Cain’s Greyhound Ban Lets Dog Tracks Switch To Horses

The text as introduced · 6,502 words

89R8836 PRL-D

By: Cain
H.B. No. 5013

A BILL TO BE ENTITLED

AN ACT

relating to the Texas Racing Commission and the regulation of dog

races, including greyhound races, as live events in this state and

of simulcast wagering on greyhound races conducted out of state.

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

SECTION 1. 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. 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 3. 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 4. 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 5. Sections 2021.003(30), (34), (41), (42), (44),

(45), 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.

(45) "Sending track" means any licensed track for

horse [ or greyhound ] racing in this state or another state from

which a race is transmitted.

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

commission to train horses [ or greyhounds ].

SECTION 6. Chapter 2021, Occupations Code, is amended by

adding Section 2021.010 to read as follows:

Sec. 2021.010. DOG RACING PROHIBITED. Any form of dog

racing, including greyhound racing, conducted as a live racing

event in this state is prohibited.

SECTION 7. 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) two members [ 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 8. 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 9. Section 2022.052(c), Occupations Code, is

amended to read as follows:

(c) The commission may not employ or continue to employ 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 10. 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 11. 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 12. 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 13. 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 14. Section 2023.056(a), Occupations Code, is

amended to read as follows:

(a) The commission shall :

(1) cooperate with a district attorney, a criminal

district attorney, a county attorney, the Department of Public

Safety, the attorney general, or a peace officer in enforcing this

subtitle ; and

(2) investigate, or assist a local law enforcement

agency in the investigation of, an unlawful dog race conducted in

this state .

SECTION 15. Section 2023.061(b), Occupations Code, is

amended to read as follows:

(b) The report must cover the operations of the commission

and the condition of horse breeding and racing [ and greyhound

breeding and racing ] during the previous year.

SECTION 16. 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 17. 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 18. 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 19. 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 20. 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 21. 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 22. 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 23. 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 24. 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 25. 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 26. Sections 2026.011 and 2026.051, Occupations

Code, are amended to read as follows:

Sec. 2026.011. AUTOMOBILE RACING FACILITY PROHIBITED NEAR

RACETRACK IN CERTAIN COUNTIES. An automobile racing facility may

not be located within 10,000 feet of a horse [ or greyhound ]

racetrack that is located in a county with a population of 2.1

million or more.

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 27. 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 28. Sections 2027.002(b) and (d), Occupations Code,

are amended to read as follows:

(b) A person may not accept, in person, by telephone, or

over the Internet, a wager for a horse [ or greyhound ] race conducted

inside or outside this state from a person in this state unless the

wager is authorized under this subtitle.

(d) Except as provided by Subsection (c), a person may not

place, in person, by telephone, or over the Internet, a wager for a

horse [ or greyhound ] race conducted inside or outside this state.

SECTION 29. 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, horse [ or greyhound ]

involved, amount wagered, and type of ticket.

SECTION 30. Sections 2027.102(a) and (b), Occupations Code,

are amended to read as follows:

(a) A person may not wager on the result of a horse [ or

greyhound ] race in this state except as authorized by this

subtitle.

(b) A person other than a racetrack association may not

accept from a Texas resident while the resident is in this state a

wager on the result of a horse [ or greyhound ] race conducted inside

or outside this state.

SECTION 31. 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 32. Sections 2028.202(a) and (a-1), Occupations

Code, are 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

(3) [ (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.

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

for deposit into the Texas-bred incentive fund established under

Section 2028.301 the shares to be distributed under Subsection

(a)(2) [ 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 33. The heading to Chapter 2030, Occupations Code,

is amended to read as follows:

CHAPTER 2030. TEXAS-BRED HORSES [ AND GREYHOUNDS ]

SECTION 34. 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;

(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 35. Section 2033.003(a), Occupations Code, is

amended to read as follows:

(a) A person commits an offense if, without a license, the

person in any capacity participates or is otherwise involved in

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

SECTION 36. 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

racetrack license; and

(2) knows or reasonably should know that another

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

SECTION 37. Section 2033.008(a), Occupations Code, is

amended to read as follows:

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

wagers on the result of a horse [ or greyhound ] race conducted in

this state that:

(1) is held on an American Indian reservation or on

American Indian trust land located in this state; and

(2) is not held under the supervision of the

commission under rules adopted under this subtitle.

SECTION 38. Section 2033.013(a), Occupations Code, is

amended to read as follows:

(a) A person commits an offense if, with an intent to

deceive and an intent to obtain a benefit, the person knowingly:

(1) makes a false statement about a horse [ or

greyhound ] race to another person; or

(2) offers, agrees to convey, or conveys false

information about a horse [ or greyhound ] race to another person.

SECTION 39. Sections 2033.014(a) and (b), Occupations Code,

are amended to read as follows:

(a) A person commits an offense if, with the intent to

influence or affect the outcome of a race in a manner contrary to

this subtitle or a commission rule, the person offers, confers, or

agrees to confer on another person, or solicits, accepts, or agrees

to accept from another person, any benefit as consideration for the

actions of a person who receives the benefit relating to the

conduct, decision, opinion, recommendation, vote, or exercise of

discretion as a license holder or other person associated with or

interested in any stable, [ kennel, ] horse, [ greyhound, ] or horse

[ or greyhound ] race.

(b) An offense under this section is a state jail felony

unless the recipient of the benefit is a steward, judge, or other

racetrack official exercising authority over a horse [ or greyhound ]

race that the person providing or offering the benefit intended to

influence, in which event the offense is a felony of the third

degree.

SECTION 40. Sections 2033.015(b) and (c), Occupations Code,

are amended to read as follows:

(b) A person commits an offense if, with the intent to

influence or affect a horse [ or greyhound ] race in a manner contrary

to this subtitle or a commission rule, the person uses or offers to

use:

(1) a prohibited device; or

(2) a prohibited substance.

(c) An offense under Subsection (a) is a Class A misdemeanor

unless the actor possessed the prohibited device or prohibited

substance with the intent to influence or affect the outcome of a

horse [ or greyhound ] race in a manner contrary to this subtitle or a

commission rule, in which event the offense is a state jail felony.

SECTION 41. Section 2033.016, Occupations Code, is amended

to read as follows:

Sec. 2033.016. CRIMINAL CONFLICT OF INTEREST. A person who

is a commission member commits an offense if the person:

(1) accepts, directly or indirectly, employment or

remuneration from a racetrack, racetrack association, or other

license holder, including a racetrack, racetrack association, or

license holder located or residing in another state;

(2) wagers or causes a wager to be placed on the

outcome of a horse [ or greyhound ] race conducted in this state; or

(3) accepts or is entitled to any part of a purse to be

paid to an animal in a race conducted in this state.

SECTION 42. 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 43. 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 44. Section 2035.003, Occupations Code, is amended

to read as follows:

Sec. 2035.003. ELECTION TO APPROVE WAGERING ON SIMULCAST

RACES. The commissioners court of a county in which a racetrack is

conducting live racing may, on its own motion by a majority vote of

its members, order an election to approve pari-mutuel wagering on

simulcast horse races [ or greyhound races ].

SECTION 45. 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 46. 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 47. 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 48. 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 49. 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 50. 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 51. The following provisions of the Occupations

Code are repealed:

(1) Sections 2021.003(12), (15), (16), (17), (22), and

(35);

(2) Section 2023.054;

(3) Subchapter D, Chapter 2025;

(4) Section 2026.010;

(5) Section 2027.052(b);

(6) Sections 2027.054(a) and (b);

(7) Section 2027.055;

(8) Section 2027.056;

(9) Subchapter D, Chapter 2028;

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

(11) Section 2028.204(a);

(12) Subchapter B, Chapter 2029; and

(13) Subchapter B, Chapter 2030.

SECTION 52. As soon as practicable after the effective date

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

necessary to comply with Subtitle A-1, Title 13, Occupations Code

(Texas Racing Act), as amended by this Act.

SECTION 53. (a) Not later than September 1, 2030, 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; and

(2) information related to the applicant on file with

the commission is current, complete, and accurate.

SECTION 54. (a) The changes in law made by this Act apply

only to conduct that occurs on or after the effective date of this

Act. Conduct that occurs before the effective date of this Act is

governed by the law in effect on the date the conduct occurred, and

the former law is continued in effect for that purpose.

(b) 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.

SECTION 55. This Act takes effect September 1, 2025.