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HomeMy WebLinkAboutIR 7235 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7235 0.1 �Efoar$ To the Mayor and Members of the City Council December 1 , 1987 Subject: PARI-NUTUEL BETTING ON NORSE-RACING An in-house committee has been formed to examine the City's options as it relates to pari-mutuel betting on horse racing in Tarrant County. The initial committee consists of representatives from the City Manager's Office, City Attorney's Office, Police, Planning and Growth Management, Development, Transportation/Public Works, Finance, Management Services, Economic Development and Intergovernmental Affairs. Outlined below is a summary of the Act and the preliminary staff review of issues. TEXAS RACING COMMISSION The primary authority for oversight of racing in the State rests with a six member commission 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 law states that in making appointments to the commission, the Governor shall strive to achieve representation by all the population groups of the State with regard to economic status, sex, race and ethnicity. 1. The ex officio members are the Chairperson of the Public Safety Commission and the Comptroller of Public Accounts. 2. Six members will be appointed based on the following formula: a. One (1) veterinarian licensed to practice in this state who specializes in the treatment of small animals; b. One (1) veterinarian who specializes in large animals; c. Two (2) members who are not veterianarians and who have special knowledge or experience related to greyhound racing; and, d. Two (2) members who have special knowledge or experience- related to horse racing. Except for the initial appointments, appointed members hold office for staggered terms of six (6) years with two members terms expiring February 1 of each odd numbered year. The Governor is expected to make the initial appointments on or before February 1, 1988. GENERAL LICENSE PROVISIONS. The Commission has sole control over the issuance of a license certificate or credentials and the fees associated therewith. It also has responsibility for ,judicial review and checking the criminal history record of licensees. ISSUED BY THE CiTY MANAGER FORT WORTH, TEXAS---- ` INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7211, p.2— .+' �pM TiRtd o4soAr,�$ To the Mayor and Members of the City Council December 1 , 1987 pot ; s Subject: PARI-NUTUEL BETTING ON HORSE-RACING CLASSIFICATION OF HORSE-RACING TRACKS There are three classifications of horse-racing tracks: 1. CLASS 1 a. Racing is conducted for a minimum of 45 days a calendar year. b. Operation is only allowed in a county with a population of not less than 750,000. C. Not more than four (4) Class 1 tracks will be licensed by the State. 2. CLASS 2 a. Racing days cannot exceed 44 days in a calendar year. b. The Commission may permit a Class 2 track located in a national historic district to conduct horse races for more than 44 days in a calendar year. C. There is no limit on the number of tracks allowed. 3. CLASS 3 a. Cannot exceed 16 days a calendar year. b. Operated by a county or a non-profit fair. LIMITATIONS ON CONSTRUCTION 1. The Commission may not issue a Class 1 racetrack license to a person who has begun construction of a track or surrounding structures before applying to the Commission and receiving approval to begin construction at a designated site. 2. This requirement does not apply to or restrict land use planning, drainage, and other preparatory work at a potential site. CITY AND COUNTY FEES 1. The Commissioners Court may collect a fee not to exceed 15 cents as an admission fee to a licensed racetrack located within the County. 2. If requested by a* majority of the governing bodies, the Court may collect an additional 15 cents admission fee for allocation among the incorporated cities or towns in the County. 3. Allocation of the additional admission fee is based on the population within the County of the cities and towns. ISSUED BY THE CiTY MANAGER FORT WORTH, TEXAS--- i INFORMAL REPORT TO CITY COUNCIL MEMBERS No. Z?15 y� 4*t�rt+tia QfEaRr�°» To the Mayor and Members of the City Council December 1 , 1987 Subject: PARI-01TWL BETTING ON NORSE-RACING 4. If the racetrack is a Class 1 racetrack, the commissioners court of adjacent counties with a population of not less than 750,000 may also collect fees equal to those indicated above. (Note: This means Dallas County and its cities could collect as much as 30 cents per person in admission fees. ) 5. A fee collected based on the information above is in lieu of any license, excise, use, admissions, or similar tax levied by the governing body of the county or the incorporated city or town. 6. The amount collected by the "county" (emphasis added) may be used only by the county in which the racetrack is located for the purpose of providing the county with funds to endorse the provisions of the Act, including but not limited to the hiring of investigators, attorneys, staff and other personnel to assist the county attorney or district attorney in enforcing this Act. The general overview above is not considered to be all-inclusive. For more information, a copy of Article 179e is attached. PRELIMINARY STAFF REVIEW The in-house staff committee has met and identified the following issues: A. Zoning Considerations 1. Based on an evaluation by the Development Department, racetracks would be allowed in any zoning districts designated "I" Light Industrial , "J" Light Industrial and "K" Heavy Industrial , provided they are located at least 100` from residential zoning districts "A", "B". "C", or "D 2. A special exception may be permitted to locate a racetrack in a zoning district, other than "I", "J" or "K", by the Board of Adjustment after they have conducted a public hearing and found that: a. The requested exception will establish only those uses permitted under the ordinance; b. That the location is clearly defined on a site plan; and C. That the exception will be wholly compatible with the use and permitted development of adjacent properties. 3. If the City Council desires to become more involved in the process, it will be necessary to amend the Zoning Ordinance or the City Code. Some options that could be pursued include: a. Amending the ordinance to require City Council approval of the site plan; b. More stringent control over parking requirements; and C. Amendments to the building codes related to racetrack construction and related facilities that would be aimed at reducing the potential of fire loss. ISSUES? BY THE CiTY MANAGER FORT WORTH, TEXAS--- INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7235 p'4 �'**r�• December 1 , 1987 To the Mayor and Members of the City Council } Subject: PARI-MJ UEL BETTING ON HORSE-RACING B. Financial Considerations 1. The direct financial benefit that the City could receive from a racetrack is its proportionate share of the 15 cents that was discussed above. 2. If the track is located in the City there would also be revenue from sales and property taxes. 3. Although it is a bit more to speculate on, there is the possibility of related businesses being created - e.g. hotels, stables, supply operations. c. Public Safety Considerations 1. The Police Department anticipates that its major increase in expenses would be related to traffic control . However, a check with the Hot Springs, Arkansas authorities yields preliminary information that street crimes increased 25% during the racing season. 2. Some consideration may need to be given to stipulating the type and level of security that must be provided within and immediately surrounding the racetrack. General Considerations 1. Since the Act allows Class 2 tracks located in a national historic district to operate for more than the normal "less than 44 days". a quarter horse track should probably be supported for the Stockyards area. 2. Since there has been some indication of interest in locating a Class 1 racetrack in north Fort Worth, an analysis needs to be made regarding the possible implications of locating two tracks so close together. 3. Once a decision is made regarding the location of a track, consideration will need to be given to the affordability of the necessary infrastructure and traffic improvements that will be required. The above information represents the in-house committee's initial effort. Once the City Council appoints the Race Track Policy Advisory Committee, staff will provide whatever support is required. Douglas Harman City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS�— Art. 279d AMUSEMENTS-.PMUC HOUM or Title of Act: applicant will comply with the provisions of f 11 An Act relating to the regulation and taxation of this article. Op.Atty.Gen.1982, loo. MW-418. of bingo games; providing penalties. Acts 1981, An authorized organisation located outside an 67th IAA., 1st CS.,p.85,ch. 11. area which a legalized may obtain a ban" to Cron References conduct bingo gauss. Id. Interest accrued or earned pursuant to 826 of 1 Taxaten this article deemed state funds, see art. 4898-1. If A jutice precinct of a county legalizes bingo 1 8.051(c). but the tommissioners court does not impose the Punishment, tic, the municipality may impose a tax on the Class A misdemeanor, we V.T.0 k Paul portion of the precinct in the city without hold. Code. f 12.23. ing an election; if the county legalizes bingo but Class b misdemeanor, an V.T.C.A. Penal does not impose the tax,the city may impose the Code, f 12.22. tax on the portion of the county within the Third-degree felon}, see V.T.C.A. Penal municipality without holding an election; and if Code, 1 12.84. the tnunici*nv a nposes the tax, the commis- Administrative Cade References sioaers court may later impose the tax in the entire county or within one or more justice pre. Comptroller of Public Accounts, bingo reguia• cincts, 0p.Atty.Gen.1982, No. MW-413. Lion and tax, Determination of local option stows,impoai 3. Elections tion of gross receipts tax, notice to comp A county may hold county-wide bingo and troller, collection and transmittal of tax, county-wide bond elections on the same date. ace 34 TAC 13.541, Election Law Opinion No. DAD-41 (1982). Investigation of applicants for licenses, on In county-wide bingo and county-wide bond 84 TAC 1 3.542. elections held on the same date there may be one library References pow phice in ad precinct at which balloting W, an both the bingo and bond propositions win be Elections 4033,8312,88, 175, conducted and only a single act of election oM Lotteries 4-i to 6,9, 16,20.r cab and election materials are needed at each Records 4030. polling place to conduct the balloting. Id. U.S. Elections it 69,71,79, 170. County-wide bingo and bond propositions may U.S.Lotteries if 13, 15 to 17, 19,20,28,29. appear on a single ballot. Id. C.dS. Records Jj 34,85,36. County may not consolidate election precincts OW for eountvwide bingo and countywide bond eieo- .tions. Id. -votes of Decisions Susie she City of Pasadena has no hotel option bingo status as determined by a municipal eke- In general 1 tion,the status of a justice of the peace precinct Elections 8 wherein the voters voted in favor of legalization Taxation 2 of bingo games prevails in the territory common to the justice of the peace precinct and the am.. Election Law Opinion No.DAD?-58 (1982). 1. In general A negative vote in a local option bingo election Prior to issuing a license to conduct bingo establishes no local option status in the political games,the comptroller must determine that the subdivision in which the election is held. Id. Art. 179L Texas Racing Act ARTICLE 1. GENERAL PROVISIONS Short title Sec. 1.01. This Act may be cited as the Texas Racing AcL. Purposes Sec. 1.02. The purposes of this Act are to encourage agziculture, the horse-breeding industry, the home--training industry, the greyhound-breeding industry, tourism, and employment opportunities in this state related w horse racing and greyhound racing and to prtoviae for the strict regulation and control of pari-mutuel wagering in connection with that racing. Letlnitians Sec. 1.03. In this Act 26 OF AMUSF.giElwlTS—PUBLIC HOUSES OF Art I79e :k i Tifk 6 i1 y (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. (8) "Commission" means the Texas Racing Commission. (4) "Comptroller" means the comptroller of public accounts. (6) "Executive secretary" means the executive secretary of the Texas Racing Commis. the sion. wid' (6) "Horse race meeting" means the conducting of horse races on a day or during a bw period of consecutive or nonconsecutive bays. the 1 the (7) 'Thoroughbred horse" means a hone that is registered by the Jockey Club, New ,d If York City, New York. .Mis- (8) 'Thoroughbred racing" means the form of horse racing in which Thoroughbred she horses mounted by jockeys engage in a race. (9) "Quarter horse" means a horse that is-registered by the American Quarter Horse Association, Amarillo, Texas. and 1 (10) "Quarter horse racing" means the form of horse racing in which quarter horses AMC mounted by jockeys engage in a race. (11) "Appaloosa horse" means a horse that is registered by the Appaloosa horse Club, MW Moscow, Idaho. p0e (12) "Appaloosa racing" means the form of horse racing in which Appaloosa horses Jot mounted by jockeys engage in a race. I be offir (18) "Arabian horse" means a horse that is registered by the Arabian Horse Registry Sad of America, Denver, Colorado. (14) "Arabian racing" means the form of horse 'acing in which Arabian horses MY sanctioned for racing by the International Arabian Horse Association, Denver, Colorado, mounted by jockeys engage in a race. (15) "Paint horse" means a horse that is registered by The American Paint Horse Association:, Forth Worth, Texas. (16) "Paint horse racing" means the form of horse racing in which paint hones mounted by jockeys engage in a race. ximet (17) "Enclosure" means all areas of a racing association's grounds, including the 'n°" parking area to which admission ordinarily can be obtained onl y 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 home 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 ld. association for distribution of the total amount,less the deductions authorized by this Act, to holden 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 mutual pools for win, place, show, or combinations. (20) "Breakage" means the odd cents be which the amount payable on each dollar wagered exceeds a multiple of 10 cents,except in the event a minus pool occurs,in which an the breakage shall be in multiples of five cents. (21) 'Texas-bred horse" means a hone that is sired by a stallion standing in Texas at the time of conception and foaled by a mare in Texas, except that a mare may be bred amend outside Texas and brought into Texas to foal and all foals sired and foaled under those sad conditions in the mare's lifetime shall be considered"Texas-bred"if the mare is bred back with I to a stallion standing in Texas. In all instances any foal must qualify under the rules of the eomm* X*". t2t} "Accredited Texas-bred hone"means a Texas bred horse that meets the accre&A- tion requirements of the state breed registry of that breed of hone. (28) "3dixed racing" means a race m whicb different breeds of homes participate. r -J Art. 1790 AMUSEMENTS—KMLiC HOUSES OF Title IS ('2t) "State horse breed registry"mum a designated association administering accred- ited Teas-bred requirements for its specific breed of harem. (ZS) "Racetrack" means a faerlrty that is licensed under this Act for the conduct of pari-mutuel wagering on greyhound racing or horse racing. (26) "Rom racing day" mesas the 24-hour period ending at 12 aikWght. (27) "Clerk of scales" means a racetrack official who is responsible for weighing s Jockey before and after a race (28) "Jockey"means a professional rider licensed by the commission to ride horse races. (29) "Jockey apprentice"means a stable assistant who is in training to become a jockey. (80) "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 enured in a race while the animals are assembled before the beginning of a race in an enclosure on the grounds of a racetrack. (82) "Patrol judge"means a racetrack official who is stationed at a set point along the racetrack to monitor the rerunning of a race and to determine that the race is fairly run. (83) "Placing official'means a racetrack official who records the order of the finish of a race. (84) "Stable foreman" means the person in charge of the building in which horses are lodged and fed. (85) "Seward" means an executive official of a horse racetrack. (86) "Vainer" 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. (88) "Authorized agent!'means a person appointed by an owner of a horse to represent the owner. The term is 1imi;ed 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, Ver ion's Texas Civil Statvus). (48) "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 or more maces or on one animal in more than one race (47) "Greyhound" means a purebred greyhound dog registered by the-National Grey. bound 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) "Ennelosure-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 bouSed. (50) "Greyhound raring days" men= days on which a permitted association a nduetns greyhound racing. "One ratiang dap"means a period commenting at noon and ending at 2 am.the next calendar dap,except in the case of days on which there are matinee races. (51) "Greyhound matinee rave"meant any performance starting between 10 a.m.and,5 pm. on any day other than Sunday. 26 r AMUSENZNTS--PUBLIC HOUSES OF Art. 1 79e Tube 6 ' (62) "Performance" means the consecutive running of not snore than 13 greyhound races. (53) "Judge" :Weans an executive official of a greyhound racetrack. (U) 974onprofit corporation" means a corporation organized under Subdivision 7, Arki- cle 1302, Revised Statutes,' or organized under the Texas Non-Profit Corporation Act (Article 1896-1.01 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 601 of the Internal Revenue Code (26 U.S.C.Section Sol). - (55) "Mixed meet' means a horse rage 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 elijn'ble for inclusion in the National Register of Historic Places created under the National historic Preservation Act, 16 U.S.C. Section 470 et seq. a Repnkd. ARTICLE 2. TEXAS RACING COMMISSION Creation Sec. 201. The Texas Racing Commission is created. e Membership Sec. 202. (a) The commission consists of six 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 the chairman of the Public Safety Commission and op the comptroller of public accounts. In making appointments to the commission, the governor shall strive to achieve representation br all the population groups of the state sith regard to economic status, sex, race, and ethnicity. (b) One appointed member must be a veterinarian licensed to practice in this state who specialises in the treatment of small animals. One appointed member must be a veterinarian licensed to practice in this state who specializes in the treatment of large animals. Two appointed members must be individuals who are not veterinarians and who have special knowledge or experience related to greyhound racing. Two appointed members must be individuals who are not veterinarians and who have special knowledge or experience related to horse racing. Term of office Sec. 208. (a) Except for the initial appointments, appointed members hold office for staggered terms of six years with two members' terms expiring February 1 of each odd-numbered year. A member holds office until that member's successor is appointed and qualifies. (b) In making the Wtia3 appointments, the governor shat] designate two appointed members for a term expiring February 1, 1989,two for a term expiring February 1, 1991, and two for a term expiring February 1, 1993. The governor shall make the initial ` appointments an or before February 1, 1987. (c) The ex officio members hold office on the commission for the time for which they hold their other offices. Residence requirement Sec. 204. 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. 29 OL Art. 179e f'MUSEMEN S--PUBLIC HOUSES OF rltle t z1*16111ity Po„l Sec. 205. 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 consant*uunuty to a person who owns any financial interest in a racetrack or its operation. Each person appointed to or emploved by the commission is subject to all background checks and qualification criteria required to hold a racetrack license or other license-under this Act. 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, 1978 (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,1978 (Article 62521 7a, Vernon's Texas Civil Statutes). Prohibited conduct Set. 207. A member of the commission commits an offense if the member: (1) accepts any employment and for that employment, remuneration from a racetrack association or accepts any other remuneration from a racetrack association directly or indirectly, whether the racetrack is located in this state or elsewhere; (2) wagers.or causes a wager to be placed on the outcome of a race conducted in this state; or ' (8) accepts or is entitled to any puan of the purse to be paid on a greyhound or a horse in a race conducted in this state. Expanses Ask Sec. 2.08. Each appointed member of the commission is entitled to a per diem in an amount prescribed by legislative appropriation for oath day spent in performing the duties of the office and is entitled to reimbursement for atxual and necessary expenses incurred in performing those duties. The ex officio members are entitled to reimburse- ment for expenses from their respective agencies as provided by lave for expenses incurred m the performance of their other official duties. 4ttscw Sec. 209. The commission shall maintain its general office in the City of Austin. The commission may also establish branch offices. Chairman Sec. 210. The members of the commission shall elect one of the members chairman to serve a term of two Years. Meetinss of commission Sec. 211. (a) The commission shall hold at kast six regular meetings each year on dates fixed by the commission. The commission shall adopt racks providing for the holding of special meetings. (b) A majority of the commission constitutes a quorum. A majority of a section of the commission constitutes a quorum for purposes of conducting business related to matters under the exclusive jurisdiction of that section. (c) The commission shall keep at its general office a public record of every vote. Executive over"arr; emploJass Sec. 2.12. (a) The commission shall employ an executive secretary and other employ on as necessary to administer this Act. so tp" AMUSEMENTS—PUBLIC HOUSES OF ArL 279e (b) The commission may not employ or continue to employ a per*= (1) who owns a financial interest in a racetrack or its operation; (2) who accepts any remuneration from a racetrack, (8) who is an owner,kssor,or lessee of a greyhound or a horse that is entered in a race in this state; or (4) who accepts or is entitled to any part of the purse or purse supplement 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 related within the second degree by affinity or the third degree by 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; dWks Sec. 2.18. 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 bold other employment. 1AWW reprresenta1i0ft Sec. 114. The-attorney general shall designate at least one member of the attorney ms'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 prosecut- ing attorneys any information obtained regarding violations of this Act Records Set. 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. The contents of the investigatory files of the commission,however,are not public records and are confidential except im a crunmal proceeding or m a hearing conducted by the commission. ARTICLE 8. FOVWS AND DUTIES OF CONKS MON Conunission sections Sec. 8.01. (a) For purposes V. rulemaking and licensing and for any action relating . exclusively to horse racing or exclusively to greyhound racing, the coo mission shall operate as separate sections. (b) For issues related to greyhound racing, the veterinarian member who special-sus in the treatment of small animals, the members who have special knowledge or experience related to greyhound rasing, and the two ex officio members shall exercise exclusive jurisdiction. For issues related to horse racing,the veterinarian member who specializes in the treatment of large animals,the members who have special kmowledge or experience related to horse racing, and the two ex officio members small exercise exclusive jurisdic- tion. (c) On matters of general application to both greyhound and horse racing,the commis- Wan act as a single body. Resulation scut supervision Sac. 8.02. In accordance with Section 8.01 of this Act, the commission shall regulate : and supervise every race meeting involving wagering on the result of greyhound or horse T- racing. All persons and things relating to the operation of thou meetings are subject to , regulatiom and supervision. The commission shall adopt rules for conducting racing involving wagering and shall adopt other rules to administer this Act that are consistent With this Act. 81 I Art. 179e AAtUSEMEA"M—PUBIJC HOUSES OF 7%Ue i Power of entry Sec. 5.03. A member of the commission. an authorised agent of the-commission, a commissioned officer of the Department of Public Safety,or a Pam officer of the local jurisdiction in which the association maintains a place of business may enter the office, racetrack, or other place of business of an association at any time for the purpose of enforcing and administering this Act. iiequirenwat of books and records; financial statetiaats Sec. 5.04. The commission shall require associations,managers,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 commis- sion,while involved in carrying out functions under this Act,may tape 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 the appropriate state court in requiring compliance with the subpoena. Any court that has jurisdiction where the person in violation of the subpoena is found or transacts business 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. 8.06. Instead of requiring an affidavit or other sworn statement in any applica- tion or other document required to be filed with the commission, the commission maR• fir► require a certification of the document under penalty of perjure in the form the commission may prescribe. Offie"of racy mectinss Sec. 3.07. (a) Each horse race or greyhound race meeting shall be supervised by three stewards approved by the commission for horse racing from a list of qualified nominees submitted by the association or be three judges for greyhound rating appointed by the commission. The commission shall compensate each of the stewards who supervises a horse race meeting. The commission shall also compensate one of the judges who supervises a greyhound race meeting; the other judges at such a race meeting shall be compensated by the association. For each race meeting,the commission shall also employ a state veterinarian and all other racetrack officials, who shall be compensated by the appropriate 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 br the stewards or judges may include a fine of not more than 15,000,a suspension for not more than one yeas,or both a fine and suspension. If, in the opinion of the stewards or judges, the allowable penalties are not sufficient, the stewards or judges may refer the use 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 pans 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 under Section 14.0$ of this Act shall be conducted either by the Texas Veterinary Medical Diagnostic Laabomtory or in con„juncrion 82 `s Tje1e i AMUSEMEN"IS—PUBLIC HOUSES OF AP'lr. 179e with or by a private or public agency that is approved by the commission and by the Texas Veterinary Medical Diagnostic Laboratory and that is accredited by the American al Association of Veterinary Laboratory Diagnosticians. Charges for services performed e. Under this section by the Texas Veterinary Medical Diagnostic Laboratory or by an xf approved and accredited private or public agency 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 process- ing of test results. The reasonable charges associated with medication or drug testing to conducted under this Act shall be paid by the association that receives the services. On the approval of the charges as reasonable, the commission shall forward a copy of the charges to the association that receives the services for immediate payment. All persons lperforming testing services under this section and Section 14.03 of this Act must be insed under Article 7 of this Act. A person conducting tests under this section is a is- state veterinarian for the purposes of Subsection (a) of this section. jy (e) To pay the charges associated with the medication or drag testing, an association :s, may use the money retained by the association on tickets that are purchased as waiters on A- winning horses or greyhounds and that are not cashed by the folders of the tickets. If ad additional amounts are needed to pay the charges, the association shall pay those °e additional amounts. If the amount retained exceeds the amount needed to pay the or charges, the association shall pay the excess to the comptroller for deposit in the manner lv provided by Section 3.09 of this Act. ce Appeal from decision of stewards or Judges 'e Sec. 8.08. A final decision of the stewards or judges may be appealed to the commis- n sion in the manner provided for a contested case under the Administrative Procedure and s Texas Register Act(Article 6232-13a, Vernon's Texas Civil Statutes). a t Funding Sea 8.09. (a) The comptroller shall deposit the state's share of each pari-mutuel pool a- from horse racing and greyhound racing in the General Revenue Fund. `p (b) The commission shall deposit the money it collects under this Act in the State e "` 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 administra- tion and enforcement of this Act, Any unappropriated money remaining in that special ,e fund at the close of each fiscal biennium shall be transferred to the General Revenue d Fund and may be appropriated for any legal purpose. The legislature may also appropri- e ate money from the General Revenue Fund for the administration and enforcement of this a Art. Any amount of.general revenue appropriated for the administration and enforce- 0 went of this Act in excess of the cumulative amount deposited in the Texas Racing e 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 e pmt interest per year. Annual report Sea 8.10. The commission shall make a to the governor, lieutenant or, and speaker of the house of representatives not than January 81 of each yeeaar. 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 commis- sion 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 t 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 rat o:a wadations it considers appropriate. Cooperatidn with peace officers Sea M. The commission shall cooperate with all district attorneys, criminal district attorneys, county attorneys, the Department of Public Safety, the attorney general,and an peace offices in enforcing this Act 'tinder its authority to conduct criminal history* 33 Ali. 279e AMUSEMENT -4PIMLtC HOUSES of Wk i information reword checks under Section 5.04 of this Act, the commission shall maintain and exchange pertinent intelligence data with other states and agencies. Reporting of•iala00" Sec. 3.12. The commission's rules shall allow anonymous reporting of violations of this Act or of rules adopted by the commission. 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. Power of entry Sec. 4.02 The comptroller and the authorised agents of the comptroller may enter the office, racetrack, or outer place of business of an association at any time to inspect an association's books, records, or financial statements required under Section 8.04 of this Act. Rates 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 paxi-mntue] pool Sec. 4.04. The comptroller may prescribe by rule procedures for the collection of the state's portion of each pari-mutuel pool. The state's portion of each pool shall be deposited as provided by Sections 3.09,6.08,and 6.09 of this Act at the end of each rating day. compliance Sec. 4.05. If an association does not comply with a rule adopted under this article or op'` refuses to allow access to or inspection of any of its required books, records, or financial statements or if the association is shown on the records of the comptroller as being delinquent for the state's portion of the pari-mutuel pool collected by the comptroller,the comptroller shall certify that fact to the commission. On receipt of the certification,the commission shall immediately call a bearing to revoke or suspend the association's license or shall take other action that the commission considers appropriate. ARTICLE 5. GENERAL LICENSE PROVISIONS i ornu eertlfseete; fees Sec, 5.01. (a) The commission shall prescribe forms for applications for licenses and shall provide each licensee with a license cert'if'icate or credentiah. (b) The commission shall annually prescribe reasonable license fees for each category of license issued under this Act. The fees shall be sufficient to pay the costs of administering and enforcing the licensing program crested under this Act. judicial"View Sec. 5.02 Judicial review of an order of the commission refusing to issue an original or renewal racetrack license or revoking or suspending a racetrack license is under the substantial evidence rule, Judicial review of an order respecting any other license is by trial de novo. Finrerprirtts Sec. 5.03. (a) Ann applicant for any license under this Act must submit to the commis- sion a complete set of fingerprints of the individual natural person apph*mg for the license or, if the applicant is not an individual natural person, a complete set of fingerprints of all officers, directors, incorporators, and shareholders of more than five percent of the outstanding stock of a corporate licensee. 84 AMUSEMENTS-PUBLIC HOUSES OF Art» 179e Y This 6 �. (b) The commission shall,not later than the next day after receiving the prints,forward OF"` the prints by mail to the Department of Public Safety. The department shall classify the prints and check them against its fingerprint files and shall report to the commmaion its findings concerning the criminal record of the applicant or the lack of such a record. A license may not be issued until the 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 erinninat history records Sec. 5.04. (a) The commission is authorised 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) The commission may obtain criminal history record information from any law enforcement agency. (c) The criminal history record information received under this section is for the exclusive use of the commission and is privileged and confidential. The criminal history ' record information mac not be released or otherwise disclosed to any person or agency except on court order or with the consent of the applicant. ARTICLE 6. RACETRACK LICENSES License required Sex 6.01. A person shall not conduct a greyhound race meeting or a horse race meeting with wagering on the results without a racetrack license. Classification of horsrracing tracks Sec. 6.02. (a) Horse-racing tracks are classified as class 1 racetracks, class 2 race- tracks, and class 8 racetracks. (b) A class 1 racetrack is a racetrack on which racing is conducted for a minimum of 45 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 750,000,according to the most recent federal census,or in a county adjacent to a county with such a population. Not more than four class 1 racetracks may be licensed and operated in this state. (c) A class 2 racetrack is a racetrack on which racing is conducted for a number of days not to exceed 44 days in a calendar year except as otherwise provided by this section. To ensure that an association that holds a class 2 racetrack license may conduct races on the same dates and during the same events that such a racetrack has conducted races in the past, an association that conducted horse races in 1986 that were approved by the American Quarter Horse Association or that, on the effective date of this Act, has been approved to conduct rates on certain dates in 1987 by the American Quarter Horse Association or an association which historically has conducted races on certain dates or during certain events in the past is entitled to conduct races on those dates or during those events in the future. The commission may permit an association that holds a class 2 racetrack licease and that is located in a national historic district to conduct horse races for more than 44 days in a calendar year. (d) A class 8 racetrack is a racetrack operated by a county or a nonprofit fair under Article 12 of this Act. An association that holds a class 8 racetrack beense and that conducted horse races in 1985 may conduct races for a number of days not to exceed 16 days in a calendar year on the dates selected by the association. ''+ ' Application Sec. 6A8. (a) The commission shall require each applicant for an original racetrack license or a renewal license to pay the required application or renewal fee and to submit g5 Art. 179e AMUSEMENTS--PUBLtC HOUSES OF Tuk 6 an application,on a form prescribed by the commission,containing the following inform&- tion: 00,11 (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 misde- meanor traffic offense; (2) if the applicant is a corporation,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 directors and stockholders, if any, the dates of birth of its directors and stockholders,physical descriptions of its directors and stockholders,the current addresses and telephone numbers of its directors and stockholders,and a statement by each director and stockholder 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 Cavil Statutes) or a similar misdemeanor traffic offense; (3) if the applicant is an unincorporated business association,the names and addresses of each of its members, each member's date of birth, a physical description of each member,each member's current address and telephone number, and a statement by each member 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; (4) the enact 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, the names and addresses of its directors and stockholders, if any, and of its agents for service of process is this state; if construction of the 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, the names and addresses of its directors and stockholders, if any, and of its agents for service of process in this state; (6) a detailed statement of the assets and liabilities of the applicant; (7) the kind of racing to be conducted and the dates requested; (8) proof of residency as required by Section 6.06 of this Act; (9) a copy of each management and concession 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 and concession contract; all management and concession 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 (8) of this subsection shall be required of proposed concessionaires and managers and management firms; and (10) any other information required by the commission. (b) When the commission receives a copy of a management and concession contract for review under Subdivision(9)of Subsection(a)of this section,the commission shall review the contract 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 Ac,but are not public records and are not subject to Chapter 424, Acts of the 63rd Legislature, Regular Session, 1978 (Article 6252-17a, Vernon's Texas Civil Statutes). (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, $7,$W for a class 2 racetrack, and !2,5W for a class 8 racetrack. The minimum application fee for a greyhound racing track- is 620,00Q- Using the minimum 86 040. AKUSEMENI —PUBLIC HOUSES OF Alt. 179e rule i fees,the commission by rule shall establish a schedule of application fees for the various types and sines 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 tinder 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 he rules of the commission. An applicant who does not show the necessary compliance is . not eligible for a license under this article. Issuance of licenst; 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 toning laws, and complies with this Act and the rules j 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. (b) Before issuance of a license under this article,an applicant for a horse racing track _. must give a bond in the sum of$100,000 payable to the state, with a surety or sureties � 4: approved by the commission, conditioned on compliance with this Act and the rules Y` adopted under this Act, An applicant for a greyhound racetrack license must give an a �� equivalent bond in the sum of$100,000. (c) Notwithstanding any other provision of this Act, the commission shall either issue '� t l or refuse to issue a license not later than the 120th day after the day on which the application is received. For good cause and on the vote of four members of the section before which the application is pending, the commission may extend this deadline for a r period not to exceed 80 days. 4 , (d) The commission shall not issue licenses for more th#tn three greyhound racetracks in :. +� this state. Those racetracks must be located in counties that border the Gulf of Mexico. Construction not to precede issuance Sec. 6.05. Except as otherwise permitted by this Act, the commission may not issue a �K.r•: :. 001h, class 1 racetrack license to a person who has begun construction of a track or surround- "'4 ing structures before applying to the commission for and receiving approval to begin construction at a designated site. This section does not apply to or restrict land use :•• ` +" ' `�`. planning, drainage, and other similar preparatory work conducted at a potential site. Racetrack licenses; grounds for denial.revocation.and suspension Sec. 6.06. (a) To preserve and protect the public health, welfare, and safety, the - --�t: - � - '.;:;•. commission shall adopt rules relating to license applications, renewal 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 , + : .�tis a. ww issue an original or renewal 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 t t 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, •;+ ' y ;. :;;, (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; _ (2) 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 s required of a licensee under this Act; " (5) the applicant failed to answer or falsely or incorrectly answered a question in an origins] or renewal application; psi'i n ' - 1a Art. 279e AMUSEMENTS -PUBLIC HOUSES OF TUk ; (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 i>Qapaed by this Act or by a rule of the commiss� (8} the applicant is not of good moral character or*the applicants 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 the Texas Controlled Substances Act or a dangerous drug as defined in the dangerous drug law(Articles 4476-15 and 4476-14,Vernon's Texas Cavil Statutes) or is mentally incapacitated; (11) the applicant may be excluded from a track enclosure under Article 13 or 14 of 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 as 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; or (16) the applicant is engaged it! 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. (b) Subsection (a) of this section applies to a corporation or any other organization or group whose application is comprised of more than one person if a shareholder, if any, 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 nay,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 of the members of partnerships, firms, and associations applying for licenses must be 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 operation of a racetrack shall be prevented,and this Act shall be liberally construed to cam out this intent. , (e) The appropriate section of 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 been"on compliance with the rules as amended. . (f) The appropriate section of 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 fronx illegal activities or enterprises, or who has been convicted of a violation of this Act (g) A person awarded a management contract by a nonprofit corporation licensed under this Act to operate a racetrack must meet all of the requirements•of this section. (b) A person may not own an interest in more than two rscetraeb licensed trader this Act 88 'F AMUSEMENT&—PUBLIC HOUSES OF Alt. 179e i Tuie i IAMW Sec. 8.07. (a) The commission may adopt rules to authorise an association, as lessee, Y to contract for the lease of a racetrack and the surrounding structures. (b) The commission may not approve a lease if: a (1) it appears that the lease is a subterfuge to evade compliance with Section 6.O5 or 4 8.06 of this Act,; (g) the racetrack and surrounding structures do not conform to the ruin adopted under this Act; or t (g) the lessee, prospective lessee, or lessor is disqualified from holding a racetrack s Those.„ s (c) Each lessor and lessee under this section must comply with the disclosure enquire. - ments 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 pal; allocations of shares and breakage Sec. 6.08. (a) A horse racing association shall deduct the following shares from each pari-mutuel pool: (1) an amount equal to five percent of the pool shall be set aside for purses; (2) an amount equal to five percent of the pool shall be set aside for the state; and (3) an amount equal to eight percent of the pool on regular wagering and to 10 percent of the pool on multiple wagering shall be retained by the association as its commission. (b) The breakage shall be sent to or collected by the commission according to the commission's rules for distribution as provided by Subsections (c) through (e) of this section. (c) Ten percent of the breakage is to be paid to the appropriate state horse breed registry, five percent to be used for reimbursement of administrative costs incurred in making distributions under this section and five percent to be used to participate in an organization whose purpose is to promote interest in horse racing and to encourage research, promotion, discussion, and interchange of ideas, information, and methods eL relating to the racing. breeding, and marketing of racehorses in Texas and elsewhere. To percent of the breakage is to be retained by the association to be used in stakes races for accredited Texas-bred races. The commission shall pay out the remaining 80 percent of the 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 r (8) 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. (d) 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 is owner of record,at the time of conception,of the mare that foaled the accredited Texas-bred horse, and (8) "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. (e) The commission shall distribute the breakage to the appropriate persons as provided by this section. If the commission is unable to distribute a share of the breakage to a person who is entitled to a share, the commission shall retain that she in the Texas Racing Commission fund. Disposition of pari-mutuel pools at mad rams Sec. 6.09. (s) Every association authorized under this Act to conduct mutual wagering at a greyhound race meeting on races run shall distribute all sums d�in any puilmutuel pool to the holders of the winning tickets if those tickets are presented 89 Art I79e AMUSEMEA"rf--PUBLIC HOUSES OF Tuie 6 for payment before April 1 of the year following the year of their purchase, less an amount paid as a commission of 18 percent of the total deposits in pools resulting from regular ruin., place, and show wagering, and an amount not to exceed 20 percent of the total deposits in pools resulting from all other wagering. (b) Of the amount so retained from the pari-mutuel pooh, the association shall par to the state for the privilege of conducting pariomutuel wagering during the greyhound race meetings held by such association: (1) a fee of six percent of the total deposits in regular wagering pools per race performance and of the total deposits in multiple and other wagering pools per race performance; and (2) 50 percent of the breakage. (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 breakage is to be used for administration and accredited Texas-bred races. Application of Tat Code Sec. 6.10. unless inconsistent with the provisions of this Act, Chapters ill through 118, 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. The comptroller shall collect the state's share of the amount deducted from the pool immediately after each race. For purposes of collecting the state's share under this Act, the comptroller may use any* procedure authorised by Sections 151.609 through 151.612, Tax Code, for enforcement of liability under Chapter 151,Tax Code. Allocation of purse ' Sec. 6.11. (a) In no event shall the purse be less than a minimum of 81h percent of the Natal 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. 6.18. (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 Me with the commission a detailed financial statement that contains the names and addresses of all stockholders, indicates compliance during the fling period with Sections 6.06 of this Act, and mcludes any other information required by the commission. (b) Each transaction that involves an acquisition or s 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 rem ieta to designated ptaoe 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 40 T A usEmmS.-PUBLIC HOUSES OF OF Art. 179e Ile s Title i Section 6.15 of this Act. however,if the racetrack or enclosure designated in the license ein becomes unsuitable for racing because of fire,food,or other catastrophe,a race meeting TQuWk or any mmainin g portion of a meeting may be conducted temporarily at any other racetrack or place within the county designated by the commissim F to (b) The commission shall not issue more than three racetrack licenses for greyhound race racing. (c) Each greyhound racetrack licensed under this Act must be located in a county that nee has a population of more than 190,000, according to the most recent federal census,and sae that includes all or part of an island that borders the Gulf of Mexico. Racing at temporary locmwn ' Sec. 6.15. After an 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 association,issue a temporary license that permits the association to conduct races at a location in the same county for a period cud expiring two years after the date of issuance of the temporary license or on the be completion of the permanent facility,whichever occurs first. The commission may met the and conditions and standards for issuance of a temporary license and allocation of appropriate race days. Ana applicant for a temporary license must PP Po rY pay the application fees and must post the bonds required of other licensees before the issuance of a temporary license. After a temporary license has expired, no individual, corporation, or association, nor any igh individual belonging to a corporation or association which has been granted a temporary Of beense, may get an extension of the temporary license or a new temporary license. In en Empicyment of former commWion members or employees e's Sec. 6.16. An association may not employ any Person who has been a member of the sex commission or an employee em employed by the commission in a VV p position in the state iry employment classification plan of grade 12 or above, or any person related within the second degree by affinity or the third degree by consanguinity to such a member or employee, during the two-year period immediately preceding the employment by the association.:he City and county feel Lid Sec. 6.17. (a) A commissioners court may collect a fee not to exceed 15 cents as an he admission fee to a licensed racetrack located within the county. The court may collect an additional fee not to exceed 15 cents as an admission fee to a licensed racetrack looted within the county for allocation among the incorporated cities or towns in the county. _ The court shall collect the additional fee if requested to do to by the governing bodies of a majority of the incorporated cities and towns in the county. Allocation of the fees shall he be based on the population within the county of the cities or towns. a (b) If the racetrack is a class 1 racetrack,the commissioners court of each county with a population of not less than 750,040 adjacent to the county in which the racetrack is located may each collect fees equal to the fees authorized by Subsection(a)of this section, a {c) The commissioners court by order may establish procedures for the collection of the fees under Subsection(a) of this section. The procedures may require a person holding a id racetrack license to keep records and file reports as considered necessary by the LB commissioners court. L (d) A fee or payment collected under this section is in lieu of any license, excise, use, a admissions,or similar tax levied by the governing body of the county or the incorporated city or town. d (e) The amount collected by the county under this section may be used only by the L county in which the racetrack is located for the purpose of providing the county with funds to enforce the provisions of this Act, including but not limited to the hiring of investigators, attornevs, tuff, and other personnel to assist the county attorney or e district attorney in enforcing this Att. P 41 Art.. 179e AMUSEMENTS—PUBLtC HOUSES OF AI► '!'itit i Tit: ARTICLE 7. OTHER LICENSES Lieeaat squired Sec. 7.01. A person shall not participate in racing with pari-m�wel me re ted this Act without first obtaining me gula by a license from the ocummission. cat Lioenew activities cat Set.7.02. Each person involved in any capacity with racing with pari-mutuel wagering, other than as a spectator, as regulated by this Act, must obtain a license under this article. The commission shall adopt categories of licenses for the various occupations of licensed under this article. Pr( Issuance Sec.7.03. The commission shall issue a license to a qualified person on application and payment of the license fee. no, an, Lieenass; (rounds for denial,revocation,and auapension Sec.7.04. The commission. after notice and hearing, may refuse to issue any original or renewal license under this article or may revoke or suspend the license if it has reasonable grounds to believe and finds that: at (1) the applicant has been convicted in a court of competent jurisdiction of a violation of this Act or of any rule adopted by the commission or has aided,abetted,or conspired with any person to commit such a violation; or, (2) the applicant has been convicted of a felony or of any crime involving moral th: turpitude that is reasonably related to the applicant's present fitness to bold a license ha under this Act; r da (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 at required of a licensee under this Act; (5) the applicant failed to answer or has falsely or incorrectly answered a question in an original or renewal 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; es (7) the applicant is indebted to the state for any fees or for the payment of a penalty fo imposed by this Act or by a rule of the commission; aN (8) the applicant is not of good moral character or the applicant's reputation as a tl peaceable, law-abiding citizen in the community where the applicant resides is bad; (9) the applicant is in the habit of using alcoholic beverages to an excess or uses a controlled substance as defined in the Texas Controlled Substances Act or a dangerous drug as defined in the dangerous drug law(Articles 4476-16 and 4476-14,Vernon's Texas e Civil Statutes) or is mentally incapacitated; (10) the applicant may be excluded from a track enclosure under Article 18 or 14 of this e: Act; (11) the commission determines that the applicant has improperly wed a license a ne a certificate, credential, or identification card issued under this Act; a (12) 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; (18) the applicant has f" or refused to furnish a true copy of the application to the t commission's district office m the district in which the premises for Wb ich the permit is sought are located; or q (24) the applicant is engaged in activities or practices that are detrimental to the best b interests of the public and the sport of horse racing or greyhound racing. a 42 ; ads" "SES OF AMUSEMENTS—PUBLIC HOUSES OF ArL 179e Title s Tice i Limon tees Sec.7.05. The commission shall adopt by rule a fee schedule for licenses issued under this article. The commission shall base the license fees on the relative or comparative Iring as incomes or property interests of the various categories of licensees,with the lower income category of licensees being charged nearer the minimum fee and the higher Mme category of licensees charged nearer the maximum fee. eluting, Form of limon ider this Sec.7.08. The commission shall issue a license certificate under this article in the form upatio is of an identification card with a photograph and fingerprint or facsimile of a fingerprint as ' prescribed by the commission. " 1 Term of license ,lion and Sec.7.07. A license issued under this article is valid for a period set by the commission not to exceed 36 months following the date of its issuance. It is renewable on application and payment of the fee in accordance with the rules of the commission. Valid throughout state it has 1 Sec.7.08. A license issued under this article is valid,as determined by the commission, at all race meetings conducted in this state. lotion of Temporary licenses .red with ! Sec. 7.09. .Pending investigation of an applicant's qualifications to receive an original or renewal license, the commission may issue a temporary license to an applicant under glimoral this article whose application appears to comply wi4 the requirements of law and who has paid the necessary fee. The temporary license is valid for a period not to exceed 80 days from the date of issuance. e of the Achnicatl Bonds Sec. 7.10. The commission by rule shall require an applicant for a license under this _ties article to provide a bond to protect the interests of the state. on in an ARTICLE B. ALLOCATION OF RACING DAYS—HORSES Allocation or horse Sec. 8.01. The commission shall allocate the racing days for the conduct of racing at each racetrack licensed under this Act. An equal number of race days shall be allocated pity for both Thoroughbred and quarter horse races so that an equal number of race days are available to be run by each breed. The commission may prohibit Sunday racing unless It as a , the prohibition would conflict with another provision of this Act is bad; - s b a Charity days agrrcius Sec. 8.02. (a) The commission shall grant additional rating days to each association 's Texas during a race meeting to be conducted as charity days. The commission shall grant at least five additional days to each class 1 racetrack and at least three additional days to ;ti of this each class 2 racetrack. (b) The commission shall adopt rules relating to the conduct of charity days. The license commission shall insure that the races held by an association on a charity day are comparable in all respects,including the generation of revenue, to the races held by that as been association on any other racing day. present ARTICLE 5. HORSE REGISTRATION; RACING a to the Teas-twed bona ermh is Sea 5.01. The state horse breed registries shall make reasonable mks to establish the qualifications of accredited Texas-bred horses to promote, develop, and improve the :be but brooding of bona in this state. Auks adopted by a registry are subject to commission _ approval. 43 AFL. 179e AMUSEMENT --PUBLIC HOUSES OF Tick 6 Breed njiistriss Sec. 9.02. The officially designated state horse breed registries for accredited Texas. bred horses are the Texas Thoroughbred Breeders Association for Thoroughbred bars" and the Texas Quarter horse Association for quarter horses. Others shall be determined by the commission with the advice of the national breed registry. _ Texw4n*d ra+dr Sec. 9.03. An association shall provide for the running of races limited to accredited Texas-bred horses, each to be known as a Texas-bred race. On every racing day, an association shall provide for the running of at least two razes limited to accredited Texas-bred horses. If on any day not enough horses are entered in this class to provide sufficient competition, an association shall provide for the running of races limited to accredited Texas-bred and Texas-owned horses. However, if on any day not enough horses are entered in those classes to provide sufficient competition, an association may, with the approval of the commission, eliminate those races and provide substitute races. Any Texas-bred horse that is eligible under the conditions of the substitute race shall be preferred. To encourage the breeding of horses in this state, any accredited Texas-bred horse finishing first,second, or third in any race except a stakes race shall receive a purse supplement. The appropriate state breed registry shall act in an advisory capacity to the association and the commission for the purpose of administering the provisions of this section. Funds for awards Sec. 8.04. Funds for the purse supplements shall be derived from the breakage as provided by Section 6.08 of this AM. Types of radar Sec.8.05. @Vlten a horse racing association runs both quarter parse and Thoroughbred races at one track, the number of races to be run by each breed shall be equal. The commission may by rule or by decision allow for exceptions if not enough horses of either breed are stabled on the grounds of a racetrack to provide sufficient competition. Stablitey Sec. 8.06. If a horse racing association conducts quarter horse and Thoroughbred racing on the same days,it shall provide stalls on an equitable basis as provided by rule of the commission. Security Sec. 8.07. The horse rating association shall provide security at its track that is considered by the commission to be equivalent or superior to that provided by the Thoroughbred Racing and Protective Bureau. ARTICLE 10. ALLOCATION OF RACING DAYS—GREYHOUNDS; KENNELS Number of ractft 6" See. 10.01. Any greyhound racing licensee shall be entitled to have 300 evening and 150 matinee performances in a calendar year. The commission shall grant at least five additional racing days during a race meeting to be conducted as charity days. The commission shall adopt rules relating to the conduct of charity days. The commission shall insure that the races held by an association on a charity day are comparable in all respects,including the generation of revenue,to the races held by that association on any other racing day. Substitute racing days or addWonal raoa Sec. 10.02. If for a reason beyond the licensee's control arul not caused by the licensee's fault or neglect it is impossible for the licensee to hold or conduct a race or ' races on a day authorized by the commission,the commission in its discretion and at the request of the licensee,as a substitute for the race or mow,may specify another day for 44 l MOM rF AMU5E1►1EN"15--PUBLIC HOUSES OF ArL 179e - 1ue i ruk i the holding or conducting of racing by the licensee or may add additional races to already exas- programmed events. arses lfsKJs ubw See.10.03. Each greyhound racetrack must contract for a maximum of 18 kemwb and shall provide free kennel rent and schooling. +dined ARTICLE 11. WAGERING 3 Pari-mutuel wagering; rates Aited avide Sec,11.01. The commission shall adopt rules to regulate wagering on greyhound races A to and horse races under the system known as pw+mutuel wagering. Wagering may be ough conducted only by an association within its enclosure. The stewards and judges employed may, by the commission are peace officers, and their primary duty is the enforcement of this .� Act. Each steward or judge may exercise the authority of a peace officer to enforce any A be penal provision of law while in the course of that person's employment,if the steward or -bred judge is in, on, or about any greyhound racing or horse racing enclosure licensed under MM this Act. The commission's rules adopted under this section and this Act shall be written o the and updated to ensure their maximum enforceability within existing constitutional guide- this lines. Computation of watering Sec. 11.02. The wagering may be calculated only by state-of-the-art computational equipment that is approved by the commission. The commission may not require the use of a particular make of equipment. Information on ticket Sec. 11.03. The commission shall by rule prescribe the information to be printed on ae each pari-mutuel ticket. -ithtr Wagering inside enclosure ' Sec. 11.04. (a) Only a person inside the enclosure where a race meeting is authorized may wager on the result of a race presented by the association by contributing money to .bred the parrmutuel pool operated by the association. The commission shall adopt rules to it of prohibit wagering by employees of the commission and to regulate wagering by persons licensed under this Act. (b) The commission shall adopt rules prohibiting an association from accepting wagers by telephone. It is (c) The commission shall adopt rules prohibiting an association from accepting a wager r . the made on credit and shall adopt rules prohibiting automatic banking machines within the enclosure. S Unlawful watering Sec.11.05. A person shall not wager on the result of a greyhound race or horse race in this state except as permitted by this Act, and Minors five revent wa Sec.11.06. The commission shall adopt rules to The p gering by persons who have talon not yet attained the minimum age required to purchase alcoholic beverages in this state n all and to prevent a person under 16 years of age from entering the viewing section of a say racetrack unless accompanied by the person's parent or legal guardian. Claim after rase meating Sec. 11.07. •(a) Except as provided by Subsection (a) of Section 6.09 of this Act, a person who claims to be entitled to any part of a redistribution from a parr mutual pool - e he and who fails to claim the money due the person before the completion of the race the meeting at which the pool was formed may,not later than the 60th day after the closing day of the meeting, file the following with the commission: 45 Art.. 179e AMUSEMENTS.—PUBLIC HOUSES OF . TRW s (1) a verified claim on a form prescribed by the commission; and �. (2) a substantial portion of the pari-mutuel ticket sufficient to identify the association, race,and horse involved and sufficient to show the amount wagered and the type of ticket (win, place, or show). (b) If the claimant satisfactorily establishes a right to redistribution from the pool, the commission shall-order the association to pay the amount due the claimant. Redistributable woney"claiw ad Sec. 11.08. Not later than the 90th day after the closing day of a race meeting, an association shall pay to the commission all redistributable money in a pari-mutuel pool that is subject to payment to a claimant under Section 11.07 of this Act but that is not successfully claimed and that is not spent on drug testing under the provisions of this Act. No H"Wty to peosecutlon ! Sec. 11.09. A person lawfully conducting or participating in the conduct of pari-mutuel wagering in connection with horse racing or greyhound racing or permitting the conduct on any premises owned or leased by him or it under any license lawfully issued under this Act is not liable to prosecution for that conduct. ARTICLE 12. FAIRS, STOCK SHOWS, AND EXPOSITIONS County stock allows Sec. 12.01. Subject to the licensing requirements and other provisions of this Act, a county may conduct an annual race meeting, not to exceed 16 racing days, in connection with a livestock show or exhibit that is held under Chapter 20, Acts of the 43rd Legislature, 4th Called Session, 1934 (Article 2372d, Vernon's Texas Civil Statutes), or Chapter 411, Acts of the 51st Legislature, Regular Session, 1949 (Article 23724-2, Vernon's Texas Civil Statutes). The race meetings may be conducted by an agent selected by the commissioners court under Chapter 49, Acts of the 52nd Legislature, Regular Session, 1951 (Article 2872d-S, Vernon's Texas Civil Statutes), if the agent is qualified to hold a license under this Act This Act does not prohibit a county from exercising any right otherwise granted to any person by this Act Fain Sec. 12.02. Subject to the licensing requirements and other provisions of this Act, a nonprofit corporation organized under Subdivision 7, Article 1802, Revised Statutes, or organized under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Ver- non's Texas Civil Statutes) for the same purposes may conduct a race meeting, Dot to exceed 16 racing days. ARTICLE 13. EXCLUSION OR EJECTION FROM RACETRACK Regulation by eowwiasion Sec. 13.01. The commission shall adopt rules providing for the exclusion or ejection from an enclosure where greyhound races or horse 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; (8) who has been convicted of a violation of this Act; (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 of the rules mentioned in this section; (6) who has committed a corrupt or fraudulent act in connection with greyhound racing or horse racing or parr mutuel wagering or who has committed any act tending or 46 r J- OF MUSEM NI°S--PUBIX HOUSES OF ArL 1790 Title i intended to corrupt greyhound racing or horse raking or pari-mutuel wagering in this :set state or elsewhere; (7) who is under suspension or ruled off a racetrack by the commission or a steward in the this state or by a corresponding authority in another state because of fraudulent or corrupt practices or other act& detrimental to racing; (8) who has submitted a forged pari-mutuel ticket or has altered or forged a pari-mutu- el ticket for cashing or who has cashed or caused to be cashed an altered, raised, or . an forged pari-mutuel ticket; fool (9) who has been convicted of committing a lewd or lascivious act or other crime not involving moral turpitude; this (10) who is guilty of boisterous or disorderly conduct while inside a racing enclosure; i (11) who is an agent or habitual associate of a person excludable under this section; or (12) who has been convicted of a felony. toe] luct Rearing; appeal; exclusion or expulsion from an enclosure this Sec.13.02. (a) A person who is excluded or ejected from an enclosure under a rule of the commission may apply to the commission for a hearing on the question of the applicability of the rule to that person. (lea) Such an application constitutes a contested case under the Administrative Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas Civil Statutes). U. after a hearing as provided under Section 13 of that Act, the commission determines that the t, a exclusion or ejection was proper, it shall make and enter an order to that effect in its Lion minutes, and the person shall continue to be excluded ftom each association. 43rd (c) The applicant may appeal an adverse decision of the commission by filing a petition ', for judicial review in the manner provided by Section 19 of the Administrative Procedure � and Texas Register Act(Article 6252-13a, Vernon's Texas Civil Statutes). t (d) The judgment of the court may be appealed as in other civil cases. The person .t e, appealing the commission's ruling under this article shall continue to be excluded from all rots enclosures in this state during the pendency of the appeal. Entry after alection Sec. 18.03. (a) A person who has been excluded or ejected from an enclosure under a this article commit&an offense if the person knowingly enters an enclosure of the same or r or another licensed racetrack unless the commission or a final judgment of a court has er- ordered that the rule does not apply to the person. F -Ito (b) An offense under this section is a Class A misdemeanor. (c) The provisions of Section 7.22, Penal Code, imposing criminal responsibility on a corporation or association for an offense committed by its agent apply to conduct constituting an offense under this section that is performed by an agent of a corporation or association. -lion Exclusion by association :fled Sec. 18.04. Nothing in this article shall prohibit an association from evicting or excluding a person from its enclosure for any lawful reason. AR77CLE 14. TOUTING AND OTHER OFFENSES Touting g Sec. 14.01. (a)A person commhs an offense if, knowing the information is false, the person knowingly or intentionally conveys or offers to convey false information about a this - greyhound race or horse race to others for compensation. nuid (b) Except as provided by Subsection(e)of this section,an offense under this section is i or a felony of the third degree. (t) An offense under this section is a felony of the second degree if: 0001 47 } 1 ArL 179e AMUSEMENTS-E' UC HOUSES OF Title 5 (1) the actor knowingly represents that an official or employee of the commission or of an association or an owner,trainer,jockey,or other person licensed by the commission is the source of the information; or (2) the actor previously has been finally convicted of an offense wider this section or has been convicted of a felony for which the punishment received was a suspended sentence, probation,or a Aonadjudicated conviction which has not yet been fully served. (d) The provisions of Section 7.22, penal Code, imposing criminal responsibility on a corporation or association for an offense committed by its agent apply to conduct constituting an offense under this section that is performed by an agent of a corporation or association. Unlawful use of eredennttial Sec. 14.02 (a) A person commits an offense if the person knowingly or intentionally displays a license or credential that has been issued or purports to have been issued by the commission and represents that the person is the holder of the license or credential when the person knows that the license or credential is not issued to the person or if the person impersonates in any way a person holding a license or credential issued by the commission. (b) An offense under this section is a felony of the third degree. (c) The provisions of Section 7.22, Penal Code, imposing criminal responsibility on a corporation or association for an offense committed by its agent apply to conduct constituting an offense under this section that is performed by an agent of a corporation or association. Illew influence of raft ouiteowrc Sec. 14.08. (a)The commission shall adopt rules prohibiting the Mega] influencing of the outcome of a race, including but not limited to the use of medication, stimulants, or depressants to attempt to or to influence illegally the outcome of a race. (b) The commission may require prerace testing by urinalysis, saliva testing, or blood testing, by any combination of the three, or by any other testing method recognized by the racing industry to determine whether such a drug, chemical, or other substance has been administered and shall require postrace testing by such a method. The commission shall adopt rules that require all such tests to be conducted using state-of-the-art methods. On any positive test showing the presence of prohibited drugs, chemicals, or other substances, the animal shall be immediately disqualified and all persons who have administered or applied the drug, chemical, or other substance or any electric device or spur may be immediately suspended pending hearing by the stewards or judges with the right of appeal to the commission. Such a suspension may be stayed, in the discretion of the commission only,during the pendency of such appeal. The commission shall require that all urine samples be frozen and maintained for a period of one year in order to enable veterinarians and chemists to conduct follow-up testa to detect and identify prohibited drugs. All other specimens shall be maintained for testing purposes in the manner prescai'bed by the commission. Such a test may also be required by the owner or trainer of an animal or by the association at whose racetrack the animal is entered in a race meeting. (c) The official licensed trainer of each such animal is deemed by law to be the absolute insurer that no prohibited drug, chemical, or other substance has been administered and shall be responsible to we that such a drug, chemical, or other substance is not administered. (d) By applying for license under this Act,each jockey and jockey apprentice consents ' to both prerace and postrace search for the purpose of determining the presence of such a drug, chemical, or other substance or of any electrrical device or other device that might have the effect of unnaturally depressing, stimulating, or exciting any horse during a race. The commission &hall adopt rules relating to drug testing for jockeys. (e) A person who knowingly violates a rule adopted under this section may be barred, either for a period set by the commission or for life,from reoriving any license ender this Act or may be barred #•r a period set by the commission or for life from any premises licensed under this Act, or both. - d$ ; OF AMUSEMENTS—PUBLIC HOUSES OF ArL 179e _ 4w i Tuk i ,r of (f) A person who knowingly violates a rule adopted under this section commits a felony or of the third degree for the first offense and a felony of the second degree for a second or subsequent offense. (g) A person who gives, offers or promises to give, or attempts to give or offer any money, bribe,�or thing of value to any jockey, trainer, owner, groom, or other person associated with or interested in any stable, kennel, horse, or dog, or race in which any m : horse or dog participates, with the intention or understanding or agreement that such 3uct individual shall not use his best efforts to win such race, or shall so conduct himself in tion such race that any other participant shall thereby be assisted or enabled to win such race, or shall so conduct himself in such race as to limit his finishing or placing in such race commits an offense. Such an offense is a felony of the third degree, ally money,A person who accepts,attempts to accept,offers to accept,or agrees to accept any i by bribe,or thing of value,with the intention or understanding or agreement that he will not use his best efforts to win any horse or dog race, in which he is the jockey, .atial trainer, groom, owner, or other interested party or is about to participate in, or will so the conduct himself in such race that any other horse or dog shall thereby be assisted or ' the enabled to win such race,or will so conduct himself in such race as to limit his finishing or placing in such race commits an offense. Such an offense is a felony of the third degree. on a (_? A person who gives,offers to give,promises to give,or attempts to give any money, iuct bribe,or thing of value to any person who is presiding or officiating at or who is about to Lion preside or officiate at any dog or horse race with the intention or agreement or understanding that such person shall corruptly or dishonestly preside or officiate at any such race with the intention or purpose that the result of the race will be affected or influenced thereby commits an offense. Such an offense is a felony of the third degree. Of Illegal access or Sec. 14.04. (a) A licensee who knowingly or intentionally allows sexes to an enclosure ,sad where races are conducted to a person who has engaged in bookmaking,touting,or illegal by wagering, whose income is from illegal activities or enterprises, or who has been has convicted of a violation of this Act, commits an offense. lion (b) An offense under this section is a felony of the third degree. rk Races conducted on certain Indian lands ave cam, 14.05, (a) A person who is subject to this section commits an offense if the or person intentionally or knowingly wagers on the result of a greyhound race or horse race the conducted in this state that I of ,sire (1) is held on an American Indian reservation or on American Indian trust land located ,ble in this state; and reed (2) is not held under the supervision of the commission under rules adopted under this ner Act, off (b) An offense under this section is a felony of the third degree. aft (c) It is an exception to the application of this section that the person is a member of a ute recognized Texas Indian tnU who lives on s reservation or on trust lands located in this and state. not ARTICLE 15. GENERAL PENALTY PR©VISIONS nts }�a General penalty ght Sec. 15.01. If a spec penalty is not provided for a violation of a provision of this y a Act, a person who violates such s provision commits a felony of the third degree. -ed. Person defined ' Sec 15.02.. In each section of this Act prescribing a criminal offense,"person"has the sea meaning assigned by the Penal Code. 49 op", Art. 279e AMUSEMENTS--PUBLIC HOUSES OF _ TWe 6 ARTICLE 16, LOCAL OPTION ELECTION Condition psscedeat Sec. 16.02. (a) The commission shall not issue a racetrack license or accept an apples- - - tion for a license 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 rages m the county at an election held under this article. A local option election may not be hell under this article before January 1, 1987. (b) A racetrack may not be located within a home-rule city unless a majority of the votes cast in the city in the election held under this article that legalized pari-mutuel wagering on horse races in the county were in favor of legalization. This subsection does not apply to a licensed racetrack that was located outside the boundaries of the city when it was first licensed and has continuously held a license since the original licensee was issued. Medwh for initiating election Sec. 16.02. The commissioners court on its own motion by a majority vote of its members may order an election to approve the legalization of pari-mutuel wagering on horse races or greyhound races,and it shall order an election on presentation of a petition meeting the requirements of this article. Application for petition; issuance Sec. 26.08. If petitioned to do so by written application of 10 or more registered voters of the county, the county clerk shall issue to the applicants a petition to be circulated among registered voters for their signatures. Contents of appliastift Sec. 16.04. To be valid, an application must contain: ' �r. (1) a heading, in the following words: "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 Legalisation of Pari-mutuel Wagering on Greyhound Races," as appropriate; (2) a statement of the issue to be voted on, in the following words: "Legalizing pari-mutuel wagering on horse races in County".or "Legalizing pari-mutuel wagering on greyhound races in County," as appropriate; (8) a statement immediately above the signatures of the applicants,reading as follows: "It is the hope,purpose,and intent of the applicants whose signatures appear below that pari-mutuel wagering on horse rags be legalised in - County" or "It is the hope,purpose,and intent of the applicants whose signatures appear below that pari-multw eI 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. contents of petition Sec. 16.03. To be valid,a petition must contain: (1) a beading,in the following words: "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; (8) &'statement immediately above the signatures of the petitioners,reading as follows: "It is the hope,purpose,and intent of the petitioners whose signatures appear below that pari-mutuel wagering on horse races be County" or "It is the hope, purpose,and intent of the petitioners whose s4pu tares appear below that pari-mu- tuel wagering on greyhound races be legalized in County," as appropriate; 50 f 1ES OF AMUSEMENTS—PUBLIC HOUSES OF ,r, 1799 Title IS Title f (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 such applica• page. . Is court .y have .Acts in Sec. 16.06. The county clerk shall keep the application and a copy of the petition in the be held files of that office. The clerk shall issue to the applicants as many copies as they request. - of the Filing of petition; number of signatures : mutuel Sec. 26.07. To form the basis for the ordering of an election,the petition must be.Sled - on does with the county clerk not later than the 80th day after the date of its issuance, and it must contain a number of signatures of registered voters of the county equal to five .y when,ae was most of the number of votes cast in the county for all candidates for governor in the most resent gubernatorial general election. Review by county cleric of its Sec. 16.08. (a) The county clerk shall, on request of any n,check each name on ling on the petition to determine whether the signer is a registered voter of the county. The person requesting this verification by the county clerk shall pay the county clerk a an- equal equal to 20 ants per name before commencement of the verification. (b) The county clerk may not count a signature if there is reason to believe that: (1) it is not the actual signature of the purported signer, - i voters (2) the voter registration certificate number is not correct; -culated (8) it is a duplication either of a name or of handwriting used in any other signature on the petition; (4) the residence address of the signer is not correct; or (5) the name of the voter is not signed exactly as it appears on the official copy of the Option current at of registered voters for the voting year in which the petition is issued. CerMcation of Sec. 26.09. Not later than the 40th day after the date the petition is filed, excluding Saturdays,Sundays, and legal holidays, the county clerk shall certify to the commission- Plizing ers court the number of registered voters signing the petition. mutuel 1 Order of election follows: Sec. 26.10. (a) The commissioners court shall record on its minutes the date the aw that petition is filed and the date it is certified by the county clerk. is the (b) If the petition contains the required number of signatures and is in proper order, tmutu- the commissioners court shall, at its next regular session after the certification by the te; and county clerk, order an election to be held at the regular polling place in each county -tafmte election precinct in the county on the neat uniform election date authorized by Section 41.001, E1on Code, that occurs at least 20 days after the date of the order. The commissioners court shall state in the order the issue to be voted on in the election. The order is prima facie evidence of compliance with all provisions necessary to give it validity. approve Application of Election Cade a law Sec, 26.11. (a) The election shall be held and the returns shall be prepared and yhound canvassed in conformity with the Election Code. (b) The ballots shall be printed to permit voting for or ggaa the proposition: iitstion; "Legalizing pari-mutuel wagering on horse races in Snun�tq" or "Legalizing ;Wbvs; pari-mutuel wagering on greyhound raom m, County," as appropriate. - acv that Results of election is the WPM- 1 Sec. 26.22. (a) If a majority of the votes cast in the election are for the legalization of opriak; parimutuel wagering on horse races or greyhound races m the county,the commissioners b1 Ali. 2798 AMUSEMENTS-,-PUBLIC HOUSES OF Talk i , Tr court shalt certify that fact to the secretary of state not later than the 10th day after the m: We of the canvass of the returns. co (b) No other election may be held in the county under this Act until five years have :fo i elapsed since the date of the preceding election. fo bu Contest of eleetios su• Sec. 15.23. (a) Not later than the 30th day after the date the result of the election is declared,any qualified voter of the county may contest the election by filing a petition in po. the district court of the county. Any person who is licensed or who has made application to the commission to be licensed in any capacity under this Act may become a named s party to the proceedings by pleading to the petition on or before the time set for hearing and trial as provided by Subsection (c) of this section or thereafter by intervention on Ac- leave of court. (b) The proceedings in the suit shall be conducted in the manner prescribed by Title 14, c Election Code,' for contesting an election held for a purpose other than the election of an 16.. officer or officers. Unless otherwise provided by this Act,the applicable Teams Rules of ate= Civil Procedure and all applicable statutes govern the proceedings and appeals held and conducted under this Act. f; (c) At or after the time for hearing and trial, the judge shall hear and determine all the questions of law and fact in the proceedings and may enter orders as to the proceedings ' that will enable the judge to try and determine the questions and to render a final e judgment with the least possible delay. I V.T.C,A.Mcbm Code,1 221.002 N wq. oat Casteet of election; bead que Sec. 18.14. At any time prior to the entry of a final judgment in the proceedings,any peas', party may ask the court to dismiss the contestant's action unless the contestant posts a Act bond with sufficient surety, approved by the court, payable to the movant for the me( payment of all damages and edsts that may accrue by reason of the delay that will be elec occasioned by the continued participation of the contestant in the proceedings in the event elec that the contestant fails to finally prevail and obtain substantially the judgment prayed orii for in the petition. The court shall then issue an order directed to the contestant, which voti. order, together with a copy of the motion, shall be served on all parties, or on their ing /ph` attorney of record,personally or by registered mail, requiring the contestant to appear at 'sag the time and place, not sooner thin five nor later than 10 days after receipt of the order (b. and motion, as the court may direct, and show cause why the motion should not be rest granted. The maximum bond that the court may set is $10,000 for contests of elections as g. for tracks to be located in a county with a population of less than 904,000, according to (c the most recent federal census. The maximum bond that the court may set is $100,000 and for contests of elections for tracks to be located in a county with a population of 800,000 basis or more,according to the most recent federal census. Motions with respect to more than one contestant may be heard together if so directed by the court. Unless at the hearing on the motion the contestant establishes facts that in the ,judgment of the court would entitle the contestant to a temporary injunction against the issuance of licenses on the basis of the election in question,the court shall grant the motion of the movant and in its se, order the court shall fiat the amount of the bond to be posted by the contestant in an Nove amount found by the court to be sufficient to cover all damages and costa that tray of W: accrue by reason of the delay that will be occasioned by the continued participation of the a col: contestant in the proceedings in the event that the contestant tails to prevail and obtain j substantially the judgment prayed for in its petition. i Cagle: Contest of election; appeal ! to Ax Sec 18.15, Any party to the cause who is dissatisfied with an order or judgment not o:be he- entered under Section 18.18 of this Act may appeal to the appropriate court of appeals after the entry of the order or judgment; otherwise the order or judgment becomes final. If such a party.does not file an appeal not later than the 80th day after the date on which f See. the result of the election is declared,it is presumed that the election is Valid. Any appeal has priority over all other cases, causes, or matters pending to the court of appeals, P�Po` except habeas corpus, and the court of appeals shall assure the priority and act on the i count; 52 ' 1 S OF AMUSENE.R'TS.—PUBLIC HOUSES OF fir, 1799 ES at Tuk i ;t�r the matter and render its final order or judgment with the least possible delay. The supreme court may review by writ of error or other authorized procedure all questions of taw save arising out of the orders and judgments of the court of appeals in the manner, time,and form applicable in other civil causes in which a►decision of the court of appeals is not final, but the review has priority over all other eases, causes,, or matters pending in the supreme court,except habeas corpus,and the supreme court shall assure the priority and txwn is review and act on the matter and render its final order or judgment with the Ina :Won is pos:ibk delay. Aitation Suit to have pr+ecows" named Sec. 26.16. The court shall accelerate the disposition of any action brought tinder this hazing Act :tioa an - - -'• Contsrtee - . Thk 14, Sec. 26.17. (a) The county attorney is the contestee of a suit brought under Section M of an 16.18 of this Act. If there is no county attorney of the county, then the criminal district 3ules of attorney or district attorney is the contestee. :eld and (b) Costs of the election contest ma y not be adjudged a 1 g gainst the contest!e or against Mine all the county, and neither may be required to give bond on appeal. *!dings Rescission election a final Sec. 16.18. (a) The commissioners court of a county that elects to approve the legali- sation of racing with pari-mutuel wagering in that county may hold an election on the question of rescinding that approval. The court shall order such an election on the presentation of a petition that requests such a rescission. The election may not be held VS.any earlier than two years after the date of the election conducted under Section 16.10 of this posts a Act at which the legalization of pari-mutuel wagering was approved. The petition must for the meet the requirements imposed under this article for,a petition to request a local option will be election on the question of the legalization of racing with pari-mutuel wagering. An >e event election to rescind legalization of racing shall be conducted in the manner provided for the prayed original local option election under this article. Tim ballots shall be printed to Permit which voting for or against the proposition: "Rescinding the legalization of pari-mutuel wager- their ing on horse races in County" or `Rescinding the legalization of pari-mutuel ;+p'at wagering on greyhound races in County,"as appropriate. ne order (b) If the majority of the votes cast in an election under this section favor the i not be rescission,racing with parr mutuel wagering may not be conducted in that county except elections as provided by Subsection (c) of this section. rding to (c) An association located in a county that elects to rescind the legalization of racing 3100,000 and that has outstanding long-term liabilities may continue to operate on a temporary 900:0 basis as provided by Section 18.01 of this Act = are than bearing ARTICLE 27. STATEWIDE REFERENDUM :t would s on the Referendum .red in its Sec, 17.01. (a) At the general election for state and county officers to be held st in an November 4, 1986, the voters shall be permitted to vote in a referendum on the question tat may of whether the state should legalize pari-mutuel wagering under the Texas Racing Act on of the A obtain a county -eounty local option basis. (b) If this article does not take effect prior to 90 days after the adjournment of the 2nd Called Session of the 69th Legislature,ie.,not having received sufficient votes pursuant to Article III,Section 39,of the Constitution of the State of Texas,and the proposition is t not on the ballot November 4, 1986,then the question shall be voted on at the election to appeals be held November 8, 1987. in final. on which Ballot proposition ++ 7 apI Sec. .17.02. The ballot shall be printed to provide for voting for or against the proposition: 'The legalization of pari-mutuel wagering under the Texas Racing Act an a :t on the county-by-county heal option bans. i� �s. r I Att. 2 79e AMUSEMENTS—PUBLIC HOUSES OF Title t ' Fwm of ba" Sec. 17.03. The proposition shall be printed on the ballot beneath the proposed constitutional amendments under the heading. "Referendum Proposition!, Eketion proeetlsrs Sec. 17.04. (a) Notice of the election shall be given by inclusion of the proposition in the proclamation by the governor ordering the election on the proposed amendments to the state constitution and in the notice of that election given by each county judge. (b) Returns of the votes cast on the proposition shall be prepared and canvassed in the same manner as the returns on the proposed constitutional amendments. (c) Immediately after the results of the election are certified by the state board of canvassers, the secretary of state shall transmit s copy of the certification to the lieutenant governor and the speaker of the house of representatives. Effect Of SWUM Sec. 17.05. Pari-mutuel wagering shall not be conducted under this Act if a majority of the votes cast in the referendum under this article are against the proposition. Constructiou of Act Sec. 17.06. (a) Except u.provided in Subsection (b) of this section, the rule of construction stated in Section 811.032, Code Construction Act(Chapter 311, Government Code), applies to the construction of this Act ; (b) If a,majority of the votes cast in the referendum oppose the proposition and subsequently the portion+of this article requiring a referendum is held invalid by s final Judgment of a court of competent jurisdiction, this Act expires on the date on which the judgment of the court becomes final. i (c) It is the legislature's strong intention that though the legislature has rarely,U ever, 0011L conducted a referendum on matters of statewide importance,the will of the people should be honored and take precedence over any prior constitutional rule of law given the nature of this particular issue in our state. ARTICLE 18. MISCELLANEOUS PROVISIONS Applicstioa of Sunset Act Sec. 18.01. (a) The Texas Racing Commission is subject to the Teals Sunset Act (Chapter 825,Government Code). Unless continued in existence as provided by that Act, and except as provided by Subsections (b) and (c) of this section, the commission is abolished, and this Act expires effective September 1, 1993. (b) If,at the time that the commission would be abolished under Subsection(a)of this section, an association created under this Act has outstanding long-term liabilities;. (1) the association may continue to operate for s period not to exceed one year after those liabilities are satisfied; and (2) the commission and this Act are continued in effect for the purpose of regulating that association under this Act (c) If the commission and this Act are continued in effect under Subsection (b)of this section,the commission is abolished and this Act expires on the first day of the fiscal year following the fiscal year in which the commission certifies to the secretary of state that no associations are operating under the tam of Subsection (b)of this section. , (d).An association that continues to operate under Subsection(b)of this section may not incur any new liabilities without the approval of the commission. At the beginning of that period,the commission shall review the outstanding liabilities of the association and shall set a specific date by which the association most mire its outstanding liabilities. Notwithstanding any contrary contract provisions,an association regulated under this Act ' may prepay any debt incurred by the association in conducting racing under this Act OW ; r" AMUSEMENTS--PUBLIC HOUSES OF Ar„ 179t-1 i Title 9 Appliation of Administrative Procedure and Texas Regider Ad Sec.18.02. Except as otherwise provided by this Act,the commission rules and orders are subject to the Administrative Procedure and Texas Register Act (Artick 6262-18s, Vernon's Texas Cid Statutes). Other lawful barMase$ a Sec. 18.03, A licensee may conduct any other lawful business on the lkenaWs premises. e Suit to have precedence Set 18.04. The courts shall accelerate the disposition of any action brought under this f Act. e Fee In lieu of state taxes Sec. 18.05. A fee or payment collected by the state under this Act is in lieu of any license,excise, use, or similar tax levied by the state. This section does not preclude the f application of the sales tax or any increase thereof to admissions to racetracks licensed under this Act. Release of liability f Sec,18.06. A member of the commission,an employee of the commission,a steward or judge, an association. or any other person regulated under this Act is not liable to any t individual, corporation, business association, or other entity for a cause of action that arises out of that person's performance or exercise of discretion in the implementation or d enforcement of this Act or a rule adopted under this Act if the person has acted in good =!' ,l faith e Acts 1986,O9th Leg., 2nd C.S.,ch. 19,# 1,eff.Dec.4, 1986. t . Section 2 of the 1986 Act added Y T.C.A,Penal of the comptroller and the comptroller's agents; Code, f 57.11; section 3 of the 1986 Act pro- authorizing certain appropriations and foss; pro- d vide:: viding for elections; defining offenses and pro. e 'Notwithstanding Subsection W of Section viding penalties; adding Section 57.11 to Chapter O,02 of the Texas Racing Act, the commission 47,Penal tide,as amended; and amending Ar& may permit an association that holds a class 2 ele 112, Code of Criminal Procedure, 1965, as racetrack license to conduct horse races on more amended. Acts 1986,69th Leg..2nd C.S.,ch.19. than"days in a calendar year before 1993." Croce Reference$ Section 5 of the 1986 Act amended Vernon's Person defined, we V.T.C.A. Penal Code, Ann.C.C.P.act 2.12; and if s to 8 of the 1986 Act i 107 were classified as arts. 179e-1 to 179e-4, Punishment, respectively. Class A mhdemeanar, see V.T.C.A. Penal Title of Ad: Code,f M21 An Act relating to the regulation and licensing Felonies, of bound racing and horse racing and parr Second degree, see V.T.C.A. Penal Code muwel wagering; relating to the creation,paw- O 12.38. a ors.and duties of the Texas Racing Comraiasian Third degree, on V.T.C.A. Pascal Coale sad its agents and to certain powers and duties Ir Art 179e-1. Recognition of racetracks In Mexico . g (a) To promote cooperation between the racing industry of this state and that of neighboring states of the Republic of Mexico.the commission,on appli cation of the owner s or operator of a racetrack in a neighboring Mexican state at which horse racing is s regularly conducted, may recognize that racetrack as having a racing program substan- tially equivalent to the program required under this Act of a class 1, class 2, or class 3 (b) A person may not advertise in this state s racetrack located in a neighborin;state A of the Re�ablic of Mexico and represent that the racetrack has been reoagnized as if subs equivalent to s class 1, class 2,or class 8 racetrack in this state unless the w - d commdswn so recognizes the Mexican.racetrack as provided by this section. s, (e) The commission may wftdraw or alter any recognition it has made under this :t section If It finds that the facts warrant that action. L Acts 19K:9th Leg.,tad C.S.,ch. 19, 16,eff.Dec.5, 1986. as� -a �r • I"?P.P. Art. 179e-2 AMUSEMENTS—PUBLIC HOUSES OF • sink � Art» 17%4. Use of state funds for certain track improvements prohibited This Act prohibits the use of state appropriated funds for use in capital improvements of tracks or for interest payments on such facilities except for those tracks which were _- publicly owned on September 1, 1986. Acts 1886, 69th Leg.,Sad CS.,ch. 19..f 6,eft.Dee.4, 1986. Art, 179e-3. Background check of racetrack license applicant The appropriate section of the commission shall require a complete personal, financial, and business background check of the 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 that section of the commission,the background checks reveal anything which might be detrimental to the public interest or the racing industry. Acts 1986, 69th Leg.,bW C.S.,eh. 19,f 7,off.D m 4, 1966. Art, 179e-4. regulation by commission Any provision in this Act to the contrary notwithstanding, the Texas Racing Commis- sion shall regulate all aspects of greyhound racing and horse racing in this state,whether or not that racing involves pari-mutuel wagering. Acts 1986,69th Leg.,2nd C.S.,ch. 19, S.eff. 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