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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of horse racing and greyhound racing and |
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pari-mutuel wagering in connection with that racing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1.03, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subdivisions |
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(2), (6), (18), (46), (50), (67), and (74) and adding Subdivisions |
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(82), (83), and (84) to read as follows: |
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(2) "Association" or "racetrack association" means a |
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person licensed under this Act to offer [conduct a horse race
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meeting or a greyhound race meeting with] pari-mutuel wagering on |
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horse racing or greyhound racing. |
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(6) "Horse race meeting" means the conducting of live, |
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simulcast, or purpose-driven pari-mutuel wagering on horse races on |
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a day or during a period of consecutive or nonconsecutive days. |
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(18) "Pari-mutuel wagering" means the form of wagering |
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on the outcome of greyhound or horse races [racing] in which [those
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who wager purchase tickets of various denominations on an animal or
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animals and] all wagers [for each race] are pooled and held by the |
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racing association for distribution of the total amount, less the |
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deductions authorized by this Act, to winning wagers [holders of
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tickets on the winning animals]. |
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(46) "Multiple wagering" means wagering on two or more |
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entries [animals] in one race or on one or more entries [animals] in |
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more than one race. "Multiple two wagering" means wagering on two |
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entries [animals] in one or more races. "Multiple three wagering" |
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means wagering on three or more entries [animals] in one or more |
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races. |
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(50) "Greyhound racing days" means 24-hour periods |
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ending at 12 midnight [days] on which a permitted racetrack |
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association may conduct [conducts] greyhound racing. ["One racing
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day" means a period commencing at noon and ending at 2 a.m. the next
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calendar day, except in the case of days on which there are matinee
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races.] |
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(67) "Racetrack facility" means a facility operated by |
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a racetrack [an] association within its enclosure for the purpose |
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of offering [presenting races for] pari-mutuel wagering on the |
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outcome of greyhound or horse races. |
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(74) "Race" includes previously run races, whether |
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digitally represented, simulated, or presented by video recording |
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and a live audio and visual signal of a race. |
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(82) "Purpose-driven pari-mutuel wagering" means |
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wagering on a greyhound race or horse race, whether running or |
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harness, that: |
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(A) was previously conducted at a facility |
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licensed to offer pari-mutuel wagering on the outcome of greyhound |
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or horse races; |
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(B) concluded with official results; and |
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(C) concluded without a scratch, |
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disqualification, or dead-heat finish. |
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(83) "Purpose-driven pari-mutuel pool" means the |
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total amount of money wagered by patrons within the enclosure of a |
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racetrack association on the results of a previously run race. |
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(84) "Purpose-driven pari-mutuel wagering system |
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provider" means a person, company, or association that contracts |
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with a racetrack association to provide the necessary systems and |
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hardware to conduct purpose-driven pari-mutuel wagering. |
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SECTION 2. Section 3.02(a), Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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(a) The commission shall regulate and supervise every race |
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meeting in this state involving wagering on the result of live, |
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simulcast, or previously run greyhound or horse races [racing]. |
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All persons and things relating to the operation of those meetings |
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are subject to regulation and supervision by the commission. The |
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commission shall adopt rules for conducting greyhound or horse |
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racing in this state involving wagering and shall adopt other rules |
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to administer this Act that are consistent with this Act. The |
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commission shall also make rules, issue licenses, and take any |
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other necessary action relating exclusively to horse racing or to |
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greyhound racing. |
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SECTION 3. Section 3.021(a), Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), is amended to read as |
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follows: |
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(a) Any provision in this Act to the contrary |
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notwithstanding, the commission may license and regulate all |
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aspects of greyhound racing and horse racing offered in this state, |
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whether or not that racing involves pari-mutuel wagering. |
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SECTION 4. Section 3.09, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Subsection (c) |
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to read as follows: |
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(c) A pari-mutuel pool may be funded with money allocated to |
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initiate the pool or a guaranteed amount. |
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SECTION 5. Section 6.01, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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Sec. 6.01. LICENSE REQUIRED. A person may not conduct |
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wagering on a greyhound race or a horse race [meeting] without first |
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obtaining a racetrack license from the commission. A person who |
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violates this section commits an offense. |
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SECTION 6. Sections 6.03(a) and (b), Texas Racing Act |
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(Article 179e, Vernon's Texas Civil Statutes), are amended to read |
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as follows: |
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(a) The commission shall require each applicant for an |
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original racetrack license to pay the required application fee and |
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to submit an application, on a form prescribed by the commission, |
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containing the following information: |
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(1) if the applicant is an individual, the full name of |
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the applicant, the applicant's date of birth, a physical |
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description of the applicant, the applicant's current address and |
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telephone number, and a statement by the applicant disclosing any |
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arrest or conviction for a felony or for a misdemeanor, except a |
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misdemeanor under Subtitle C, Title 7, Transportation Code, [the
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Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
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Texas Civil Statutes)] or a similar misdemeanor traffic offense; |
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(2) if the applicant is a corporation: |
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(A) the state in which it is incorporated, the |
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names and addresses of the corporation's agents for service of |
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process in this state, the names and addresses of its officers and |
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directors, the names and addresses of its stockholders, and, for |
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each individual named under this subdivision, the individual's date |
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of birth, current address and telephone number, and physical |
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description, and a statement disclosing any arrest or conviction |
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for a felony or for a misdemeanor, except a misdemeanor under |
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Subtitle C, Title 7, Transportation Code, [the Uniform Act
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Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
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Statutes)] or a similar misdemeanor traffic offense; and |
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(B) identification of any other beneficial owner |
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of shares in the applicant that bear voting rights, absolute or |
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contingent, any other person that directly or indirectly exercises |
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any participation in the applicant, and any other ownership |
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interest in the applicant that the applicant making its best effort |
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is able to identify; |
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(3) if the applicant is an unincorporated business |
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association: |
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(A) the names and addresses of each of its |
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members and, for each individual named under this subdivision, the |
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individual's date of birth, current address and telephone number, |
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and physical description, and a statement disclosing any arrest or |
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conviction for a felony or for a misdemeanor, except a misdemeanor |
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under Subtitle C, Title 7, Transportation Code, [the Uniform Act
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Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
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Statutes)] or a similar misdemeanor traffic offense; and |
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(B) identification of any other person that |
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exercises voting rights in the applicant or that directly or |
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indirectly exercises any participation in the applicant and any |
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other ownership interest in the applicant that the applicant making |
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its best effort is able to identify; |
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(4) the exact location at which a race meeting is to be |
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conducted; |
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(5) if the racing facility is in existence, whether it |
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is owned by the applicant and, if leased to the applicant, the name |
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and address of the owner and, if the owner is a corporation or |
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unincorporated business association, the names and addresses of its |
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officers and directors, its stockholders and members, if any, and |
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its agents for service of process in this state; |
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(6) if construction of the racing facility has not |
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been initiated, whether it is to be owned by the applicant and, if |
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it is to be leased to the applicant, the name and address of the |
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prospective owner and, if the owner is a corporation or |
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unincorporated business association, the names and addresses of its |
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officers and directors, the names and addresses of its |
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stockholders, the names and addresses of its members, if any, and |
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the names and addresses of its agents for service of process in this |
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state; |
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(7) identification of any other beneficial owner of |
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shares that bear voting rights, absolute or contingent, in the |
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owner or prospective owner of the racing facility, or any other |
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person that directly or indirectly exercises any participation in |
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the owner or prospective owner and all other ownership interest in |
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the owner or prospective owner that the applicant making its best |
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effort is able to identify; |
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(8) a detailed statement of the assets and liabilities |
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of the applicant; |
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(9) the kind of racing to be conducted and the dates |
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requested; |
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(10) proof of residency as required by Section 6.06 of |
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this Act; |
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(11) a copy of each management, concession, [and] |
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totalisator contract, and purpose-driven pari-mutuel wagering |
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system provider contract dealing with the proposed license at the |
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proposed location in which the applicant has an interest for |
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inspection and review by the commission; the applicant or licensee |
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shall advise the commission of any change in any management, |
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concession, [or] totalisator contract, or purpose-driven |
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pari-mutuel wagering system provider contract; all management, |
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concession, [and] totalisator contracts, and purpose-driven |
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pari-mutuel wagering system provider contracts must have prior |
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approval of the commission; the same fingerprint, criminal records |
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history, and other information required of license applicants |
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pursuant to Sections 5.03 and 5.04 and Subdivisions (1) through (3) |
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of this subsection shall be required of proposed totalisator firms, |
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purpose-driven pari-mutuel wagering system providers, |
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concessionaires, and managers and management firms; and |
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(12) any other information required by the commission. |
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(b) When the commission receives a plan for the security of |
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a racetrack facility, or a copy of a management, concession, [or] |
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totalisator contract, or purpose-driven pari-mutuel wagering |
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system provider contract for review under Subdivision (11) of |
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Subsection (a) of this section, the commission shall review the |
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contract or security plan in an executive session. Documents |
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submitted to the commission under this section by an applicant are |
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subject to discovery in a suit brought under this Act but are not |
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public records and are not subject to Chapter 552, Government Code |
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[424, Acts of the 63rd Legislature, Regular Session, 1973 (Article
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6252-17a, Vernon's Texas Civil Statutes)]. In reviewing and |
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approving contracts under this subsection, the commission shall |
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attempt to ensure the involvement of minority owned businesses |
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whenever possible. |
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SECTION 7. Section 6.04, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by adding Subsections |
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(e) and (f) to read as follows: |
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(e) A racetrack association licensed to offer pari-mutuel |
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wagering on horse races, whether live or simulcast, and granted |
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live or simulcast race dates may offer purpose-driven pari-mutuel |
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wagering on any day during the calendar year. |
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(f) A racetrack association licensed to offer pari-mutuel |
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wagering on greyhound races, whether live or simulcast, and granted |
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live or simulcast race dates may offer purpose-driven pari-mutuel |
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wagering on any day during the calendar year. |
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SECTION 8. Section 6.08(b)(3), Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), is amended to read as |
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follows: |
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(3) The horse racetrack [racing] association shall |
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transfer the amount set aside for purses from any live, |
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purpose-driven, and simulcast pools and shall deposit the amounts |
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in purse accounts maintained by breed by the horsemen's |
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organization in one or more federally insured depositories. Legal |
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title to purse accounts is vested in the horsemen's organization. |
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The horsemen's organization may contract with a racetrack [an] |
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association to manage and control the purse accounts and to make |
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disbursements from the purse accounts: |
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(A) to an owner whose horse won a purse; |
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(B) to the horsemen's organization for its |
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expenses; or |
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(C) for other disbursements as provided by |
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contract between the horsemen's organization and the association. |
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SECTION 9. Section 6.08, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subsections |
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(i) and (j) and adding Subsections (o) and (p) to read as follows: |
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(i) Ten percent of the total breakage from a live |
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pari-mutuel pool, purpose-driven pari-mutuel pool, or a simulcast |
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pari-mutuel pool is to be paid to the commission for use by the |
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appropriate state horse breed registry, subject to rules |
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promulgated by the commission. The appropriate breed registry for |
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Thoroughbred horses is the Texas Thoroughbred [Breeders] |
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Association, for quarter horses is the Texas Quarter Horse |
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Association, for Appaloosa horses is the Texas Appaloosa Horse |
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Club, for Arabian horses is the Texas Arabian Breeders Association, |
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and for paint horses is the Texas Paint Horse Breeders Association. |
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(j) Ten percent of the total breakage from a live |
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pari-mutuel pool, purpose-driven pari-mutuel pool, or a simulcast |
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pari-mutuel pool is to be retained by the racetrack association to |
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be used in stakes races restricted to accredited Texas-bred horses. |
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The appropriate state horse breed registry shall pay out the |
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remaining 80 percent of the total breakage as follows: |
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(1) 40 percent of the remaining breakage is allocated |
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to the owners of the accredited Texas-bred horses that finish |
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first, second, or third; |
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(2) 40 percent is allocated to the breeders of the |
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accredited Texas-bred horses that finish first, second, or third; |
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and |
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(3) 20 percent is allocated to the owner of the |
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stallion standing in this state at the time of conception whose |
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Texas-bred get finish first, second, or third. |
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(o) A racetrack association may not begin offering |
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purpose-driven pari-mutuel wagering until the association |
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executes: |
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(1) a valid contract with the officially recognized |
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horsemen's organization to establish the portion of the |
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association's commission on purpose-driven pari-mutuel pools that |
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will be set aside for purses; and |
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(2) a valid contract with the official breed |
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registries to establish the portion of the association's commission |
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on purpose-driven pari-mutuel pools that will be set aside for |
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breeder incentives. |
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(p) The commission shall be the final arbiter of any |
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disagreements between a racetrack association and the horsemen's |
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organization, or between a racetrack association and the official |
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breed registries when reaching the terms of a valid contract. |
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SECTION 10. Section 6.09, Texas Racing Act (Article 179e, |
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Vernon's Texas Civil Statutes), is amended by amending Subsections |
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(a) and (d) and adding Subsections (g) and (h) to read as follows: |
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(a) Every racetrack association authorized under this Act |
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to conduct pari-mutuel wagering at a greyhound race meeting on |
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races run shall distribute all sums deposited in any live or |
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simulcast pari-mutuel pool to the holders of the winning tickets if |
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those tickets are presented for payment within 60 days after the |
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closing day of the race meeting at which the pool was formed, less |
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an amount paid as a commission of 18 percent of the total deposits |
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in pools resulting from regular win, place, and show wagering, and |
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an amount not to exceed 21 percent of the total deposits in pools |
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resulting from multiple two wagering and an amount not to exceed 25 |
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percent of the total deposits in pools resulting from multiple |
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three wagering. |
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(d) Fifty percent of the breakage for live, previously run, |
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or simulcast races is to be paid to the appropriate state greyhound |
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breeding registry. Of that portion of the breakage 25 percent of |
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that breakage is to be used in stakes races and 25 percent of that |
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total breakage from a live pari-mutuel pool, purpose-driven |
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pari-mutuel pool, or a simulcast pari-mutuel pool is to be paid to |
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the commission for the use by the state greyhound breed registry, |
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subject to rules promulgated by the commission. |
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(g) A racetrack association may not begin offering |
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purpose-driven pari-mutuel wagering until the association executes |
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a valid contract with the Texas Greyhound Association that |
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establishes the portions of the association's commission on |
|
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purpose-driven pari-mutuel pools that will be set aside for purses |
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and breeder incentives. |
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(h) The commission shall be the final arbiter of any |
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disagreements between an association and the Texas Greyhound |
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Association when reaching the terms of a valid contract. |
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SECTION 11. Sections 6.092(a) and (c), Texas Racing Act |
|
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(Article 179e, Vernon's Texas Civil Statutes), are amended to read |
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as follows: |
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(a) The commission shall adopt reporting, monitoring, and |
|
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auditing requirements or other appropriate performance measures |
|
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for any funds distributed to or used by or any function or service |
|
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provided by the expenditure of any funds distributed to or used by |
|
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any organization that receives funds generated by live, |
|
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purpose-driven, or simulcast pari-mutuel wagering [racing]. |
|
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(c) An organization receiving funds generated by |
|
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pari-mutuel wagering on live, purpose-driven, or simulcast |
|
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[pari-mutuel] racing shall annually file with the commission a copy |
|
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of an audit report prepared by an independent certified public |
|
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accountant. The audit shall include a verification of any |
|
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performance report sent to or required by the commission. |
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SECTION 12. Article 6, Texas Racing Act (Article 179e, |
|
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Vernon's Texas Civil Statutes), is amended by adding Section 6.095 |
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to read as follows: |
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Sec. 6.095. DEDUCTIONS FROM PURPOSE-DRIVEN PARI-MUTUEL |
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POOL. (a) For each dollar wagered in a purpose-driven pari-mutuel |
|
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pool, a racetrack association shall set aside for this state an |
|
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amount equal to one percent to be distributed in the following order |
|
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of priority: |
|
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(1) $20 million is allocated to pay the costs of body |
|
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armor for law enforcement officers in this state; |
|
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(2) $10 million is allocated as death benefits for |
|
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families of law enforcement officers killed in the line of duty; and |
|
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(3) any remainder is allocated for deposit to the |
|
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general revenue fund to be used at the discretion of this state. |
|
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(b) For each dollar wagered in a purpose-driven pari-mutuel |
|
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pool, a racetrack association shall set aside for nonprofit |
|
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corporations an amount equal to one percent. |
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(c) At any time purpose-driven pari-mutuel wagering is |
|
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offered, each racetrack association shall contract with 10 |
|
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nonprofit corporations to provide contributions to the |
|
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corporations from purpose-driven pari-mutuel wagering. A contract |
|
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with a nonprofit corporation may be for a term of 30 days or more. |
|
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(d) Any nonprofit corporation registered under 26 U.S.C. |
|
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Section 501(c)(3) that has operations in this state and that filed |
|
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an Internal Revenue Service Form 990 in the previous calendar year |
|
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is eligible to participate. The commission shall adopt rules on the |
|
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application process and selection criteria under this section. |
|
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(e) Of the 10 nonprofit corporations contracted under |
|
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Subsection (c): |
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(1) at least one must benefit law enforcement |
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programs; |
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(2) at least one must benefit veterans of the armed |
|
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forces of this state or the United States; and |
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(3) not more than three may benefit the racing |
|
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industry. |
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SECTION 13. Section 6.11(a), Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), is amended to read as |
|
|
follows: |
|
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(a) In no event shall the purse in a greyhound race be less |
|
|
than a minimum of 4.7 percent of the total deposited in each live or |
|
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simulcast pool. |
|
|
SECTION 14. Section 6.14(a), Texas Racing Act (Article |
|
|
179e, Vernon's Texas Civil Statutes), is amended to read as |
|
|
follows: |
|
|
(a) A racetrack [An] association may not conduct greyhound |
|
|
or horse racing or offer pari-mutuel wagering on greyhound or horse |
|
|
races, whether live, simulcast, or purpose-driven, at any place |
|
|
other than the place designated in the license except as provided by |
|
|
this section or by Section 6.15 of this Act. However, if the |
|
|
racetrack or enclosure designated in the license becomes unsuitable |
|
|
for racing because of fire, flood, or other catastrophe, the |
|
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affected association, with the prior approval of the commission, |
|
|
may conduct a race meeting or any remaining portion of a meeting |
|
|
temporarily at any other racetrack licensed by the commission to |
|
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conduct the same type of racing as may be conducted by the affected |
|
|
association if the licensee of the other racetrack also consents to |
|
|
the usage. |
|
|
SECTION 15. Section 11.01(a), Texas Racing Act (Article |
|
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179e, Vernon's Texas Civil Statutes), is amended to read as |
|
|
follows: |
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(a) Pari-mutuel wagering on the outcome of greyhound races |
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and horse races, whether live, simulcast, or previously run, is |
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authorized under this Act. The commission shall adopt rules to |
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regulate wagering on the outcome of greyhound races and horse |
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races, whether live, simulcast, or previously run, under the system |
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known as pari-mutuel wagering. Wagering may be conducted only by a |
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racetrack [an] association within its enclosure. A person may not |
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accept, in person, by telephone, or over the Internet, a wager for a |
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horse race or greyhound race conducted inside or outside this state |
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from a person in this state unless the wager is authorized under |
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this Act. |
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SECTION 16. Section 11.04(a), Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), is amended to read as |
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follows: |
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(a) Only a person inside the enclosure where [both] live or |
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[and] simulcast race meetings are authorized may wager on the |
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results [result] of [a] live, previously run, or simulcast races |
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[race] presented by the racetrack association in accordance with |
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commission rules. Except as provided by this section, a person may |
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not place, in person, by telephone, or over the Internet, a wager |
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for a horse race or greyhound race conducted inside or outside this |
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state. The commission shall adopt rules to prohibit wagering by |
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employees of the commission and to regulate wagering by persons |
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licensed under this Act. |
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SECTION 17. Section 6.09(e), Texas Racing Act (Article |
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179e, Vernon's Texas Civil Statutes), is repealed. |
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SECTION 18. As soon as practicable after the effective date |
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of this Act, the Texas Racing Commission shall adopt the rules |
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necessary to implement the changes in law made by this Act. |
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SECTION 19. This Act takes effect September 1, 2017. |