VERNON'S TEXAS CIVIL STATUTES

TITLE 6. AMUSEMENTS--PUBLIC HOUSES OF


	Art. 178d-1. SPECIAL EVENT PARKING CHARGE LIMITATION.                          

Definitions
	Sec. 1. In this Act:                                                           
	(1)  "Parking facility," "parking facility owner," and 
"vehicle" have the meanings assigned by Section 684.001, 
Transportation Code.
	(2)  "Special event" includes a sporting event, convention, 
concert, exhibit, parade, or political rally.

Limitation of Parking Charge in Connection with Special Event
	Sec. 2. A parking facility owner may not charge for parking a 
vehicle in the parking facility in connection with a special event 
an amount that is more than two times the amount computed using the 
rate that is normally charged for parking a vehicle in the facility 
on that day of the week and at that time.  This section does not 
apply to institutions of higher education or private or independent 
institutions of higher education as defined in Section 61.003, 
Education Code.

Offense
	Sec. 3. (a) A person commits an offense if the person violates 
Section 2 of this Act.
	(b)  An offense under this section is a Class C misdemeanor.                   
	(c)  It is a defense to prosecution under this section that 
the parking facility owner posted a conspicuous sign at least two 
feet wide and two feet high at the entrance to the parking facility 
stating:
	(1)  in print at least six inches in height, the rate that is 
normally charged for parking a vehicle in the facility;  and
	(2)  in print at least six inches in height, the rate that is 
charged for parking a vehicle in the facility in connection with a 
special event.

Acts 1999, 76th Leg., ch. 528, eff. Sept. 1, 1999.                            


	Art. 179e. TEXAS RACING ACT.                                                   

ARTICLE 1. GENERAL PROVISIONS

Short title
	Sec. 1.01. This Act may be cited as the Texas Racing Act.                      

Purpose
	Sec. 1.02. The purpose of this Act is to provide for the 
strict regulation of horse racing and greyhound racing and the 
control of pari-mutuel wagering in connection with that racing.

Definitions
	Sec. 1.03. In this Act:                                                        
	(1)  "Person" includes any individual or entity capable of 
holding a legal or beneficial interest in property.
	(2)  "Association" means a person licensed under this Act to 
conduct a horse race meeting or a greyhound race meeting with 
pari-mutuel wagering.
	(3)  "Commission" means the Texas Racing Commission.                           
	(4)  "Comptroller" means the comptroller of public accounts.                   
	(5)  "Executive secretary" means the executive secretary of 
the Texas Racing Commission.
	(6)  "Horse race meeting" means the conducting of horse races 
on a day or during a period of consecutive or nonconsecutive days.
	(7)  "Thoroughbred horse" means a horse that is registered by 
the Jockey Club.
	(8)  "Thoroughbred racing" means the form of horse racing in 
which Thoroughbred horses mounted by jockeys engage in a race.
	(9)  "Quarter horse" means a horse that is registered by the 
American Quarter Horse Association.
	(10)  "Quarter horse racing" means the form of horse racing 
in which quarter horses mounted by jockeys engage in a race.
	(11)  "Appaloosa horse" means a horse that is registered by 
the Appaloosa Horse Club.
	(12)  "Appaloosa racing" means the form of horse racing in 
which Appaloosa horses mounted by jockeys engage in a race.
	(13)  "Arabian horse" means a horse that is registered by the 
Arabian Horse Registry of America or by the Canadian Arabian Horse 
Registry.
	(14)  "Arabian racing" means the form of horse racing in 
which Arabian horses sanctioned for racing by the Texas Arabian 
Breeders Association, while mounted by jockeys, engage in a race.
	(15)  "Paint horse" means a horse that is registered by The 
American Paint Horse Association.
	(16)  "Paint horse racing" means the form of horse racing in 
which paint horses mounted by jockeys engage in a race.
	(17)  "Enclosure" means all areas of a racing association's 
grounds, including the parking area, to which admission ordinarily 
can be obtained only on payment of an admission fee or presentation 
of official credentials.
	(18)  "Pari-mutuel wagering" means the form of wagering on 
the outcome of greyhound or horse racing in which those who wager 
purchase tickets of various denominations on an animal or animals 
and all wagers for each race are pooled and held by the racing 
association for distribution of the total amount, less the 
deductions authorized by this Act, to holders of tickets on the 
winning animals.
	(19)  "Pari-mutuel pool" means the total amount of money 
wagered by patrons on the result of a particular race or combination 
of races, the total being divided into separate mutuel pools for 
win, place, show, or combinations.
	(20)  "Breakage" means the odd cents by which the amount 
payable on each dollar wagered exceeds a multiple of 10 cents, 
except in the event a minus pool occurs, in which case the breakage 
shall be in multiples of five cents.
	(21)  "Texas-bred horse" means a horse qualified under the 
rules of the commission that is:
	(A)  sired by a stallion standing in Texas at the time of 
conception and foaled by a mare in Texas;
	(B)  foaled by a mare bred outside Texas and brought into 
Texas to foal at any time in the mare's lifetime if the mare is bred 
back to a stallion standing in Texas;  or
	(C)  a Thoroughbred or Arabian horse foaled in Texas by an 
accredited Texas-bred mare if the mare was bred outside Texas and 
returned to Texas on or before August 15 of the calendar year of 
conception.
	(22)  "Accredited Texas-bred horse" means a Texas-bred horse 
that meets the accreditation requirements of the state breed 
registry of that breed of horse.
	(23)  "Mixed racing" means a race in which different breeds 
of horses participate.
	(24)  "State horse breed registry" means a designated 
association administering accredited Texas-bred requirements for 
its specific breed of horses.
	(25)  "Racetrack" means a facility that is licensed under 
this Act for the conduct of pari-mutuel wagering on greyhound 
racing or horse racing.
	(26)  "Horse racing day" means the 24-hour period ending at 
12 midnight.     
	(27)  "Clerk of scales" means a racetrack official who is 
responsible for weighing a jockey before and after a race.
	(28)  "Jockey" or "apprentice jockey" means a professional 
rider licensed by the commission to ride horse races.
	(29)  Repealed by Acts 1991, 72nd Leg., ch. 386, Sec. 74(a), 
eff. Aug. 26, 1991.
	(30)  "Official starter" means a racetrack official who is in 
charge of the start of a race.
	(31)  "Paddock judge" means a racetrack official who 
supervises animals entered in a race while the animals are 
assembled before the beginning of a race in an enclosure on the 
grounds of a racetrack.
	(32)  "Patrol judge" means a racetrack official who is 
stationed at a set point along the racetrack to monitor the running 
of a race.
	(33)  "Placing official" means a racetrack official who 
records the order of the finish of a race.
	(34)  "Stable foreman" means the person in charge of the 
building in which horses are lodged and fed.
	(35)  "Steward" means a racing official with general 
authority and supervision over:
	(A)  the conduct of a licensed race meeting;  and                              
	(B)  all licensees at a racetrack during a race meeting.                       
	(36)  "Trainer" means a person who is licensed by the 
commission to train racehorses.
	(37)  "Handicapper" means a person who predicts the winner of 
a horse race.  
	(38)  "Authorized agent" means a person appointed by an owner 
of a horse to represent the owner.  The term is limited to a person 
who is appointed by a written instrument that is acknowledged and 
approved by the commission.
	(39)  "Horseshoe inspector" means a racetrack official who 
inspects the shoes of the horses entered in a race.
	(40)  "Jockey room custodian" means a person who maintains 
the premises of a room in which jockeys prepare for a race.
	(41)  "Timer" means a racetrack official who times the 
running of a race.    
	(42)  "Veterinarian" means a person licensed under The 
Veterinary Licensing Act (Article 7465a, Vernon's Texas Civil 
Statutes).
	(43)  "Concessionaire" means a person licensed by the 
commission to sell refreshments or souvenirs at a racetrack.
	(44)  "Combination" means a combination of races.                              
	(45)  "Regular wagering" means wagering on a single horse or 
greyhound in a single race.  The term includes wagering on the win 
pool, the place pool, or the show pool.
	(46)  "Multiple wagering" means wagering on two or more 
animals in one race or on one or more animals in more than one race. 
"Multiple two wagering" means wagering on two animals in one or more 
races. "Multiple three wagering" means wagering on three or more 
animals in one or more races.
	(47)  "Greyhound" means a purebred greyhound dog registered 
by the National Greyhound Association.
	(48)  "Greyhound racing" means any race in which two or more 
greyhounds engage in a contest of speed or endurance or pursue a 
mechanical lure.
	(49)  "Enclosure--public" means the areas of the grounds of 
an association to which a member of the public is admitted by 
payment of an admission fee or on presentation of authorized 
credentials, but excludes restricted areas such as the racetrack, 
the receiving area, and the area in which the animals are housed.
	(50)  "Greyhound racing days" means days on which a permitted 
association conducts greyhound racing.  "One racing day" means a 
period commencing at noon and ending at 2 a.m. the next calendar 
day, except in the case of days on which there are matinee races.
	(51)  "Greyhound matinee race" means any performance 
starting between 10 a.m. and 5 p.m. on any day other than Sunday.
	(52)  "Performance" means the consecutive running of not 
more than 13 greyhound races.
	(53)  "Judge" means an executive official of a greyhound 
racetrack.          
	(54)  "Nonprofit corporation" means a corporation organized 
under Subdivision 7, Article 1302, Revised Statutes, or organized 
under the Texas Non-Profit Corporation Act (Article 1396-1.01 et 
seq., Vernon's Texas Civil Statutes) that:
	(A)  does not distribute any of its income to its members, 
officers, or governing body, other than as reasonable compensation 
for services;
	(B)  has a governing body or officers elected by a vote of 
members or by a vote of delegates elected by the members;  and
	(C)  has obtained an exemption under Section 501 of the 
Internal Revenue Code (26 U.S.C. Section 501).
	(55)  "Mixed meet" means a live horse race meeting that 
includes races by more than one breed of horse.
	(56)  "Texas-owned horse" means a horse owned by a bona fide 
resident of this state as determined by the rules of the commission.
	(57)  "National historic district" means a district included 
in or eligible for inclusion in the National Register of Historic 
Places created under the National Historic Preservation Act, 16 
U.S.C. Section 470 et seq.
	(58)  "Corporation" means an incorporated entity, either for 
profit or not for profit.
	(59)  "Applicant" means a person with a legal, equitable, or 
beneficial interest in a license application.
	(60)  "Maiden" means a horse that has never won a race at a 
race meeting authorized by the commission or by another racing 
jurisdiction.
	(61)  "Simulcast" means the telecast or other transmission 
of live audio and visual signals of a race, transmitted from a 
sending track to a receiving location, for the purpose of wagering 
conducted on the race at the receiving location.
	(62)  "Live pari-mutuel pool" means the total amount of money 
wagered by patrons on the result of a particular live race or 
combination of live races within the enclosure of the racetrack 
association where the race is being run.
	(63)  "Simulcast pari-mutuel pool" means the total amount of 
money wagered by patrons at a licensed racetrack association in 
Texas on the result of a particular simulcast race or combination of 
simulcast races.
	(64)  "Receiving location" means a licensed racetrack 
association in this state that has been allocated live and 
simulcast race dates or a facility not located in this state that is 
authorized to conduct wagering under the law of the jurisdiction in 
which it is located.
	(65)  "Credential" means any license, certificate, 
identification card, or other document indicating or representing 
authority or permission under this Act.
	(66)  "Sending track" means any licensed track for racing in 
this state or out-of-state from which a race is transmitted.
	(67)  "Racetrack facility" means a facility operated by an 
association within its enclosure for the purpose of presenting 
races for pari-mutuel wagering.
	(68)  "Child" means a person younger than 16 years of age.                     
	(69)  "Minor" means a person younger than 21 years of age.                     
	(70)  "Contraband" means:                                                      
	(A)  any item or thing the possession of which is unlawful 
under this Act, a commission rule, or other law;
	(B)  any item or thing that might reasonably have the effect 
of unnaturally depressing, stimulating, or exciting an animal 
during a race in a manner contrary to this Act or commission rule, 
including a prohibited device or substance;  or
	(C)  a document, including a credential or forged ticket, 
possessed by an individual or used by an individual in violation of 
this Act or a commission rule.
	(71)  "Prohibited device" means:                                               
	(A)  a spur or an electrical or other device prohibited by a 
commission rule regulating the unlawful influence of a race;  or
	(B)  a device specifically designed, made, or adapted to 
influence or affect the outcome of a race in a manner contrary to 
this Act or a commission rule.
	(72)  "Prohibited substance" means a drug, chemical, or 
other substance that:
	(A)  in its use or intended use, is reasonably capable of 
influencing or affecting the outcome of a race in a manner contrary 
to this Act or a commission rule;  and
	(B)  is prohibited by a commission rule regulating the 
unlawful influence of a race.
	(73)  "Unlawful touting" means an offense described by 
Section 14.01 of this Act or a similar offense under the laws of 
another state.
	(74)  "Race" includes a live audio and visual signal of a 
race.              
	(75)  "Outstanding ticket" means a pari-mutuel ticket not 
presented for payment before the end of the greyhound racing or 
horse racing day for which the ticket was purchased.
	(76)  "Pari-mutuel voucher" means a bearer instrument issued 
by a pari-mutuel wagering machine that represents money owned by a 
wagering patron and held by an association, including winnings from 
a pari-mutuel wager.
	(77)  "Horsemen's organization" means an organization 
recognized by the commission that represents horse owners and 
trainers in negotiating and contracting with associations on 
subjects relating to racing and in representing and advocating the 
interests of horse owners and trainers before administrative, 
legislative, and judicial forums.
	(78)  "Cross-species simulcast signal" means a simulcast 
signal of a horse race at a greyhound racetrack facility or a 
simulcast signal of a greyhound race at a horse racetrack facility.

ARTICLE 2. TEXAS RACING COMMISSION

Creation
	Sec. 2.01. The Texas Racing Commission is created.                             

Membership
	Sec. 2.02. (a) The commission consists of seven members 
appointed by the governor with the advice and consent of the senate 
and two ex officio members who shall have the right to vote.  The ex 
officio members are:
	(1)  the chairman of the Public Safety Commission or a member 
of the Public Safety Commission designated by the chairman of the 
Public Safety Commission;  and
	(2)  the comptroller of public accounts or the comptroller's 
designee.       
	(b)  Appointments to the commission shall be made without 
regard to the race, color, disability, sex, religion, age, or 
national origin of the appointees. 
	(c)  In making appointments to the commission, the governor 
shall attempt to reflect the minority groups found in the state's 
general populace.

Term of office
	Sec. 2.03. (a) Appointed members hold office for staggered 
terms of six years with two or three members' terms expiring 
February 1 of each odd-numbered year.  A member holds office until 
that member's successor is appointed and qualifies.
	(b)  The ex officio members hold office on the commission for 
the time for which they hold their other offices.

Residence requirement
	Sec. 2.04. An appointed member is not eligible to be a member 
of the commission unless that appointee has been a resident of this 
state for at least 10 consecutive years immediately before 
appointment.

Eligibility
	Sec. 2.05. (a) Five of the appointed members of the 
commission must be representatives of the general public and have 
general knowledge of business or agribusiness.  At least one of 
those appointed members may be a veterinarian, and being licensed 
as a veterinarian satisfies the requirement that the person have 
general knowledge of business or agribusiness.  One additional 
appointed member must have special knowledge or experience related 
to greyhound racing and one additional appointed member must have 
special knowledge or experience related to horse racing.  A person 
is not eligible for appointment as a member of the commission if the 
person or the person's spouse:
	(1)  is licensed by the commission, except as a commissioner;                  
	(2)  is employed by the commission or participates in the 
management of a business entity or other organization regulated by 
the commission or receiving funds from or through the commission;
	(3)  owns or controls, directly or indirectly, more than a 10 
percent interest in a business entity or other organization 
regulated by the commission or receiving funds from or through the 
commission;  or
	(4)  uses or receives a substantial amount of tangible goods, 
services, or funds from or through the commission, other than 
compensation or reimbursement authorized by law for commission 
membership, attendance, or expenses.
	(b)  In addition to the eligibility requirements of 
Subsection (a), a person is not eligible to be an appointed member 
of the commission if that person owns any financial interest in a 
racetrack or its operation or if that person is related within the 
second degree by affinity or the third degree by consanguinity, as 
determined under Subchapter B, Chapter 573, Government Code, to a 
person who owns any financial interest in a racetrack or its 
operation.
	(c)  Each person appointed to or employed by the commission 
is subject to all background checks and qualification criteria 
required to hold a racetrack license or other license under this 
Act.
	(d)  A person who has been convicted of a felony or of any 
crime involving moral turpitude is not eligible for appointment to 
the commission.

Financial statement
	Sec. 2.06. Each appointed member of the commission and the 
executive secretary of the commission is an "appointed officer of a 
major state agency" within the meaning of Chapter 421, Acts of the 
63rd Legislature, Regular Session, 1973 (Article 6252-9b, Vernon's 
Texas Civil Statutes).  An appointee shall also file a detailed 
financial statement with the secretary of state of the type 
required by The Banking Department of Texas in the application for 
charter for state banks.  The financial statement is a public record 
under Chapter 424, Acts of the 63rd Legislature, Regular Session, 
1973 (Article 6252-17a, Vernon's Texas Civil Statutes).
	Sec. 2.07. Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 
54, eff. Sept. 1, 1997.

Conflict of interest
	Sec. 2.071. (a) An officer, employee, or paid consultant of a 
Texas trade association in the field of horse or greyhound racing or 
breeding may not be a member of the commission or an employee of the 
commission who is exempt from the state's position classification 
plan or is compensated at or above the amount prescribed by the 
General Appropriations Act for step 1, salary group 17, of the 
position classification salary schedule.
	(b)  A person who is the spouse of an officer, manager, or 
paid consultant of a Texas trade association in the field of horse 
or greyhound racing or breeding may not be a member of the 
commission and may not be an employee of the commission who is 
exempt from the state's position classification plan or is 
compensated at or above the amount prescribed by the General 
Appropriations Act for step 1, salary group 17, of the position 
classification salary schedule.
	(c)  For the purposes of this section, a Texas trade 
association is a nonprofit association of business or professional 
competitors in this state designed to assist its members and its 
industry or profession in dealing with mutual business or 
professional problems and in promoting their common interest.

Lobbyist restriction
	Sec. 2.072. A person may not serve as a member of the 
commission or act as the general counsel to the commission if the 
person is required to register as a lobbyist under Chapter 305, 
Government Code, because of the person's activities for 
compensation on behalf of a profession related to the operation of 
the commission.

Grounds for removal
	Sec. 2.073. (a) It is a ground for removal from the commission 
if a member:  
	(1)  does not have at the time of appointment the 
qualifications required by Section 2.02, 2.04, or 2.05 of this Act;
	(2)  does not maintain during service on the commission the 
qualifications required by Section 2.02 or 2.05 of this Act;
	(3)  violates a prohibition established by Section 2.05, 
2.071, or 2.072 of this Act;
	(4)  cannot because of illness or disability discharge the 
member's duties for a substantial part of the term for which the 
member is appointed;  or
	(5)  is absent from more than half of the regularly scheduled 
commission meetings that the member is eligible to attend during a 
calendar year.
	(b)  The validity of an action of the commission is not 
affected by the fact that it is taken when a ground for removal of a 
commission member exists.
	(c)  If the executive secretary has knowledge that a 
potential ground for removal exists, the executive secretary shall 
notify the presiding officer of the commission of the potential 
ground.  The presiding officer shall then notify the governor and 
the attorney general that a potential ground for removal exists.  If 
the potential ground for removal involves the presiding officer, 
the executive secretary shall notify the next highest officer of 
the commission, who shall notify the governor and the attorney 
general that a potential ground for removal exists.

Member training
	Sec. 2.074. (a) To be eligible to take office as a member of 
the commission, a person appointed to the commission must complete 
at least one course of a training program that complies with this 
section.
	(b)  The training program must provide information to the 
person regarding:  
	(1)  the enabling legislation that created the commission;                     
	(2)  the programs operated by the commission;                                  
	(3)  the role and functions of the commission;                                 
	(4)  the rules of the commission with an emphasis on the 
rules that relate to disciplinary and investigatory authority;
	(5)  the current budget for the commission;                                    
	(6)  the results of the most recent formal audit of the 
commission;          
	(7)  the requirements of the:                                                  
	(A)  open meetings law, Chapter 551, Government Code;                          
	(B)  open records law, Chapter 552, Government Code;  and                      
	(C)  administrative procedure law, Chapter 2001, Government 
Code;            
	(8)  the requirements of the conflict of interests laws and 
other laws relating to public officials;  and
	(9)  any applicable ethics policies adopted by the 
commission or the Texas Ethics Commission.
	(c)  A person appointed to the commission is entitled to 
reimbursement for travel expenses incurred in attending the 
training program, as provided by the General Appropriations Act and 
as if the person were a member of the commission.

Expenses
	Sec. 2.08. Each appointed member of the commission is 
entitled to a per diem in an amount prescribed by legislative 
appropriation for each day spent in performing the duties of the 
office and is entitled to reimbursement for actual and necessary 
expenses incurred in performing those duties. Reimbursement for 
expenses under this section is subject to any applicable limitation 
in the General Appropriations Act. The ex officio members are 
entitled to reimbursement for expenses from their respective 
agencies as provided by law for expenses incurred in the 
performance of their other official duties.

Offices
	Sec. 2.09. The commission shall maintain its general office 
in the City of Austin.  The commission may also establish branch 
offices.

Presiding officer
	Sec. 2.10. The governor shall designate a public member of 
the commission as the presiding officer of the commission to serve 
in that capacity at the pleasure of the governor.

Meetings of commission
	Sec. 2.11. (a) The commission shall hold at least six regular 
meetings each year on dates fixed by the commission.  The commission 
shall adopt rules providing for the holding of special meetings.
	(b)  A majority of the commission constitutes a quorum.                        
	(c)  The commission shall keep at its general office a public 
record of every vote.
	(d)  The commission shall, by rule, develop and implement 
policies that provide the public with a reasonable opportunity to 
appear before the commission and to speak on any issue under the 
jurisdiction of the commission.

Executive secretary;  employees
	Sec. 2.12. (a) The commission shall employ an executive 
secretary and other employees as necessary to administer this Act.
	(b)  The commission may not employ or continue to employ a 
person:           
	(1)  who owns or controls a financial interest in a licensee 
of the commission;
	(2)  who is employed by or serves as a paid consultant to a 
licensee of the commission, an official breed registry, or a Texas 
trade association, as defined by Section 2.071(c) of this Act, in 
the field of horse or greyhound racing or breeding;
	(3)  who owns or leases a race animal that participates in 
pari-mutuel racing in this state;  or
	(4)  who accepts or is entitled to any part of the purse or 
Texas-bred incentive award to be paid on a greyhound or a horse in a 
race conducted in this state.
	(c)  The commission may not employ or continue to employ a 
person who is residentially domiciled with or related within the 
first degree by affinity or consanguinity to a person who is subject 
to a disqualification prescribed by Subsection (b) of this section.
	(d)  The commission shall employ the executive secretary and 
other employees to reflect the diversity of the population of the 
state as regards race, color, handicap, sex, religion, age, and 
national origin.

Executive secretary;  duties
	Sec. 2.13. The executive secretary shall keep the records of 
the commission and shall perform other duties as required by the 
commission.  The executive secretary serves at the pleasure of the 
commission on a full-time basis and may not hold other employment.

Legal representation
	Sec. 2.14. The attorney general shall designate at least one 
member of the attorney general's staff to counsel and advise the 
commission and to represent the commission in legal proceedings.  
The attorney general shall make available to the appropriate 
prosecuting attorneys any information obtained regarding 
violations of this Act.

Records
	Sec. 2.15. All records of the commission that are not made 
confidential by other law are open to inspection by the public 
during regular office hours. All applications for a license under 
this Act shall be maintained by the commission and shall be 
available for public inspection during regular office hours.  The 
contents of the investigatory files of the commission, however, are 
not public records and are confidential except in a criminal 
proceeding, in a hearing conducted by the commission, on court 
order, or with the consent of the party being investigated.

Department of public safety records
	Sec. 2.16. (a) Except as otherwise provided by this Act, the 
files, records, information, compilations, documents, photographs, 
reports, summaries, and reviews of information and related matters 
that are collected, retained, or compiled by the Department of 
Public Safety in the discharge of its duties under this Act are 
confidential and are not subject to public disclosure, but are 
subject to discovery by a person that is the subject of the files, 
records, information, compilations, documents, photographs, 
reports, summaries, and reviews of information and related matters 
that are collected, retained, or compiled by the Department of 
Public Safety in the discharge of its duties under this Act.
	(b)  An investigation report or other document submitted by 
the Department of Public Safety to the commission becomes part of 
the investigative files of the commission and is subject to 
discovery by a person that is the subject of the investigation 
report or other document submitted by the Department of Public 
Safety to the commission that is part of the investigative files of 
the commission.
	(c)  Information that is in a form available to the public is 
not privileged or confidential under this section and is subject to 
public disclosure.

Annual accounting
	Sec. 2.17. The commission shall prepare annually a complete 
and detailed written report accounting for all funds received and 
disbursed by the commission during the preceding fiscal year.  The 
annual report must meet the reporting requirements applicable to 
financial reporting provided in the General Appropriations Act.

Funds paid to commission
	Sec. 2.18. All money paid to the commission under this Act is 
subject to Subchapter F, Chapter 404, Government Code.

Employment practices
	Sec. 2.19. (a) The executive secretary or the executive 
secretary's designee shall develop an intra-agency career ladder 
program that addresses opportunities for mobility and advancement 
for employees within the commission.  The program shall require 
intra-agency posting of all positions concurrently with any public 
posting.
	(b)  The executive secretary or the executive secretary's 
designee shall develop a system of annual performance evaluations 
that are based on documented employee performance.  All merit pay 
for commission employees must be based on the system established 
under this subsection.
	(c)  The executive secretary or the executive secretary's 
designee shall prepare and maintain a written policy statement to 
assure implementation of a program of equal employment opportunity 
under which all personnel transactions are made without regard to 
race, color, disability, sex, religion, age, or national origin.  
The policy statement must include:
	(1)  personnel policies, including policies relating to 
recruitment, evaluation, selection, appointment, training, and 
promotion of personnel that are in compliance with the requirements 
of Chapter 21, Labor Code;
	(2)  a comprehensive analysis of the commission workforce 
that meets federal and state laws, rules, regulations, and 
instructions directly promulgated from those laws, rules, and 
regulations;
	(3)  procedures by which a determination can be made about 
the extent of underuse in the commission workforce of all persons 
for whom federal or state laws, rules, regulations, and 
instructions directly promulgated from those laws, rules, and 
regulations encourage a more equitable balance;  and
	(4)  reasonable methods to appropriately address those areas 
of underuse.    
	(d)  A policy statement prepared under Subsection (c) of this 
section must cover an annual period, be updated annually and 
reviewed by the Texas Commission on Human Rights for compliance 
with Subsection (c)(1) of this section, and be filed with the 
governor's office.
	(e)  The governor's office shall deliver a biennial report to 
the legislature based on the information received under Subsection 
(d) of this section.  The report may be made separately or as a part 
of other biennial reports made to the legislature.

Standards of conduct
	Sec. 2.20. The executive secretary or the executive 
secretary's designee shall provide to members of the commission and 
to agency employees, as often as necessary, information regarding 
their qualification for office or employment under this Act and 
their responsibilities under applicable laws relating to standards 
of conduct for state officers or employees.

Division of responsibility
	Sec. 2.21. The commission shall, by rule, develop and 
implement policies that clearly separate the policymaking 
responsibilities of the commission and the management 
responsibilities of the executive secretary and the staff of the 
commission.

Program and facility accessibility
	Sec. 2.22. The commission shall comply with federal and state 
laws related to program and facility accessibility.  The executive 
secretary shall also prepare and maintain a written plan that 
describes how a person who does not speak English can be provided 
reasonable access to the commission's programs and services.

Information to public
	Sec. 2.23. (a) The commission shall prepare information of 
public interest describing the functions of the commission and the 
procedures by which complaints are filed with and resolved by the 
commission.  The commission shall make the information available to 
the public and appropriate state agencies.
	(b)  The commission by rule shall establish methods by which 
racetrack patrons are notified of the name, mailing address, and 
telephone number of the commission for the purpose of directing 
complaints to the commission.  The commission may provide for that 
notification:
	(1)  on every race performance program provided by each 
racetrack association;  or
	(2)  on signs prominently displayed in the common public 
areas on the premises of each racetrack association.

Complaint handling
	Sec. 2.24. (a) The commission shall keep information about 
each complaint filed with the commission.  The information shall 
include:
	(1)  the date the complaint is received;                                       
	(2)  the name of the complainant;                                              
	(3)  the subject matter of the complaint;                                      
	(4)  a record of all persons contacted in relation to the 
complaint;         
	(5)  a summary of the results of the review or investigation 
of the complaint;  and
	(6)  for complaints for which the agency took no action, an 
explanation of the reason the complaint was closed without action.
	(b)  The commission shall keep a file about each written 
complaint filed with the commission that the agency has authority 
to resolve.  The commission shall provide to the person filing the 
complaint and the persons or entities complained about the 
commission's policies and procedures pertaining to complaint 
investigation and resolution.  The commission, at least quarterly 
and until final disposition of the complaint, shall notify the 
person filing the complaint and the persons or entities complained 
about of the status of the complaint unless the notice would 
jeopardize an undercover investigation.

ARTICLE 3. POWERS AND DUTIES OF COMMISSION
	Sec. 3.01. Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 
54, eff. Sept. 1, 1997.

Regulation and supervision
	Sec. 3.02. (a) The commission shall regulate and supervise 
every race meeting in this state involving wagering on the result of 
greyhound or horse racing.  All persons and things relating to the 
operation of those meetings are subject to regulation and 
supervision by the commission.  The commission shall adopt rules 
for conducting greyhound or horse racing in this state involving 
wagering and shall adopt other rules to administer this Act that are 
consistent with this Act.  The commission shall also make rules, 
issue licenses, and take any other necessary action relating 
exclusively to horse racing or to greyhound racing.
	(b)  The commission may establish separate sections to 
review or propose rules of the commission.
	(c)  The commission or a section of the commission shall hold 
a meeting on any proposed rule before the commission publishes the 
proposed rule in the Texas Register.
	(d)  The commission shall post notice of a meeting under 
Subsection (c) of this section at each racetrack facility.  The 
notice shall include an agenda of the meeting and a summary of the 
proposed rule.
	(e)  A copy of a proposed rule published in the Texas 
Register shall also be posted concurrently at each racetrack 
facility.
	(f)  The commission or a section of the commission may 
appoint a committee of experts, members of the public, or other 
interested parties to advise the commission or section of the 
commission about a proposed rule of the commission.
	(g)  The commission, in adopting rules and in the supervision 
and conduct of racing, shall consider the effect of a proposed 
commission action on the state's agricultural, horse breeding, 
horse training, greyhound breeding, and greyhound training 
industry.

Regulation by commission
	Sec. 3.021. (a) Any provision in this Act to the contrary 
notwithstanding, the commission may license and regulate all 
aspects of greyhound racing and horse racing in this state, whether 
or not that racing involves pari-mutuel wagering.
	(b)  To protect the health, safety, and welfare of race 
animals and participants in racing, to safeguard the interest of 
the general public, and to promote the orderly conduct of racing 
within the state, the commission may adopt rules for the licensing 
and regulation of races and workouts at racetracks that do not offer 
pari-mutuel wagering and for workouts at training facilities to 
secure past performances and workouts.
	(c)  The commission may charge an annual fee for licensing 
and regulating a racetrack that does not offer pari-mutuel wagering 
or a training facility in a reasonable amount that may not exceed 
the actual cost of enforcing rules adopted for the licensing and 
regulation of races and workouts at such a facility.
	(d)  The commission may not adopt rules restricting 
competitive bidding or advertising by a licensee except to prohibit 
false, misleading, or deceptive practices.  In its rules to 
prohibit false, misleading, or deceptive practices, the commission 
may not include a rule that:
	(1)  restricts the use of any medium for advertising;                          
	(2)  restricts the use of a licensee's personal appearance or 
voice in an advertisement;
	(3)  relates to the size or duration of an advertisement by 
the licensee;  or
	(4)  restricts the licensee's advertisement under a trade 
name.              

Power of entry
	Sec. 3.03. A member of the commission, an authorized agent of 
the commission, a commissioned officer of the Department of Public 
Safety, or a peace officer of the local jurisdiction in which the 
association maintains a place of business may enter any part of the 
racetrack facility or any other place of business of an association 
at any time for the purpose of enforcing and administering this Act.

Requirement of books and records;  financial statements
	Sec. 3.04. The commission shall require associations, 
managers, totalisator licensees, and concessionaires to keep books 
and records and to submit financial statements to the commission.  
The commission shall adopt reasonable rules relating to those 
matters.

Subpoena power
	Sec. 3.05. (a) A member of the commission, or a duly appointed 
agent of the commission, while involved in carrying out functions 
under this Act, may take testimony and may require by subpoena the 
attendance of witnesses and the production of books, records, 
papers, correspondence, and other documents that the commission 
considers advisable.  Subpoenas shall be issued under the signature 
of the commission or its duly appointed agent and shall be served by 
any person designated by the commission.  A member of the 
commission, or a duly appointed agent of the commission, may 
administer oaths or affirmations to witnesses appearing before the 
commission or its agents.
	(b)  If a subpoena issued under this section is disobeyed, 
the commission or its duly appointed agent may invoke the aid of a 
Travis County district court in requiring compliance with the 
subpoena. A Travis County district court may issue an order 
requiring the person to appear and testify and to produce books, 
records, papers, correspondence, and documents.  Failure to obey 
the order of the court shall be punished by the court as contempt.

Certified documents
	Sec. 3.06. Instead of requiring an affidavit or other sworn 
statement in any application or other document required to be filed 
with the commission, the commission may require a certification of 
the document under penalty of perjury in the form the commission may 
prescribe.

Officials of race meetings
	Sec. 3.07. (a) The commission shall employ all of the judges 
and all of the stewards for the supervision of a horse race or 
greyhound race meeting.  Each horse race or greyhound race meeting 
shall be supervised by three stewards for horse racing or by three 
judges for greyhound racing.  The commission shall designate one of 
the stewards or judges as the presiding steward or judge for each 
race meeting.  The association, following the completion of the 
race meeting, may submit written comments to the commission 
regarding the job performance of the stewards and judges for the 
commission's review.  Comments received are not binding, in any 
way, on the commission. For each race meeting, the commission shall 
employ at least one state veterinarian.  The commission may, by 
rule, impose a fee on an association to offset the costs of 
compensating the stewards, judges, and state veterinarians.  The 
amount of the fee for the compensation of stewards, judges, and 
state veterinarians must be reasonable according to industry 
standards for the compensation of those officials at other 
racetracks and may not exceed the actual cost to the commission for 
compensating the officials.  All other racetrack officials shall be 
appointed by the association, with the approval of the commission.  
Compensation for those officials not compensated by the commission 
shall be determined by the association.
	(b)  The commission shall make rules specifying the 
authority and the duties of each official, including the power of 
stewards or judges to impose penalties for unethical practices or 
violations of racing rules.  A penalty imposed by the stewards or 
judges may include a fine of not more than $5,000, a suspension for 
not more than one year, or both a fine and suspension.  Before 
imposing a penalty under this subsection, the stewards and judges 
shall conduct a hearing that is consistent with constitutional due 
process.  A hearing conducted by a steward or judge under this 
subsection is not subject to Chapter 2001, Government Code.  If, in 
the opinion of the stewards or judges, the allowable penalties are 
not sufficient, the stewards or judges may refer the case to the 
commission for further action.
	(c)  The commission shall require each steward or judge to 
take and pass both a written examination and a medical examination 
annually.  The commission by rule shall prescribe the methods and 
procedures for taking the examinations and the standards for 
passing.  Failure to pass an examination is a ground for refusal to 
issue an original or renewal license to a steward or judge or for 
suspension or revocation of such a license.
	(d)  Medication or drug testing performed on a race animal 
under this Act shall be conducted by the Texas Veterinary Medical 
Diagnostic Laboratory or by a laboratory operated by or in 
conjunction with or by a private or public agency selected by the 
commission after consultation with the Texas Veterinary Medical 
Diagnostic Laboratory. Medication or drug testing performed on a 
human under this Act shall be conducted by a laboratory approved by 
the commission.  Charges for services performed under this section 
shall be forwarded to the commission for approval as to the 
reasonableness of the charges for the services.  Charges may 
include but are not limited to expenses incurred for travel, 
lodging, testing, and processing of test results.  The reasonable 
charges associated with medication or drug testing conducted under 
this Act shall be paid by the association that receives the 
services.  The commission shall adopt rules for the procedures for 
approving and paying laboratory charges under this section.  The 
commission shall determine whether the laboratory charges are 
reasonable in relation to industry standards by periodically 
surveying the drug testing charges of comparable laboratories in 
the United States.  The commission shall forward a copy of the 
charges to the association that receives the services for immediate 
payment.
	(e)  To pay the charges associated with the medication or 
drug testing, an association may use the money held by the 
association to pay outstanding tickets and pari-mutuel vouchers.  
If additional amounts are needed to pay the charges, the 
association shall pay those additional amounts.  If the amount held 
exceeds the amount needed to pay the charges, the association shall 
pay the excess to the commission in accordance with Section 11.08 of 
this Act.
	(f)  The association is responsible for the cost of approved 
charges for animal drug testing services under this section.  The 
commission shall adopt rules to allocate responsibility for the 
costs of human drug testing of a licensee.
	(g)  A steward or judge may exercise the supervisory 
authority granted the steward or judge under this Act or commission 
rule, including the performance of supervisory acts requiring the 
exercise of discretion, on any day.

Appeal from decision of stewards or judges
	Sec. 3.08. (a) Except as provided by Subsection (b) of this 
section, a final decision of the stewards or judges may be appealed 
to the commission in the manner provided for a contested case under 
the Administrative Procedure and Texas Register Act (Article 
6252-13a, Vernon's Texas Civil Statutes).
	(b)  A decision of the stewards or judges on a 
disqualification for a foul in a race or on a finding of fact 
regarding the running of a race is final and may not be appealed.

Funding
	Sec. 3.09. (a) The comptroller shall deposit the state's 
share of each pari-mutuel pool from horse racing and greyhound 
racing in the General Revenue Fund.
	(b)  The commission shall deposit the money it collects under 
this Act in the State Treasury to the credit of a special fund to be 
known as the Texas Racing Commission fund.  The Texas Racing 
Commission fund may be appropriated only for the administration and 
enforcement of this Act.  Any unappropriated money remaining in 
that special fund at the close of each fiscal biennium shall be 
transferred to the General Revenue Fund and may be appropriated for 
any legal purpose.  The legislature may also appropriate money from 
the General Revenue Fund for the administration and enforcement of 
this Act.  Any amount of general revenue appropriated for the 
administration and enforcement of this Act in excess of the 
cumulative amount deposited in the Texas Racing Commission fund 
shall be reimbursed from the Texas Racing Commission fund not later 
than one year after the date on which the general revenue funds are 
appropriated, with 12 percent interest per year until August 31, 
1993, and 6-3/4 percent interest thereafter with all payments first 
attributable to interest.

Annual report
	Sec. 3.10. The commission shall make a report to the 
governor, lieutenant governor, and speaker of the house of 
representatives not later than January 31 of each year.  The report 
shall cover the operations of the commission and the condition of 
horse breeding and racing and greyhound breeding and racing during 
the previous year.  The commission shall also obtain from the 
Department of Public Safety a comprehensive report of any organized 
crime activities in this state which the department may wish to 
report and information concerning any and all illegal gambling 
which may be known to exist in the state and shall include the 
report by the department in its report and shall include any 
recommendations it considers appropriate.

Cooperation with peace officers
	Sec. 3.11. The commission shall cooperate with all district 
attorneys, criminal district attorneys, county attorneys, the 
Department of Public Safety, the attorney general, and all peace 
officers in enforcing this Act.  Under its authority to conduct 
criminal history information record checks under Section 5.04 of 
this Act, the commission shall maintain and exchange pertinent 
intelligence data with other states and agencies.

Reporting of violations
	Sec. 3.12. The commission's rules shall allow anonymous 
reporting of violations of this Act or of rules adopted by the 
commission.

Recognition of organization
	Sec. 3.13. (a) The commission by rule shall adopt criteria to 
recognize an organization to represent members of a segment of the 
racing industry, including owners, breeders, trainers, kennel 
operators, or other persons involved in the racing industry, in any 
interaction between the members of the organization and an 
association or the commission.
	(b)  The commission may recognize an organization that meets 
the requirements of Subsection (a) of this section.

Disciplinary actions
	Sec. 3.14. The commission shall revoke, suspend, or refuse to 
renew a license, place on probation a person whose license has been 
suspended, or reprimand a licensee for a violation of this Act or a 
rule of the commission.  If a license suspension is probated, the 
commission may require the licensee to report regularly to the 
commission on matters that are the basis of the probation.

Hearing requirements
	Sec. 3.15. If the commission proposes to suspend, revoke, or 
refuse to renew a person's license, the person is entitled to a 
hearing conducted by the State Office of Administrative Hearings.  
Proceedings for a disciplinary action, other than those conducted 
by racing stewards or judges, are governed by Chapter 2001, 
Government Code.  Rules of practice adopted by the commission under 
Section 2001.004, Government Code, applicable to the proceedings 
for a disciplinary action, other than those conducted by racing 
stewards or judges, may not conflict with rules adopted by the State 
Office of Administrative Hearings.

Rules relating to unlawful influences on racing
	Sec. 3.16. (a) The commission shall adopt rules prohibiting a 
person from unlawfully influencing or affecting the outcome of a 
race, including rules relating to the use of a prohibited device or 
prohibited substance at a racetrack or training facility.
	(b)  The commission may require prerace testing and shall 
require postrace testing to determine whether a prohibited 
substance has been used.  The testing may be by an invasive or 
noninvasive method.  The commission's rules shall require 
state-of-the-art testing methods.
	(c)  Following the discovery of a prohibited device or a 
return of a test showing the presence of a prohibited substance, a 
steward or judge may summarily suspend a person who has used or 
administered the prohibited device or prohibited substance until a 
hearing before the stewards and judges.  The steward or judge may 
also disqualify an animal as provided by a commission rule adopted 
under this section.
	(d)  Except as otherwise provided, a person may appeal a 
ruling of the stewards or judges to the commission.  The commission 
may stay a suspension during the period the matter is before the 
commission.
	(e)  The commission may require urine samples to be frozen 
for a period necessary to allow any follow-up testing to detect and 
identify a prohibited substance.  Any other specimen shall be 
maintained for testing purposes in a manner required by commission 
rule.
	(f)  If a test sample or specimen shows the presence of a 
prohibited substance, the entire sample, including any split 
portion remaining in the custody of the commission, shall be 
maintained until final disposition of the matter.
	(g)  A licensee whose animal test shows the presence of a 
prohibited substance is entitled to have a split portion of the test 
sample or specimen tested at a testing facility authorized to 
perform drug testing under this Act and selected by the licensee.  
The commission shall adopt rules relating to split testing 
procedures.
	(h)  The licensed trainer of an animal is:                                     
	(1)  considered by law to be the absolute ensurer that no 
prohibited substance has been administered to the animal;  and
	(2)  responsible for ensuring that no prohibited substance 
is administered to the animal.
	(i)  The commission shall adopt rules relating to the drug 
testing of licensees.
	(j)  A person who violates a rule adopted under this section 
may:            
	(1)  have any license issued to the person by the commission 
revoked or suspended;  or
	(2)  be barred for life or any other period from applying for 
or receiving a license issued by the commission or entering any 
portion of a racetrack facility.

Security for fees and charges
	Sec. 3.17. The commission may require an association to post 
security in an amount and form determined by the commission to 
adequately ensure the payment of any fees or charges due to the 
state or the commission relating to pari-mutuel racing, including 
charges for drug testing.

Cease and desist order
	Sec. 3.18. (a) The executive secretary may issue a cease and 
desist order if the executive secretary reasonably believes an 
association or other licensee is engaging or is likely to engage in 
conduct that violates this Act or a commission rule.
	(b)  On issuance of a cease and desist order, the executive 
secretary shall serve on the association or other licensee by 
personal delivery or registered or certified mail, return receipt 
requested, to the person's last known address, a proposed cease and 
desist order.  The proposed order must state the specific acts or 
practices alleged to violate this Act or a commission rule.  The 
proposed order must state its effective date.  The effective date 
may not be before the 21st day after the date the proposed order is 
mailed or delivered.  If the person against whom the proposed order 
is directed requests, in writing, a hearing before the effective 
date of the proposed order, the order is automatically stayed 
pending final adjudication of the order.  Unless the person against 
whom the proposed order is directed requests, in writing, a hearing 
before the effective date of the proposed order, the order takes 
effect and is final and nonappealable as to that person.
	(c)  On receiving a request for a hearing, the executive 
secretary shall serve notice of the time and place of the hearing by 
personal delivery or registered or certified mail, return receipt 
requested.  At a hearing, the commission has the burden of proof and 
must present evidence in support of the order.  Each person against 
whom the order is directed may cross-examine and show cause why the 
order should not be issued.
	(d)  After the hearing, the commission shall issue or decline 
to issue a cease and desist order.  The proposed order may be 
modified as necessary to conform to the findings at the hearing.  An 
order issued under this section is final for purposes of 
enforcement and appeal and shall require the person to immediately 
cease and desist from the conduct that violates this Act or a 
commission rule.
	(e)  A person affected by a cease and desist order issued, 
affirmed, or modified after a hearing may file a petition for 
judicial review in a district court of Travis County under Chapter 
2001, Government Code.  A petition for judicial review does not stay 
or vacate the order unless the court, after hearing, specifically 
stays or vacates the order.

Emergency cease and desist order
	Sec. 3.19. (a) The executive secretary may issue an emergency 
cease and desist order if the executive secretary reasonably 
believes an association or other licensee is engaged in a 
continuing activity that violates this Act or a commission rule in a 
manner that threatens immediate and irreparable public harm.
	(b)  After issuing an emergency cease and desist order, the 
executive secretary shall serve on the association or other 
licensee by personal delivery or registered or certified mail, 
return receipt requested, to the person's last known address, an 
order stating the specific charges and requiring the person 
immediately to cease and desist from the conduct that violates this 
Act or a commission rule.  The order must contain a notice that a 
request for hearing may be filed under this section.
	(c)  An association or other licensee that is the subject of 
an emergency cease and desist order may request a hearing.  The 
request must be filed with the executive secretary not later than 
the 10th day after the date the order was received or delivered.  A 
request for a hearing must be in writing and directed to the 
executive secretary and must state the grounds for the request to 
set aside or modify the order.  Unless a person who is the subject of 
the emergency order requests a hearing in writing before the 11th 
day after the date the order is received or delivered, the emergency 
order is final and nonappealable as to that person.
	(d)  On receiving a request for a hearing, the executive 
secretary shall serve notice of the time and place of the hearing by 
personal delivery or registered or certified mail, return receipt 
requested.  The hearing must be held not later than the 10th day 
after the date the executive secretary receives the request for a 
hearing unless the parties agree to a later hearing date.  At the 
hearing, the commission has the burden of proof and must present 
evidence in support of the order.  The person requesting the hearing 
may cross-examine witnesses and show cause why the order should not 
be affirmed.  Section 2003.021(b), Government Code, does not apply 
to hearings conducted under this section.
	(e)  An emergency cease and desist order continues in effect 
unless the order is stayed by the executive secretary.  The 
executive secretary may impose any condition before granting a stay 
of the order.
	(f)  After the hearing, the executive secretary shall 
affirm, modify, or set aside in whole or part the emergency cease 
and desist order.  An order affirming or modifying the emergency 
cease and desist order is final for purposes of enforcement and 
appeal.

Violation of final cease and desist order
	Sec. 3.20. (a) If the executive secretary reasonably believes 
that a person has violated a final and enforceable cease and desist 
order, the executive secretary may:
	(1)  initiate administrative penalty proceedings under 
Article 15 of this Act;
	(2)  refer the matter to the attorney general for enforcement 
by injunction and any other available remedy;  or
	(3)  pursue any other action, including suspension of the 
person's license, that the executive secretary considers 
appropriate.
	(b)  If the attorney general prevails in an action brought 
under Subsection (a)(2) of this section, the attorney general is 
entitled to recover reasonable attorney's fees.

Injunction
	Sec. 3.21. The commission may institute an action in its own 
name to enjoin the violation of this Act.  An action for an 
injunction is in addition to any other action, proceeding, or 
remedy authorized by law.

Enforcement regarding horsemen's account
	Sec. 3.22. (a) The commission, by rule, shall develop a 
system for monitoring the activities of managers and employees of 
an association relating to the horsemen's account.  The monitoring 
system may include review of the financial operations of the 
association, including inspections of records at the association's 
offices, at any racetrack, or at any other place the association 
transacts business.
	(b)  The executive secretary may issue an order prohibiting 
the association from making any transfer from a bank account held by 
the association for the conduct of its business under this Act, 
pending commission review of the records of the account, if the 
executive secretary reasonably believes that the association has 
failed to maintain the proper amount of money in the horsemen's 
account.  The executive secretary shall provide in the order a 
procedure for the association to pay certain expenses necessary for 
the operation of the racetrack, subject to the executive 
secretary's approval.  An order issued under this section may be 
made valid for a period not to exceed 14 days.
	(c)  The executive secretary may issue an order requiring the 
appropriate transfers to or from the horsemen's account if, after 
reviewing the association's records of its bank accounts, the 
executive secretary determines there is an improper amount of money 
in the horsemen's account.

ARTICLE 4. POWERS AND DUTIES OF COMPTROLLER

Books and records
	Sec. 4.01. All books, records, and financial statements 
required by the commission under Section 3.04 of this Act are open 
to inspection by the comptroller. The comptroller by rule may 
specify the form and manner in which the books, records, and 
statements are to be kept and reports are to be filed that relate to 
the state's share of a pari-mutuel pool.

Power of entry
	Sec. 4.02. The comptroller and the authorized agents of the 
comptroller may enter the office, racetrack, or other place of 
business of an association or totalisator licensee at any time to 
inspect books, records, or financial statements or to inspect and 
test the totalisator system to determine the accuracy of 
totalisator-generated reports and calculations pertaining to the 
state share of the pari-mutuel pool.

Rules
	Sec. 4.03. The comptroller may adopt rules for the 
enforcement of the comptroller's powers and duties under this Act.

Collection of state's portion of pari-mutuel pool
	Sec. 4.04. (a) The comptroller may prescribe by rule 
procedures for the collection and deposit of the state's portion of 
each pari-mutuel pool.  The state's portion of each pool shall be 
deposited by the association at the time and in the manner that the 
comptroller prescribes by rule.
	(b)  The comptroller by rule may require each association to 
post security in an amount estimated to be sufficient to cover the 
amount of state money that will be collected and held by an 
association between bank deposits to ensure payment of the state's 
portion of the pari-mutuel pool.  Cash, cashier's checks, surety 
bonds, irrevocable bank letters of credit, United States Treasury 
bonds that are readily convertible to cash, or irrevocable 
assignments of federally insured accounts in banks, savings and 
loan institutions, and credit unions are acceptable as security for 
purposes of this section.

Compliance
	Sec. 4.05. (a) If an association or totalisator company does 
not comply with a rule adopted by the comptroller under this 
article, refuses to allow access to or inspection of any of its 
required books, records, or financial statements, refuses to allow 
access to or inspection of the totalisator system, or becomes 
delinquent for the state's portion of the pari-mutuel pool or for 
any other tax collected by the comptroller, the comptroller shall 
certify that fact to the commission.
	(b)  With regard to the state's portion of the pari-mutuel 
pool and any penalties related to the state's portion, the 
comptroller, acting independently of the commission, may take any 
collection or enforcement actions authorized under the Tax Code 
against a delinquent or dilatory taxpayer.  Administrative appeals 
related to the state's portion of the pari-mutuel pool or late 
reporting or deposit of the state's portion shall be to the 
comptroller and then to the courts as under Title 2, Tax Code.  All 
other administrative appeals shall be to the commission and then to 
the courts.

Penalties for delayed reports and payments
	Sec. 4.06. An association incurs a penalty for the late 
payment of the state's portion of the pari-mutuel pool or reports 
related to the payment of that portion at the rate of five percent 
of the total amount due or $1,000, whichever is greater, for a 
report or payment not filed on or before the time it is due.  An 
additional penalty equal to one percent of the amount of the state's 
portion that is unpaid shall be added for each business day that the 
required report or payment is late up to a maximum penalty of 12 
percent.  The penalty may be waived in situations in which penalties 
would be waived under Section 111.103, Tax Code.

ARTICLE 5. GENERAL LICENSE PROVISIONS

Form;  certificate;  fees
	Sec. 5.01. (a) The commission shall prescribe forms for 
applications for licenses and shall provide each occupational 
licensee with a license certificate or credentials.
	(b)  The commission shall annually prescribe reasonable 
license fees for each category of license issued under this Act.
	(c)  The operation of a racetrack and the participation in 
racing are privileges, not rights, granted only by the commission 
by license and subject to reasonable and necessary conditions set 
by the commission.

Judicial review
	Sec. 5.02. (a) Judicial review of an order of the commission 
is under the substantial evidence rule.
	(b)  Venue for judicial review of an order of the commission 
is in a district court in Travis County.

Fingerprints
	Sec. 5.03. (a) An applicant for any license under this Act 
must, except as allowed under Section 7.10 of this Act, submit to 
the commission a complete set of fingerprints of the individual 
natural person applying for the license or, if the applicant is not 
an individual natural person, a complete set of fingerprints of 
each officer or director and of each person owning an interest of at 
least five percent in the applicant.  The Department of Public 
Safety may request any person owning any interest in an applicant 
for a racetrack license to submit a complete set of fingerprints.
	(b)  If a complete set of fingerprints is required by the 
commission, the commission shall, not later than the next day after 
receiving the prints, forward the prints to the Department of 
Public Safety or the Federal Bureau of Investigation.  If the prints 
are forwarded to the Department of Public Safety, the department 
shall classify the prints and check them against its fingerprint 
files and shall report to the commission its findings concerning 
the criminal record of the applicant or the lack of such a record.  A 
racetrack license may not be issued until the report is made to the 
commission.  A temporary occupational license may be issued before 
a report is made to the commission.
	(c)  A peace officer of this or any other state, or any 
district office of the commission, shall take the fingerprints of 
an applicant for a license on forms approved and furnished by the 
Department of Public Safety and shall immediately deliver them to 
the commission.

Access to criminal history records
	Sec. 5.04. (a) The commission is authorized to obtain any 
criminal history record information that relates to each applicant 
for employment by the commission and to each applicant for a license 
issued by the commission and that is maintained by the Department of 
Public Safety or the Federal Bureau of Investigation Identification 
Division.  The commission may refuse to recommend an applicant who 
fails to provide a complete set of fingerprints.
	(b)  Repealed by Acts 1993, 73rd Leg., ch. 790, Sec. 46(8), 
eff. Sept. 1, 1993.
	(c)  Repealed by Acts 1993, 73rd Leg., ch. 790, Sec. 46(8), 
eff. Sept. 1, 1993.

Cost of criminal history check
	Sec. 5.05. (a) The commission shall, in determining the 
amount of a license fee, set the fee in an amount that will cover, at 
least, the cost of conducting a criminal history check on the 
applicant for a license.
	(b)  The commission shall reimburse the Department of Public 
Safety for the cost of conducting a criminal history check under 
this article.

ARTICLE 6. RACETRACK LICENSES

License required
	Sec. 6.01. A person may not conduct wagering on a greyhound 
race or a horse race meeting without first obtaining a racetrack 
license from the commission.  A person who violates this section 
commits an offense.

Classification of horse-racing tracks
	Sec. 6.02. (a) Horse-racing tracks are classified as class 1 
racetracks, class 2 racetracks, class 3 racetracks, and class 4 
racetracks.  
	(b)  A class 1 racetrack is a racetrack on which live racing 
is conducted for a number of days in a calendar year, the number of 
days and the actual dates to be determined by the commission under 
Article 8 of this Act.  A class 1 racetrack may operate only in a 
county with a population of not less than 1.3 million, or in a 
county adjacent to a county with such a population.  Not more than 
three class 1 racetracks may be licensed and operated in this state.
	(c)  A class 2 racetrack is a racetrack on which live racing 
is conducted for a number of days to be determined by the commission 
under Article 8 of this Act. A class 2 racetrack is entitled to 
conduct 60 days of live racing in a calendar year.  An association 
may request additional or fewer days of live racing.  If after 
receipt of a request from an association the commission determines 
additional or fewer days to be economically feasible and in the best 
interest of the state and the racing industry, the commission shall 
grant the additional or fewer days. The commission may permit an 
association that holds a class 2 racetrack license and that is 
located in a national historic district to conduct horse races for 
more than 60 days in a calendar year.
	(d)  A class 3 racetrack is a racetrack operated by a county 
or a nonprofit fair under Article 12 of this Act. An association 
that holds a class 3 racetrack license and that conducted horse 
races in 1986 may conduct live races for a number of days not to 
exceed 16 days in a calendar year on the dates selected by the 
association.
	(e)  For purposes of this section live race dates are counted 
separately from the dates on which the association presents 
simulcast races.
	(f)  The number of race dates allowed under this section 
relates only to live race dates.  A racetrack may present simulcast 
races on other dates as approved by the commission.
	(g)  A class 4 racetrack is a racetrack operated by a county 
fair under Section 12.03 of this Act. An association that holds a 
class 4 racetrack license may conduct live races for a number of 
days not to exceed five days in a calendar year on dates selected by 
the association and approved by the commission.

Application
	Sec. 6.03. (a) The commission shall require each applicant 
for an original racetrack license to pay the required application 
fee and to submit an application, on a form prescribed by the 
commission, containing the following information:
	(1)  if the applicant is an individual, the full name of the 
applicant, the applicant's date of birth, a physical description of 
the applicant, the applicant's current address and telephone 
number, and a statement by the applicant disclosing any arrest or 
conviction for a felony or for a misdemeanor, except a misdemeanor 
under the Uniform Act Regulating Traffic on Highways (Article 
6701d, Vernon's Texas Civil Statutes) or a similar misdemeanor 
traffic offense;
	(2)  if the applicant is a corporation:                                        
	(A)  the state in which it is incorporated, the names and 
addresses of the corporation's agents for service of process in 
this state, the names and addresses of its officers and directors, 
the names and addresses of its stockholders, and, for each 
individual named under this subdivision, the individual's date of 
birth, current address and telephone number, and physical 
description, and a statement disclosing any arrest or conviction 
for a felony or for a misdemeanor, except a misdemeanor under the 
Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's 
Texas Civil Statutes) or a similar misdemeanor traffic offense;  
and
	(B)  identification of any other beneficial owner of shares 
in the applicant that bear voting rights, absolute or contingent, 
any other person that directly or indirectly exercises any 
participation in the applicant, and any other ownership interest in 
the applicant that the applicant making its best effort is able to 
identify;
	(3)  if the applicant is an unincorporated business 
association:             
	(A)  the names and addresses of each of its members and, for 
each individual named under this subdivision, the individual's date 
of birth, current address and telephone number, and physical 
description, and a statement disclosing any arrest or conviction 
for a felony or for a misdemeanor, except a misdemeanor under the 
Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's 
Texas Civil Statutes) or a similar misdemeanor traffic offense;  
and
	(B)  identification of any other person that exercises 
voting rights in the applicant or that directly or indirectly 
exercises any participation in the applicant and any other 
ownership interest in the applicant that the applicant making its 
best effort is able to identify;
	(4)  the exact location at which a race meeting is to be 
conducted;          
	(5)  if the racing facility is in existence, whether it is 
owned by the applicant and, if leased to the applicant, the name and 
address of the owner and, if the owner is a corporation or 
unincorporated business association, the names and addresses of its 
officers and directors, its stockholders and members, if any, and 
its agents for service of process in this state;  
	(6)  if construction of the racing facility has not been 
initiated, whether it is to be owned by the applicant and, if it is 
to be leased to the applicant, the name and address of the 
prospective owner and, if the owner is a corporation or 
unincorporated business association, the names and addresses of its 
officers and directors, the names and addresses of its 
stockholders, the names and addresses of its members, if any, and 
the names and addresses of its agents for service of process in this 
state;
	(7)  identification of any other beneficial owner of shares 
that bear voting rights, absolute or contingent, in the owner or 
prospective owner of the racing facility, or any other person that 
directly or indirectly exercises any participation in the owner or 
prospective owner and all other ownership interest in the owner or 
prospective owner that the applicant making its best effort is able 
to identify;
	(8)  a detailed statement of the assets and liabilities of 
the applicant;    
	(9)  the kind of racing to be conducted and the dates 
requested;             
	(10)  proof of residency as required by Section 6.06 of this 
Act;            
	(11)  a copy of each management, concession, and totalisator 
contract dealing with the proposed license at the proposed location 
in which the applicant has an interest for inspection and review by 
the commission;  the applicant or licensee shall advise the 
commission of any change in any management, concession, or 
totalisator contract;  all management, concession, and totalisator 
contracts must have prior approval of the commission;  the same 
fingerprint, criminal records history, and other information 
required of license applicants pursuant to Sections 5.03 and 5.04 
and Subdivisions (1) through (3) of this subsection shall be 
required of proposed totalisator firms, concessionaires, and 
managers and management firms;  and
	(12)  any other information required by the commission.                        
	(b)  When the commission receives a plan for the security of 
a racetrack facility, or a copy of a management, concession, or 
totalisator contract for review under Subdivision (11) of 
Subsection (a) of this section, the commission shall review the 
contract or security plan in an executive session.  Documents 
submitted to the commission under this section by an applicant are 
subject to discovery in a suit brought under this Act but are not 
public records and are not subject to Chapter 424, Acts of the 63rd 
Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's 
Texas Civil Statutes). In reviewing and approving contracts under 
this subsection, the commission shall attempt to ensure the 
involvement of minority owned businesses whenever possible.
	(c)  The application must be sworn to by the applicant or, if 
a corporation or association, by its chief executive officer.
	(d)  The application for an original racetrack license must 
be accompanied by an application fee in the form of a cashier's 
check or certified check.
	(e)  The minimum application fee for a horse racing track is 
$15,000 for a class 1 racetrack, $7,500 for a class 2 racetrack, 
$2,500 for a class 3 racetrack, and $1,500 for a class 4 racetrack.  
The minimum application fee for a greyhound racing track is 
$20,000. Using the minimum fees, the commission by rule shall 
establish a schedule of application fees for the various types and 
sizes of racing facilities.  The commission shall set the 
application fees in amounts that are reasonable and necessary to 
cover the costs of administering this Act.
	(f)  If the applicant is a nonprofit corporation, only 
directors and officers of the corporation must disclose the 
information required under Subdivision (2) of Subsection (a) of 
this section.
	(g)  The burden of proof is on the applicant to show 
compliance with this Act and with the rules of the commission.  An 
applicant who does not show the necessary compliance is not 
eligible for a license under this article.
	(h)  In considering an application for a horse racetrack 
license under this section, the commission shall give additional 
weight to evidence concerning an applicant who has experience 
operating a horse racetrack licensed under this Act.
	(i)  Notwithstanding this section, if a licensed track 
petitions for an upgrade in the classification of the track, the 
fees and charges imposed shall be the difference between the fees 
and charges previously paid and the fees and charges for the 
upgraded facility classification.

Background check
	Sec. 6.031. The commission shall require a complete personal, 
financial, and business background check of the applicant or any 
person owning an interest in or exercising control over an 
applicant for a racetrack license, the partners, stockholders, 
concessionaires, management personnel, management firms, and 
creditors and shall refuse to issue or renew a license or approve a 
concession or management contract if, in the sole discretion of the 
commission, the background checks reveal anything which might be 
detrimental to the public interest or the racing industry. The 
commission may not hold a hearing on the application, or any part of 
the application, of an applicant for a racetrack license before the 
completed background check of the applicant has been on file with 
the commission for at least 14 days.

Issuance of license;  bond
	Sec. 6.04. (a) The commission may issue a racetrack license 
to a qualified person if it finds that the conduct of race meetings 
at the proposed track and location will be in the public interest, 
complies with all zoning laws, and complies with this Act and the 
rules adopted by the commission and if the commission finds by clear 
and convincing evidence that the applicant will comply with all 
criminal laws of this state.  In determining whether to grant or 
deny an application for any class of racetrack license, the 
commission may consider the following factors:
	(1)  the applicant's financial stability;                                      
	(2)  the applicant's resources for supplementing the purses 
for races for various breeds;
	(3)  the location of the proposed track;                                       
	(4)  the effect of the proposed track on traffic flow;                         
	(5)  facilities for patrons and occupational licensees;                        
	(6)  facilities for race animals;                                              
	(7)  availability to the track of support services and 
emergency services;   
	(8)  the experience of the applicant's employees;                              
	(9)  the potential for conflict with other licensed race 
meetings;           
	(10)  the anticipated effect of the race meeting on the 
greyhound or horse breeding industry in this state;  and
	(11)  the anticipated effect of the race meeting on the state 
and local economy from tourism, increased employment, and other 
sources.
	(b)  Before issuance of a license under this article, an 
applicant for a racetrack license must post security in an amount 
determined by the commission to adequately ensure the association's 
compliance with this Act and the rules of the commission.  Cash, 
cashier's checks, surety bonds, irrevocable bank letters of credit, 
United States Treasury bonds that are readily convertible to cash, 
or irrevocable assignments of federally insured deposits in banks, 
savings and loan institutions, and credit unions are acceptable as 
security for purposes of this section. The security shall be 
conditioned on compliance with this Act and the rules adopted under 
this Act and shall be returned after the conditions of the security 
are met.
	(c)  The commission shall not issue licenses for more than 
three greyhound racetracks in this state.  Those racetracks must be 
located in counties that border the Gulf of Mexico.
	(d)  In considering an application for a class 4 racetrack 
license, the commission may waive or defer compliance with the 
commission's standards regarding the physical facilities or 
operations of a horse racetrack.  The commission may not waive or 
defer compliance with standards that relate to the testing of 
horses or licensees for the presence of a prohibited drug, 
chemical, or other substance.  If the commission defers compliance, 
the commission shall, when granting the application, establish a 
schedule under which the licensee must comply with the standards.
	Sec. 6.05. Repealed by Acts 1991, 72nd Leg., ch. 386, Sec. 
74(a), eff. Aug. 26, 1991.

Racetrack licenses;  grounds for denial, revocation, and suspension
	Sec. 6.06. (a) To preserve and protect the public health, 
welfare, and safety, the commission shall adopt rules relating to 
license applications, the financial responsibility, moral 
character, and ability of applicants, and all matters relating to 
the planning, construction, and operation of racetracks.  The 
commission may refuse to issue a racetrack license or may revoke or 
suspend a license if, after notice and hearing, it has reasonable 
grounds to believe and finds that:
	(1)  the applicant has been convicted in a court of competent 
jurisdiction of a violation of this Act or any rule adopted by the 
commission or that the applicant has aided, abetted, or conspired 
with any person to commit such a violation;
	(2)  the applicant has been convicted of a felony or of any 
crime involving moral turpitude, including convictions for which 
the punishment received was a suspended sentence, probation, or a 
nonadjudicated conviction, that is reasonably related to the 
applicant's present fitness to hold a license under this Act;
	(3)  the applicant has violated or has caused to be violated 
this Act or a rule of the commission in a manner that involves moral 
turpitude, as distinguished from a technical violation of this Act 
or of a rule;
	(4)  the applicant is unqualified, by experience or 
otherwise, to perform the duties required of a licensee under this 
Act;
	(5)  the applicant failed to answer or falsely or incorrectly 
answered a question in an application;
	(6)  the applicant fails to disclose the true ownership or 
interest in a greyhound or horse as required by the rules of the 
commission;
	(7)  the applicant is indebted to the state for any fees or 
for the payment of a penalty imposed by this Act or by a rule of the 
commission;
	(8)  the applicant is not of good moral character or the 
applicant's reputation as a peaceable, law-abiding citizen in the 
community where the applicant resides is bad;
	(9)  the applicant has not yet attained the minimum age 
necessary to purchase alcoholic beverages in this state;
	(10)  the applicant is in the habit of using alcoholic 
beverages to an excess or uses a controlled substance as defined in 
Chapter 481, Health and Safety Code, or a dangerous drug as defined 
in Chapter 483, Health and Safety Code, or is mentally 
incapacitated;
	(11)  the applicant may be excluded from a track enclosure 
under this Act;   
	(12)  the applicant has not been a United States citizen 
residing in this state for the period of 10 consecutive years 
immediately preceding the filing of the application;
	(13)  the applicant has improperly used a license 
certificate, credential, or identification card issued under this 
Act;
	(14)  the applicant is residentially domiciled with a person 
whose license has been revoked for cause within the 12 months 
immediately preceding the date of the present application;
	(15)  the applicant has failed or refused to furnish a true 
copy of the application to the commission's district office in the 
district in which the premises for which the permit is sought are 
located;
	(16)  the applicant is engaged or has engaged in activities 
or practices that the commission finds are detrimental to the best 
interests of the public and the sport of greyhound racing or horse 
racing;  or
	(17)  the applicant fails to fully disclose the true owners 
of all interests, beneficial or otherwise, in a proposed racetrack 
facility.
	(b)  Subsection (a) of this section applies to a corporation, 
partnership, limited partnership, or any other organization or 
group whose application is comprised of more than one person if a 
shareholder, partner, limited partner, director, or officer is 
disqualified under Subsection (a) of this section.
	(c)  A license for operation of a class 1 or class 2 racetrack 
or a greyhound racetrack may not be issued to a corporation unless 
the corporation is incorporated under the laws of this state and a 
majority of the stock, if any, of the corporation is owned at all 
times by individuals who meet the residency qualifications 
prescribed by this section for individual applicants.
	(d)  The majority ownership of a partnership, firm, or 
association applying for or holding a license must be held by 
citizens who meet the residency qualifications enumerated in this 
section for individual applicants.  A corporation holding a license 
to operate a racetrack under this Act that violates this subsection 
is subject to forfeiture of its charter, and the attorney general, 
on receipt of information relating to such a violation, shall file 
suit in a district court of Travis County for cancellation of the 
charter and revocation of the license issued under this Act. 
Subterfuge in the ownership and operation of a racetrack shall be 
prevented, and this Act shall be liberally construed to carry out 
this intent.
	(e)  The commission may condition the issuance of a license 
under this article on the observance of its rules.  The commission 
may amend the rules at any time and may condition the continued 
holding of the license on compliance with the rules as amended.
	(f)  The commission may refuse to issue a license or may 
suspend or revoke a license of a licensee under this article who 
knowingly or intentionally allows access to an enclosure where 
greyhound races or horse races are conducted to a person who has 
engaged in bookmaking, touting, or illegal wagering, whose income 
is from illegal activities or enterprises, or who has been 
convicted of a violation of this Act.
	(g)  A person awarded a management contract to operate a 
racetrack must meet all of the requirements of this section.
	(h)  A person may not own more than a five percent interest in 
more than two racetracks licensed under this Act.
	(i)  Subsections (a)(12), (c), and (d) of this section do not 
apply to an applicant for or the holder of a racetrack license if 
the applicant, the license holder, or the license holder's parent 
company is a publicly traded company.

Regulation of inappropriate or unsafe conditions
	Sec. 6.061. (a) The commission shall adopt rules implementing 
this section, including rules:
	(1)  requiring the report of and correction of:                                
	(A)  an inappropriate condition on the premises of a 
racetrack facility, including a failure to properly maintain the 
facility, that interferes with the administration of this Act;  or
	(B)  a condition on the premises of a racetrack facility that 
makes the facility unsafe for a race participant, patron, or 
animal;  and
	(2)  determining the methods and manner in which the 
executive secretary may determine and remedy inappropriate 
conditions or unsafe facilities on the premises of a racetrack 
facility, including the methods and manner in which the executive 
secretary may conduct inspections of the racetrack facility and 
remedy emergency situations.
	(b)  The executive secretary shall issue a notice of 
violation to a racetrack facility on a finding that an 
inappropriate or unsafe condition exists.
	(c)  If the executive secretary determines that an 
inappropriate or unsafe condition exists at the racetrack facility, 
the executive secretary shall order the racetrack facility to take 
action within a specified period to remedy the inappropriate 
condition or unsafe condition.  In determining the period for 
compliance, the executive secretary shall consider the nature and 
severity of the problem and the threat to the health, safety, and 
welfare of the race participants, patrons, or animals.
	(d)  The commission shall adopt rules requiring the 
reporting of any corrective action taken by a racetrack facility in 
response to an order of the executive secretary under Subsection 
(c) of this section.
	(e)  If a racetrack facility fails to take any action as 
required under Subsection (c) of this section, the executive 
secretary shall initiate an enforcement action against the 
racetrack facility.  The executive secretary may rescind any live 
or simulcast race date of any racetrack association that does not 
take corrective action within the period set by the executive 
secretary.
	(f)  The commission shall adopt rules relating to the 
commission's review of an action taken under this section by the 
executive secretary.  A review procedure adopted under this 
subsection must be consistent with Chapter 2001, Government Code.

Supervision of changes to premises
	Sec. 6.062. (a) The commission shall adopt a method of 
supervising and approving the construction, renovation, or 
maintenance of any building or improvement on the premises of a 
racetrack facility.
	(b)  The commission shall adopt rules relating to:                             
	(1)  the approval of plans and specifications;                                 
	(2)  the contents of plans and specifications;                                 
	(3)  the maintenance of records to ensure compliance with 
approved plans and specifications;
	(4)  the content and filing of construction progress reports 
by the racetrack facility to the commission;
	(5)  the inspection by the commission or others;                               
	(6)  the method for making a change or amendment to an 
approved plan or specification;  and
	(7)  any other method of supervision or oversight necessary.                   
	(c)  If the commission has grounds to believe that an 
association has failed to comply with the requirements of this 
section, a representative of the association shall appear before 
the commission to consider the issue of compliance with the rules 
adopted under this section.
	(d)  Before a building or improvement may be used by the 
association, the commission shall determine whether the 
construction, renovation, or maintenance of the building or 
improvement was completed in accordance with the approved plans and 
specifications and whether other requirements of the commission 
were met.
	(e)  If the commission determines that the association 
failed to comply with a requirement of this section or rule adopted 
under this section, the commission shall initiate an enforcement 
action against the association.  In addition to any other 
authorized enforcement action, the commission may rescind any live 
or simulcast race date of any association that has failed to comply 
with the requirement of this section.

Summary suspension
	Sec. 6.063. (a) The commission may summarily suspend a 
racetrack license if the commission determines that a racetrack at 
which races or pari-mutuel wagering are conducted under the license 
is being operated in a manner that constitutes an immediate threat 
to the health, safety, or welfare of the participants in racing or 
the patrons.
	(b)  After issuing a summary suspension order, the executive 
secretary shall serve on the association by personal delivery or 
registered or certified mail, return receipt requested, to the 
licensee's last known address, an order stating the specific 
charges and requiring the licensee immediately to cease and desist 
from all conduct permitted by the license.  The order must contain a 
notice that a request for hearing may be filed under this section.
	(c)  An association that is the subject of a summary 
suspension order may request a hearing.  The request must be filed 
with the executive secretary not later than the 10th day after the 
date the order was received or delivered.  A request for a hearing 
must be in writing and directed to the executive secretary and must 
state the grounds for the request to set aside or modify the order.  
Unless a licensee who is the subject of the order requests a hearing 
in writing before the 11th day after the date the order is received 
or delivered, the order is final and nonappealable as to that 
licensee.
	(d)  On receiving a request for a hearing, the executive 
secretary shall serve notice of the time and place of the hearing by 
personal delivery or registered or certified mail, return receipt 
requested.  The hearing must be held not later than the 10th day 
after the date the executive secretary receives the request for a 
hearing unless the parties agree to a later hearing date.  At the 
hearing, the commission has the burden of proof and must present 
evidence in support of the order.  The licensee requesting the 
hearing may cross examine witnesses and show cause why the order 
should not be affirmed.  Section 2003.021(b), Government Code, does 
not apply to hearings conducted under this section.
	(e)  A summary suspension order continues in effect unless 
the order is stayed by the executive secretary.  The executive 
secretary may impose any condition before granting a stay of the 
order.
	(f)  After the hearing, the executive secretary shall 
affirm, modify, or set aside in whole or part the summary suspension 
order.  An order affirming or modifying the summary suspension 
order is final for purposes of enforcement and appeal.

Lease
	Sec. 6.07. (a) The commission may adopt rules to authorize an 
association, as lessee, to contract for the lease of a racetrack and 
the surrounding structures.
	(b)  The commission may not approve a lease if:                                
	(1)  it appears that the lease is a subterfuge to evade 
compliance with Section 6.05 or 6.06 of this Act;
	(2)  the racetrack and surrounding structures do not conform 
to the rules adopted under this Act;  or
	(3)  the lessee, prospective lessee, or lessor is 
disqualified from holding a racetrack license.
	(c)  Each lessor and lessee under this section must comply 
with the disclosure requirements of Subdivision (1) of Subsection 
(a) of Section 6.03 of this Act.  The commission may not approve a 
lease if the lessor and lessee do not provide the required 
information.

Special provisions relating to horse racing:  deductions from pool;  
allocations of shares and breakage
	Sec. 6.08. (a) An amount shall be deducted from each wagering 
pool to be distributed as provided by Subsections (b) through (e) of 
this section.  The total maximum deduction from a regular wagering 
pool is 18 percent.  The total maximum deduction from a multiple two 
wagering pool is 21 percent.  The total maximum deduction from a 
multiple three wagering pool is 25 percent.
	(b)(1) A horse racing association shall set aside for purses 
an amount not less than seven percent of a live regular wagering 
pool or live multiple two wagering pool and not less than 8.5 
percent of a live multiple three wagering pool.
	(2)  A horse racing association, after January 1, 1999, shall 
set aside from simulcast pools for purses not less than the 
following amounts from the takeout of the sending racetrack:
	(A)  38.8 percent of the regular wagering pool;                                
	(B)  33.3 percent of the multiple two wagering pool;  and                      
	(C)  34 percent of the multiple three wagering pool.                           

If the cost of the simulcast signal exceeds five percent of the 
simulcast handle, the receiving horse racing association shall 
split the cost of the signal in excess of five percent evenly with 
the horsemen's organization by allocating the cost against the 
purse money derived from that simulcast signal.
	(3)  The horse racing association shall transfer the amount 
set aside for purses from any live and simulcast pools and shall 
deposit the amounts in purse accounts maintained by breed by the 
horsemen's organization in one or more federally insured 
depositories.  Legal title to purse accounts is vested in the 
horsemen's organization.  The horsemen's organization may contract 
with an association to manage and control the purse accounts and to 
make disbursements from the purse accounts:
	(A)  to an owner whose horse won a purse;                                      
	(B)  to the horsemen's organization for its expenses;  or                      
	(C)  for other disbursements as provided by contract between 
the horsemen's organization and the association.
	(4)  An association, after January 1, 1999, may pay a portion 
of the revenue set aside under this subsection to an organization 
recognized under Section 3.13 of this Act, as provided by a contract 
approved by the commission.
	(c)  Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 54, 
eff. Sept. 1, 1997.
	(d)  A horse racing association shall set aside for the 
Texas-bred program as provided by Subsection (f) of this section an 
amount equal to one percent of a live multiple two wagering pool and 
a live multiple three wagering pool.
	(e)  The remainder of the amount deducted under Subsection 
(a) of this section from a regular wagering pool, a multiple two 
wagering pool, or a multiple three wagering pool, after allocation 
of the amounts specified in Subsections (b), (c), and (d) of this 
section, shall be retained by the association as its commission.
	(f)  The amount of a multiple two wagering pool or a multiple 
three wagering pool set aside under Subsection (d) of this section 
for the Texas-bred program is in addition to any money received from 
the breakage.  Of the amount set aside under Subsection (d) of this 
section, two percent shall be set aside for deposit in the equine 
research account under Subchapter F, Chapter 88, Education Code, 
and, of the remaining 98 percent, 10 percent may be used by the 
appropriate breed registry for administration and the remaining 90 
percent shall be used for awards.
	(g)  The commission shall adopt rules relating to the 
accounting, audit, and distribution of all amounts set aside for 
the Texas-bred program under this section.
	(h)  Two percent of the breakage shall be allocated to the 
equine research account under Subchapter F, Chapter 51, Education 
Code.  The remaining 98 percent of the breakage shall constitute 
"total breakage" and shall be allocated pursuant to Subsections (i) 
and (j) of this section.
	(i)  Ten percent of the total breakage from a live 
pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to 
the commission for use by the appropriate state horse breed 
registry, subject to rules promulgated by the commission. The 
appropriate breed registry for Thoroughbred horses is the Texas 
Thoroughbred Breeders Association, for quarter horses is the Texas 
Quarter Horse Association, for Appaloosa horses is the Texas 
Appaloosa Horse Club, for Arabian horses is the Texas Arabian 
Breeders Association, and for paint horses is the Texas Paint Horse 
Breeders Association.
	(j)  Ten percent of the total breakage from a live 
pari-mutuel pool or a simulcast pari-mutuel pool is to be retained 
by the association to be used in stakes races restricted to 
accredited Texas-bred horses. The appropriate state horse breed 
registry shall pay out the remaining 80 percent of the total 
breakage as follows:
	(1)  40 percent of the remaining breakage is allocated to the 
owners of the accredited Texas-bred horses that finish first, 
second, or third;
	(2)  40 percent is allocated to the breeders of the 
accredited Texas-bred horses that finish first, second, or third;  
and
	(3)  20 percent is allocated to the owner of the stallion 
standing in this state at the time of conception whose Texas-bred 
get finish first, second, or third.
	(k)  For purposes of this section:                                             
	(1)  "Horse owner" means a person who is owner of record of an 
accredited Texas-bred horse at the time of a race;
	(2)  "Breeder" means a person who, according to the rules of 
the appropriate state horse breed registry, is the breeder of the 
accredited Texas-bred horse;  and
	(3)  "Stallion owner" means a person who is owner of record, 
at the time of conception, of the stallion that sired the accredited 
Texas-bred horse.
	(l)  An association may not make a deduction or withhold any 
percentage of a purse from the account into which the purse paid to 
a horse owner is deposited for membership payments, dues, 
assessments, or any other payments to an organization except an 
organization of the horse owner's choice.
	(m)  If a share of the breakage cannot be distributed to the 
person who is entitled to a share, the appropriate breed registry 
shall retain that share.
	(n)  An accredited Texas-bred Thoroughbred or Arabian horse 
described by Section 1.03(21)(C) of this Act is eligible for only 
one-half of the incentives awarded under Subsections (f) and (j)(2) 
of this section.  The remaining portion shall be retained by the 
appropriate state horse breed registry for general distribution at 
the same meeting in accordance with Subsections (f) and (j) of this 
section.

Disposition of pari-mutuel pools at greyhound races
	Sec. 6.09. (a) Every association authorized under this Act to 
conduct pari-mutuel wagering at a greyhound race meeting on races 
run shall distribute all sums deposited in any pari-mutuel pool to 
the holders of the winning tickets if those tickets are presented 
for payment within 60 days after the closing day of the race meeting 
at which the pool was formed, less an amount paid as a commission of 
18 percent of the total deposits in pools resulting from regular 
win, place, and show wagering, and an amount not to exceed 21 
percent of the total deposits in pools resulting from multiple two 
wagering and an amount not to exceed 25 percent of the total 
deposits in pools resulting from multiple three wagering.
	(b)  Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 54, 
eff. Sept. 1, 1997.
	(c)  On each racing day, the association shall pay:                            
	(1)  the fee due the state to the comptroller;  and                            
	(2)  the 50 percent of the breakage due the state to the 
commission.         
	(d)  Fifty percent of the breakage is to be paid to the 
appropriate state greyhound breeding registry.  Of that portion of 
the breakage 25 percent of that breakage is to be used in stakes 
races and 25 percent of that total breakage from a live pari-mutuel 
pool or a simulcast pari-mutuel pool is to be paid to the commission 
for the use by the state greyhound breed registry, subject to rules 
promulgated by the commission.
	(e)  The deductions and allocations made pursuant to this 
section are applicable to live pari-mutuel pools.
	(f)  The commission in adopting rules relating to money paid 
to the commission for use by the state greyhound breed registry 
under Subsection (d) of this section shall require the award of a 
grant in an amount equal to two percent of the amount paid to the 
commission for use by the state greyhound breed registry to a person 
for the rehabilitation of greyhounds or to locate homes for 
greyhounds.

Distribution of deductions from simulcast pari-mutuel pool
	Sec. 6.091. (a) An association shall distribute from the 
total amount deducted as provided by Sections 6.08(a) and 6.09(a) 
of this Act from each simulcast pari-mutuel pool and each simulcast 
cross-species pool the following shares:
	(1)(A) until January 1, 1999, an amount equal to 0.25 percent 
of each simulcast pari-mutuel pool and each simulcast cross-species 
simulcast pool as the amount set aside to reimburse the general 
revenue fund for amounts that are appropriated for the 
administration and enforcement of this Act and that are in excess of 
the cumulative amount of funds deposited in the Texas Racing 
Commission fund, until the excess amount and interest on the excess 
amount are fully reimbursed;
	(B)  an amount equal to one percent of each simulcast pool as 
the amount set aside for the state;  and
	(C)  an amount equal to 1.25 percent of each cross-species 
simulcast pool as the amount set aside for the state;
	(2)  an amount equal to 0.25 percent of each pool set aside to 
reimburse the general revenue fund for amounts that are 
appropriated for the administration and enforcement of this Act and 
that are in excess of the cumulative amount of funds deposited in 
the Texas Racing Commission fund, until the excess amount and 
interest on the excess amount are fully reimbursed;
	(3)  if the association is a horse racing association, an 
amount equal to one percent of a multiple two wagering pool or 
multiple three wagering pool as the amount set aside for the 
Texas-bred program to be used as provided by Section 6.08(f) of this 
Act;
	(4)  if the association is a greyhound association, an amount 
equal to one percent of a multiple two wagering pool or a multiple 
three wagering pool as the amount set aside for the Texas-bred 
program for greyhound races, to be distributed and used in 
accordance with rules of the commission adopted to promote 
greyhound breeding in this state;  and
	(5)  the remainder as the amount set aside for purses, 
expenses, the sending association, and the receiving location 
pursuant to a contract approved by the commission between the 
sending association and the receiving location.
	(b)  Section 6.09(b)(1) of this Act does not apply to amounts 
deducted from a simulcast pari-mutuel pool in a greyhound race.
	(c)  A greyhound racetrack association that receives an 
interstate cross-species simulcast signal shall distribute the 
following amounts from the total amount deducted as provided by 
Subsection (a) of this section from each pool wagered on the signal 
at the facility:
	(1)  a fee of 1.5 percent to be paid to the racetrack facility 
in this state sending the signal;
	(2)  a purse in the amount of 0.75 percent to be paid to the 
official state breed registry for thoroughbred horses for use as 
purses at racetracks in this state;
	(3)  a purse in the amount of 0.75 percent to be paid to the 
official state breed registry for quarter horses for use as purses 
at racetracks in this state;  and
	(4)  a purse of 4.5 percent to be escrowed with the 
commission for purses in the manner set forth in Subsection (e) of 
this section.
	(d)  A horse racetrack association receiving an interstate 
cross-species simulcast signal shall distribute the following 
amounts from the total amount deducted as provided by Subsection 
(a) of this section from each pool wagered on the signal at the 
facility:
	(1)  a fee of 1.5 percent to be paid to the racetrack facility 
in this state sending the signal;  and
	(2)  a purse in the amount of 5.5 percent to be paid to the 
official state breed registry for greyhounds for use at racetracks 
in this state.  The breed registry may use not more than 20 percent 
of this amount to administer this subdivision.
	(e)  The purse set aside under Subsection (c)(4) of this 
section shall be deposited into an escrow account in the registry of 
the commission.  Any horse racetrack association in this state may 
apply to the commission for receipt of all or part of the escrowed 
purse account for use as purses.  The commission shall determine to 
which horse racetracks the escrowed purse account shall be 
allocated and in what percentages, taking into consideration purse 
levels, racing opportunities, and the financial status of the 
requesting racetrack.  The first distribution of the escrowed purse 
account allocated to a racetrack under this section may not be made 
before October 1, 1998.
	(f)  After October 15, 1998, a horse racetrack association 
that is located not more than 75 miles from a greyhound racetrack 
facility that offers wagering on a cross-species simulcast signal 
may apply to the commission for an additional allocation of up to 20 
percent of the funds in the escrowed purse account that is 
attributable to the wagering on a cross-species simulcast signal at 
the greyhound racetrack facility, if the horse racetrack facility 
sends the cross-species simulcast signal to the greyhound 
racetrack.  If the applying horse racetrack can prove to the 
commission's satisfaction that a decrease in the racetrack's handle 
has occurred that is directly due to wagering on an interstate 
cross-species simulcast signal at a greyhound racetrack facility 
that is located not more than 75 miles from the applying racetrack, 
the commission shall allocate the amounts from the escrowed purse 
account as the commission considers appropriate to compensate the 
racetrack for the decrease, but the amount allocated may not exceed 
20 percent of the funds in the escrowed purse account that are 
attributable to the wagering on the interstate cross-species 
simulcast signal at the greyhound racetrack facility.  Any amount 
allocated by the commission under this subsection may be used by the 
racetrack facility for any purpose.
	(g)  If a racing association purchases an interstate 
simulcast signal and the cost of the signal is more than five 
percent of the pari-mutuel pool, the commission shall reimburse the 
racing association an amount equal to one-half of the signal cost 
that is more than five percent of the pari-mutuel pool from the 
escrowed purse account under Subsection (c)(4) of this section.
	(h)  A racetrack facility offering wagering on an intrastate 
cross-species simulcast signal shall send the purse amount 
specified under Subsection (c)(4) or (d)(2) of this section, as 
appropriate, to the racetrack facility conducting the live race 
that is being simulcast.
	(i)  A racing facility conducting a live race that is being 
simulcast may charge the receiving racetrack facility a host fee in 
addition to the amounts described in this section.
	(j)  The commission shall adopt rules relating to this 
section and the oversight of amounts allocated under Subsections 
(c) and (d) of this section.

Oversight of use of funds generated by pari-mutuel racing
	Sec. 6.092. (a) The commission shall adopt reporting, 
monitoring, and auditing requirements or other appropriate 
performance measures for any funds distributed to or used by or any 
function or service provided by the expenditure of any funds 
distributed to or used by any organization that receives funds 
generated by live or simulcast pari-mutuel racing.
	(b)  The commission shall adopt the requirements or 
performance measures after consultation with the affected 
organization.  In adopting the rules, the commission shall give 
consideration to the concerns of the affected organization.
	(c)  An organization receiving funds generated by live or 
simulcast pari-mutuel racing shall annually file with the 
commission a copy of an audit report prepared by an independent 
certified public accountant.  The audit shall include a 
verification of any performance report sent to or required by the 
commission.
	(d)  The commission may review any records or books of an 
organization that submits an independent audit to the commission as 
the commission determines necessary to confirm or further 
investigate the findings of an audit or report.
	(e)  The commission by rule may suspend or withhold funds 
from an organization that:
	(1)  it determines has failed to comply with the requirements 
or performance measures adopted under Subsection (a) of this 
section;  or
	(2)  has, following an independent audit or other report to 
the commission, material questions raised on the use of funds by the 
organization.

Deductions from live pari-mutuel pool
	Sec. 6.093. (a)(1) A horse racing association, until January 
1, 1999, shall set aside for the state:
	(A)  an amount equal to one percent of each live pari-mutuel 
pool from the first $100 million of the total amount of all live 
pari-mutuel pools of the association in a calendar year;
	(B)  an amount equal to two percent of each live pari-mutuel 
pool from the next $100 million of the total amount of all live 
pari-mutuel pools of the association in a calendar year;
	(C)  an amount equal to three percent of the next $100 
million of the total amount of all live pari-mutuel pools of the 
association in a calendar year;
	(D)  an amount equal to four percent of the next $100 million 
of the total amount of all live pari-mutuel pools of the association 
in a calendar year;  and
	(E)  an amount equal to five percent of each live pari-mutuel 
pool from the amount of all live pari-mutuel pools of the 
association in a calendar year not covered by Paragraphs (A) 
through (D) of this subdivision.
	(2)  A greyhound racing association, until January 1, 1999, 
shall set aside for the state:
	(A)  an amount equal to two percent of each live pari-mutuel 
pool from the first $100 million of the total amount of all live 
pari-mutuel pools of the association in a calendar year;
	(B)  an amount equal to three percent of each live 
pari-mutuel pool from the next $100 million of the total amount of 
all live pari-mutuel pools of the association in a calendar year;
	(C)  an amount equal to four percent of each live pari-mutuel 
pool from the next $100 million of the total amount of all live 
pari-mutuel pools of the association in a calendar year;
	(D)  an amount equal to five percent of each live pari-mutuel 
pool from the total amount of all live pari-mutuel pools of the 
association in a calendar year not covered by Paragraphs (A) 
through (C) of this subdivision;  and
	(E)  50 percent of the breakage.                                               
	(3)  All amounts set aside by the association for the state 
in Subdivisions (1) and (2) of this subsection shall be applied to 
the reimbursement of all amounts of general revenue appropriated 
for the administration and enforcement of this Act in excess of the 
cumulative amount deposited to the Texas Racing Commission fund 
until the earlier of:
	(A)  the excesses together with interest thereon are 
reimbursed in full;  or 
	(B)  January 1, 1999.                                                          
	(b)  On or after January 1, 1999, a horse or greyhound racing 
association shall set aside for the state from the live pari-mutuel 
pool at the association:
	(1)  an amount equal to one percent of each live pari-mutuel 
pool from the total amount of all live pari-mutuel pools of the 
association in a calendar year in excess of $100 million but less 
than $200 million;
	(2)  an amount equal to two percent of each live pari-mutuel 
pool from the total amount of all live pari-mutuel pools of the 
association in a calendar year in excess of $200 million but less 
than $300 million;
	(3)  an amount equal to three percent of each live 
pari-mutuel pool from the total amount of all live pari-mutuel 
pools of the association in a calendar year in excess of $300 
million but less than $400 million;
	(4)  an amount equal to four percent of each live pari-mutuel 
pool from the total amount of all live pari-mutuel pools of the 
association in a calendar year in excess of $400 million but less 
than $500 million;  and
	(5)  an amount equal to five percent of each live pari-mutuel 
pool from the total amount of all live pari-mutuel pools of the 
association in a calendar year in excess of $500 million.

National Event Incentives
	Sec. 6.094. (a) In this section:                                               
	(1)  "Breeders' Cup costs" means all costs for capital 
improvements and extraordinary expenses reasonably incurred for 
the operation of the Breeders' Cup races, including purses offered 
on other days in excess of the purses that the host association is 
required to pay by this Act.
	(2)  "Breeders' Cup races" means a series of thoroughbred 
races known as the Breeders' Cup Championship races conducted 
annually by Breeders' Cup Limited on a day known as Breeders' Cup 
Championship day.
	(3)  "Development organization" means an organization whose 
primary purpose is the marketing, promotion, or economic 
development of a city, county, or region of the state, including 
chambers of commerce, convention and visitors bureaus, and sports 
commissions.
	(4)  "Political subdivision" means a city, county, or other 
political subdivision of the state and includes any entity created 
by a political subdivision.
	(b)  An association conducting the Breeders' Cup races may 
apply to the reimbursement of Breeders' Cup costs amounts that 
would otherwise be set aside by the association for the state under 
Sections 6.091(a)(1) and 6.093 of this Act during the year in which 
the association hosts the Breeders' Cup races, limited to an amount 
equal to the lesser of the aggregate amount contributed to pay 
Breeders' Cup costs by political subdivisions and development 
organizations or $2 million.  Beginning on January 1 of the year for 
which the association has been officially designated to host the 
Breeders' Cup races, amounts that would otherwise be set aside by 
the association for the state during that year under Sections 
6.091(a)(1) and 6.093 of this Act shall be set aside, in accordance 
with procedures prescribed by the comptroller, for deposit into the 
Breeders' Cup Developmental Account.  The Breeders' Cup 
Developmental Account is an account in the general revenue fund.  
The commission shall administer the account.  Money in the account 
may be appropriated only to the commission and may be used only for 
the purposes specified in this section.  The account is exempt from 
the application of Section 403.095, Government Code.
	(c)  The commission shall make disbursements from the 
Breeders' Cup Developmental Account to reimburse Breeders' Cup 
costs actually incurred and paid by the association, after the 
association files a request for reimbursement.  Disbursements from 
the account may not at any time exceed the aggregate amount actually 
paid for Breeders' Cup costs by political subdivisions and 
development organizations, as certified by the commission to the 
comptroller, or $2 million, whichever is less.
	(d)  Not later than January 31 of the year following the year 
in which the association hosts the Breeders' Cup races, the 
association shall submit to the commission a report that shows:
	(1)  the total amount of Breeders' Cup costs incurred and 
paid by the association;
	(2)  the total payments made by political subdivisions and 
development organizations for Breeders' Cup costs;  and
	(3)  any other information requested by the commission.                        
	(e)  Following receipt of the report required by Subsection 
(d) of this section, the commission shall take any steps it 
considers appropriate to verify the report.  Not later than March 31 
of the year following the event, the commission shall transfer to 
the credit of the general revenue fund any balance remaining in the 
Breeders' Cup Developmental Account after reimbursement of any 
remaining Breeders' Cup costs authorized under this section.
	(f)  In addition to the authority otherwise granted in this 
Act, the commission and the comptroller may adopt rules for the 
administration of this section as follows:
	(1)  the commission may adopt rules relating to:                               
	(A)  auditing or other verification of Breeders' Cup costs 
and amounts paid or set aside by political subdivisions and 
development organizations;  and
	(B)  the disbursement of funds from the Breeders' Cup 
Developmental Account;  and
	(2)  the comptroller may adopt rules relating to:                              
	(A)  procedures and requirements for transmitting or 
otherwise delivering to the treasury the money set aside under this 
section;  and
	(B)  depositing funds into the Breeders' Cup Developmental 
Account.          
	(g)  The commission may adopt rules to facilitate the conduct 
of the Breeders' Cup races, including the adoption of rules or 
waiver of existing rules relating to the overall conduct of racing 
during the Breeders' Cup races in order to assure the integrity of 
the races, licensing for all participants, special stabling and 
training requirements for foreign horses, and commingling of 
pari-mutuel pools.
	(h)  The provisions of this section prevail over any 
conflicting provisions of this Act.

Application of Tax Code
	Sec. 6.10. Unless inconsistent with the provisions of this 
Act, Chapters 111 through 113, Tax Code, including without 
limitation provisions relating to the assessment of penalty and 
interest, apply to the collection of the state's share under this 
Act. In applying those provisions of the Tax Code for purposes of 
this section, the state's share under this Act is treated as if it 
were a tax. For purposes of collecting the state's share under this 
Act, the comptroller may use any procedure authorized under Title 
2, Tax Code.

Allocation of purse
	Sec. 6.11. (a) In no event shall the purse in a greyhound race 
be less than a minimum of 4.7 percent of the total deposited in each 
pool.
	(b)  Thirty-five percent of the portion of a purse allocated 
to a greyhound shall be paid directly to its owner.  The balance 
shall be paid to its contract kennel as provided by the rules of the 
commission.

Not transferable
	Sec. 6.12. (a) A racetrack license is not transferable.                        
	(b)  In the event of the death of any person whose death 
causes a violation of the licensing provisions of this Act, the 
commission may issue a temporary license for a period not to exceed 
one year under rules adopted by the commission.

Financial disclosure
	Sec. 6.13. (a) The commission by rule shall require that each 
association holding a license for a class 1 racetrack, class 2 
racetrack, or greyhound racetrack must annually file with the 
commission a detailed financial statement that:
	(1)  contains the names and addresses of all stockholders, 
members and owners of any interest in the racetrack facility;
	(2)  indicates compliance during the filing period with 
Section 6.06 of this Act; and
	(3)  includes any other information required by the 
commission.              
	(b)  Each transaction that involves an acquisition or a 
transfer of a pecuniary interest in the association must receive 
prior approval from the commission.  A transaction that changes the 
ownership of the association requires submission of updated 
information of the type required to be disclosed under Subsection 
(a) of Section 6.03 of this Act.

Racing restricted to designated place
	Sec. 6.14. (a) An association may not conduct greyhound or 
horse racing at any place other than the place designated in the 
license except as provided by this section or by Section 6.15 of 
this Act. However, if the racetrack or enclosure designated in the 
license becomes unsuitable for racing because of fire, flood, or 
other catastrophe, the affected association, with the prior 
approval of the commission, may conduct a race meeting or any 
remaining portion of a meeting temporarily at any other racetrack 
licensed by the commission to conduct the same type of racing as may 
be conducted by the affected association if the licensee of the 
other racetrack also consents to the usage.
	(b)  The commission shall not issue more than three racetrack 
licenses for greyhound racing.
	(c)  Each greyhound racetrack licensed under this Act must be 
located in a county that has a population of more than 190,000, 
according to the most recent federal census, and that includes all 
or part of an island that borders the Gulf of Mexico.
	(d)  On request of an association, the commission shall amend 
a racetrack license to change the location of the racetrack if the 
commission finds that:
	(1)  the conduct of race meetings at the proposed track at 
the new location will be in the public interest;
	(2)  there was not a competing applicant for the original 
license;  and      
	(3)  the association's desire to change location is not the 
result of a subterfuge in the original licensing proceeding.

Racing at temporary location
	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 expiring two years after 
the date of issuance of the temporary license or on the completion 
of the permanent facility, whichever occurs first.  The commission 
may set the conditions and standards for issuance of a temporary 
license and allocation of appropriate race days.  An applicant for a 
temporary license must 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 individual 
belonging to a corporation or association which has been granted a 
temporary license, may get an extension of the temporary license or 
a new temporary license.

Employment of former commission members or employees
	Sec. 6.16. (a) An association may not employ any person who 
has been a member of the commission, the executive secretary of the 
commission, or an employee employed by the commission in a position 
in the state employment classification plan of grade 12 or above, or 
any person related within the second degree by affinity or the third 
degree by consanguinity, as determined under Article 5996h, Revised 
Statutes, to such a member or employee, during the two-year period 
immediately preceding the employment by the association.
	(b)  A person may not seek or accept employment with an 
association if the association would violate this section by 
employing the person.
	(c)  An association or person who violates this section 
commits an offense.  

City and county fees
	Sec. 6.17. (a) A commissioners court may collect a fee not to 
exceed 15 cents as an admission fee to a licensed racetrack located 
within the county. If the racetrack is located within an 
incorporated city or town, the governing body of the city or town 
may collect a fee not to exceed 15 cents as an admission fee to a 
licensed racetrack located within the city or town.  If the 
racetrack is not located within an incorporated city or town, the 
court may collect an additional fee not to exceed 15 cents as an 
admission fee to a licensed racetrack located within the county for 
allocation among the incorporated cities or towns in the county. If 
the racetrack is not located in an incorporated city or town, the 
court shall collect the additional fee if requested to do so by the 
governing bodies of a majority of the incorporated cities and towns 
in the county.  Allocation of the fees shall be based on the 
population within the county of the cities or towns.
	(b)  If the racetrack is a class 1 racetrack, the 
commissioners court of each county with a population of not less 
than 1.3 million 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.
	(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 
racetrack license to keep records and file reports as considered 
necessary by the commissioners court.
	(d)  A county or municipality may not assess or collect any 
other license fee, privilege tax, excise tax, or racing fee on 
admissions to, or wagers placed at, a licensed racetrack.
	(e)  Repealed by Acts 1991, 72nd Leg., ch. 386, Sec. 74(a), 
eff. Aug. 26, 1991.

Term of license;  restrictions on racetracks
	Sec. 6.18. (a) A racetrack license issued under this article 
is perpetual.  The commission may suspend or revoke a license as 
provided by this Act.
	(b)  The commission may prescribe a reasonable annual fee to 
be paid by each racetrack licensee.  The fee must be in an amount 
sufficient to provide that the total amount of fees imposed under 
this section, together with the license fees prescribed under 
Section 5.01(b) of this Act, is sufficient to pay the costs of 
administering and enforcing this Act.

Reinstatement of certain licenses
	Sec. 6.19. (a) A class 2 racetrack license revoked by the 
commission before September 1, 1991, for the licensee's failure to 
demonstrate financial responsibility may be reinstated as provided 
by this section.  
	(b)  A licensee to which this section applies must apply for 
reinstatement not later than January 1, 1992. The commission may 
not require the licensee to pay an application or renewal fee.
	(c)  A county or nonprofit fair that desires to use any 
racetrack facilities constructed, used, or leased by a licensee to 
which this section applies, with the written consent of the 
licensee, may apply for reinstatement of the license as a class 3 
racetrack license in the name of the county or nonprofit fair.
	(d)  The commission shall reinstate the license and may not 
revoke or suspend the license before the second anniversary of the 
date that it is reinstated unless it finds that:
	(1)  material grounds that cannot be cured, other than the 
licensee's inability to demonstrate financial responsibility, 
exist for denial, revocation, or suspension of the license;
	(2)  the licensee is or has been the subject of a voluntary or 
involuntary proceeding under the Bankruptcy Code (Title 11 U.S.C.);  
or
	(3)  another person has obtained a racetrack license for the 
racetrack facility for which the licensee obtained the license.
	(e)  A license reinstated under this section expires on the 
second anniversary of the date that it is reinstated.  The 
commission shall convert a reinstated license to a perpetual 
license if the commission finds that, on the date the reinstated 
license will expire, construction or renovation of the racetrack 
proposed by the association has been financed.

ARTICLE 7. OTHER LICENSES

License required
	Sec. 7.01. A person may not participate in racing with 
pari-mutuel wagering without first obtaining a license from the 
commission.

Licensed activities
	Sec. 7.02. (a) Each person, other than a spectator or person 
placing a wager, involved in any capacity with racing with 
pari-mutuel wagering under this Act must obtain a license under 
this article.
	(b)  The commission shall adopt categories of licenses for 
the various occupations licensed under this article and shall 
specify by rule the qualifications and experience required for 
licensing in each category that requires specific qualifications or 
experience.
	(c)  If an examination is required for the issuance of a 
license under this article, not later than the 30th day after the 
date on which a licensing examination is administered under this 
Act, the commission shall notify each examinee of the results of the 
examination.
	(d)  If requested in writing by a person who fails a 
licensing examination administered under this Act, the commission 
shall furnish the person with an analysis of the person's 
performance on the examination.
	(e)  The commission may not approve a management contract to 
operate or manage a racetrack owned by a governmental entity unless 
the racetrack license holder is an owner of the entity that proposes 
to manage the racetrack.

Issuance
	Sec. 7.03. The commission shall issue a license to a 
qualified person on application and payment of the license fee.

Licenses;  grounds for denial, revocation, and suspension
	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:
	(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;
	(2)  the applicant has been convicted of a felony or of any 
crime involving moral turpitude that is reasonably related to the 
applicant's present fitness to hold a license under this Act;
	(3)  the applicant has violated or has caused to be violated 
this Act or a rule of the commission in a manner that involves moral 
turpitude, as distinguished from a technical violation of this Act 
or of a rule;
	(4)  the applicant is unqualified, by experience or 
otherwise, to perform the duties required of a licensee under this 
Act;
	(5)  the applicant failed to answer or 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;
	(7)  the applicant is indebted to the state for any fees or 
for the payment of a penalty imposed by this Act or by a rule of the 
commission;
	(8)  the applicant is not of good moral character or the 
applicant's reputation as a peaceable, law-abiding citizen in the 
community where the applicant resides is bad;
	(9)  the applicant is in the habit of using alcoholic 
beverages to an excess or uses a controlled substance as defined in 
Chapter 481, Health and Safety Code, or a dangerous drug as defined 
in Chapter 483, Health and Safety Code, or is mentally 
incapacitated;
	(10)  the applicant may be excluded from a track enclosure 
under this Act;   
	(11)  the commission determines that the applicant has 
improperly used a temporary pass, license certificate, credential, 
or identification card issued under this Act;
	(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;
	(13)  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
	(14)  the applicant is engaged or has engaged in activities 
or practices that are detrimental to the best interests of the 
public and the sport of horse racing or greyhound racing.

License fees
	Sec. 7.05. (a) The commission shall adopt by rule a fee 
schedule for licenses issued under this article.
	(b)  The commission shall base the license fees on the 
relative or comparative 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 
income category of licensees charged nearer the maximum fee.
	(c)  In setting the fee schedule under Subsection (a) of this 
section, the commission shall include the cost of criminal history 
checks determined under Section 5.05 of this Act.  The commission 
may determine the best method for recouping this cost and complying 
with the other provisions of this section, including collecting the 
costs over an extended period.

Form of license
	Sec. 7.06. The commission shall issue a license certificate 
under this article in the form of an identification card with a 
photograph and other information as prescribed by the commission.

Term of license
	Sec. 7.07. (a) 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.
	(b)  The commission by rule may adopt a system under which 
licenses expire on various dates during the year.  For the year in 
which the license expiration date is changed, license fees shall be 
prorated on a monthly basis so that each licensee pays only that 
portion of the license fee that is allocable to the number of months 
during which the license is valid.  On renewal of the license on the 
new expiration date, the total license renewal fee is payable.

Valid throughout state
	Sec. 7.08. A license issued under this article is valid, as 
determined by the commission, at all race meetings conducted in 
this state.

Temporary licenses
	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 this 
article whose application appears to comply with the requirements 
of law and who has paid the necessary fee.  The temporary license is 
valid for a period not to exceed 120 days from the date of issuance.

Reciprocal licenses;  out-of-state applicants
	Sec. 7.10. (a) The commission may waive any prerequisite to 
obtaining a license for an applicant, including any requirement to 
submit a set of fingerprints, after reviewing the applicant's 
credentials and determining that the applicant holds a valid 
license from another state that has license requirements 
substantially equivalent to those of this state.
	(b)  The commission may waive any prerequisite to obtaining a 
license, including any requirement to submit a set of fingerprints, 
for an applicant with a valid license from another state with which 
the State of Texas has a reciprocity agreement.  The commission may 
enter into reciprocal agreements with other states to allow for 
licensing by reciprocity.

ARTICLE 8. ALLOCATION OF RACING DAYS--HORSES

Allocation
	Sec. 8.01. The commission shall allocate the live and 
simulcast racing days for the conduct of live and simulcast racing 
at each racetrack licensed under this Act. Each racetrack shall 
accord reasonable access to races for all breeds of horses as 
determined by the racetrack through negotiations with the 
representative state breed registry with the final approval of the 
commission.  In granting approval, the commission shall consider 
the factors of availability of competitive horses, economic 
feasibility, and public interest.  In allocating race dates under 
this section, the commission shall consider live race dates 
separately from simulcast race dates. The commission may prohibit 
Sunday racing unless the prohibition would conflict with another 
provision of this Act.

Charity days
	Sec. 8.02. (a) The commission shall grant additional racing 
days to each association during a race meeting to be conducted as 
charity days.  The commission shall grant at least two and not more 
than five additional days to each class 1 racetrack and to each 
class 2 racetrack. Each class 1 and class 2 racetrack shall conduct 
charity race days in accordance with this section.
	(b)  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.

ARTICLE 9. HORSE REGISTRATION;  RACING

Texas-bred horses
	Sec. 9.01. Subject to this Act or any rule of the commission, 
the state horse breed registries shall make reasonable rules to 
establish the qualifications of accredited Texas-bred horses to 
promote, develop, and improve the breeding of horses in this state.  
Rules adopted by a registry are subject to commission approval.

Breed registries
	Sec. 9.02. The officially designated state horse breed 
registries for accredited Texas-bred horses are the Texas 
Thoroughbred Breeders Association for Thoroughbred horses, the 
Texas Quarter Horse Association for quarter horses, the Texas 
Appaloosa Horse Club for Appaloosa horses, the Texas Arabian 
Breeders Association for Arabian horses, and the Texas Paint Horse 
Breeders Association for paint horses.

Texas-Bred Race
	Sec. 9.03. (a) An association shall provide for the running 
of races limited to accredited Texas-bred horses, each to be known 
as a Texas-bred race.  Unless otherwise provided by this section, on 
every racing day, an association shall provide for the running of at 
least two races limited to accredited Texas-bred horses, one of 
which shall be restricted to maidens.  Before January 1, 1994, if on 
any day not enough horses are entered in an accredited Texas-bred 
race to provide sufficient competition, an association shall 
provide for the running of two races in which accredited Texas-bred 
horses are preferred.  An association may defer, in accordance with 
commission rule, the running of one or both of the two races 
required by this section for each racing day, but the association 
must provide that the total number of accredited Texas-bred races 
in a race meeting is equal to twice the total number of race dates in 
the race meeting. 
	(b)  To encourage the breeding of horses in this state, any 
accredited Texas-bred horse finishing first, second, or third in 
any race in this state except a restricted 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.
	(c)  An accredited Texas-bred Thoroughbred horse that 
finishes first, second, or third in a race other than a Texas-bred 
race shall receive an owner's bonus award as a purse supplement.  A 
percentage of the Texas-bred program funds received under Sections 
6.08 and 6.091, excluding expenses for administration of the 
Texas-bred program, shall be allocated to fund the bonus awards as 
follows:
	(1)  for 2002, 10 percent;                                                     
	(2)  for 2003, 12.5 percent;                                                   
	(3)  for 2004, 15 percent;                                                     
	(4)  for 2005, 17.5 percent;                                                   
	(5)  for 2006, 20 percent;                                                     
	(6)  for 2007, 22.5 percent;  and                                              
	(7)  for 2008 and subsequent years, 25 percent.                                

Funds for awards
	Sec. 9.04. Funds for the purse supplements shall be derived 
from the breakage as provided by Section 6.08 of this Act.

Types of racing
	Sec. 9.05. When a horse racing association conducts a race 
meeting for more than one breed of horse at one racetrack, the 
number of races to be run by each breed on each day shall be 
equitable as determined by the commission under Section 8.01 of 
this Act. The commission, by rule or by order, may allow an 
exception if there are not enough horses of a breed available to 
provide sufficient competition.

Stabling
	Sec. 9.06. When a horse racing association conducts a race 
meeting for more than one breed of horse at one racetrack, on-track 
stalls shall be provided on an equitable basis as determined by the 
commission under Section 8.01 of this Act.

Security
	Sec. 9.07. The horse racing association shall provide 
security at its track that is adequate to ensure the safety of the 
spectators, employees, and animals.

ARTICLE 10. ALLOCATION OF RACING DAYS--GREYHOUNDS;  KENNELS

Number of racing days
	Sec. 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 additional races
	Sec. 10.02. If for a reason beyond the licensee's control and 
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 races, may 
specify another day for the holding or conducting of racing by the 
licensee or may add additional races to already programmed events.

Kennels
	Sec. 10.03. Each greyhound racetrack must contract for a 
maximum of 18 kennels and shall provide free kennel rent and 
schooling.

Texas-bred greyhounds
	Sec. 10.04. (a) Subject to this Act or any rule of the 
commission, the state greyhound breed registry shall make 
reasonable rules to establish the qualifications of accredited 
Texas-bred greyhounds to promote, develop, and improve the breeding 
of greyhounds in this state.  Rules adopted by the registry are 
subject to commission approval.
	(b)  The commission shall adopt standards relating to the 
operation of greyhound farms or other facilities where greyhounds 
are raised for pari-mutuel racing.

Breed registry;  breakage distributions
	Sec. 10.05. The officially designated state greyhound breed 
registry for accredited Texas-bred greyhounds is the Texas 
Greyhound Association.  The state breed registry shall adopt rules 
to provide for the use of breakage received by it under Section 
6.09(d) of this Act. An association shall pay the breakage due the 
breed registry to the appropriate state greyhound breed registry at 
least every 30 days.

Texas kennels
	Sec. 10.06. (a) In contracting with kennel owners for a 
racetrack, an association shall ensure that at least 50 percent of 
the kennels with which the association contracts are wholly owned 
by Texas residents.
	(b)  In this section, "Texas resident" means an individual 
who has resided in Texas for the five-year period preceding the date 
the kennel contract is signed.

ARTICLE 11. WAGERING

Pari-mutuel wagering;  rules
	Sec. 11.01. (a) The commission shall adopt rules to regulate 
wagering on greyhound races and horse races under the system known 
as pari-mutuel wagering.  Wagering may be conducted only by an 
association within its enclosure.  The commission may commission as 
many investigators as the commission determines necessary to 
enforce this Act and the rules of the commission.  Each investigator 
shall take the constitutional oath of office and file it with the 
commission.  Each commissioned investigator has the powers of a 
peace officer.
	(b)  The commission's rules adopted under this section and 
this Act shall be written and updated to ensure their maximum 
enforceability within existing constitutional guidelines.

Simulcast races
	Sec. 11.011. (a) The commission shall adopt rules to license 
and regulate pari-mutuel wagering on:
	(1)  races conducted in this state and simulcast to licensed 
racetrack associations in this state or to out-of-state receiving 
locations;  and
	(2)  races conducted out-of-state and simulcast to licensed 
racetrack associations in this state.
	(b)  With approval of the commission, wagers accepted on a 
simulcast race by any out-of-state receiving location may be 
included in the pari-mutuel pool for the race at the sending 
racetrack association in this state.
	(c)  With approval of the commission, wagers accepted by a 
licensed racetrack association in this state on a race simulcast 
from out-of-state may be included in the pari-mutuel pools for the 
race at the out-of-state sending racetrack.
	(d)  The commission may adopt rules necessary to facilitate 
the interstate commingling of pari-mutuel pools as provided by 
Subsections (b) and (c) of this section.
	(e)  The racetrack where the wager is made is responsible for 
reporting and remitting the state's share of the pari-mutuel pool.
	(f)  Nothing in this Act is to be construed to allow wagering 
in Texas on simulcast races at any location other than a racetrack 
licensed under this Act that has been granted live race dates by the 
commission.
	(g)  Nothing in this Act is to be construed to prohibit 
wagering on a simulcast horse race at a greyhound racetrack in this 
state, or to prohibit wagering on a simulcast greyhound race at a 
horse racetrack in this state.  A horse racetrack may not be 
required to accept a greyhound simulcast signal, nor may a 
greyhound racetrack be required to accept a horse simulcast signal.
	(h)  Except as provided by this section, a horse racetrack 
facility that offers wagering on interstate greyhound race 
simulcast signals must do so as provided by a contract with the 
nearest greyhound racetrack.  If an agreement between the 
racetracks cannot be reached by October 1 of the year preceding the 
calendar year in which the simulcasting is to occur, the horse 
racetrack may purchase and offer wagering on greyhound race 
simulcast signals and shall pay the amounts specified under Section 
6.091(d)(1) of this Act to the nearest greyhound racetrack.
	(i)  Except as provided by this section, a greyhound 
racetrack facility that offers wagering on interstate horse race 
simulcast signals must do so as provided by a contract with the 
nearest Class 1 horse racetrack.  If an agreement between the 
racetracks cannot be reached by October 1 of the year preceding the 
calendar year in which the simulcasting is to occur, the greyhound 
racetrack may purchase and offer wagering on interstate horse race 
simulcast signals and shall pay the amounts specified in Section 
6.091(c)(1) of this Act to the nearest Class 1 horse racetrack.
	(j)  A horse racetrack that offers wagering on interstate 
greyhound simulcast races must offer wagering on all Texas 
greyhound races made available for simulcast wagering.  A greyhound 
racetrack that offers wagering on interstate horse simulcast races 
must offer wagering on all Texas horse races made available for 
simulcast wagering.
	(k)  Wagering on a simulcast greyhound race at a horse 
racetrack that conducts its inaugural meet within 12 months of 
September 1, 1997, or at an operational horse racetrack within 60 
miles of such racetrack may be conducted only pursuant to an 
agreement between said racetracks.
	(l)  Notwithstanding other provisions of law, a greyhound 
racing association and the state greyhound breed registry shall by 
contract agree that each simulcast contract to which the greyhound 
racing association is a party, including a simulcast contract with 
a horse racing association or a simulcast contract with another 
greyhound racing association, include terms that provide 
adequately for the development of greyhound racing, breeding, 
purses, and any actual or potential loss of live racing handle based 
on the association's historical live racing schedule and handle in 
this state.  If a greyhound racing association and the state 
greyhound breed registry fail to reach an agreement, the racing 
association or the breed registry may submit the contract 
negotiations for binding arbitration under Chapter 171, Civil 
Practice and Remedies Code, and rules adopted by the commission.  
The arbitration must be conducted by a board of three arbitrators.  
The greyhound racing association shall appoint one arbitrator.  The 
state greyhound breed registry shall appoint one arbitrator.  The 
arbitrators appointed by the greyhound racing association and the 
state greyhound breed registry shall appoint the third arbitrator.  
A greyhound racing association and the state greyhound breed 
registry shall each pay its own arbitration expenses.  The 
greyhound racing association and the state greyhound breed registry 
shall equally pay the arbitrator fees and costs.  This subsection 
does not apply to a contract that was in effect before September 2, 
1997.
	(m)  The commission shall not approve wagering on an 
interstate simulcast race unless the receiving location consents to 
wagering on interstate simulcast races at all other receiving 
locations in this state.

Computation of wagering
	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 each pari-mutuel ticket.

Wagering inside enclosure
	Sec. 11.04. (a) Only a person inside the enclosure where both 
live and simulcast race meetings are authorized may wager on the 
result of a live or simulcast race presented by the association in 
accordance with commission rules. The commission shall adopt rules 
to 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.
	(c)  The commission shall adopt rules prohibiting an 
association from accepting a wager made on credit and shall adopt 
rules providing for the use of automatic banking machines within 
the enclosure.  The commission shall limit the use of an automatic 
banking machine to:
	(1)  allow a person to have access to only the person's 
checking account at a bank or other financial institution;  and
	(2)  deliver no more than $200.                                                
	(d)  Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 54, 
eff. Sept. 1, 1997.
	(e)  An association that allows a machine in an enclosure as 
provided by Subsection (c) shall collect a fee of $1 for each 
transaction under Subsection (c).  The commission shall adopt rules 
providing for collection, reporting, and auditing of the 
transaction fee.  The association shall forward the fee to the 
commission.  The commission shall deposit the fee to the credit of 
the general revenue fund.

Unlawful wagering
	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.

Minors
	Sec. 11.06. The commission shall adopt rules to prohibit 
wagering by a minor and to prohibit a child from entering the 
viewing section of a racetrack unless accompanied by the child's 
parent or guardian.  The rules may except any conduct described as 
an affirmative defense by Section 14.13 of this Act.

Claim after race meeting
	Sec. 11.07. (a) A person who claims to be entitled to any part 
of a distribution from a pari-mutuel pool and who fails to claim the 
money due the person before the completion of the race meeting at 
which the pool was formed may, not later than the 60th day after the 
closing day of the meeting, file with the association a claim for 
the money together with a substantial portion of the pari-mutuel 
ticket sufficient to identify the association, race, and horse or 
greyhound involved and sufficient to show the amount wagered and 
the type of ticket.
	(b)  If the claimant satisfactorily establishes a right to 
distribution from the pool, the association shall pay the amount 
due the claimant. If the association refuses to pay a claimant who 
has established satisfactorily a right to distribution from the 
pool, the claimant may appeal to the commission under procedures 
prescribed by commission rule.

Money not claimed
	Sec. 11.08. Not later than the 61st day after the closing day 
of a race meeting, an association shall pay to the commission all 
distributable money that is subject to payment 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 liability to prosecution
	Sec. 11.09. The defense to prosecution under Chapter 47, 
Penal Code, that the conduct was authorized under this Act is 
available only to a person who is:
	(1)  lawfully conducting or participating in the conduct of 
pari-mutuel wagering in connection with horse racing or greyhound 
racing;  or
	(2)  permitting the lawful conduct of an activity described 
by Subdivision (1) of this section on any racetrack facility.

Automobile racing facility
	Sec. 11.10. No automobile racing facility may be located 
within 10,000 feet of a horse or greyhound racetrack licensed under 
this Act that is located in a county with a population of 1,800,000 
or more, according to the most recent federal census.

ARTICLE 12. FAIRS, STOCK SHOWS, AND EXPOSITIONS

County stock shows
	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 319, Local Government Code. The 
race meetings may be conducted by an agent selected by the 
commissioners court under Section 319.004, Local Government Code, 
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.

Fairs
	Sec. 12.02. Subject to the licensing requirements and other 
provisions of this Act, a nonprofit corporation organized under the 
Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., 
Vernon's Texas Civil Statutes) for the purpose of encouraging 
agriculture through the operation of public fairs and livestock 
exhibitions may conduct a race meeting, not to exceed 16 racing 
days.

County fairs
	Sec. 12.03. (a) A county that holds a class 4 racetrack 
license may conduct an annual race meeting not to exceed five racing 
days in connection with a livestock show or exhibition held under 
Chapter 319, Local Government Code.  A race meeting must be 
conducted on a day when general fair activities are conducted.  
	(b)  A county that holds a class 4 racetrack license may 
contract with an agent to conduct any portion of a race meeting.  An 
agent must hold a license issued under this Act that is appropriate 
for the service the agent provides.

ARTICLE 13. EXCLUSION OR EJECTION FROM RACETRACK

Regulation by commission
	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;                   
	(3)  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 pari-mutuel 
wagering or who has committed any act tending or intended to corrupt 
greyhound racing or horse racing or pari-mutuel wagering in this 
state or elsewhere;
	(7)  who is under suspension or ruled off a racetrack by the 
commission or a steward in this state or by a corresponding 
authority in another state because of fraudulent or corrupt 
practices or other acts detrimental to racing;
	(8)  who has submitted a forged pari-mutuel ticket or has 
altered or forged a pari-mutuel ticket for cashing or who has cashed 
or caused to be cashed an altered, raised, or forged pari-mutuel 
ticket;
	(9)  who has been convicted of committing a lewd or 
lascivious act or other crime involving moral turpitude;
	(10)  who is guilty of boisterous or disorderly conduct while 
inside a racing enclosure;
	(11)  who is an agent or habitual associate of a person 
excludable under this section;  or
	(12)  who has been convicted of a felony.                                      

Hearing;  appeal;  exclusion or expulsion from an enclosure
	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.
	(b)  Such an application constitutes a contested case under 
the Administrative Procedure and Texas Register Act (Article 
6252-13a, Vernon's Texas Civil Statutes).  If, after a hearing as 
provided under Section 13 of that Act, the commission determines 
that the exclusion or ejection was proper, it shall make and enter 
an order to that effect in its minutes, and the person shall 
continue to be excluded from each association.
	(c)  The person excluded or ejected 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). Judicial review under this subsection is subject 
to the substantial evidence rule.  Venue for the review is in a 
district court in Travis County.
	(d)  The judgment of the court may be appealed as in other 
civil cases.  The person appealing the commission's ruling under 
this article shall continue to be excluded from all enclosures in 
this state during the pendency of the appeal.

Criminal trespass
	Sec. 13.03. A person, for the purposes of Section 30.05, 
Penal Code, is presumed to have received notice that entry to an 
enclosure was forbidden if the person:
	(1)  was excluded or ejected from the enclosure under this 
Act;              
	(2)  possessed, displayed, or used in the enclosure a 
credential that the person was not authorized to use;  or
	(3)  entered the enclosure using a falsified credential.                       

Exclusion by association
	Sec. 13.04. Nothing in this article shall prohibit an 
association from evicting or excluding a person from its enclosure 
for any lawful reason.

ARTICLE 14. CRIMINAL OFFENSES

Touting
	Sec. 14.01. (a) A person commits an offense if, with an intent 
to deceive and an intent to obtain a benefit, the person knowingly 
makes a false statement or offers, agrees to convey, or conveys 
false information about a greyhound race or horse race to another.
	(b)  Except as provided by Subsection (c) of this section, an 
offense under this section is a Class A misdemeanor.
	(c)  An offense under this section is a state jail felony if:                  
	(1)  the actor is a licensee under this Act or an employee or 
member of the commission and the actor knowingly represents that a 
member or employee of the commission or a person licensed by the 
commission is the source of the false information;  or
	(2)  the false statement or information was contained in 
racing selection information provided to the public.

Unlawful possession or use of credential
	Sec. 14.02. (a) A person commits an offense if the person 
knowingly or intentionally possesses or displays a credential or 
false credential that identifies the person as the holder of the 
credential and the person knows:
	(1)  that the credential is not issued to the person;  or                      
	(2)  the person is not a licensee.                                             
	(b)  An offense under this section is a Class C misdemeanor.                   
	Sec. 14.03. Deleted by Acts 1997, 75th Leg., ch. 1275, Sec. 
43, eff. Sept. 1, 1997.

Illegal access
	Sec. 14.04. (a) A person commits an offense if the person is a 
licensee and the person knowingly or intentionally permits, 
facilitates, or allows access, to an enclosure where races are 
conducted, to another person who the person knows:
	(1)  has engaged in bookmaking, touting, or illegal 
wagering;                
	(2)  derives income from illegal activities or enterprises;                    
	(3)  has been convicted of a violation of this Act;  or                        
	(4)  is excluded by the commission from entering a racetrack 
facility.       
	(b)  An offense under this section is a Class B misdemeanor.                   

Races conducted on certain Indian lands
	Sec. 14.05. (a) A person who is subject to this section 
commits an offense if the person intentionally or knowingly wagers 
on the result of a greyhound race or horse race conducted in this 
state that:
	(1)  is held on an American Indian reservation or on American 
Indian trust land located in this state;  and
	(2)  is not held under the supervision of the commission 
under rules adopted under this Act.
	(b)  An offense under this section is a felony of the third 
degree.          
	(c)  It is an exception to the application of this section 
that the person is a member of a recognized Texas Indian tribe who 
lives on a reservation or on trust lands located in this state.

False statements
	Sec. 14.06. (a) A person commits an offense if the person 
knowingly makes a material and false, incorrect, or deceptive 
statement to another who is conducting an investigation or 
exercising discretion under this Act or a rule adopted under this 
Act.
	(b)  In this section, the term "statement" means a 
representation of fact and includes:
	(1)  a written or oral statement;  or                                          
	(2)  a sworn or unsworn statement.                                             
	(c)  An offense under this section is a state jail felony 
unless the statement was material in a commission action relating 
to a racetrack license, in which event the offense is a felony of 
the third degree.

Hindering of entry
	Sec. 14.07. (a) A person commits an offense if the person with 
criminal negligence refuses, denies, or hinders entry to another 
who is exercising or attempting to exercise a power of entry under 
this Act or a commission rule.
	(b)  A person commits an offense if the person with criminal 
negligence refuses, denies, hinders, interrupts, disrupts, 
impedes, or otherwise interferes with a search by a person 
exercising or attempting to exercise a power to search under this 
Act or a commission rule.
	(c)  An offense under this section is a Class B misdemeanor.                   

Forging pari-mutuel ticket
	Sec. 14.08. (a) A person commits an offense if the person 
intentionally or knowingly forges a pari-mutuel ticket with the 
intent to defraud or harm another.
	(b)  In this section, "forge" has the meaning assigned by 
Section 32.21, Penal Code.
	(c)  An offense under this section is a felony of the third 
degree.          

Impersonating a licensee
	Sec. 14.09. (a) A person commits an offense if the person 
impersonates a licensee with the intent to induce another person to 
submit to the actor's purported authority as a licensee or to rely 
on the actor's actions as an alleged licensee.
	(b)  An offense under this section is a Class A misdemeanor.                   

Unlawful influence on racing
	Sec. 14.10. (a) A person commits an offense if the person 
possesses a prohibited device or prohibited substance on a 
racetrack facility, in an enclosure, or at a training facility.
	(b)  An offense under Subsection (a) of this section is a 
Class A misdemeanor, unless the actor possessed the device or 
substance with the intent to influence or affect the outcome of a 
horse or greyhound race in a manner contrary to this Act or a 
commission rule, in which event it is a state jail felony.
	(c)  A person commits an offense if, with the intent to 
influence or affect a horse or greyhound race in a manner contrary 
to this Act or a commission rule, the person:
	(1)  uses or offers to use a prohibited device;  or                            
	(2)  uses or offers to use a prohibited substance.                             
	(d)  An offense under Subsection (c) of this section is a 
felony of the third degree.

Bribery and corrupt influence
	Sec. 14.11. (a) A person commits an offense if, with the 
intent to influence or affect the outcome of a race in a manner 
contrary to this Act or a commission rule, the person offers, 
confers, agrees to confer on another, or solicits, accepts, or 
agrees to accept from another person any benefit as consideration 
for the actions of a person who receives the benefit relating to the 
conduct, decision, opinion, recommendation, vote, or exercise of 
discretion as a licensee or other person associated with or 
interested in any stable, kennel, horse, greyhound, or horse or 
greyhound race.
	(b)  An offense under this section is a state jail felony, 
unless the recipient of the benefit is a steward, judge, or other 
racetrack official exercising authority over a horse or greyhound 
race that the person providing or offering the benefit intended to 
influence, in which event it is a felony of the third degree.

Criminal conflict of interest
	Sec. 14.12. A person who is a member of the commission commits 
an offense if the person:
	(1)  accepts, directly or indirectly, employment or 
remuneration from a racetrack facility, association, or other 
licensee, including a facility, association, or licensee located or 
residing in another state;
	(2)  wagers or causes a wager to be placed on the outcome of a 
horse or greyhound race conducted in this state;  or
	(3)  accepts or is entitled to any part of a purse to be paid 
to an animal in a race conducted in this state.

Offenses involving a minor
	Sec. 14.13. (a) A person commits an offense if the person with 
criminal negligence permits, facilitates, or allows:
	(1)  wagering by a minor at a racetrack facility;  or                          
	(2)  entry by a child to the viewing section of a racetrack 
facility.        
	(b)  An offense under Subsection (a) of this section is a 
Class B misdemeanor.
	(c)  A person commits an offense if the person is a minor and 
intentionally or knowingly engages in wagering at a racetrack.
	(d)  An offense under Subsection (c) of this section is a 
Class C misdemeanor.
	(e)  It is an affirmative defense to prosecution of an 
offense under Subsection (a)(2) that a child was accompanied by and 
was in the physical presence of a parent, guardian, or spouse who 
was 21 years of age or older.
	(f)  It is an affirmative defense to prosecution of an 
offense under Subsection (a) of this section that the minor falsely 
represented the minor's age by displaying to the person an 
apparently valid Texas driver's license or identification card 
issued by the Department of Public Safety that contains a physical 
description consistent with the minor's appearance.

Unlawful racing
	Sec. 14.14. A person commits an offense if:                                    
	(1)  the person participates, permits, or conducts a 
greyhound or horse race at a licensed racetrack facility;
	(2)  the person wagers on the partial or final outcome of the 
greyhound or horse race or knows or reasonably should know that 
another is betting on the partial or final outcome of the race;  and
	(3)  the race is not part of a performance or meeting 
conducted under this Act or commission rule.

Pari-mutuel racing without a license
	Sec. 14.15. (a) A person commits an offense if, without a 
license, the person participates or is otherwise involved in, in 
any capacity, greyhound racing or horse racing with pari-mutuel 
wagering.
	(b)  It is an affirmative defense to prosecution under 
Subsection (a) of this section that the actor was a spectator or a 
person placing a wager.
	(c)  An offense under Subsection (a) of this section is a 
Class A misdemeanor, unless the actor was required by this Act to 
obtain a racetrack license, in which event it is a state jail 
felony.

Racing without a license
	Sec. 14.16. (a) A person commits an offense if the person:                     
	(1)  conducts a greyhound or horse race without a racetrack 
license;  and    
	(2)  knows or reasonably should know that another person is 
betting on the final or partial outcome of the race.
	(b)  An offense under this section is a felony of the third 
degree.          

Failure to display credential
	Sec. 14.17. (a) A person commits an offense if the person 
intentionally or knowingly:
	(1)  fails or refuses to display a credential to another 
after a lawful request;  or
	(2)  fails or refuses to give the person's name, residence 
address, or date of birth to another after a lawful request.
	(b)  In this section, "lawful request" means a request from 
the commission, an authorized agent of the commission, the director 
or a commissioned officer of the Department of Public Safety, a 
peace officer, or a steward or judge at any time and any restricted 
location that:
	(1)  is on a racetrack facility;  and                                          
	(2)  is not a public place.                                                    
	(c)  Except as provided by Subsection (d) of this section, an 
offense under this section is a Class B misdemeanor.
	(d)  At the punishment stage of a trial for an offense under 
Subsection (a)(1) of this section, the defendant may raise an issue 
as to whether the defendant was a licensee at the time of the 
offense.  If the defendant proves the issue, the offense is a Class 
C misdemeanor.

Search and seizure
	Sec. 14.18. (a) A person consents to a search at a time and 
location described in Subsection (b) of this section for a 
prohibited device, prohibited substance, or other contraband if the 
person:
	(1)  accepts a license or other credential issued under this 
Act;  or        
	(2)  enters a racetrack facility under the authority of a 
license or other credential alleged to have been issued under this 
Act.
	(b)  A search may be conducted by a commissioned officer of 
the Department of Public Safety or a peace officer, including a 
peace officer employed by the commission, at any time and at any 
location that is on a racetrack facility, except a location:
	(1)  excluded by commission rule from searches under this 
section;  or       
	(2)  provided by an association under commission rule for 
private storage of personal items belonging to a licensee entering 
a racetrack facility.
	(c)  A person conducting a search under Subsection (b) of 
this section may seize any prohibited device, prohibited substance, 
or other contraband discovered during the search.

Prosecution
	Sec. 14.19. A person who is subject to prosecution for a penal 
offense under this Act and another law may be prosecuted under 
either law.

Commission authority
	Sec. 14.20. This article may not be construed to restrict the 
commission's administrative authority to enforce this Act or 
commission rules to the fullest extent authorized by this Act.

Venue for criminal prosecution
	Sec. 14.21. The venue for the prosecution of a criminal 
offense under this Act is in Travis County or in a county where an 
element of the offense occurred.

ARTICLE 15. GENERAL PENALTY PROVISIONS

General penalty
	Sec. 15.01. If no specific penalty is provided for a 
provision of this Act that is a penal offense, a person who violates 
the provision commits a state jail felony .
	Sec. 15.02. Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 
54, eff. Sept. 1, 1997.

Administrative penalty
	Sec. 15.03. (a) If the commission determines that a person 
regulated under this Act has violated this Act or a rule or order 
adopted under this Act in a manner that constitutes a ground for a 
disciplinary action under this Act, the commission may assess an 
administrative penalty against that person as provided by this 
section.
	(b)  The commission may assess the administrative penalty in 
an amount not to exceed $10,000 for each violation.  In determining 
the amount of the penalty, the commission shall consider the 
seriousness of the violation.
	(c)  If, after examination of a possible violation and the 
facts relating to that possible violation, the commission 
determines that a violation has occurred, the commission shall 
issue a preliminary report that states the facts on which the 
conclusion is based, the fact that an administrative penalty is to 
be imposed, and the amount to be assessed.  Not later than the 10th 
day after the date on which the commission issues the preliminary 
report, the commission shall send a copy of the report to the person 
charged with the violation, together with a statement of the right 
of the person to a hearing relating to the alleged violation and the 
amount of the penalty.
	(d)  Not later than the 20th day after the date on which the 
commission sends the preliminary report, the person charged may 
make a written request for a hearing or may remit the amount of the 
administrative penalty to the commission.  Failure to request a 
hearing or to remit the amount of the administrative penalty within 
the period prescribed by this subsection results in a waiver of a 
right to a hearing under this Act. If the person charged requests a 
hearing, the hearing shall be conducted in the manner provided for a 
contested case hearing under the Administrative Procedure and Texas 
Register Act (Article 6252-13a, Vernon's Texas Civil Statutes). If 
it is determined after the hearing that the person has committed the 
alleged violation, the commission shall give written notice to the 
person of the findings established by the hearing and the amount of 
the penalty and shall enter an order requiring the person to pay the 
penalty.
	(e)  Not later than the 30th day after the date on which the 
notice is received, the person charged shall pay the administrative 
penalty in full or exercise the right to appeal either the amount of 
the penalty or the fact of the violation.  If a person exercises a 
right of appeal either as to the amount of the penalty or the fact of 
the violation, the amount of the penalty is not required to be paid 
until the 30th day after the date on which all appeals have been 
exhausted and the commission's decision has been upheld.

Complaints
	Sec. 15.04. Complaints alleging violations of this Act may be 
instituted by the Department of Public Safety, the commission, or 
the attorney general.  Such complaints shall be adjudicated by the 
commission pursuant to the provisions for a contested case 
proceeding under the Administrative Procedure and Texas Register 
Act (Article 6252-13a, Vernon's Texas Civil Statutes).

ARTICLE 16. LOCAL OPTION ELECTION

Condition precedent
	Sec. 16.01. (a) The commission shall not issue a racetrack 
license or accept an application 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 races in the county at an election held under this 
article.  A local option election may not be held 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 license was issued.

Methods 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.

Approval of simulcast races
	Sec. 16.021. The commissioners court of a county in which 
there is a racetrack conducting live racing, on its own motion by a 
majority vote of its members, may order an election to approve 
pari-mutuel wagering on simulcast greyhound or horse races.

Application for petition;  issuance
	Sec. 16.03. 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 application
	Sec. 16.04. To be valid, an application must contain:                          
	(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 Legalization 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;
	(3)  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 races be legalized in __________ 
County" or "It is the hope, purpose, and intent of the applicants 
whose signatures appear below that pari-mutuel wagering on 
greyhound races be legalized in __________ County," as appropriate;  
and
	(4)  the printed name, signature, residence address, and 
voter registration certificate number of each applicant.

Contents of petition
	Sec. 16.05. To be valid, a petition must contain:                              
	(1)  a heading, 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;
	(3)  a 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 legalized in __________ 
County" or "It is the hope, purpose, and intent of the petitioners 
whose signatures appear below that pari-mutuel wagering on 
greyhound races be legalized in __________ County," as appropriate;
	(4)  lines and spaces for the names, signatures, addresses, 
and voter registration certificate numbers of the petitioners;  and
	(5)  the date of issuance, the serial number, and the seal of 
the county clerk on each page.

Copies
	Sec. 16.06. The county clerk shall keep the application and a 
copy of the petition in the files of that office.  The clerk shall 
issue to the applicants as many copies as they request.

Filing of petition;  number of signatures
	Sec. 16.07. To form the basis for the ordering of an election, 
the petition must be filed with the county clerk not later than the 
30th day after the date of its issuance, and it must contain a 
number of signatures of registered voters of the county equal to 
five percent of the number of votes cast in the county for all 
candidates for governor in the most recent gubernatorial general 
election.

Review by county clerk
	Sec. 16.08. (a) The county clerk shall, on request of any 
person, check each name 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 
sum equal to 20 cents 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;                   
	(2)  the voter registration certificate number is not 
correct;               
	(3)  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 current list of registered voters for 
the voting year in which the petition is issued.

Certification
	Sec. 16.09. 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 commissioners court 
the number of registered voters signing the petition.

Order of election
	Sec. 16.10. (a) The commissioners court shall record on its 
minutes the date the petition is filed and the date it is certified 
by the county clerk.
	(b)  If the petition contains the required number of 
signatures and is in proper order, the commissioners court shall, 
at its next regular session after the certification by the county 
clerk, order an election to be held at the regular polling place in 
each county election precinct in the county on the next uniform 
election date authorized by Section 41.001, Election 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.

Application of Election Code
	Sec. 16.11. (a) The election shall be held and the returns 
shall be prepared and canvassed in conformity with the Election 
Code.
	(b)  The ballots shall be printed to permit voting for or 
against the proposition:  "Legalizing pari-mutuel wagering on horse 
races in __________ County," "Legalizing pari-mutuel wagering on 
greyhound races in __________ County," or "Authorizing pari-mutuel 
wagering on simulcast races in _____ County," as appropriate.

Results of election
	Sec. 16.12. (a) If a majority of the votes cast in the 
election are for the legalization of pari-mutuel wagering on horse 
races or greyhound races in the county, or for the authorization of 
pari-mutuel wagering on simulcast races in the county, as 
appropriate, the commissioners court shall certify that fact to the 
secretary of state not later than the 10th day after the date of the 
canvass of the returns.
	(b)  No other election may be held in the county under this 
Act until five years have elapsed since the date of the preceding 
election.

Contest of election
	Sec. 16.13. (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 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 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 leave of court.
	(b)  The proceedings in the suit shall be conducted in the 
manner prescribed by Title 14, Election Code, for contesting an 
election held for a purpose other than the election of an officer or 
officers.  Unless otherwise provided by this Act, the applicable 
Texas Rules of Civil Procedure and all applicable statutes govern 
the proceedings and appeals held and conducted under this Act.
	(c)  At or after the time for hearing and trial, the judge 
shall hear and determine all 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 judgment with the least possible delay.

Contest of election;  bond
	Sec. 16.14. At any time prior to the entry of a final judgment 
in the proceedings, any party may ask the court to dismiss the 
contestant's action unless the contestant posts a bond with 
sufficient surety, approved by the court, payable to the movant for 
the payment of all damages and costs that may accrue by reason of 
the delay that will be occasioned by the continued participation of 
the contestant in the proceedings in the event that the contestant 
fails to finally prevail and obtain substantially the judgment 
prayed for in the petition.  The court shall then issue an order 
directed to the contestant, which order, together with a copy of the 
motion, shall be served on all parties, or on their attorney of 
record, personally or by registered mail, requiring the contestant 
to appear at the time and place, not sooner than five nor later than 
10 days after receipt of the order and motion, as the court may 
direct, and show cause why the motion should not be granted. The 
maximum bond that the court may set is $100,000 for contests of 
elections for tracks to be located in a county that has a population 
of 1.3 million or more and in which a municipality with a population 
of more than one million is primarily located. The maximum bond that 
the court may set is $10,000 for contests of elections for tracks to 
be located in any other county.  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 order the court shall fix the amount of the 
bond to be posted by the contestant in an amount found by the court 
to be sufficient to cover all damages and costs that may accrue by 
reason of the delay that will be occasioned by the continued 
participation of the contestant in the proceedings in the event 
that the contestant fails to prevail and obtain substantially the 
judgment prayed for in its petition.

Contest of election;  appeal
	Sec. 16.15. Any party to the cause who is dissatisfied with an 
order or judgment entered under Section 16.13 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 30th day after the 
date on which 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 in the court of appeals, except 
habeas corpus, and the court of appeals shall assure the priority 
and act on 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 law 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 cases, causes, or matters pending in the 
supreme court, except habeas corpus, and the supreme court shall 
assure the priority and review and act on the matter and render its 
final order or judgment with the least possible delay.

Suit to have precedence
	Sec. 16.16. The court shall accelerate the disposition of any 
action brought under this Act.

Contestee
	Sec. 16.17. (a) The county attorney is the contestee of a suit 
brought under Section 16.13 of this Act.  If there is no county 
attorney of the county, then the criminal district attorney or 
district attorney is the contestee.
	(b)  Costs of the election contest may not be adjudged 
against the contestee or against the county, and neither may be 
required to give bond on appeal.

Rescission election
	Sec. 16.18. (a) The commissioners court of a county that 
elects to approve the legalization 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 earlier than two years after the date of 
the election conducted under Section 16.10 of this Act at which the 
legalization of pari-mutuel wagering was approved.  The petition 
must meet the requirements imposed under this article for a 
petition to request a local option election on the question of the 
legalization of racing with pari-mutuel wagering.  An election to 
rescind legalization of racing shall be conducted in the manner 
provided for the original local option election under this article.  
The ballots shall be printed to permit voting for or against the 
proposition:  "Rescinding the legalization of pari-mutuel wagering 
on horse races in __________ County" or "Rescinding the 
legalization of pari-mutuel wagering on greyhound races in 
__________ County," as appropriate.
	(b)  If the majority of the votes cast in an election under 
this section favor the rescission, racing with pari-mutuel wagering 
may not be conducted in that county except as provided by Subsection 
(c) of this section.
	(c)  An association located in a county that elects to 
rescind the legalization of racing and that has outstanding 
long-term liabilities may continue to operate on a temporary basis 
as provided by Section 18.01 of this Act.

ARTICLE 17. STATEWIDE REFERENDUM
	Secs. 17.01 to 17.06. Repealed by Acts 1991, 72nd Leg., ch. 
386, Sec. 74(b), eff. Aug. 26, 1991.

ARTICLE 18. MISCELLANEOUS PROVISIONS

Application of Sunset Act
	Sec. 18.01. (a) The Texas Racing Commission is subject to 
Chapter 325, Government Code (Texas Sunset Act). Unless continued 
in existence as provided by that chapter, and except as provided by 
Subsections (b) and (c) of this section, the commission is 
abolished and this Act expires September 1, 2009.
	(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 a 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 terms 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 must retire 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.
	Sec. 18.02. Repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 
54, eff. Sept. 1, 1997.

Other lawful businesses
	Sec. 18.03. An association may conduct other lawful business 
on the association's grounds.

Suit to have precedence
	Sec. 18.04. The courts shall accelerate the disposition of 
any action brought under this Act.

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 other fee, payment, or tax levied by the state.  
This section does not preclude the application of the sales tax or 
any increase thereof to the sale or purchase of taxable items by a 
person or association licensed under this Act or the application of 
the franchise tax to a person or association licensed under this 
Act.

Release of liability
	Sec. 18.06. A member of the commission, an employee of the 
commission, a steward or judge, an association, a horsemen's 
organization, or any other person regulated under this Act is not 
liable to any 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 
enforcement of this Act or a rule adopted under this Act if the 
person has acted in good faith.

Past performance of association
	Sec. 18.07. In considering a pleading of a racetrack 
association, the commission shall take into account the operating 
experience of the racetrack association in Texas, which includes, 
but is not limited to, the financial condition of the track, 
regulatory compliance and conduct, and any other relevant matters 
concerning the operation of a track.

Distance learning
	Sec. 18.08. The commission may provide assistance to members 
of the racing industry who are attempting to develop or implement 
adult, youth, or continuing education programs that use distance 
learning.

Acts 1986, 69th Leg., 2nd C.S., ch. 19, Sec. 1, eff. Dec. 4, 1986.  
Sec. 1.03(7), (9), (11), (13) to (15), (19), (28), (32), (35), (46), 
(55) amended by and Sec. 1.03(58) to (66) added by Acts 1991, 72nd 
Leg., ch. 386, Sec. 1, eff. Aug. 26, 1991;  Sec. 2.02(c) added by 
Acts 1991, 72nd Leg., ch. 386, Sec. 2, eff. Aug. 26, 1991;  Sec. 2.05 
amended by Acts 1991, 72nd Leg., ch. 561, Sec. 63, eff. Aug. 26, 
1991;  Sec. 2.08 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 3, 
eff. Aug. 26, 1991;  Sec. 2.10 amended by Acts 1991, 72nd Leg., ch. 
386, Sec. 4, eff. Aug. 26, 1991;  Sec. 2.15 amended by Acts 1991, 
72nd Leg., ch. 386, Sec. 5, eff. Aug. 26, 1991;  Sec. 2.16 added by 
Acts 1991, 72nd Leg., ch. 386, Sec. 6, eff. Aug. 26, 1991;  Sec. 3.02 
amended by Acts 1991, 72nd Leg., ch. 386, Sec. 7, eff. Aug. 26, 
1991;  Sec. 3.021 added as art. 179e-4 by Acts 1986, 69th Leg., 2nd 
C.S., ch. 19, Sec. 8, eff. Dec. 4, 1986 and redesignated by Acts 
1991, 72nd Leg., ch. 386, Sec. 7, eff. Aug. 26, 1991;  Sec. 3.04 
amended by Acts 1991, 72nd Leg., ch. 386, Sec. 8, eff. Aug. 26, 
1991;  Sec. 3.05(b) amended by Acts 1991, 72nd Leg., ch. 386, Sec. 
9, eff. Aug. 26, 1991;  Sec. 3.07(a), (d), (e) amended by and Sec. 
3.07(f), (g) added by Acts 1991, 72nd Leg., ch. 386, Sec. 10, eff. 
Aug. 26, 1991;  Sec. 3.08 amended by Acts 1991, 72nd Leg., ch. 386, 
Sec. 11, eff. Aug. 26, 1991;  Sec. 4.01 amended by Acts 1991, 72nd 
Leg., ch. 386, Sec. 12, eff. Aug. 26, 1991;  Sec. 4.02 amended by 
Acts 1991, 72nd Leg., ch. 386, Sec. 13, eff. Aug. 26, 1991;  Sec. 
4.04 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 14, eff. Aug. 
26, 1991;  Sec. 4.05 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 
15, eff. Aug. 26, 1991;  Sec. 4.06 added by Acts 1991, 72nd Leg., ch. 
386, Sec. 16, eff. Aug. 26, 1991;  Sec. 5.01(b) amended by and Sec. 
5.01(c) added by Acts 1991, 72nd Leg., ch. 386, Sec. 17, eff. 
Aug.26, 1991;  Sec. 5.02 amended by Acts 1991, 72nd Leg., ch. 386, 
Sec. 18, eff. Aug. 26, 1991;  Sec. 5.03(a), (b) amended by Acts 
1991, 72nd Leg., ch. 386, Sec. 19, eff. Aug. 26, 1991;  Sec. 5.04(c) 
amended by Acts 1991, 72nd Leg., ch. 386, Sec. 20, eff. Aug. 26, 
1991;  Sec. 6.01 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 21, 
eff. Aug. 26, 1991;  Sec. 6.02 amended by Acts 1991, 72nd Leg., ch. 
386, Sec. 22, eff. Aug. 26, 1991;  Sec. 6.02(g) added by Acts 1991, 
72nd Leg., ch. 386, Sec. 23, eff. Aug. 26, 1991;  Sec. 6.03(a), (b), 
(e) amended by Acts 1991, 72nd Leg., ch. 386, Sec. 24, eff. Aug. 26, 
1991;  Sec. 6.03(h) added by Acts 1991, 72nd Leg., ch. 386, Sec. 25, 
eff. Aug. 26, 1991;  Sec. 6.03(i) added by Acts 1991, 72nd Leg., ch. 
386, Sec. 26, eff. Aug. 26, 1991;  Sec. 6.031 added as art. 179e-3 by 
Acts 1986, 69th Leg., 2nd C.S., ch. 19, Sec. 7, eff. Dec. 4, 1986 and 
redesignated by Acts 1991, 72nd Leg., ch. 386, Sec. 68, eff. Aug. 
26, 1991;  Sec. 6.04 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 
27, eff. Aug. 26, 1991;  Sec. 6.05 amended by Acts 1991, 72nd Leg., 
ch. 386, Sec. 74(a), eff. Aug. 26, 1991;  Sec. 6.06(a)(10) amended 
by Acts 1991, 72nd Leg., ch. 14, Sec. 284(55), eff. Sept. 1, 1991;  
Sec. 6.06(d), (h) amended by Acts 1991, 72nd Leg., ch. 386, Sec. 28, 
eff. Aug. 26, 1991;  Sec. 6.08 amended by Acts 1991, 72nd Leg., ch. 
386, Sec. 29, eff. Aug. 26, 1991;  Sec. 6.09(a) amended by Acts 
1991, 72nd Leg., ch. 386, Sec. 30, eff. Aug. 26, 1991;  Sec. 6.09(b) 
amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 15.01;  Sec. 
6.09(d) amended by Acts 1991, 72nd Leg., ch. 386, Sec. 30, eff. Aug. 
26, 1991;  Sec. 6.09(e) added by Acts 1991, 72nd Leg., ch. 386, Sec. 
30, eff. Aug. 26, 1991;  Sec. 6.091 added by Acts 1991, 72nd Leg., 
ch. 386, Sec. 31, eff. Aug. 26, 1991;  Sec. 6.10 amended by Acts 
1991, 72nd Leg., ch. 386, Sec. 32, eff. Aug. 26, 1991;  Sec. 6.11(a) 
amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 15.02;  Sec. 
6.13 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 33, eff. Aug. 
26, 1991;  Sec. 6.14(a) amended by Acts 1991, 72nd Leg., ch. 386, 
Sec. 34, eff. Aug. 26, 1991;  Sec. 6.16 amended by Acts 1991, 72nd 
Leg., ch. 386, Sec. 35, eff. Aug. 26, 1991;  Acts 1991, 72nd Leg., 
ch. 561, Sec. 63, eff. Aug. 26, 1991;  Sec. 6.17(a) amended by Acts 
1991, 72nd Leg., ch. 386, Sec. 36, eff. Aug. 26, 1991;  Sec. 6.17(d) 
amended by Acts 1991, 72nd Leg., ch. 386, Sec. 37, eff. Aug. 26, 
1991;  Sec. 6.17(e) amended by Acts 1991, 72nd Leg., ch. 386, Sec. 
74(a), eff. Aug. 26, 1991;  Secs. 6.18, 6.19 added by Acts 1991, 
72nd Leg., ch. 386, Sec. 38, eff. Aug. 26, 1991;  Sec. 7.01 amended 
by Acts 1991, 72nd Leg., ch. 386, Sec. 39, eff. Aug. 26, 1991;  Sec. 
7.02 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 40, eff. Aug. 
26, 1991;  Sec. 7.04(9) amended by Acts 1991, 72nd Leg., ch. 14, 
Sec. 284(55), eff. Sept. 1, 1991;  Sec. 7.06 amended by Acts 1991, 
72nd Leg., ch. 386, Sec. 41, eff. Aug. 26, 1991;  Sec. 7.09 amended 
by Acts 1991, 72nd Leg., ch. 386, Sec. 42, eff. Aug. 26, 1991;  Sec. 
7.10 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 74(a), eff. Aug. 
26, 1991;  Sec. 8.01 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 
43, eff. Aug. 26, 1991;  Sec. 8.02(a) amended by Acts 1991, 72nd 
Leg., ch. 386, Sec. 44, eff. Aug. 26, 1991;  Secs. 9.02, 9.03 
amended by Acts 1991, 72nd Leg., ch. 386, Sec. 45, eff. Aug. 26, 
1991;  Secs. 9.05, 9.06 amended by Acts 1991, 72nd Leg., ch. 386, 
Sec. 46, eff. Aug. 26, 1991;  Sec. 9.07 amended by Acts 1991, 72nd 
Leg., ch. 386, Sec. 47, eff. Aug. 26, 1991;  Secs. 10.04 to 10.06 
added by Acts 1991, 72nd Leg., ch. 386, Sec. 48, eff. Aug. 26, 1991;  
Sec. 11.01 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 49, eff. 
Aug. 26, 1991;  Sec. 11.011 added by Acts 1991, 72nd Leg., ch. 386, 
Sec. 50, eff. Aug. 26, 1991;  Sec. 11.04(a) amended by and Sec. 
11.04(d) added by Acts 1991, 72nd Leg., ch. 386, Sec. 51, eff. Aug. 
26, 1991;  Sec. 11.06 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 
52, eff. Aug. 26, 1991;  Sec. 11.07 amended by Acts 1991, 72nd Leg., 
ch. 386, Sec. 53, eff. Aug. 26, 1991;  Sec. 11.08 amended by Acts 
1991, 72nd Leg., ch. 386, Sec. 54, eff. Aug. 26, 1991;  Sec. 11.10 
added by Acts 1991, 72nd Leg., ch. 386, Sec. 55, eff. Aug. 26, 1991;  
Secs. 12.01, 12.02 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 
56, eff. Aug. 26, 1991;  Sec. 12.03 added by Acts 1991, 72nd Leg., 
ch. 386, Sec. 57, eff. Aug. 26, 1991;  Sec. 13.02(c) amended by Acts 
1991, 72nd Leg., ch. 386, Sec. 58, eff. Aug. 26, 1991;  Sec. 
14.03(b), (d) amended by Acts 1991, 72nd Leg., ch. 386, Sec. 59, 
eff. Aug. 26, 1991;  Secs. 14.06, 14.07 added by Acts 1991, 72nd 
Leg., ch. 386, Sec. 60, eff. Aug. 26, 1991;  Sec. 15.01 amended by 
Acts 1991, 72nd Leg., ch. 386, Sec. 61, eff. Aug. 26, 1991;  Sec. 
15.03 added by Acts 1991, 72nd Leg., ch. 386, Sec. 62, eff. Aug. 26, 
1991;  Sec. 15.04 added by Acts 1991, 72nd Leg., ch. 386, Sec. 63, 
eff. Aug. 26, 1991;  Sec. 16.14 amended by Acts 1991, 72nd Leg., ch. 
597, Sec. 1, eff. Sept. 1, 1991;  Secs. 17.01 to 17.06 amended by 
Acts 1991, 72nd Leg., ch. 386, Sec. 74(b), eff. Aug. 26, 1991;  Sec. 
18.01(a) amended by Acts 1991, 72nd Leg., ch. 386, Sec. 64, eff. 
Aug. 26, 1991;  Sec. 18.01(a) amended by Acts 1991, 72nd Leg., 1st 
C.S., ch. 17, Sec. 2.22, eff. Nov. 12, 1991;  Sec. 18.03 amended by 
Acts 1991, 72nd Leg., ch. 386, Sec. 65, eff. Aug. 26, 1991;  Sec. 
18.05 amended by Acts 1991, 72nd Leg., ch. 386, Sec. 66, eff. Aug. 
26, 1991;  Sec. 18.07 added by Acts 1991, 72nd Leg., ch. 386, Sec. 
67, eff. Aug. 26, 1991;  Sec. 3.09(b) amended by Acts 1993, 73rd 
Leg., ch. 309, Sec. 1, eff. Aug. 30, 1993;  Sec. 5.04(b), (c) 
repealed by Acts 1993, 73rd Leg., ch. 790, Sec. 46(8), eff. Sept. 1, 
1993;  Sec. 6.14(d) added by Acts 1993, 73rd Leg., ch. 405, Sec. 1, 
eff. June 2, 1993;  Sec. 6.19(e) amended by Acts 1993, 73rd Leg., 
ch. 405, Sec. 2, eff. June 2, 1993;  Sec. 18.01(a) amended by Acts 
1995, 74th Leg., ch. 970, Sec. 1.05, eff. Sept. 1, 1995;  Sec. 1.02 
amended by Acts 1997, 75th Leg., ch. 1275, Sec. 1, eff. Sept. 1, 
1997;  Sec. 1.03(67) to (78) added by Acts 1997, 75th Leg., ch. 
1275, Sec. 2, eff. Sept. 1, 1997;  Sec. 2.02(a), (b) amended by Acts 
1997, 75th Leg., ch. 1275, Sec. 3, eff. Sept. 1, 1997;  Sec. 2.03 
amended by Acts 1997, 75th Leg., ch. 1275, Sec. 4, eff. Sept. 4, 
1997;  Sec. 2.05 amended by Acts 1997, 75th Leg., ch. 1275, Sec. 5, 
eff. Sept. 1, 1997;  Sec. 2.07 repealed by Acts 1997, 75th Leg., ch. 
1275, Sec. 54, eff. Sept. 1, 1997;  Secs. 2.071 to 2.074 added by 
Acts 1997, 75th Leg., ch. 1275, Sec. 6, eff. Sept. 1, 1997;  Sec. 
2.10 amended by Acts 1997, 75th Leg., ch. 1275, Sec. 7, eff. Sept. 
1, 1997;  Secs. 2.11(b) amended by and Sec. 2.11(d) added by Acts 
1997, 75th Leg., ch. 1275, eff. Sept. 1, 1997;  Sec. 2.12(b), (c) 
amended by Acts 1997, 75th Leg., ch. 1275, Sec. 9, eff. Sept. 1, 
1997;  Secs. 2.17 to 2.24 added by Acts 1997, 75th Leg., ch. 1275, 
Sec. 10, eff. Sept. 1, 1997;  Sec. 3.01 repealed by Acts 1997, 75th 
Leg., ch. 1275, Sec. 54, eff. Sept. 1, 1997;  Sec. 3.02 amended by 
Acts 1997, 75th Leg., ch. 1275, Sec. 11, eff. Sept. 1, 1997;  Sec. 
3.021(b) amended and Sec. 3.021(d) added by Acts 1997, 75th Leg., 
ch. 1275, Sec. 12, eff. Sept. 1, 1997;  Sec. 3.03 amended by Acts 
1997, 75th Leg., ch. 1275, Sec. 13, eff. Sept. 1, 1997;  Secs. 
3.07(a), (b), (d), (e) amended by Acts 1997, 75th Leg., ch. 1275, 
Sec. 14, eff. Sept. 1, 1997;  Sec. 3.08(b) amended by Acts 1997, 
75th Leg., ch. 1275, Sec. 15, eff. Sept. 1, 1997;  Secs. 3.13 to 3.22 
added by Acts 1997, 75th Leg., ch. 1275, Sec. 16, eff. Sept. 1, 
1997;  Sec. 5.01(a) amended by Acts 1997, 75th Leg., ch. 1275, Sec. 
17, eff. Sept. 1, 1997;  Secs. 5.03(a), (b) amended by Acts 1997, 
75th Leg., ch. 1275, Sec. 18, eff. Sept. 1, 1997;  Sec. 5.05 added by 
Acts 1997, 75th Leg., ch. 1275, Sec. 19, eff. Sept. 1, 1997;  Sec. 
6.01 amended by Acts 1997, 75th Leg., ch. 1275, Sec. 20, eff. Sept. 
1, 1997;  Sec. 6.02(b) amended by Acts 1997, 75th Leg., ch. 1275, 
Sec. 21, eff. Sept. 1, 1997;  Secs. 6.04(a), (d) amended by Acts 
1997, 75th Leg., ch. 1275, Sec. 22, eff. Sept. 1, 1997;  Secs. 
6.06(a), (b), (e) to (g) amended and Sec. 6.06(i) added by Acts 
1997, 75th Leg., ch. 1275, Sec. 23, eff. Sept. 1, 1997;  Secs. 6.061 
to 6.063 added by Acts 1997, 75th Leg., ch. 1275, Sec. 24, eff. 
Sept. 1, 1997;  Sec. 6.08(b) amended by Acts 1997, 75th Leg., ch. 
1275, Sec. 25, eff. Sept. 1, 1997;  Sec. 6.08(c) repealed by Acts 
1997, 75th Leg., ch. 1275, Sec. 54, eff. Sept. 1, 1997;  Sec. 
6.09(b) repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 54, eff. 
Sept. 1, 1997;  Sec. 6.09(f) added by Acts 1997, 75th Leg., ch. 
1275, Sec. 26, eff. Sept. 1, 1997;  Sec. 6.091 amended by Acts 1997, 
75th Leg., ch. 1275, Sec. 27, eff. Sept. 1997;  Secs. 6.092, 6.093 
added by Acts, 1997, 75th Leg., ch. 1275, Sec. 28, eff. Sept. 1, 
1997;  Sec. 7.01 amended by Acts 1997, 75th Leg., ch. 1275, Sec. 29, 
eff. Sept. 1, 1997;  Sec. 7.02(a) amended and Sec. 7.02(c) to (e) 
added by Acts 1997, 75th Leg., ch. 1275, Sec. 30, eff. Sept. 1, 
1997;  Sec. 7.04 amended by Acts 1997, 75th Leg., ch. 1275, Sec. 31, 
eff. Sept. 1, 1997;  Sec. 7.05 amended by Acts 1997, 75th Leg., ch. 
1275, Sec. 32, eff. Sept. 1, 1997;  Sec. 7.07 amended by Acts 1997, 
75th Leg., ch. 1275, Sec. 33, eff. Sept. 1, 1997;  Sec. 7.10 added by 
Acts 1997, 75th Leg., ch. 34, eff. Sept. 1, 1997;  Sec. 9.01 amended 
by Acts 1997, 75th Leg., ch. 1275, Sec. 35, eff. Sept. 1, 1997;  Sec. 
10.04 amended by Acts 1997, 75th Leg., ch. 1275, Sec. 36, eff. Sept. 
1, 1997;  Sec. 11.011(g) amended by and Sec. 11.011(h) to (m) added 
by Acts 1997, 75th Leg., ch. 1275, Sec. 37, eff. Sept. 1, 1997; Sec. 
11.04(c) amended by Acts 1997, 75th Leg., ch. 1275, Sec. 38, eff. 
Sept. 1, 1997;  Sec. 11.04(d) repealed by Acts 1997, 75th Leg., ch. 
1275, Sec. 54, eff. Sept. 1, 1997;  Sec. 11.04(e)added by Acts 1997, 
75th Leg., ch. 1275, Sec. 38, eff. Sept. 1, 1997;  Sec. 11.06 
amended by Acts 1997, 75th Leg., ch. 1275, Sec. 39, eff. Sept. 1, 
1997;  Sec. 11.08 amended by Acts 1997, 75th Leg., ch. 1275, Sec. 
40, eff. Sept. 1, 1997;  Sec. 11.09 amended by Acts 1997, 75th Leg., 
ch. 1275, Sec. 41, eff. Sept. 1, 1997;  Sec. 13.03 amended by Acts 
1997, 75th Leg., ch. 1275, Sec. 42, eff. Sept. 1, 1997;  Secs. 
14.01, 14.02, 14.04 to 14.07 amended by and Sec. 14.03 deleted by 
and Secs. 14.08 to 14.21 added by Acts 1997, 75th Leg., ch. 1275, 
Sec. 43, eff. Sept. 1, 1997;  Sec. 15.01 amended by Acts 1997, 75th 
Leg., ch. 1275, Sec. 44, eff. Sept. 1, 1997;  Sec. 15.02 repealed by 
Acts 1997, 75th Leg., ch. 1275, Sec. 54, eff. Sept. 1, 1997;  Sec. 
16.021 added by Acts 1997, 75th Leg., ch. 1275, Sec. 45, eff. Sept. 
1, 1997;  Sec. 6.11(b) amended by Acts 1997, 75th Leg., ch. 1275, 
Sec. 46, eff. Sept. 1, 1997;  Sec. 16.12(a) amended by Acts 1997, 
75th Leg., ch. 1275, Sec. 47, eff. Sept. 1, 1997;  Sec. 18.01(a) 
amended by Acts 1997, 75th Leg., ch. 1275, Sec. 48, eff. Sept. 1, 
1997;  Sec. 18.02 repealed by Acts 1997, 75th Leg., ch. 1275, Sec. 
54, eff. Sept. 1, 1997;  Sec. 18.06 amended by Acts 1997, 75th Leg., 
ch. 1275, Sec. 49, eff. Sept. 1, 1997;  Sec. 18.08 added by Acts 
1997, 75th Leg., ch. 1275, eff. Sept. 1, 1997;  Sec. 1.03(21) 
amended by Acts 2001, 77th Leg., ch. 490, Sec. 1, eff. Jan. 1, 2002;  
Sec. 6.02(b) amended by Acts 2001, 77th Leg., ch. 669, Sec. 152, 
eff. Sept. 1, 2001;  Sec. 6.08(n) added by Acts 2001, 77th Leg., ch. 
490, Sec. 2, eff. Jan. 1, 2002;  Sec. 6.094 added by Acts 2001, 77th 
Leg., ch. 334, Sec. 1, eff. Sept. 1, 2001;  Sec. 6.17(b) amended by 
Acts 2001, 77th Leg., ch. 669, Sec. 153, eff. Sept. 1, 2001;  Sec. 
9.03 amended by Acts 2001, 77th Leg., ch. 490, Sec. 3, eff. Jan. 1, 
2002;  Sec. 11.011(e) amended by Acts 2001, 77th Leg., ch. 1263, 
Sec. 81, eff. Oct. 1, 2001;  Sec. 16.14 amended by Acts 2001, 77th 
Leg., ch. 669, Sec. 154, eff. Sept. 1, 2001;  Sec. 2.02(a) amended 
by Acts 2003, 78th Leg., ch. 492, Sec. 1, eff. Sept. 1, 2003;  Acts 
2003, 78th Leg., ch. 1170, Sec. 37.01, eff. Sept. 1, 2003;  Sec. 
2.03(a) amended by Acts 2003, 78th Leg., ch. 492, Sec. 2, eff. Sept. 
1, 2003;  Acts 2003, 78th Leg., ch. 1170, Sec. 37.02, eff. Sept. 1, 
2003;  Sec. 2.05(a) amended by Acts 2003, 78th Leg., ch. 492, Sec. 
3, eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 1170, Sec. 37.03, 
eff. Sept. 1, 2003;  Sec. 3.07(d) amended by Acts 2003, 78th Leg., 
ch. 444, Sec. 1, eff. Sept. 1, 2003;  Sec. 11.01(a) amended by Acts 
2003, 78th Leg., ch. 285, Sec. 29, eff. Sept. 1, 2003;  Sec. 
18.01(a) amended by Acts 2003, 78th Leg., ch. 1112, Sec. 3.09, eff. 
Sept. 1, 2003.


	Art. 179e-2. 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 1986, 69th Leg., 2nd C.S., ch. 19, Sec. 6, eff. Dec. 4, 1986.