A greyhound racetrack association that receives an
interstate cross-species simulcast signal shall distribute the
following amounts from the total amount deducted as provided by
Subsection (a) of this section from each pool wagered on the signal
at the facility:
(1) a fee of 1.5 percent to be paid to the racetrack facility
in this state sending the signal;
(2) a purse in the amount of 0.75 percent to be paid to the
official state breed registry for thoroughbred horses for use as
purses at racetracks in this state;
(3) a purse in the amount of 0.75 percent to be paid to the
official state breed registry for quarter horses for use as purses
at racetracks in this state; and
(4) a purse of 4.5 percent to be escrowed with the
commission for purses in the manner set forth in Subsection (e) of
this section.
(d) A horse racetrack association receiving an interstate
cross-species simulcast signal shall distribute the following
amounts from the total amount deducted as provided by Subsection
(a) of this section from each pool wagered on the signal at the
facility:
(1) a fee of 1.5 percent to be paid to the racetrack facility
in this state sending the signal; and
(2) a purse in the amount of 5.5 percent to be paid to the
official state breed registry for greyhounds for use at racetracks
in this state. The breed registry may use not more than 20 percent
of this amount to administer this subdivision.
(e) The purse set aside under Subsection (c)(4) of this
section shall be deposited into an escrow account in the registry of
the commission. Any horse racetrack association in this state may
apply to the commission for receipt of all or part of the escrowed
purse account for use as purses. The commission shall determine to
which horse racetracks the escrowed purse account shall be
allocated and in what percentages, taking into consideration purse
levels, racing opportunities, and the financial status of the
requesting racetrack. The first distribution of the escrowed purse
account allocated to a racetrack under this section may not be made
before October 1, 1998.
(f) After October 15, 1998, a horse racetrack association
that is located not more than 75 miles from a greyhound racetrack
facility that offers wagering on a cross-species simulcast signal
may apply to the commission for an additional allocation of up to 20
percent of the funds in the escrowed purse account that is
attributable to the wagering on a cross-species simulcast signal at
the greyhound racetrack facility, if the horse racetrack facility
sends the cross-species simulcast signal to the greyhound
racetrack. If the applying horse racetrack can prove to the
commission's satisfaction that a decrease in the racetrack's handle
has occurred that is directly due to wagering on an interstate
cross-species simulcast signal at a greyhound racetrack facility
that is located not more than 75 miles from the applying racetrack,
the commission shall allocate the amounts from the escrowed purse
account as the commission considers appropriate to compensate the
racetrack for the decrease, but the amount allocated may not exceed
20 percent of the funds in the escrowed purse account that are
attributable to the wagering on the interstate cross-species
simulcast signal at the greyhound racetrack facility. Any amount
allocated by the commission under this subsection may be used by the
racetrack facility for any purpose.
(g) If a racing association purchases an interstate
simulcast signal and the cost of the signal is more than five
percent of the pari-mutuel pool, the commission shall reimburse the
racing association an amount equal to one-half of the signal cost
that is more than five percent of the pari-mutuel pool from the
escrowed purse account under Subsection (c)(4) of this section.
(h) A racetrack facility offering wagering on an intrastate
cross-species simulcast signal shall send the purse amount
specified under Subsection (c)(4) or (d)(2) of this section, as
appropriate, to the racetrack facility conducting the live race
that is being simulcast.
(i) A racing facility conducting a live race that is being
simulcast may charge the receiving racetrack facility a host fee in
addition to the amounts described in this section.
(j) The commission shall adopt rules relating to this
section and the oversight of amounts allocated under Subsections
(c) and (d) of this section.
Oversight of use of funds generated by pari-mutuel racing
Sec. 6.092. (a) The commission shall adopt reporting,
monitoring, and auditing requirements or other appropriate
performance measures for any funds distributed to or used by or any
function or service provided by the expenditure of any funds
distributed to or used by any organization that receives funds
generated by live or simulcast pari-mutuel racing.
(b) The commission shall adopt the requirements or
performance measures after consultation with the affected
organization. In adopting the rules, the commission shall give
consideration to the concerns of the affected organization.
(c) An organization receiving funds generated by live or
simulcast pari-mutuel racing shall annually file with the
commission a copy of an audit report prepared by an independent
certified public accountant. The audit shall include a
verification of any performance report sent to or required by the
commission.
(d) The commission may review any records or books of an
organization that submits an independent audit to the commission as
the commission determines necessary to confirm or further
investigate the findings of an audit or report.
(e) The commission by rule may suspend or withhold funds
from an organization that:
(1) it determines has failed to comply with the requirements
or performance measures adopted under Subsection (a) of this
section; or
(2) has, following an independent audit or other report to
the commission, material questions raised on the use of funds by the
organization.
Deductions from live pari-mutuel pool
Sec. 6.093. (a)(1) A horse racing association, until January
1, 1999, shall set aside for the state:
(A) an amount equal to one percent of each live pari-mutuel
pool from the first $100 million of the total amount of all live
pari-mutuel pools of the association in a calendar year;
(B) an amount equal to two percent of each live pari-mutuel
pool from the next $100 million of the total amount of all live
pari-mutuel pools of the association in a calendar year;
(C) an amount equal to three percent of the next $100
million of the total amount of all live pari-mutuel pools of the
association in a calendar year;
(D) an amount equal to four percent of the next $100 million
of the total amount of all live pari-mutuel pools of the association
in a calendar year; and
(E) an amount equal to five percent of each live pari-mutuel
pool from the amount of all live pari-mutuel pools of the
association in a calendar year not covered by Paragraphs (A)
through (D) of this subdivision.
(2) A greyhound racing association, until January 1, 1999,
shall set aside for the state:
(A) an amount equal to two percent of each live pari-mutuel
pool from the first $100 million of the total amount of all live
pari-mutuel pools of the association in a calendar year;
(B) an amount equal to three percent of each live
pari-mutuel pool from the next $100 million of the total amount of
all live pari-mutuel pools of the association in a calendar year;
(C) an amount equal to four percent of each live pari-mutuel
pool from the next $100 million of the total amount of all live
pari-mutuel pools of the association in a calendar year;
(D) an amount equal to five percent of each live pari-mutuel
pool from the total amount of all live pari-mutuel pools of the
association in a calendar year not covered by Paragraphs (A)
through (C) of this subdivision; and
(E) 50 percent of the breakage.
(3) All amounts set aside by the association for the state
in Subdivisions (1) and (2) of this subsection shall be applied to
the reimbursement of all amounts of general revenue appropriated
for the administration and enforcement of this Act in excess of the
cumulative amount deposited to the Texas Racing Commission fund
until the earlier of:
(A) the excesses together with interest thereon are
reimbursed in full; or
(B) January 1, 1999.
(b) On or after January 1, 1999, a horse or greyhound racing
association shall set aside for the state from the live pari-mutuel
pool at the association:
(1) an amount equal to one percent of each live pari-mutuel
pool from the total amount of all live pari-mutuel pools of the
association in a calendar year in excess of $100 million but less
than $200 million;
(2) an amount equal to two percent of each live pari-mutuel
pool from the total amount of all live pari-mutuel pools of the
association in a calendar year in excess of $200 million but less
than $300 million;
(3) an amount equal to three percent of each live
pari-mutuel pool from the total amount of all live pari-mutuel
pools of the association in a calendar year in excess of $300
million but less than $400 million;
(4) an amount equal to four percent of each live pari-mutuel
pool from the total amount of all live pari-mutuel pools of the
association in a calendar year in excess of $400 million but less
than $500 million; and
(5) an amount equal to five percent of each live pari-mutuel
pool from the total amount of all live pari-mutuel pools of the
association in a calendar year in excess of $500 million.
National Event Incentives
Sec. 6.094. (a) In this section:
(1) "Breeders' Cup costs" means all costs for capital
improvements and extraordinary expenses reasonably incurred for
the operation of the Breeders' Cup races, including purses offered
on other days in excess of the purses that the host association is
required to pay by this Act.
(2) "Breeders' Cup races" means a series of thoroughbred
races known as the Breeders' Cup Championship races conducted
annually by Breeders' Cup Limited on a day known as Breeders' Cup
Championship day.
(3) "Development organization" means an organization whose
primary purpose is the marketing, promotion, or economic
development of a city, county, or region of the state, including
chambers of commerce, convention and visitors bureaus, and sports
commissions.
(4) "Political subdivision" means a city, county, or other
political subdivision of the state and includes any entity created
by a political subdivision.
(b) An association conducting the Breeders' Cup races may
apply to the reimbursement of Breeders' Cup costs amounts that
would otherwise be set aside by the association for the state under
Sections 6.091(a)(1) and 6.093 of this Act during the year in which
the association hosts the Breeders' Cup races, limited to an amount
equal to the lesser of the aggregate amount contributed to pay
Breeders' Cup costs by political subdivisions and development
organizations or $2 million. Beginning on January 1 of the year for
which the association has been officially designated to host the
Breeders' Cup races, amounts that would otherwise be set aside by
the association for the state during that year under Sections
6.091(a)(1) and 6.093 of this Act shall be set aside, in accordance
with procedures prescribed by the comptroller, for deposit into the
Breeders' Cup Developmental Account. The Breeders' Cup
Developmental Account is an account in the general revenue fund.
The commission shall administer the account. Money in the account
may be appropriated only to the commission and may be used only for
the purposes specified in this section. The account is exempt from
the application of Section 403.095, Government Code.
(c) The commission shall make disbursements from the
Breeders' Cup Developmental Account to reimburse Breeders' Cup
costs actually incurred and paid by the association, after the
association files a request for reimbursement. Disbursements from
the account may not at any time exceed the aggregate amount actually
paid for Breeders' Cup costs by political subdivisions and
development organizations, as certified by the commission to the
comptroller, or $2 million, whichever is less.
(d) Not later than January 31 of the year following the year
in which the association hosts the Breeders' Cup races, the
association shall submit to the commission a report that shows:
(1) the total amount of Breeders' Cup costs incurred and
paid by the association;
(2) the total payments made by political subdivisions and
development organizations for Breeders' Cup costs; and
(3) any other information requested by the commission.
(e) Following receipt of the report required by Subsection
(d) of this section, the commission shall take any steps it
considers appropriate to verify the report. Not later than March 31
of the year following the event, the commission shall transfer to
the credit of the general revenue fund any balance remaining in the
Breeders' Cup Developmental Account after reimbursement of any
remaining Breeders' Cup costs authorized under this section.
(f) In addition to the authority otherwise granted in this
Act, the commission and the comptroller may adopt rules for the
administration of this section as follows:
(1) the commission may adopt rules relating to:
(A) auditing or other verification of Breeders' Cup costs
and amounts paid or set aside by political subdivisions and
development organizations; and
(B) the disbursement of funds from the Breeders' Cup
Developmental Account; and
(2) the comptroller may adopt rules relating to:
(A) procedures and requirements for transmitting or
otherwise delivering to the treasury the money set aside under this
section; and
(B) depositing funds into the Breeders' Cup Developmental
Account.
(g) The commission may adopt rules to facilitate the conduct
of the Breeders' Cup races, including the adoption of rules or
waiver of existing rules relating to the overall conduct of racing
during the Breeders' Cup races in order to assure the integrity of
the races, licensing for all participants, special stabling and
training requirements for foreign horses, and commingling of
pari-mutuel pools.
(h) The provisions of this section prevail over any
conflicting provisions of this Act.
Application of Tax Code
Sec. 6.10. Unless inconsistent with the provisions of this
Act, Chapters 111 through 113, Tax Code, including without
limitation provisions relating to the assessment of penalty and
interest, apply to the collection of the state's share under this
Act. In applying those provisions of the Tax Code for purposes of
this section, the state's share under this Act is treated as if it
were a tax. For purposes of collecting the state's share under this
Act, the comptroller may use any procedure authorized under Title
2, Tax Code.
Allocation of purse
Sec. 6.11. (a) In no event shall the purse in a greyhound race
be less than a minimum of 4.7 percent of the total deposited in each
pool.
(b) Thirty-five percent of the portion of a purse allocated
to a greyhound shall be paid directly to its owner. The balance
shall be paid to its contract kennel as provided by the rules of the
commission.
Not transferable
Sec. 6.12. (a) A racetrack license is not transferable.
(b) In the event of the death of any person whose death
causes a violation of the licensing provisions of this Act, the
commission may issue a temporary license for a period not to exceed
one year under rules adopted by the commission.
Financial disclosure
Sec. 6.13. (a) The commission by rule shall require that each
association holding a license for a class 1 racetrack, class 2
racetrack, or greyhound racetrack must annually file with the
commission a detailed financial statement that:
(1) contains the names and addresses of all stockholders,
members and owners of any interest in the racetrack facility;
(2) indicates compliance during the filing period with
Section 6.06 of this Act; and
(3) includes any other information required by the
commission.
(b) Each transaction that involves an acquisition or a
transfer of a pecuniary interest in the association must receive
prior approval from the commission. A transaction that changes the
ownership of the association requires submission of updated
information of the type required to be disclosed under Subsection
(a) of Section 6.03 of this Act.
Racing restricted to designated place
Sec. 6.14. (a) An association may not conduct greyhound or
horse racing at any place other than the place designated in the
license except as provided by this section or by Section 6.15 of
this Act. However, if the racetrack or enclosure designated in the
license becomes unsuitable for racing because of fire, flood, or
other catastrophe, the affected association, with the prior
approval of the commission, may conduct a race meeting or any
remaining portion of a meeting temporarily at any other racetrack
licensed by the commission to conduct the same type of racing as may
be conducted by the affected association if the license | 