Thompson’s Greyhound Ban Also Shields Racetracks From Liability

The text as introduced · 7,892 words

89R15801 BEE-F

By: Thompson
H.B. No. 4757

A BILL TO BE ENTITLED

AN ACT

relating to eligibility for membership on and the regulation of

horse racing by the Texas Racing Commission and a prohibition on the

conduct of greyhound or other dog racing as live events in this

state; creating a criminal offense; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. MEMBERSHIP ON AND REGULATION OF HORSE RACING BY TEXAS

RACING COMMISSION

SECTION 1.001. Section 2021.003, Occupations Code, is

amended by adding Subdivision (29-a) to read as follows:

(29-a) "Occupational license" means a license issued

to an individual to conduct activities prescribed for that license

in the commission rules.

SECTION 1.002. Section 2021.006, Occupations Code, is

amended to read as follows:

Sec. 2021.006. RELEASE OF CIVIL LIABILITY. A commission

member, a commission employee, a person contracted by the

commission, a steward or judge, a racetrack association, a

horsemen's organization, or any other person regulated under this

subtitle is not liable for a cause of action that arises out of that

person's performance or exercise of discretion in the

implementation or enforcement of this subtitle or a rule adopted

under this subtitle if the person has acted in good faith.

SECTION 1.003. Section 2022.004(e), Occupations Code, is

amended to read as follows:

(e) A person is not eligible for appointment as a commission

member or to be designated to serve as an ex officio member's

designee as described by Section 2022.001(b) if:

(1) the person or the person's spouse:

(A) is licensed by the commission, except as a

commissioner;

(B) 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;

(C) 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

(D) 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; or

(2) the person:

(A) owns any financial interest in a racetrack or

its operation or 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; or

(B) has been convicted of a felony [ or of any

crime involving moral turpitude ].

SECTION 1.004. The heading to Section 2022.052, Occupations

Code, is amended to read as follows:

Sec. 2022.052. EMPLOYEES; RESTRICTIONS ON EMPLOYMENT ;

CONTRACTING .

SECTION 1.005. Sections 2022.052(a) and (c), Occupations

Code, are amended to read as follows:

(a) The commission shall hire employees or contract with

persons as necessary to administer this subtitle.

(c) The commission may not employ or continue to employ or

contract with or continue to contract with a person who:

(1) owns or controls a financial interest in a

commission license holder;

(2) is employed by or serves as a paid consultant to a

commission license holder, an official state breed registry, or a

Texas trade association, as defined by Section 2022.004(a), in the

field of horse [ or greyhound ] racing or breeding;

(3) owns or leases a race animal that participates in

pari-mutuel racing in this state;

(4) accepts or is entitled to any part of the purse or

Texas-bred incentive award to be paid on a horse [ or a greyhound ] in

a race conducted in this state; or

(5) resides with or is related within the first degree

by affinity or consanguinity to a person subject to a

disqualification prescribed by this subsection.

SECTION 1.006. Subchapter B, Chapter 2022, Occupations

Code, is amended by adding Section 2022.0516 to read as follows:

Sec. 2022.0516. GRANTS. The executive director may apply

for and receive any grant applicable to the implementation or

enforcement of this subtitle or a rule adopted under this subtitle.

SECTION 1.007. Chapter 2022, Occupations Code, is amended

by adding Subchapter D to read as follows:

SUBCHAPTER D. TEXAS EQUINE EDUCATION AND RESEARCH COUNCIL AND

ESCROW ACCOUNT

Sec. 2022.151. DEFINITIONS. In this subchapter:

(1) "Council" means the Texas equine education and

research council.

(2) "Escrow account" means the Texas equine education

and research escrow account.

Sec. 2022.152. TEXAS EQUINE EDUCATION AND RESEARCH ESCROW

ACCOUNT. The Texas equine education and research escrow account is

a special account in the general revenue fund. Money deposited to

the credit of the escrow account may be used only for the purposes

described in this subchapter.

Sec. 2022.153. TEXAS EQUINE EDUCATION AND RESEARCH COUNCIL.

(a) The Texas equine education and research council is composed of:

(1) the executive director; and

(2) one representative designated by each of the

following entities:

(A) Texas A&M Veterinary Medical Diagnostic

Laboratory;

(B) Texas A&M AgriLife Extension Service;

(C) Texas A&M School of Veterinary Medicine &

Biomedical Sciences;

(D) Texas Animal Health Commission; and

(E) Department of State Health Services.

(b) The executive director serves as the council's

presiding officer.

SECTION 1.008. Section 2023.053(f), Occupations Code, is

amended to read as follows:

(f) This section does not apply to money deposited into the

Texas-bred escrow account [ incentive fund ] established under

Section 2028.301.

SECTION 1.009. Section 2023.061(a), Occupations Code, is

amended to read as follows:

(a) Not later than January 31 of each year, the commission

may [ shall ] file a report with the governor, lieutenant governor,

and speaker of the house of representatives. The report may

include, to the extent the commission considers appropriate:

(1) descriptions of changes to commission programs;

and

(2) recommendations to the governor and the

legislature.

SECTION 1.010. Section 2024.055(b), Occupations Code, is

amended to read as follows:

(b) This section does not apply to money deposited into the

Texas-bred escrow account [ incentive fund ] established under

Section 2028.301.

SECTION 1.011. Section 2025.103(a), Occupations Code, is

amended to read as follows:

(a) After a racetrack association has been granted a license

to operate a racetrack and before the completion of construction at

the designated place for which the license was issued, the

commission may, on application by the racetrack association, issue

a temporary license that authorizes the racetrack association to

conduct races at a location in the same county until the earlier of:

(1) the fifth [ second ] anniversary of the date of

issuance of the temporary license; or

(2) the completion of the permanent facility.

SECTION 1.012. Section 2025.262, Occupations Code, is

amended to read as follows:

Sec. 2025.262. GROUNDS FOR DENIAL, REVOCATION, AND

SUSPENSION OF OCCUPATIONAL LICENSE. The commission may refuse to

issue any original or renewal license under this subchapter or may

revoke or suspend the license if, after notice and hearing, the

commission finds that the applicant or license holder, as

appropriate:

(1) has been convicted of a violation of this subtitle

or a commission rule or has aided, abetted, or conspired to commit a

violation of this subtitle or a commission rule;

(2) has been convicted of a felony [ or a crime

involving moral turpitude ] that is reasonably related to the

person's present fitness to hold a license under this subtitle;

(3) has violated or has caused to be violated this

subtitle or a commission rule in a manner that involves moral

turpitude, as distinguished from a technical violation of this

subtitle or a rule;

(4) is unqualified, by experience or otherwise, to

perform the duties required of a license holder under this

subtitle;

(5) failed to answer or has falsely or incorrectly

answered a question in an original or renewal application;

(6) fails to disclose the true ownership or interest

in a horse [ or greyhound ] as required by commission rules;

(7) is indebted to this state for any fee or for the

payment of a penalty imposed by this subtitle or a commission rule;

(8) is not of good moral character or the person's

reputation as a peaceable, law-abiding citizen in the community

where the person resides is bad;

(9) 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;

(10) may be excluded from an enclosure under this

subtitle;

(11) has improperly used a temporary pass, license

certificate, credential, or identification card issued under this

subtitle;

(12) resides with a person whose license was revoked

for cause during the 12 months preceding the date of the present

application;

(13) 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 license is sought are located;

or

(14) is engaged or has engaged in activities or

practices that are detrimental to the best interests of the public

and the sport of horse racing [ or greyhound racing ].

SECTION 1.013. Section 2026.008(b), Occupations Code, is

amended to read as follows:

(b) The commission shall adopt rules relating to:

(1) the approval of plans and specifications;

(2) the contents of plans and specifications ,

including a requirement that a plan incorporate proposals for the

racetrack to support state emergency management activities under

Chapter 418, Government Code ;

(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 association 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.

SECTION 1.014. Section 2026.051, Occupations Code, is

amended to read as follows:

Sec. 2026.051. COMMISSION RULES REGARDING EXCLUSION OR

EJECTION. The commission shall adopt rules providing for the

exclusion or ejection from an enclosure where horse [ or greyhound ]

races are conducted, or from specified portions of an enclosure, of

a person:

(1) who has engaged in bookmaking, touting, or illegal

wagering;

(2) whose income is from illegal activities or

enterprises;

(3) who has been convicted of a violation of this

subtitle;

(4) who has been convicted of theft;

(5) who has been convicted under the penal law of

another jurisdiction for committing an act that would have

constituted a violation of any rule described in this section;

(6) who has committed a corrupt or fraudulent act in

connection with horse [ or greyhound ] racing or pari-mutuel wagering

or who has committed any act tending or intended to corrupt horse

[ or greyhound ] racing or pari-mutuel wagering;

(7) who is under suspension or has been excluded or

ejected from a racetrack by the commission or a steward in this

state or by a corresponding authority in another state because of

corrupt or fraudulent practices or other acts detrimental to

racing;

(8) who has submitted a forged pari-mutuel ticket or

has altered or forged a pari-mutuel ticket for cashing or who has

cashed or caused to be cashed an altered, raised, or forged

pari-mutuel ticket;

(9) who has been convicted of committing a lewd or

lascivious act [ or other crime involving moral turpitude ];

(10) who is guilty of boisterous or disorderly conduct

while inside an enclosure;

(11) who is an agent or habitual associate of a person

excludable under this section; or

(12) who has been convicted of a felony.

SECTION 1.015. Sections 2028.103(a) and (a-1), Occupations

Code, are amended to read as follows:

(a) A horse racetrack association shall set aside for the

Texas-bred program and pay to the commission an amount equal to one

percent of a live multiple two wagering pool and a live multiple

three wagering pool. From the set-aside amounts:

(1) the greater of two percent or $50,000 shall be set

aside for purposes of Subchapter D, Chapter 2022 [ F, Chapter 88,

Education Code ]; and

(2) the remaining amount shall be allocated as

follows:

(A) 10 percent may be used by the appropriate

state horse breed registry for administration; and

(B) the remainder shall be used for awards.

(a-1) The commission shall deposit money paid to the

commission under Subsection (a) into the Texas-bred escrow account

[ incentive fund ] established under Section 2028.301. The

commission shall distribute the money collected under this section

and deposited into the fund to the appropriate state horse breed

registries for the Texas-bred program in accordance with rules

adopted under Subsection (c).

SECTION 1.016. Sections 2028.105(d) and (d-1), Occupations

Code, are amended to read as follows:

(d) The horse racetrack association shall pay to the

commission for deposit into the Texas-bred escrow account

[ incentive fund ] established under Section 2028.301 and

distribution to the appropriate state horse breed registry the

remaining 80 percent of the total breakage to be allocated as

follows:

(1) 40 percent to the owners of the accredited

Texas-bred horses that finish first, second, or third;

(2) 40 percent to the breeders of accredited

Texas-bred horses that finish first, second, or third; and

(3) 20 percent to the owner of the stallion standing in

this state at the time of conception whose Texas-bred get finish

first, second, or third.

(d-1) The commission shall deposit the portions of total

breakage paid to the commission under Subsections (b) and (d) into

the Texas-bred escrow account [ incentive fund ] established under

Section 2028.301. The commission shall distribute the money

collected under this section and deposited into the fund to the

appropriate state horse breed registries in accordance with this

section and with rules adopted by the commission under Section

2028.103.

SECTION 1.017. Section 2028.202(a-1), Occupations Code, is

amended to read as follows:

(a-1) A racetrack association shall pay to the commission

for deposit into the Texas-bred escrow account [ incentive fund ]

established under Section 2028.301 the shares to be distributed

under Subsections (a)(3) and (a)(4) for the Texas-bred program.

The commission shall distribute the money collected under this

section and deposited into the fund to the appropriate state breed

registries for use under the Texas-bred program.

SECTION 1.018. Section 2028.301, Occupations Code, is

amended to read as follows:

Sec. 2028.301. TEXAS-BRED ESCROW ACCOUNT [ INCENTIVE FUND ].

(a) The comptroller [ commission ] shall deposit the state's share

of the simulcast pari-mutuel pool [ money set aside for the

Texas-bred program or set aside ] for use by state breed registries

under this chapter into a trust fund [ an escrow account ] in the

state treasury [ in the registry of the commission ] to be known as

the Texas-bred escrow account. Money in the account may not be

appropriated for state expenditure [ incentive fund ].

(b) The commission shall distribute money from the

Texas-bred escrow account [ incentive fund ] in accordance with this

chapter and commission rules.

SECTION 1.019. Subchapter A, Chapter 2029, Occupations

Code, is amended by adding Section 2029.0015 to read as follows:

Sec. 2029.0015. TRANSFER OF ALLOCATED RACE DATE. (a) A

class 2 racetrack may submit to the commission an application to

transfer to a class 1 racetrack a race date the commission allocated

to the class 2 racetrack under Section 2029.001. The horsemen's

organization must agree to the transfer before the application is

submitted.

(b) The commission:

(1) shall approve or disapprove an application

submitted under Subsection (a) not later than the 10th day after the

date the application is submitted; and

(2) may not charge a fee for the submitted

application.

SECTION 1.020. Section 2033.002, Occupations Code, is

amended to read as follows:

Sec. 2033.002. UNLAWFUL RACING. A person commits an

offense if:

(1) the person participates in, permits, or conducts a

horse [ or greyhound ] race at a racetrack without a permit issued

under Chapter 751, Health and Safety Code ;

(2) the person wagers on the partial or final outcome

of the horse [ or greyhound ] race or knows or reasonably should know

that another person is betting on the partial or final outcome of

the race; and

(3) the race is not part of a performance or race

meeting conducted under this subtitle or commission rule.

SECTION 1.021. Section 2033.004(a), Occupations Code, is

amended to read as follows:

(a) A person commits an offense if the person:

(1) conducts a horse [ or greyhound ] race without :

(A) a racetrack license ; or

(B) a permit issued under Chapter 751, Health and

Safety Code ; and

(2) knows or reasonably should know that another

person is betting on the final or partial outcome of the race.

SECTION 1.022. Section 2033.014, Occupations Code, is

amended by adding Subsection (a-1) to read as follows:

(a-1) A person commits an offense if the person:

(1) seeks to enter, train, or ride a horse for a horse

race that is part of a performance or race meeting conducted under

this subtitle or commission rule; and

(2) knows or reasonably should know that the horse has

participated in a performance or race meeting in this state that was

not conducted:

(A) under this subtitle or commission rule; or

(B) under a permit issued under Chapter 751,

Health and Safety Code.

SECTION 1.023. Sections 2033.101(a) and (b), Occupations

Code, are amended to read as follows:

(a) The executive director may issue a cease and desist

order if the executive director reasonably believes a person

[ racetrack association or other license holder ] is engaging or is

likely to engage in conduct that violates this subtitle or a

commission rule.

(b) On issuance of a cease and desist order, the executive

director shall serve a proposed cease and desist order on the person

[ racetrack association or other license holder ] by personal

delivery or registered or certified mail, return receipt requested,

to the person's last known address.

SECTION 1.024. Section 2033.104, Occupations Code, is

amended to read as follows:

Sec. 2033.104. EMERGENCY CEASE AND DESIST ORDER ; SEIZURE OF

AFFECTED ANIMALS . (a) The executive director may issue an

emergency cease and desist order if the executive director

reasonably believes a person [ racetrack association or other

license holder ] is engaged in a continuing activity that :

(1) violates this subtitle or a commission rule in a

manner that threatens immediate and irreparable public harm ; or

(2) involves suspected cruelty to an animal in

violation of commission rule or Section 42.09 or 42.092, Penal

Code .

(b) After issuing an emergency cease and desist order, the

executive director shall serve on the person [ racetrack association

or other license holder ] 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 subtitle or a commission rule. The order must contain

a notice that a request for hearing may be filed under this section.

(c) On issuance of an emergency cease and desist order, the

executive director may authorize the seizure of any animal

suspected of being or to have been subject to cruelty to an animal

in violation of commission rule or Section 42.09 or 42.092, Penal

Code. An emergency cease and desist order issued under Subsection

(a)(2) satisfies the evidence requirement for a showing of probable

cause for purposes of Section 821.022, Health and Safety Code.

SECTION 1.025. Section 2034.001(c), Occupations Code, is

amended to read as follows:

(c) The commission's rules must require state-of-the-art

testing methods. The testing may:

(1) be conducted [ prerace or postrace ] as determined

by the commission; and

(2) be by an invasive or noninvasive method.

SECTION 1.026. The following provisions of the Occupations

Code are repealed:

(1) Section 2021.003(19);

(2) Sections 2023.061(b) and (c);

(3) Section 2025.001(a);

(4) Section 2026.011; and

(5) Section 2028.2041(c).

SECTION 1.027. Section 2021.006, Occupations Code, as

amended by this Act, applies only to a cause of action that accrues

on or after the effective date of this Act.

SECTION 1.028. The term of a person who is serving as a

member of the Texas Racing Commission immediately before the

effective date of this Act and who is ineligible for appointment

under Section 2022.004(e), Occupations Code, as amended by this

Act, expires on the effective date of this Act.

SECTION 1.029. On September 1, 2025, money in the

Texas-bred incentive fund is transferred to the Texas-bred escrow

account, and the Texas-bred incentive fund is abolished.

SECTION 1.030. The changes in law made by this Act apply

only to an offense committed on or after the effective date of this

Act. An offense committed before the effective date of this Act is

governed by the law in effect on the date the offense was committed,

and the former law is continued in effect for that purpose. For

purposes of this section, an offense was committed before the

effective date of this Act if any element of the offense occurred

before that date.

ARTICLE 2. PROHIBITION ON CONDUCT OF GREYHOUND AND OTHER DOG RACING

AS LIVE EVENTS

SECTION 2.001. Section 481.172(a), Government Code, is

amended to read as follows:

(a) The office shall:

(1) as the primary state governmental entity

responsible for out-of-state tourism marketing and promotion

efforts, promote and advertise within the United States and in

foreign countries, by radio, television, newspaper, the Internet,

and other means considered appropriate, tourism in this state by

non-Texans, including persons from foreign countries, and

distribute promotional materials through appropriate distribution

channels;

(2) represent the state in domestic and international

travel trade shows, trade missions, and seminars;

(3) encourage travel by Texans to this state's scenic,

historical, cultural, natural, agricultural, educational,

recreational, and other attractions;

(4) conduct a public relations campaign to create a

responsible and accurate national and international image of this

state;

(5) use current market research to develop a tourism

marketing plan to increase travel to the state by domestic and

international visitors;

(6) develop methods to attract tourist attractions to

the state;

(7) assist communities to develop tourist

attractions;

(8) not later than December 31, 2003, enter into a

memorandum of understanding with the Parks and Wildlife Department,

the Texas Department of Transportation, the Texas Historical

Commission, and the Texas Commission on the Arts to direct the

efforts of those agencies in all matters relating to tourism;

(9) promote and encourage the horse racing [ and

greyhound racing ] industry, if funds are appropriated for the

promotion or encouragement; and

(10) promote the sports industry and related

industries in this state, including promoting this state as a host

for national and international amateur athletic competition and

promoting sports or fitness programs for the residents of this

state, if funds are appropriated for the promotion.

SECTION 2.002. The heading to Section 751.0021, Health and

Safety Code, is amended to read as follows:

Sec. 751.0021. APPLICABILITY TO CERTAIN HORSE [ AND

GREYHOUND ] RACES.

SECTION 2.003. Section 751.0021(a), Health and Safety Code,

is amended to read as follows:

(a) This chapter applies to a horse [ or greyhound ] race that

attracts or is expected to attract at least 100 persons, except that

this chapter does not apply if the race is held at a location at

which pari-mutuel wagering is authorized under Subtitle A-1, Title

13, Occupations Code (Texas Racing Act).

SECTION 2.004. Section 2021.002, Occupations Code, is

amended to read as follows:

Sec. 2021.002. PURPOSE. The purpose of this subtitle 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.

SECTION 2.005. Sections 2021.003(30), (34), (41), (42),

(44), and (54), Occupations Code, are amended to read as follows:

(30) "Outstanding ticket" means a pari-mutuel ticket

not presented for payment before the end of the horse racing day [ or

greyhound racing day ] for which the ticket was purchased.

(34) "Pari-mutuel wagering" means the form of wagering

on the outcome of horse racing [ or greyhound racing ] in which

persons who wager purchase tickets of various denominations on an

animal or animals and all wagers for each race are pooled and held

by the racetrack association for distribution of the total amount,

less the deductions authorized by this subtitle, to holders of

tickets on the winning animals.

(41) "Racetrack" means a facility licensed under this

subtitle for the conduct of pari-mutuel wagering on horse racing

[ or greyhound racing ].

(42) "Racetrack association" means a person licensed

under this subtitle to conduct a horse race meeting [ or a greyhound

race meeting ] with pari-mutuel wagering.

(44) "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.

(54) "Trainer" means a person who is licensed by the

commission to train horses [ or greyhounds ].

SECTION 2.006. Chapter 2021, Occupations Code, is amended

by adding Section 2021.010 to read as follows:

Sec. 2021.010. GREYHOUND RACING PROHIBITED. Greyhound

racing conducted as a live racing event, or any other form of dog

racing, is prohibited in this state.

SECTION 2.007. Section 2022.001(c), Occupations Code, is

amended to read as follows:

(c) Of the appointed commission members:

(1) five members must be representatives of the

general public and have general knowledge of business or

agribusiness; and

(2) one additional member must have special knowledge

or experience related to horse racing[ ; and

[ (3) one additional member must have special knowledge

or experience related to greyhound racing ].

SECTION 2.008. Section 2022.004(b), Occupations Code, is

amended to read as follows:

(b) A person may not be a commission member and may not be a

commission employee employed in a "bona fide executive,

administrative, or professional capacity," as that phrase is used

for purposes of establishing an exemption to the overtime

provisions of the federal Fair Labor Standards Act of 1938 (29

U.S.C. Section 201 et seq.), if:

(1) the person is an officer, employee, or paid

consultant of a Texas trade association in the field of horse [ or

greyhound ] racing or breeding; or

(2) the person's spouse is an officer, manager, or paid

consultant of a Texas trade association in the field of horse [ or

greyhound ] racing or breeding.

SECTION 2.009. The heading to Subchapter A, Chapter 2023,

Occupations Code, is amended to read as follows:

SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO

HORSE RACING [ AND GREYHOUND RACING ]

SECTION 2.010. Section 2023.001, Occupations Code, is

amended to read as follows:

Sec. 2023.001. LICENSING, REGULATION, AND SUPERVISION OF

HORSE RACING [ AND GREYHOUND RACING ]. (a) Notwithstanding any

contrary provision in this subtitle, the commission may license and

regulate all aspects of horse racing [ and greyhound racing ] in this

state, regardless of whether that racing involves pari-mutuel

wagering.

(b) 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, and

horse training[ , greyhound breeding, and greyhound training ]

industry.

SECTION 2.011. Section 2023.002, Occupations Code, is

amended to read as follows:

Sec. 2023.002. REGULATION AND SUPERVISION OF WAGERING AT

RACE MEETINGS. (a) The commission shall regulate and supervise

each race meeting in this state that involves wagering on the result

of horse racing [ or greyhound racing ]. Each person and thing

relating to the operation of a race meeting is subject to regulation

and supervision by the commission.

(b) The commission shall adopt rules, issue licenses, and

take any other necessary action relating exclusively to horse

racing [ or greyhound racing ].

SECTION 2.012. Section 2023.004(a), Occupations Code, is

amended to read as follows:

(a) The commission shall adopt:

(1) rules for conducting horse racing [ or greyhound

racing ] in this state that involves wagering; and

(2) rules for administering this subtitle in a manner

consistent with this subtitle.

SECTION 2.013. Section 2023.101, Occupations Code, is

amended to read as follows:

Sec. 2023.101. EMPLOYMENT OF STEWARDS [ AND JUDGES ]. (a) A

horse race meeting must be supervised by three stewards[ , and a

greyhound race meeting must be supervised by three judges ].

(b) The commission shall employ each steward [ and judge ] for

the supervision of a horse race [ or greyhound race ] meeting.

(c) The commission shall designate one steward [ or judge, as

appropriate, ] as the presiding steward [ or judge ] for each race

meeting.

(d) Following the completion of a race meeting, a racetrack

association may submit to the commission for the commission's

review written comments regarding the job performance of the

stewards [ and judges ]. A racetrack association's comments

submitted under this section are not binding, in any way, on the

commission.

SECTION 2.014. Section 2024.055(a), Occupations Code, is

amended to read as follows:

(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.

SECTION 2.015. Section 2025.051, Occupations Code, is

amended to read as follows:

Sec. 2025.051. RACETRACK LICENSE REQUIRED; CRIMINAL

PENALTY. A person may not conduct wagering on a horse [ or

greyhound ] race meeting without first obtaining a racetrack license

issued by the commission. A person who violates this section

commits an offense.

SECTION 2.016. Section 2025.053(b), Occupations Code, is

amended to read as follows:

(b) The commission shall set application fees in amounts

reasonable and necessary to cover the costs of administering this

subtitle. The commission by rule shall establish a schedule of

application fees for the various types and classifications of

racetracks using minimum application fees. The minimum application

fee[ :

[ (1) for a horse racetrack ] is:

(1) [ (A) ] $15,000 for a class 1 racetrack;

(2) [ (B) ] $7,500 for a class 2 racetrack;

(3) [ (C) ] $2,500 for a class 3 racetrack; and

(4) [ (D) ] $1,500 for a class 4 racetrack[ ; and

[ (2) for a greyhound racetrack is $20,000 ].

SECTION 2.017. Section 2025.101(c), Occupations Code, is

amended to read as follows:

(c) The commission may not issue a license to operate a

class 1 or class 2 racetrack [ or a greyhound racetrack ] to a

corporation unless:

(1) the corporation is incorporated under the laws of

this state; and

(2) a majority of any of its corporate stock is owned

at all times by individuals who meet the residency qualifications

prescribed by Section 2025.201 for individual applicants.

SECTION 2.018. Section 2025.102(b), Occupations Code, is

amended to read as follows:

(b) In determining whether to grant or deny an application

for any class of racetrack license, the commission may consider:

(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 racetrack;

(4) the effect of the proposed racetrack on traffic

flow;

(5) facilities for patrons and occupational license

holders;

(6) facilities for race animals;

(7) availability to the racetrack 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

horse [ or greyhound ] 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.

SECTION 2.019. Sections 2025.201(a) and (c), Occupations

Code, are amended to read as follows:

(a) The commission may refuse to issue a racetrack license

or may revoke or suspend a license if, after notice and hearing, the

commission finds that the applicant or license holder, as

appropriate:

(1) has been convicted of a violation of this subtitle

or a commission rule, or has aided, abetted, or conspired to commit

a violation of this subtitle or a commission rule;

(2) has been convicted of a felony or a crime involving

moral turpitude, including a conviction for which the punishment

received was a suspended sentence, probation, or a nonadjudicated

conviction, that is reasonably related to the person's present

fitness to hold a license under this subtitle;

(3) has violated or has caused to be violated this

subtitle or a commission rule in a manner that involves moral

turpitude, as distinguished from a technical violation of this

subtitle or a rule;

(4) is unqualified, by experience or otherwise, to

perform the duties required of a license holder under this

subtitle;

(5) failed to answer or falsely or incorrectly

answered a question in an application;

(6) fails to disclose the true ownership or interest

in a horse [ or greyhound ] as required by commission rules;

(7) is indebted to this state for any fee or for the

payment of a penalty imposed by this subtitle or a commission rule;

(8) is not of good moral character or the person's

reputation as a peaceable, law-abiding citizen in the community

where the person resides is bad;

(9) is not at least the minimum age necessary to

purchase alcoholic beverages in this state;

(10) is in the habit of using alcoholic beverages to an

excess or uses a controlled substance as defined by Chapter 481,

Health and Safety Code, or a dangerous drug as defined in Chapter

483, Health and Safety Code, or is mentally incapacitated;

(11) may be excluded from an enclosure under this

subtitle;

(12) has not been a United States citizen residing in

this state for the 10 consecutive years preceding the filing of the

application;

(13) has improperly used a credential, including a

license certificate or identification card, issued under this

subtitle;

(14) resides with a person whose license was revoked

for cause during the 12 months preceding the date of the present

application;

(15) 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 license is sought are located;

(16) is engaged or has engaged in activities or

practices the commission determines are detrimental to the best

interests of the public and the sport of horse racing [ or greyhound

racing ]; or

(17) fails to fully disclose the true owners of all

interests, beneficial or otherwise, in a proposed racetrack.

(c) The commission may refuse to issue a license or may

suspend or revoke a license of a license holder under this

subchapter who knowingly or intentionally allows access to an

enclosure where horse races [ or greyhound races ] are conducted to a

person:

(1) who has engaged in bookmaking, touting, or illegal

wagering;

(2) whose income is from illegal activities or

enterprises; or

(3) who has been convicted of a violation of this

subtitle.

SECTION 2.020. Section 2026.003(a), Occupations Code, is

amended to read as follows:

(a) The commission by rule shall require that each racetrack

association that holds a license for a class 1 racetrack or [ , ] class

2 racetrack[ , or greyhound racetrack ] 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;

(2) indicates compliance during the filing period with

Section 2025.101; and

(3) includes any other information required by the

commission.

SECTION 2.021. Section 2026.004(a), Occupations Code, is

amended to read as follows:

(a) Except as provided by this section, Section 2026.005, or

Section 2025.103, a racetrack association may not conduct horse

racing [ or greyhound racing ] at any place other than the place

designated in the license.

SECTION 2.022. Section 2027.001(a), Occupations Code, is

amended to read as follows:

(a) The commission shall adopt rules to regulate wagering on

horse races [ and greyhound races ] under the system known as

pari-mutuel wagering.

SECTION 2.023. Section 2027.006(a), Occupations Code, is

amended to read as follows:

(a) A person who claims to be entitled to any part of a

distribution from a pari-mutuel pool may, not later than the first

anniversary of the day the ticket was purchased, file with the

appropriate racetrack association a claim for the money accompanied

by a substantial portion of the pari-mutuel ticket sufficient to

identify the racetrack association, race, or horse [ or greyhound ]

involved, amount wagered, and type of ticket.

SECTION 2.024. Section 2028.051, Occupations Code, is

amended to read as follows:

Sec. 2028.051. SET-ASIDE FROM LIVE PARI-MUTUEL POOL. A

horse [ or greyhound ] racetrack association shall set aside for this

state from each live pari-mutuel pool at the racetrack an amount

equal to:

(1) one percent of each live pari-mutuel pool from the

total amount of all of the racetrack association's live pari-mutuel

pools in a calendar year in excess of $100 million but less than

$200 million;

(2) two percent of each live pari-mutuel pool from the

total amount of all of the racetrack association's live pari-mutuel

pools in a calendar year in excess of $200 million but less than

$300 million;

(3) three percent of each live pari-mutuel pool from

the total amount of all of the racetrack association's live

pari-mutuel pools in a calendar year in excess of $300 million but

less than $400 million;

(4) four percent of each live pari-mutuel pool from

the total amount of all of the racetrack association's live

pari-mutuel pools in a calendar year in excess of $400 million but

less than $500 million; and

(5) five percent of each live pari-mutuel pool from

the total amount of all of the racetrack association's live

pari-mutuel pools in a calendar year in excess of $500 million.

SECTION 2.025. Section 2028.202(a), Occupations Code, is

amended to read as follows:

(a) A racetrack association shall distribute from the total

amount deducted as provided by Section [ Sections ] 2028.101 [ and

2028.152 ] from each simulcast pari-mutuel pool and each simulcast

cross-species pari-mutuel pool the following shares:

(1) an amount equal to one percent of each simulcast

pari-mutuel pool to the commission for the administration of this

subtitle;

(2) an amount equal to 1.25 percent of each simulcast

cross-species pari-mutuel pool to the commission for the

administration of this subtitle;

(3) for a horse racetrack 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 2028.103;

[ (4) for a greyhound racetrack 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 commission rules adopted to promote greyhound

breeding in this state; ] and

(4) [ (5) ] the remainder as the amount set aside for

purses, expenses, the sending track, and the receiving location

under a contract approved by the commission between the sending

track and the receiving location.

SECTION 2.026. The heading to Chapter 2030, Occupations

Code, is amended to read as follows:

CHAPTER 2030. TEXAS-BRED HORSES [ AND GREYHOUNDS ]

SECTION 2.027. Section 2035.001(a), Occupations Code, is

amended to read as follows:

(a) The commission may not issue a racetrack license or

accept a license application for a racetrack to be located in a

county until the commissioners court has certified to the secretary

of state that the qualified voters of the county have approved the

legalization of pari-mutuel wagering on horse races [ or greyhound

races ] in the county at an election held under this chapter.

SECTION 2.028. Section 2035.002, Occupations Code, is

amended to read as follows:

Sec. 2035.002. INITIATION OF LEGALIZATION ELECTION. The

commissioners court:

(1) may, on its own motion by a majority vote of its

members, order an election to approve the legalization of

pari-mutuel wagering on horse races [ or greyhound races ]; and

(2) shall order an election on presentation of a

petition meeting the requirements of this chapter.

SECTION 2.029. Section 2035.005, Occupations Code, is

amended to read as follows:

Sec. 2035.005. CONTENTS OF PETITION APPLICATION. To be

valid, the petition application must contain:

(1) a heading, as follows: "Application for a Petition

for a Local Option Election to Approve the Legalization of

Pari-mutuel Wagering on Horse Races" [ or "Application for a

Petition for a Local Option Election to Approve the Legalization of

Pari-mutuel Wagering on Greyhound Races," as appropriate ];

(2) a statement of the issue to be voted on, as

follows: "Legalizing pari-mutuel wagering on horse races in

__________ County" [ or "Legalizing pari-mutuel wagering on

greyhound races in __________ County," as appropriate ];

(3) a statement immediately above the signatures of

the applicants, as follows: "It is the hope, purpose, and intent of

the applicants whose signatures appear below that pari-mutuel

wagering on horse races be legalized in __________ County" [ or "It

is the hope, purpose, and intent of the applicants whose signatures

appear below that pari-mutuel wagering on greyhound races be

legalized in __________ County," as appropriate ]; and

(4) the printed name, signature, residence address,

and voter registration certificate number of each applicant.

SECTION 2.030. Section 2035.006, Occupations Code, is

amended to read as follows:

Sec. 2035.006. CONTENTS OF PETITION. To be valid, the

petition must contain:

(1) a heading, as follows: "Petition for a Local

Option Election to Approve the Legalization of Pari-mutuel Wagering

on Horse Races" [ or "Petition for a Local Option Election to Approve

the Legalization of Pari-mutuel Wagering on Greyhound Races," as

appropriate ];

(2) a statement of the issue to be voted on, in the

same words used in the application;

(3) a statement immediately above the signatures of

the petitioners, as follows: "It is the hope, purpose, and intent of

the petitioners whose signatures appear below that pari-mutuel

wagering on horse races be legalized in __________ County" [ or "It

is the hope, purpose, and intent of the petitioners whose

signatures appear below that pari-mutuel wagering on greyhound

races be legalized in __________ County," as appropriate ];

(4) lines and spaces for the names, signatures,

addresses, and voter registration certificate numbers of the

petitioners; and

(5) the date of issuance, the serial number, and the

seal of the county clerk on each page.

SECTION 2.031. Section 2035.015, Occupations Code, is

amended to read as follows:

Sec. 2035.015. BALLOT PROPOSITION. The ballots for an

election under this subchapter shall be printed to permit voting

for or against the proposition: "Legalizing pari-mutuel wagering on

horse races in __________ County," [ "Legalizing pari-mutuel

wagering on greyhound races in __________ County," ] or "Authorizing

pari-mutuel wagering on simulcast races in _____ County," as

appropriate.

SECTION 2.032. Section 2035.016, Occupations Code, is

amended to read as follows:

Sec. 2035.016. CERTIFICATION OF ELECTION RESULTS. If a

majority of the votes cast in the election favor the legalization of

pari-mutuel wagering on horse races [ or greyhound races ] in the

county, or the authorization of pari-mutuel wagering on simulcast

races in the county, as appropriate, the commissioners court shall

certify that fact to the secretary of state not later than the 10th

day after the date of the canvass of the returns.

SECTION 2.033. Section 2035.105, Occupations Code, is

amended to read as follows:

Sec. 2035.105. BALLOT PROPOSITION. The ballots for an

election under this subchapter shall be printed to permit voting

for or against the proposition: "Rescinding the legalization of

pari-mutuel wagering on horse races in __________ County" [ or

"Rescinding the legalization of pari-mutuel wagering on greyhound

races in __________ County," as appropriate ].

SECTION 2.034. Section 11.23(h), Tax Code, is amended to

read as follows:

(h) County Fair Associations. A county fair association

organized to hold agricultural fairs and encourage agricultural

pursuits is entitled to an exemption from taxation of the land and

buildings that it owns and uses to hold agricultural fairs. An

association that holds a license issued after January 1, 2001,

under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act),

to conduct a horse race meeting [ or a greyhound race meeting ] with

pari-mutuel wagering is not entitled to an exemption under this

subsection. Land or a building used to conduct a horse race meeting

[ or a greyhound race meeting ] with pari-mutuel wagering under a

license issued after January 1, 2001, under that subtitle may not be

exempted under this subsection. To qualify for an exemption under

this subsection, a county fair association must:

(1) be a nonprofit corporation governed by Chapter 22,

Business Organizations Code;

(2) be exempt from federal income taxes as an

organization described by Section 501(c)(3), (4), or (5), Internal

Revenue Code of 1986;

(3) qualify for an exemption from the franchise tax

under Section 171.060; and

(4) meet the requirements of a charitable organization

provided by Sections 11.18(e) and (f), for which purpose the

functions for which the association is organized are considered to

be charitable functions.

SECTION 2.035. The following provisions of the Occupations

Code are repealed:

(1) Sections 2021.003(15), (16), (17), (22), and (35);

(2) Section 2023.054;

(3) Subchapter D, Chapter 2025;

(4) Section 2026.010;

(5) Section 2027.056;

(6) Subchapter D, Chapter 2028;

(7) Sections 2028.202(b), (c), (d), and (e);

(8) Section 2028.205;

(9) Subchapter B, Chapter 2029; and

(10) Subchapter B, Chapter 2030.

SECTION 2.036. (a) Greyhound purse funds held by any

greyhound racetrack association on September 1, 2025, shall be

transferred to the Texas Racing Commission for deposit into an

escrow account in the commission's registry. Any horse breed

registry that holds greyhound purse funds on September 1, 2025,

shall retain those funds, and those funds may only be used for live

horse race purses. The commission by rule shall determine the

allocation of greyhound purse funds transferred to the commission

under this subsection.

(b) A racetrack association conducting live horse racing in

this state on or after September 1, 2025, may apply to the Texas

Racing Commission for allocation of purse funds described by

Subsection (a) of this section to be used for purses at the

association's racetrack during the calendar year for which the

purse funds are requested. A commission decision relating to the

allocation of purse funds is final.

SECTION 2.037. (a) On or before January 1, 2026, a

greyhound racetrack association may submit an application to the

Texas Racing Commission to convert the association's greyhound

racetrack license to a class 2 or class 3 racetrack license, as

classified under Subchapter C, Chapter 2026, Occupations Code, for

horse racing.

(b) The Texas Racing Commission shall approve an

application submitted under Subsection (a) of this section if:

(1) the applicant is in good standing with the

commission;

(2) information related to the applicant on file with

the commission is current, complete, and accurate; and

(3) the applicant pays a fee of $25,000 for the

commission's review of the application.

(c) An applicant approved under this section must complete

the conversion of the greyhound racetrack facility to a horse

racetrack facility not later than December 31, 2029.

SECTION 2.038. As soon as practicable after the effective

date of this Act, the Texas Racing Commission shall adopt the rules

necessary to implement this article.

ARTICLE 3. EFFECTIVE DATE

SECTION 3.001. This Act takes effect September 1, 2025.