By: Kolkhorst S.B. No. 1969     A BILL TO BE ENTITLED   AN ACT   relating to the nonsubstantive revision of the Texas Racing Act,   including conforming amendments.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. NONSUBSTANTIVE REVISION OF THE TEXAS RACING ACT          SECTION 1.01.  Title 13, Occupations Code, is amended by   adding Subtitle A-1 to read as follows:   SUBTITLE A-1.  TEXAS RACING ACT   CHAPTER 2021. GENERAL PROVISIONS   CHAPTER 2022.  TEXAS RACING COMMISSION   CHAPTER 2023.  COMMISSION AND RACE MEETING OFFICIAL POWERS                  AND DUTIES   CHAPTER 2024.  POWERS AND DUTIES OF COMPTROLLER   CHAPTER 2025.  LICENSING   CHAPTER 2026.  RACETRACK OPERATION AND PREMISES   CHAPTER 2027.  WAGERING   CHAPTER 2028.  PARI-MUTUEL POOLS, PURSES, AND FEES   CHAPTER 2029.  ALLOCATION OF RACING DAYS   CHAPTER 2030.  TEXAS-BRED HORSES AND GREYHOUNDS   CHAPTER 2031.  TEXAS DERBIES   CHAPTER 2032.  LIVESTOCK SHOWS, EXHIBITS, AND FAIRS   CHAPTER 2033.  CRIMINAL AND ADMINISTRATIVE PENALTIES;                  DISCIPLINARY POWERS   CHAPTER 2034.  UNLAWFUL INFLUENCE ON RACING   CHAPTER 2035.  LOCAL OPTION ELECTION TO LEGALIZE                  PARI-MUTUEL WAGERING   SUBTITLE A-1.  TEXAS RACING ACT   CHAPTER 2021.  GENERAL PROVISIONS   Sec. 2021.001.  SHORT TITLE    Sec. 2021.002.  PURPOSE    Sec. 2021.003.  GENERAL DEFINITIONS    Sec. 2021.004.  DEFINITIONS USED IN ADMINISTERING THIS                    SUBTITLE    Sec. 2021.005.  PRECEDENCE OF SUIT UNDER TITLE    Sec. 2021.006.  RELEASE OF CIVIL LIABILITY    Sec. 2021.007.  FEE OR PAYMENT IN LIEU OF OTHER STATE                    TAXES AND FEES    Sec. 2021.008.  SUNSET PROVISION    CHAPTER 2021.  GENERAL PROVISIONS          Sec. 2021.001.  SHORT TITLE. This subtitle may be cited as   the Texas Racing Act. (V.A.C.S. Art. 179e, Sec. 1.01.)          Sec. 2021.002.  PURPOSE. The purpose of this subtitle is to   provide for the strict regulation of horse racing and greyhound   racing and the control of pari-mutuel wagering in connection with   that racing. (V.A.C.S. Art. 179e, Sec. 1.02.)          Sec. 2021.003.  GENERAL DEFINITIONS. In this subtitle:                (1)  "Accredited Texas-bred horse" means a Texas-bred   horse that meets the accreditation requirements of the state horse   breed registry for that breed of horse.                (2)  "Active license" means a racetrack license   designated by the commission as active.                (3)  "Appaloosa horse" means a horse that is registered   by the Appaloosa Horse Club.                (4)  "Applicant" means a person with a legal,   equitable, or beneficial interest in a license application.                (5)  "Arabian horse" means a horse that is registered   by the Arabian Horse Association or by the Canadian Arabian Horse   Registry.                (6)  "Breakage" means the odd cents by which the amount   payable on each dollar wagered exceeds a multiple of 10 cents,   except in a minus pool, in which the breakage must be in multiples   of five cents.                (7)  "Child" means an individual younger than 16 years   of age.                (8)  "Commission" means the Texas Racing Commission.                (9)  "Concessionaire" means a person licensed by the   commission to sell refreshments or souvenirs at a racetrack.                (10)  "Contraband" means:                      (A)  an item the possession of which is unlawful   under this subtitle, a commission rule, or other law;                      (B)  an item that might reasonably have the effect   of unnaturally depressing, stimulating, or exciting an animal   during a race in a manner contrary to this subtitle or a commission   rule, including a prohibited device or prohibited substance; or                      (C)  a document, including a credential or forged   ticket, possessed or used by an individual in violation of this   subtitle or a commission rule.                (11)  "Credential" means any document indicating   authority or permission under this subtitle, including a license,   certificate, and identification card.                (12)  "Cross-species simulcast signal" means a   simulcast signal of a horse race at a greyhound racetrack or a   simulcast signal of a greyhound race at a horse racetrack.                (13)  "Enclosure" means all areas of a racetrack   association's grounds, including the parking area, to which   admission is ordinarily obtained only on payment of an admission   fee or presentation of an official credential.                (14)  "Executive director" means the executive   director of the commission.                (15)  "Greyhound" means a purebred greyhound dog   registered by the National Greyhound Association.                (16)  "Greyhound racing" means any race in which two or   more greyhounds engage in a contest of speed or endurance or pursue   a mechanical lure.                (17)  "Greyhound racing day" means a day on which a   racetrack association conducts greyhound racing. "One racing day"   means a period beginning at noon and ending at 2 a.m. the next   calendar day, other than a day on which a matinee performance is   conducted.                (18)  "Horse race meeting" means the conducting of   horse races on a day or during a period of consecutive or   nonconsecutive days.                (19)  "Horse racing day" means the 24-hour period   ending at 12 midnight.                (20)  "Horsemen's organization" means an organization   recognized by the commission that:                      (A)  represents horse owners and trainers in   negotiating and contracting with racetrack associations on   subjects relating to racing; and                      (B)  represents and advocates the interests of   horse owners and trainers before administrative, legislative, and   judicial forums.                (21)  "Inactive license" means a racetrack license   designated by the commission as inactive.                (22)  "Judge" means a racing official with general   authority and supervision over:                      (A)  the conduct of a greyhound race meeting; and                      (B)  all license holders at a racetrack during a   greyhound race meeting.                (23)  "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.                (24)  "Maiden" means a horse that has never won a race   at a race meeting authorized by the commission or by another racing   jurisdiction.                (25)  "Matinee performance" means any performance   starting between 10 a.m. and 5 p.m. on a day other than Sunday.                (26)  "Minor" means an individual younger than 21 years   of age.                (27)  "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.                (28)  "National historic district" means a district   included in or eligible for inclusion in the National Register of   Historic Places under 54 U.S.C. Section 302101 et seq.                (29)  "Nonprofit corporation" means a nonprofit   corporation governed by Chapter 22, Business Organizations Code,   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 of 1986.                (30)  "Outstanding ticket" means a pari-mutuel ticket   not presented for payment before the end of the horse racing day or   greyhound racing day for which the ticket was purchased.                (31)  "Paint horse" means a horse that is registered by   the American Paint Horse Association.                (32)  "Pari-mutuel pool" means the total amount of   money wagered by patrons on the result of a particular race or   combination of races, divided into separate mutuel pools for win,   place, show, or combinations.                (33)  "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 a racetrack association,   including winnings from a pari-mutuel wager.                (34)  "Pari-mutuel wagering" means the form of wagering   on the outcome of horse racing or greyhound racing in which persons   who wager purchase tickets of various denominations on an animal or   animals and all wagers for each race are pooled and held by the   racetrack association for distribution of the total amount, less   the deductions authorized by this subtitle, to holders of tickets   on the winning animals.                (35)  "Performance" means the consecutive running of a   specified number of greyhound races as determined by the   commission.                (36)  "Person" includes any individual or entity   capable of holding a legal or beneficial interest in property.                (37)  "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 subtitle or a commission rule.                (38)  "Prohibited substance" means a drug, chemical, or   other substance that:                      (A)  in use or in intended use, is reasonably   capable of influencing or affecting the outcome of a race in a   manner contrary to this subtitle or a commission rule; and                      (B)  is prohibited by a commission rule regulating   the unlawful influence of a race.                (39)  "Quarter horse" means a horse that is registered   by the American Quarter Horse Association.                (40)  "Race" includes a live audio and visual signal of   a race.                (41)  "Racetrack" means a facility licensed under this   subtitle for the conduct of pari-mutuel wagering on horse racing or   greyhound racing.                (42)  "Racetrack association" means a person licensed   under this subtitle to conduct a horse race meeting or a greyhound   race meeting with pari-mutuel wagering.                (43)  "Receiving location" means a 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.                (44)  "Regular wagering" means wagering on a single   horse or greyhound in a single race.  The term includes wagering on   the win pool, the place pool, or the show pool.                (45)  "Sending track" means any licensed track for   horse or greyhound racing in this state or another state from which   a race is transmitted.                (46)  "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.                (47)  "Simulcast pari-mutuel pool" means the total   amount of money wagered by patrons at a racetrack in this state on   the result of a particular simulcast race or combination of   simulcast races.                (48)  "State horse breed registry" means a designated   association administering accredited Texas-bred horse requirements   for a specific breed of horses.                (49)  "Steward" means a racing official with general   authority and supervision over:                      (A)  the conduct of a horse race meeting; and                      (B)  all license holders at a racetrack during a   horse race meeting.                (50)  "Texas-bred horse" means a horse qualified under   commission rules 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.                (51)  "Thoroughbred horse" means a horse that is   registered by the Jockey Club.                (52)  "Thoroughbred racing" means the form of horse   racing in which Thoroughbred horses mounted by jockeys engage in a   race.                (53)  "Touting" means an offense described by Section   2033.013 or a similar offense under the laws of another state.                (54)  "Trainer" means a person who is licensed by the   commission to train horses or greyhounds.                (55)  "Veterinarian" means a person licensed under   Chapter 801.  (V.A.C.S. Art. 179e, Secs. 1.03(1), (2), (3), (6),   (7), (8), (9), (11), (13), (15), (17), (18), (19), (20), (21), (22),   (24), (25), (26), (35), (36), (42), (43), (45), (46), (47), (48),   (50), (51), (52), (53), (54), (57), (59), (60), (61), (62), (63),   (64), (65), (66), (68), (69), (70), (71), (72), (73), (74), (75),   (76), (77), (78), (79), (80), (81).)          Sec. 2021.004.  DEFINITIONS USED IN ADMINISTERING SUBTITLE.   For the purpose of administering this subtitle:                (1)  "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 the commission   acknowledges and approves.                (2)  "Clerk of scales" means a racetrack official who   is responsible for weighing a jockey before and after a race.                (3)  "Handicapper" means a person who predicts the   winner of a horse race.                (4)  "Horseshoe inspector" means a racetrack official   who inspects the shoes of the horses entered in a race.                (5)  "Jockey" or "apprentice jockey" means a   professional rider licensed by the commission to ride in horse   races.                (6)  "Jockey room custodian" means a person who   maintains the premises of a room in which jockeys prepare for a   race.                (7)  "Official starter" means a racetrack official who   is in charge of the start of a race.                (8)  "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.                (9)  "Patrol judge" means a racetrack official who is   stationed at a set point along the racetrack to monitor the running   of a race.                (10)  "Quarter horse racing" means the form of horse   racing in which quarter horses mounted by jockeys engage in a race.                (11)  "Stable foreman" means the person in charge of   the building in which horses are lodged and fed.                (12)  "Timer" means a racetrack official who times the   running of a race. (V.A.C.S. Art. 179e, Secs. 1.03(10), (27), (28),   (30), (31), (32), (34), (37), (38), (39), (40), (41); New.)          Sec. 2021.005.  PRECEDENCE OF SUIT UNDER TITLE. A court   shall accelerate the disposition of an action brought under this   subtitle. (V.A.C.S. Art. 179e, Secs. 16.16, 18.04.)          Sec. 2021.006.  RELEASE OF CIVIL LIABILITY. A commission   member, a commission employee, a steward or judge, a racetrack   association, a horsemen's organization, or any other person   regulated under this subtitle is not liable for a cause of action   that arises out of that person's performance or exercise of   discretion in the implementation or enforcement of this subtitle or   a rule adopted under this subtitle if the person has acted in good   faith. (V.A.C.S. Art. 179e, Sec. 18.06.)          Sec. 2021.007.  FEE OR PAYMENT IN LIEU OF OTHER STATE TAXES   AND FEES. (a)  A fee or payment collected by this state under this   subtitle is in lieu of any other fee, payment, or tax imposed by   this state.          (b)  This section does not preclude the application of:                (1)  the sales tax or an increase in the sales tax to   the sale or purchase of a taxable item by a person licensed under   this subtitle; or                (2)  the franchise tax to a person licensed under this   subtitle. (V.A.C.S. Art. 179e, Sec. 18.05.)          Sec. 2021.008.  SUNSET PROVISION. (a)  The 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), the commission is abolished   and this subtitle expires September 1, 2023.          (b)  If, at the time the commission would be abolished under   Subsection (a), a racetrack association has outstanding long-term   liabilities:                (1)  the racetrack association may continue to operate   for a period not to exceed one year after those liabilities are   satisfied; and                (2)  the commission and this subtitle are continued in   effect for the purpose of regulating that racetrack association   under this subtitle.          (c)  If the commission and this subtitle are continued in   effect under Subsection (b), the commission is abolished and this   subtitle expires on the first day of the state fiscal year following   the state fiscal year in which the commission certifies to the   secretary of state that no racetrack associations are operating   under the terms of Subsection (b).          (d)  A racetrack association that continues to operate under   Subsection (b) may not incur any new liability without commission   approval. At the beginning of that period, the commission shall:                (1)  review the outstanding liabilities of the   racetrack association; and                (2)  set a specific date by which the racetrack   association must retire its outstanding liabilities.          (e)  Notwithstanding any contrary contract provision, a   racetrack association may prepay any debt incurred by the racetrack   association in conducting racing under this subtitle. (V.A.C.S. Art. 179e, Sec. 18.01.)     CHAPTER 2022.  TEXAS RACING COMMISSION   SUBCHAPTER A.  COMPOSITION AND OPERATION   Sec. 2022.001.  COMMISSION MEMBERSHIP    Sec. 2022.002.  TERM OF OFFICE    Sec. 2022.003.  FINANCIAL STATEMENT REQUIRED    Sec. 2022.004.  RESTRICTIONS ON COMMISSION APPOINTMENT,                    MEMBERSHIP, AND EMPLOYMENT    Sec. 2022.005.  GROUNDS FOR REMOVAL    Sec. 2022.006.  MEMBER TRAINING    Sec. 2022.007.  MEMBER PER DIEM AND REIMBURSEMENT FOR                    EXPENSES    Sec. 2022.008.  PRESIDING OFFICER    Sec. 2022.009.  COMMISSION MEETINGS; RECORD OF                    COMMISSION VOTES    Sec. 2022.010.  COMMISSION OFFICES    Sec. 2022.011.  MONEY PAID TO COMMISSION    Sec. 2022.012.  LEGAL REPRESENTATION    Sec. 2022.013.  NEGOTIATED RULEMAKING AND ALTERNATIVE                    DISPUTE RESOLUTION PROCEDURES    Sec. 2022.014.  PUBLIC PARTICIPATION    SUBCHAPTER B.  COMMISSION STAFF   Sec. 2022.051.  EXECUTIVE DIRECTOR; DUTIES    Sec. 2022.052.  EMPLOYEES; RESTRICTIONS ON EMPLOYMENT    Sec. 2022.053.  COMMISSION INVESTIGATORS    Sec. 2022.054.  CAREER LADDER; PERFORMANCE EVALUATIONS    Sec. 2022.055.  EQUAL EMPLOYMENT OPPORTUNITY POLICY    Sec. 2022.056.  DIVISION OF RESPONSIBILITY    Sec. 2022.057.  BACKGROUND CHECKS AND QUALIFICATION                    CRITERIA    Sec. 2022.058.  PROHIBITION ON EMPLOYMENT OF FORMER                    COMMISSION MEMBERS OR EMPLOYEES BY                    RACETRACK ASSOCIATION; CRIMINAL PENALTY    SUBCHAPTER C.  RECORDS AND INFORMATION   Sec. 2022.101.  PUBLIC INTEREST INFORMATION    Sec. 2022.102.  INFORMATION RELATING TO COMPLAINT                    PROCEDURES    Sec. 2022.103.  COMMISSION INVESTIGATIVE FILES                    CONFIDENTIAL    Sec. 2022.104.  INTERAGENCY SHARING OF RECORDS    Sec. 2022.105.  BOOKS AND RECORDS; INSPECTION    Sec. 2022.106.  PUBLIC INSPECTION OF RECORDS    CHAPTER 2022.  TEXAS RACING COMMISSION   SUBCHAPTER A.  COMPOSITION AND OPERATION          Sec. 2022.001.  COMMISSION MEMBERSHIP.  (a)  The commission   consists of:                (1)  seven members appointed by the governor with the   advice and consent of the senate; and                (2)  two ex officio members who have the right to vote.          (b)  The ex officio members are:                (1)  the chair of the Public Safety Commission, or a   member of the Public Safety Commission designated by the chair; and                (2)  the comptroller or the comptroller's designee.          (c)  Of the appointed commission members:                (1)  five members must be representatives of the   general public and have general knowledge of business or   agribusiness;                (2)  one additional member must have special knowledge   or experience related to horse racing; and                (3)  one additional member must have special knowledge   or experience related to greyhound racing.          (d)  At least one of the members appointed under Subsection   (c)(1) may be a veterinarian.  Holding a veterinarian's license   satisfies the requirement that the person have general knowledge of   business or agribusiness.          (e)  Appointments to the commission shall be made without   regard to the race, color, disability, sex, religion, age, or   national origin of the appointees.          (f)  In making appointments to the commission, the governor   shall attempt to reflect the minority groups found in the state's   general populace. (V.A.C.S. Art. 179e, Secs. 2.02, 2.05(a) (part).)          Sec. 2022.002.  TERM OF OFFICE.  (a)  Appointed commission   members hold office for staggered terms of six years with the terms   of two or three members expiring February 1 of each odd-numbered   year.          (b)  An ex officio member holds office on the commission for   the time the member holds the member's other office. (V.A.C.S. Art.   179e, Secs. 2.03(a) (part), (b).)          Sec. 2022.003.  FINANCIAL STATEMENT REQUIRED.  (a)  Each   appointed commission member and the executive director is an   "appointed officer of a major state agency" for purposes of Chapter   572, Government Code.          (b)  An appointed commission member shall file a detailed   financial statement with the secretary of state of the type   required by the Texas Department of Banking in the application for a   state bank charter. The financial statement is public information   under Chapter 552, Government Code. (V.A.C.S. Art. 179e, Sec.   2.06.)          Sec. 2022.004.  RESTRICTIONS ON COMMISSION APPOINTMENT,   MEMBERSHIP, AND EMPLOYMENT.  (a)  In this section, "Texas trade   association" means a cooperative and voluntarily joined statewide   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.          (b)  A person may not be a commission member and may not be a   commission employee employed in a "bona fide executive,   administrative, or professional capacity," as that phrase is used   for purposes of establishing an exemption to the overtime   provisions of the federal Fair Labor Standards Act of 1938 (29   U.S.C. Section 201 et seq.), if:                (1)  the person is an officer, employee, or paid   consultant of a Texas trade association in the field of horse or   greyhound racing or breeding; or                (2)  the person's spouse is an officer, manager, or paid   consultant of a Texas trade association in the field of horse or   greyhound racing or breeding.          (c)  A person may not be a commission member 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.          (d)  An appointed member is not eligible to serve on the   commission unless that member has been a resident of this state for   at least 10 consecutive years immediately before appointment.          (e)  A person is not eligible for appointment as a commission   member if:                (1)  the person or the person's spouse:                      (A)  is licensed by the commission, except as a   commissioner;                      (B)  is employed by the commission or participates   in the management of a business entity or other organization   regulated by the commission or receiving funds from or through the   commission;                      (C)  owns or controls, directly or indirectly,   more than a 10 percent interest in a business entity or other   organization regulated by the commission or receiving funds from or   through the commission; or                      (D)  uses or receives a substantial amount of   tangible goods, services, or funds from or through the commission,   other than compensation or reimbursement authorized by law for   commission membership, attendance, or expenses; or                (2)  the person:                      (A)  owns any financial interest in a racetrack or   its operation or is related within the second degree by affinity or   the third degree by consanguinity, as determined under Subchapter   B, Chapter 573, Government Code, to a person who owns any financial   interest in a racetrack or its operation; or                      (B)  has been convicted of a felony or of any crime   involving moral turpitude. (V.A.C.S. Art. 179e, Secs. 2.04, 2.05(a)   (part), (b), (d), 2.071.)          Sec. 2022.005.  GROUNDS FOR REMOVAL. (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 Sections 2022.001, 2022.004, and   2022.057;                (2)  does not maintain during service on the commission   the qualifications required by Sections 2022.001, 2022.004, and   2022.057;                (3)  violates a prohibition established by Section   2022.004;                (4)  cannot, because of illness or disability,   discharge the member's duties for a substantial part of the member's   term; 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 director has knowledge that a potential   ground for removal exists, the executive director 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 director 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. (V.A.C.S. Art. 179e,   Sec. 2.073.)          Sec. 2022.006.  MEMBER TRAINING.  (a)  To be eligible to   take office as a commission member, 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)  commission rules, 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:                      (A)  Chapter 551, Government Code;                      (B)  Chapter 552, Government Code; and                      (C)  Chapter 2001, Government Code;                (8)  the requirements of the conflict of interest 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 commission member. (V.A.C.S. Art. 179e, Sec.   2.074.)          Sec. 2022.007.  MEMBER PER DIEM AND REIMBURSEMENT FOR   EXPENSES.  (a)  An appointed commission member is entitled to:                (1)  a per diem in an amount prescribed by legislative   appropriation for each day spent in performing the duties of the   office; and                (2)  reimbursement for actual and necessary expenses   incurred in performing the duties of the office.          (b)  Reimbursement for expenses under this section is   subject to any applicable limitation in the General Appropriations   Act.          (c)  An ex officio commission member is entitled to   reimbursement for expenses from the member's agency as provided by   law for expenses incurred in the performance of the member's other   official duties. (V.A.C.S. Art. 179e, Sec. 2.08.)          Sec. 2022.008.  PRESIDING OFFICER.  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. (V.A.C.S. Art. 179e, Sec. 2.10.)          Sec. 2022.009.  COMMISSION MEETINGS; RECORD OF COMMISSION   VOTES.  (a)  The commission shall hold at least six regular   meetings each year on dates fixed by the commission.          (b)  The commission shall adopt rules providing for the   holding of special meetings.          (c)  The commission shall keep at the commission's general   office a public record of every vote. (V.A.C.S. Art. 179e, Secs.   2.11(a), (c).)          Sec. 2022.010.  COMMISSION OFFICES.  The commission shall   maintain a general office of the commission in Austin and may also   establish branch offices. (V.A.C.S. Art. 179e, Sec. 2.09.)          Sec. 2022.011.  MONEY PAID TO COMMISSION.  All money paid to   the commission under this subtitle is subject to Subchapter F,   Chapter 404, Government Code. (V.A.C.S. Art. 179e, Sec. 2.18.)          Sec. 2022.012.  LEGAL REPRESENTATION.  The attorney general   shall:                (1)  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; and                (2)  make available to the appropriate prosecuting   attorneys any information obtained regarding violations of this   subtitle. (V.A.C.S. Art. 179e, Sec. 2.14.)          Sec. 2022.013.  NEGOTIATED RULEMAKING AND ALTERNATIVE   DISPUTE RESOLUTION PROCEDURES.  (a)  The commission shall develop   and implement a policy to encourage the use of:                (1)  negotiated rulemaking procedures under Chapter   2008, Government Code, for the adoption of commission rules; and                (2)  appropriate alternative dispute resolution   procedures under Chapter 2009, Government Code, to assist in the   resolution of internal and external disputes under the commission's   jurisdiction.          (b)  The commission's procedures relating to alternative   dispute resolution shall conform, to the extent possible, to any   model guidelines issued by the State Office of Administrative   Hearings for the use of alternative dispute resolution by state   agencies.          (c)  The commission shall:                (1)  coordinate the implementation of the policy   adopted under Subsection (a);                (2)  provide training as needed to implement the   procedures for negotiated rulemaking or alternative dispute   resolution; and                (3)  collect data concerning the effectiveness of those   procedures. (V.A.C.S. Art. 179e, Sec. 2.25.)          Sec. 2022.014.  PUBLIC PARTICIPATION. (a)  The commission   by rule shall 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.          (b)  The executive director shall 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. (V.A.C.S. Art. 179e, Secs. 2.11(d), 2.22 (part).)   SUBCHAPTER B. COMMISSION STAFF          Sec. 2022.051.  EXECUTIVE DIRECTOR; DUTIES.  (a)  The   commission shall employ an executive director. The executive   director serves at the pleasure of the commission on a full-time   basis and may not hold other employment.          (b)  The executive director shall:                (1)  keep the records of the commission; and                (2)  perform other duties required by the commission.          (c)  The executive director or the executive director's   designee shall provide to commission members and employees, as   often as necessary, information regarding their qualification for   office or employment under this subtitle and their responsibilities   under applicable laws relating to standards of conduct for state   officers or employees. (V.A.C.S. Art. 179e, Secs. 2.12(a) (part),   2.13, 2.20.)          Sec. 2022.052.  EMPLOYEES; RESTRICTIONS ON EMPLOYMENT.   (a)  The commission shall hire employees as necessary to administer   this subtitle.          (b)  The commission shall employ the executive director and   other employees to reflect the diversity of the state's population   with regard to race, color, disability, sex, religion, age, and   national origin.          (c)  The commission may not employ or continue to employ a   person who:                (1)  owns or controls a financial interest in a   commission license holder;                (2)  is employed by or serves as a paid consultant to a   commission license holder, an official state breed registry, or a   Texas trade association, as defined by Section 2022.004(a), in the   field of horse or greyhound racing or breeding;                (3)  owns or leases a race animal that participates in   pari-mutuel racing in this state;                (4)  accepts or is entitled to any part of the purse or   Texas-bred incentive award to be paid on a horse or a greyhound in a   race conducted in this state; or                (5)  resides with or is related within the first degree   by affinity or consanguinity to a person subject to a   disqualification prescribed by this subsection. (V.A.C.S. Art.   179e, Secs. 2.12(a) (part), (b), (c), (d).)          Sec. 2022.053.  COMMISSION INVESTIGATORS. (a)  The   commission may commission as many investigators as the commission   determines necessary to enforce this subtitle and commission rules.          (b)  An investigator commissioned under this section shall   take the constitutional oath of office and file it with the   commission.          (c)  An investigator commissioned under this section has the   powers of a peace officer. (V.A.C.S. Art. 179e, Sec. 11.01(a-1).)          Sec. 2022.054.  CAREER LADDER; PERFORMANCE EVALUATIONS.   (a)  The executive director or the executive director'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 director or the executive director's   designee shall develop a system of annual performance evaluations   based on documented employee performance. All merit pay for   commission employees must be based on the system established under   this subsection. (V.A.C.S. Art. 179e, Secs. 2.19(a), (b).)          Sec. 2022.055.  EQUAL EMPLOYMENT OPPORTUNITY POLICY.   (a)  The executive director or the executive director'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.          (b)  The policy statement must include:                (1)  personnel policies, including policies relating   to recruitment, evaluation, selection, appointment, training, and   promotion of personnel that comply 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.          (c)  The policy statement must:                (1)  cover an annual period and be updated annually;                (2)  be reviewed by the Texas Workforce Commission for   compliance with Subsection (b)(1); and                (3)  be filed with the governor's office. (V.A.C.S.   Art. 179e, Secs. 2.19(c), (d).)          Sec. 2022.056.  DIVISION OF RESPONSIBILITY. The commission   by rule shall develop and implement policies that clearly separate   the policymaking responsibilities of the commission and the   management responsibilities of the executive director and the   commission staff. (V.A.C.S. Art. 179e, Sec. 2.21.)          Sec. 2022.057.  BACKGROUND CHECKS AND QUALIFICATION   CRITERIA.  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   subtitle. (V.A.C.S. Art. 179e, Sec. 2.05(c).)          Sec. 2022.058.  PROHIBITION ON EMPLOYMENT OF FORMER   COMMISSION MEMBERS OR EMPLOYEES BY RACETRACK ASSOCIATION; CRIMINAL   PENALTY. (a)  A racetrack association may not employ a person who   has been a commission member, the executive director, or a   commission employee in a position in the state employment   classification plan of grade 12 or above, or a person related within   the second degree by affinity or the third degree by consanguinity,   as determined under Chapter 573, Government Code, to such a member   or employee, during the one-year period immediately preceding the   employment by the racetrack association.          (b)  A person may not seek or accept employment with a   racetrack association if the racetrack association would violate   this section by employing the person.          (c)  A racetrack association or person who violates this   section commits an offense. (V.A.C.S. Art. 179e, Sec. 6.16.)   SUBCHAPTER C. RECORDS AND INFORMATION          Sec. 2022.101.  PUBLIC INTEREST INFORMATION. (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.          (b)  The commission shall make the information described by   Subsection (a) available to the public and appropriate state   agencies. (V.A.C.S. Art. 179e, Sec. 2.23(a).)          Sec. 2022.102.  INFORMATION RELATING TO COMPLAINT   PROCEDURES. (a)  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 the   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.          (b)  The commission shall keep information about each   complaint filed with the commission. The information must 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 commission took no   action, an explanation of the reason the complaint was closed   without action.          (c)  The commission shall keep a file about each written   complaint filed with the commission that the commission has   authority to resolve. The commission shall provide to the person   filing the complaint and to the persons who are subjects of the   complaint the commission's policies and procedures pertaining to   complaint investigation and resolution.          (d)  The commission, at least quarterly and until final   disposition of a complaint, shall notify the person filing the   complaint and the persons who are subjects of the complaint of the   status of the complaint unless the notice would jeopardize an   undercover investigation. (V.A.C.S. Art. 179e, Secs. 2.23(b),   2.24.)          Sec. 2022.103.  COMMISSION INVESTIGATIVE FILES   CONFIDENTIAL. (a)  The contents of the investigatory files of the   commission are not public records and are confidential except:                (1)  in a criminal proceeding;                (2)  in a hearing conducted by the commission;                (3)  on court order; or                (4)  with the consent of the party being investigated.          (b)  Except as otherwise provided by this subtitle, 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 the department's duties under   this subtitle are confidential and are not subject to public   disclosure, but are subject to discovery by a person who 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 in the discharge of the department's   duties under this subtitle.          (c)  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 who is the subject of the investigation report   or other document submitted by the department to the commission   that is part of the investigative files of the commission.          (d)  Information that is in a form available to the public is   not privileged or confidential under this section and is subject to   public disclosure. (V.A.C.S. Art. 179e, Secs. 2.15(b), 2.16.)          Sec. 2022.104.  INTERAGENCY SHARING OF RECORDS. The   commission may share with another regulatory agency of this state   any investigatory file information that creates a reasonable   suspicion of a person's violation of a law or rule under that   agency's jurisdiction. The agency may use the information as if it   was obtained through that agency's investigatory process.   (V.A.C.S. Art. 179e, Sec. 2.15(c).)          Sec. 2022.105.  BOOKS AND RECORDS; INSPECTION. (a)  The   commission shall require racetrack associations, managers,   totalisator license holders, and concessionaires to keep books and   records and to submit financial statements to the commission.          (b)  Except as provided by Section 2024.002(b), the   commission shall adopt rules relating to the matters described by   Subsection (a). (V.A.C.S. Art. 179e, Sec. 3.04.)          Sec. 2022.106.  PUBLIC INSPECTION OF RECORDS. (a)  All   commission records that are not made confidential by other law are   open to inspection by the public during regular office hours.          (b)  The commission shall maintain all applications for a   license under this subtitle and make the applications available for   public inspection during regular office hours. (V.A.C.S. Art. 179e, Sec. 2.15(a).)     CHAPTER 2023.  COMMISSION AND RACE MEETING OFFICIAL POWERS AND   DUTIES   SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO   HORSE RACING AND GREYHOUND RACING   Sec. 2023.001.  LICENSING, REGULATION, AND SUPERVISION                    OF HORSE RACING AND GREYHOUND RACING    Sec. 2023.002.  REGULATION AND SUPERVISION OF WAGERING                    AT RACE MEETINGS    Sec. 2023.003.  OTHER LICENSING AND REGULATION:  RULES                    AND FEES    Sec. 2023.004.  COMMISSION RULES    Sec. 2023.005.  LIMITATION ON RULES RESTRICTING                    COMPETITIVE BIDDING OR ADVERTISING    Sec. 2023.006.  CONSIDERATION OF PAST PERFORMANCE OF                    RACETRACK ASSOCIATION    Sec. 2023.007.  RIGHT OF ENTRY    Sec. 2023.008.  TESTIMONY AND SUBPOENA POWER    Sec. 2023.009.  JUDICIAL REVIEW OF COMMISSION ORDER    SUBCHAPTER B. GENERAL POWERS AND DUTIES   Sec. 2023.051.  RECOGNITION OF ORGANIZATION    Sec. 2023.052.  SECURITY FOR FEES AND CHARGES    Sec. 2023.053.  TEXAS RACING COMMISSION FUND;                    ADDITIONAL APPROPRIATIONS    Sec. 2023.054.  COMMISSION STANDARDS ON GREYHOUND FARMS                    AND FACILITIES    Sec. 2023.055.  REPORT OF VIOLATION    Sec. 2023.056.  COOPERATION WITH LAW ENFORCEMENT    Sec. 2023.057.  ACCESS TO CRIMINAL HISTORY RECORDS    Sec. 2023.058.  COST OF CRIMINAL HISTORY RECORD CHECK    Sec. 2023.059.  DISTANCE LEARNING    Sec. 2023.060.  CERTIFIED DOCUMENTS    Sec. 2023.061.  ANNUAL REPORT    SUBCHAPTER C.  EMPLOYMENT OF AND SUPERVISION BY RACE MEETING   OFFICIALS   Sec. 2023.101.  EMPLOYMENT OF STEWARDS AND JUDGES    Sec. 2023.102.  STEWARD AND JUDGE EXAMINATIONS    Sec. 2023.103.  EMPLOYMENT OF STATE VETERINARIANS    Sec. 2023.104.  RACE MEETING OFFICIAL COMPENSATION AND                    FEE    Sec. 2023.105.  EMPLOYMENT OF OTHER RACETRACK OFFICIALS    Sec. 2023.106.  RACE MEETING OFFICIAL POWERS AND                    DUTIES; RULES    Sec. 2023.107.  EXECUTIVE DIRECTOR REVIEW AND                    MODIFICATION OF PENALTY    Sec. 2023.108.  FINAL DECISION; AVAILABILITY OF APPEAL    Sec. 2023.109.  APPEAL FROM DECISION OF RACE MEETING                    OFFICIAL; DECISIONS NOT APPEALABLE    CHAPTER 2023.  COMMISSION AND RACE MEETING OFFICIAL POWERS AND   DUTIES   SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO   HORSE RACING AND GREYHOUND RACING          Sec. 2023.001.  LICENSING, REGULATION, AND SUPERVISION OF   HORSE RACING AND GREYHOUND RACING. (a)  Notwithstanding any   contrary provision in this subtitle, the commission may license and   regulate all aspects of horse racing and greyhound racing in this   state, regardless of whether that racing involves pari-mutuel   wagering.          (b)  The commission, in adopting rules and in the supervision   and conduct of racing, shall consider the effect of a proposed   commission action on the state's agricultural, horse breeding,   horse training, greyhound breeding, and greyhound training   industry. (V.A.C.S. Art. 179e, Secs. 3.02(g), 3.021(a).)          Sec. 2023.002.  REGULATION AND SUPERVISION OF WAGERING AT   RACE MEETINGS. (a)  The commission shall regulate and supervise   each race meeting in this state that involves wagering on the result   of horse racing or greyhound racing. Each person and thing relating   to the operation of a race meeting is subject to regulation and   supervision by the commission.          (b)  The commission shall adopt rules, issue licenses, and   take any other necessary action relating exclusively to horse   racing or greyhound racing. (V.A.C.S. Art. 179e, Sec. 3.02(a)   (part).)          Sec. 2023.003.  OTHER LICENSING AND REGULATION:  RULES AND   FEES. (a)  The commission may adopt rules for the licensing and   regulation of races and workouts at tracks that do not offer   pari-mutuel wagering and for workouts at training facilities to   secure past performances and workouts to:                (1)  protect the health, safety, and welfare of race   animals and participants in racing;                (2)  safeguard the interest of the general public; and                (3)  promote the orderly conduct of racing in this   state.          (b)  The commission may charge an annual fee for licensing   and regulating a track 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. (V.A.C.S. Art.   179e, Secs. 3.021(b), (c).)          Sec. 2023.004.  COMMISSION RULES. (a)  The commission shall   adopt:                (1)  rules for conducting horse racing or greyhound   racing in this state that involves wagering; and                (2)  rules for administering this subtitle in a manner   consistent with this subtitle.          (b)  The commission may establish separate sections to   review or propose commission rules.          (c)  The commission or a commission section shall hold a   meeting on a proposed rule before the commission publishes the   proposed rule in the Texas Register.          (d)  The commission shall post at each racetrack notice of a   meeting under Subsection (c) that includes 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 be posted concurrently at each racetrack.          (f)  The commission or a commission section may appoint a   committee of experts, members of the public, or other interested   parties to advise the commission or section about a proposed   commission rule. (V.A.C.S. Art. 179e, Secs. 3.02(a) (part), (b),   (c), (d), (e), (f).)          Sec. 2023.005.  LIMITATION ON RULES RESTRICTING COMPETITIVE   BIDDING OR ADVERTISING. The commission may not adopt rules   restricting competitive bidding or advertising by a license holder   except to prohibit false, misleading, or deceptive practices.   Commission rules to prohibit false, misleading, or deceptive   practices may not:                (1)  restrict the use of any medium for advertising;                (2)  restrict the use of a license holder's personal   appearance or voice in an advertisement;                (3)  relate to the size or duration of an advertisement   by the license holder; or                (4)  restrict the license holder's advertisement under   a trade name. (V.A.C.S. Art. 179e, Sec. 3.021(d).)          Sec. 2023.006.  CONSIDERATION OF PAST PERFORMANCE OF   RACETRACK ASSOCIATION. In considering a pleading of a racetrack   association, the commission shall take into account the operating   experience of the racetrack association in this state, including:                (1)  the financial condition of the racetrack;                (2)  the regulatory compliance and conduct; and                (3)  any other relevant matter concerning the operation   of a racetrack. (V.A.C.S.  Art. 179e, Sec. 18.07.)          Sec. 2023.007.  RIGHT OF ENTRY. A commission member, an   authorized commission agent, a commissioned officer of the   Department of Public Safety, or a peace officer of the local   jurisdiction in which a racetrack association maintains a place of   business may enter any part of a racetrack or any other place of   business of a racetrack association at any time to enforce and   administer this subtitle. (V.A.C.S. Art. 179e, Sec. 3.03.)          Sec. 2023.008.  TESTIMONY AND SUBPOENA POWER. (a)  For   purposes of this section, "agent" means an appointed agent of the   commission.          (b)  A commission member or an agent, while involved in   carrying out functions under this subtitle, may:                (1)  take testimony;                (2)  require by subpoena the attendance of a witness;   and                (3)  require the production of books, records, papers,   correspondence, and other documents that the commission considers   advisable.          (c)  A subpoena must be issued under the signature of the   commission or an agent. A person designated by the commission must   serve the subpoena.          (d)  A commission member or an agent may administer an oath   to a witness appearing before the commission or an agent.          (e)  If a subpoena issued under this section is disobeyed,   the commission or an 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 court order   shall be punished by the court as contempt. (V.A.C.S. Art. 179e,   Sec. 3.05; New.)          Sec. 2023.009.  JUDICIAL REVIEW OF COMMISSION ORDER.   (a)  Judicial review of a commission order is under the substantial   evidence rule.          (b)  Venue for judicial review of a commission order is in a   district court in Travis County.  (V.A.C.S. Art. 179e, Sec. 5.02.)   SUBCHAPTER B. GENERAL POWERS AND DUTIES          Sec. 2023.051.  RECOGNITION OF ORGANIZATION.  (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 a racetrack   association or the commission.          (b)  The commission may recognize an organization that meets   the criteria adopted under Subsection (a).  (V.A.C.S. Art. 179e,   Sec. 3.13.)          Sec. 2023.052.  SECURITY FOR FEES AND CHARGES.  The   commission may require a racetrack association to post security in   an amount and form determined by the commission to adequately   ensure the payment of any fee or charge due to this state or the   commission relating to pari-mutuel racing, including a charge for   drug testing.  (V.A.C.S. Art. 179e, Sec. 3.17.)          Sec. 2023.053.  TEXAS RACING COMMISSION FUND; ADDITIONAL   APPROPRIATIONS. (a)  The commission shall deposit the money it   collects under this subtitle in the state treasury to the credit of   a special fund to be known as the Texas Racing Commission fund.          (b)  The Texas Racing Commission fund may be appropriated   only for the administration and enforcement of this subtitle.          (c)  Any unappropriated money exceeding $750,000 that   remains in the fund at the close of each state fiscal biennium shall   be transferred to the general revenue fund and may be appropriated   for any purpose.          (d)  The legislature may appropriate money from the general   revenue fund for the administration and enforcement of this   subtitle.          (e)  Any amount of general revenue appropriated for the   administration and enforcement of this subtitle 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 the first anniversary of the date the general revenue funds are   appropriated, with 6.75 percent interest. All payments made under   this subsection are first attributable to interest accumulated   under this subsection. (V.A.C.S. Art. 179e, Sec. 3.09(b).)          Sec. 2023.054.  COMMISSION STANDARDS ON GREYHOUND FARMS AND   FACILITIES. The commission shall adopt standards relating to the   operation of greyhound farms or other facilities where greyhounds   are raised for pari-mutuel racing. (V.A.C.S. Art. 179e, Sec.   10.04(b).)          Sec. 2023.055.  REPORT OF VIOLATION.  The commission's rules   must allow anonymous reporting of a violation of this subtitle or of   a commission rule.  (V.A.C.S. Art. 179e, Sec. 3.12.)          Sec. 2023.056.  COOPERATION WITH LAW ENFORCEMENT.  (a)  The   commission shall cooperate with a district attorney, a criminal   district attorney, a county attorney, the Department of Public   Safety, the attorney general, or a peace officer in enforcing this   subtitle.          (b)  The commission, under commission authority to obtain   criminal history record information under Section 2023.057, shall   maintain and exchange pertinent intelligence data with other states   and agencies.  (V.A.C.S. Art. 179e, Sec. 3.11.)          Sec. 2023.057.  ACCESS TO CRIMINAL HISTORY RECORDS.  The   commission may obtain 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. (V.A.C.S. Art. 179e, Sec. 5.04.)          Sec. 2023.058.  COST OF CRIMINAL HISTORY RECORD CHECK.   (a)  The commission shall, in determining the amount of a license   fee, set the fee in at least an amount necessary to cover the cost of   conducting a criminal history record check on a license applicant.          (b)  The commission shall reimburse the Department of Public   Safety for the cost of conducting a criminal history record check   under this subtitle. (V.A.C.S. Art. 179e, Sec. 5.05.)          Sec. 2023.059.  DISTANCE LEARNING.  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. (V.A.C.S. Art. 179e,   Sec. 18.08.)          Sec. 2023.060.  CERTIFIED DOCUMENTS.  Instead of requiring   an affidavit or other sworn statement in an application or other   document that must be filed with the commission, the commission may   require a certification of the document under penalty of perjury in   the form prescribed by the commission. (V.A.C.S. Art. 179e, Sec.   3.06.)          Sec. 2023.061.  ANNUAL REPORT. (a)  Not later than January   31 of each year, the commission shall file a report with the   governor, lieutenant governor, and speaker of the house of   representatives.          (b)  The report must cover the operations of the commission   and the condition of horse breeding and racing and greyhound   breeding and racing during the previous year.          (c)  The commission shall obtain from the Department of   Public Safety a comprehensive report of any organized crime   activities in this state that the department may wish to report and   information concerning illegal gambling that may be known to exist   in this state. The commission shall include in the annual report   the department's report and any recommendations the commission   considers appropriate.  (V.A.C.S. Art. 179e, Sec. 3.10.)   SUBCHAPTER C.  EMPLOYMENT OF AND SUPERVISION BY RACE MEETING   OFFICIALS          Sec. 2023.101.  EMPLOYMENT OF STEWARDS AND JUDGES. (a)  A   horse race meeting must be supervised by three stewards, and a   greyhound race meeting must be supervised by three judges.          (b)  The commission shall employ each steward and judge for   the supervision of a horse race or greyhound race meeting.          (c)  The commission shall designate one steward or judge, as   appropriate, as the presiding steward or judge for each race   meeting.          (d)  Following the completion of a race meeting, a racetrack   association may submit to the commission for the commission's   review written comments regarding the job performance of the   stewards and judges. A racetrack association's comments submitted   under this section are not binding, in any way, on the commission.   (V.A.C.S. Art. 179e, Sec. 3.07(a) (part).)          Sec. 2023.102.  STEWARD AND JUDGE EXAMINATIONS.  (a)  The   commission shall require each steward or judge to annually take and   pass a written examination and a medical examination.          (b)  The commission by rule shall prescribe the methods and   procedures for taking the examinations and the standards for   passing.          (c)  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 the license. (V.A.C.S. Art. 179e, Sec.   3.07(c).)          Sec. 2023.103.  EMPLOYMENT OF STATE VETERINARIANS.  For each   race meeting, the commission shall employ at least one state   veterinarian. (V.A.C.S. Art. 179e, Sec. 3.07(a) (part).)          Sec. 2023.104.  RACE MEETING OFFICIAL COMPENSATION AND FEE.     (a)  The commission by rule may impose a fee on a racetrack   association to offset the costs of compensating each steward,   judge, and state veterinarian.          (b)  The fee amount for compensating each steward, judge, and   state veterinarian 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. (V.A.C.S. Art. 179e, Sec. 3.07(a)   (part).)          Sec. 2023.105.  EMPLOYMENT OF OTHER RACETRACK OFFICIALS.     The racetrack association shall appoint, with the commission's   approval, all racetrack officials other than the officials listed   in Section 2023.104. Compensation for officials not compensated by   the commission is determined by the racetrack association.   (V.A.C.S. Art. 179e, Sec. 3.07(a) (part).)          Sec. 2023.106.  RACE MEETING OFFICIAL POWERS AND DUTIES;   RULES.  (a)  A steward or judge may on any day exercise the   supervisory authority granted the steward or judge under this   subtitle or commission rule, including the performance of   supervisory acts requiring the exercise of discretion.          (b)  The commission shall adopt rules that specify the power   and duties of each race meeting official, including the power of a   steward or judge to impose penalties for unethical practices or   violations of racing rules.          (c)  A penalty imposed by a steward or judge may include a   fine of not more than $25,000, a suspension not to exceed five   years, or both a fine and suspension.          (d)  Before imposing a penalty under this section, a steward   or judge shall conduct a hearing that is consistent with   constitutional due process. A hearing conducted by a steward or   judge under this section is not subject to Chapter 2001, Government   Code. (V.A.C.S. Art. 179e, Secs. 3.07(b) (part), (g).)          Sec. 2023.107.  EXECUTIVE DIRECTOR REVIEW AND MODIFICATION   OF PENALTY. (a)  A decision of a steward or judge is subject to   review by the executive director, who may modify the penalty.          (b)  A penalty modified by the executive director under this   section may include a fine of not more than $100,000, a suspension   not to exceed five years, or both a fine and a suspension. (V.A.C.S.   Art. 179e, Sec. 3.07(b) (part).)          Sec. 2023.108.  FINAL DECISION; AVAILABILITY OF APPEAL.   (a)  A decision of a steward or judge that is not reviewed or   modified by the executive director is a final decision.          (b)  Any decision of a steward or judge may be appealed under   Section 2023.109 regardless of whether the decision is modified by   the executive director. (V.A.C.S. Art. 179e, Sec. 3.07(b) (part).)          Sec. 2023.109.  APPEAL FROM DECISION OF RACE MEETING   OFFICIAL; DECISIONS NOT APPEALABLE. (a)  Except as provided by   Subsection (b), a final decision of the stewards or judges may be   appealed to the commission in the manner provided for a contested   case under Chapter 2001, Government Code.          (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. (V.A.C.S. Art. 179e, Sec. 3.08.)     CHAPTER 2024.  POWERS AND DUTIES OF COMPTROLLER   SUBCHAPTER A.  GENERAL POWERS AND DUTIES   Sec. 2024.001.  COMPTROLLER RULES    Sec. 2024.002.  INSPECTION OF BOOKS, RECORDS, AND                    FINANCIAL STATEMENTS    Sec. 2024.003.  RIGHT OF ENTRY    SUBCHAPTER B.  COLLECTION AND DEPOSIT OF STATE'S SHARE OF   PARI-MUTUEL POOL   Sec. 2024.051.  COLLECTION AND DEPOSIT OF STATE'S SHARE    Sec. 2024.052.  SECURITY    Sec. 2024.053.  CERTIFICATION OF NONCOMPLIANCE;                    ADMINISTRATIVE APPEAL    Sec. 2024.054.  PENALTIES FOR LATE PAYMENT OR REPORT    Sec. 2024.055.  DEPOSIT OF STATE'S SHARE    SUBCHAPTER C.  APPLICABILITY OF OTHER LAW   Sec. 2024.101.  APPLICABILITY OF CERTAIN TAX CODE                    PROVISIONS    CHAPTER 2024.  POWERS AND DUTIES OF COMPTROLLER   SUBCHAPTER A.  GENERAL POWERS AND DUTIES          Sec. 2024.001.  COMPTROLLER RULES. The comptroller may   adopt rules for the enforcement of the comptroller's powers and   duties under this subtitle. (V.A.C.S. Art. 179e, Sec. 4.03.)          Sec. 2024.002.  INSPECTION OF BOOKS, RECORDS, AND FINANCIAL   STATEMENTS. (a)  The comptroller may inspect all books, records,   and financial statements required by the commission under Section   2022.105.          (b)  The comptroller by rule may specify the form and manner   in which the books, records, and financial statements are to be kept   and reports that relate to the state's share of a pari-mutuel pool   are to be filed. (V.A.C.S. Art. 179e, Sec. 4.01.)          Sec. 2024.003.  RIGHT OF ENTRY. The comptroller and the   agents authorized by the comptroller may enter at any time the   office, racetrack, or other place of business of a racetrack   association or totalisator license holder to:                (1)  inspect books, records, or financial statements;   or                (2)  inspect and test the totalisator system to   determine the accuracy of totalisator-generated reports and   calculations relating to the state's share of a pari-mutuel pool.   (V.A.C.S. Art. 179e, Sec. 4.02.)   SUBCHAPTER B.  COLLECTION AND DEPOSIT OF STATE'S SHARE OF   PARI-MUTUEL POOL          Sec. 2024.051.  COLLECTION AND DEPOSIT OF STATE'S SHARE.   (a)  The comptroller by rule may prescribe procedures for the   collection and deposit of the state's share of each pari-mutuel   pool.          (b)  A racetrack association shall deposit the state's share   of each pari-mutuel pool at the time and in the manner prescribed by   comptroller rule. (V.A.C.S. Art. 179e, Sec. 4.04(a).)          Sec. 2024.052.  SECURITY. (a)  The comptroller by rule may   require each racetrack association to post security in an amount   estimated to be sufficient to cover the amount of state money that   the racetrack association will collect and hold between bank   deposits to ensure payment of the state's share of a pari-mutuel   pool.          (b)  The following are acceptable as security for purposes of   this section:                (1)  cash;                (2)  a cashier's check;                (3)  a surety bond;                (4)  an irrevocable bank letter of credit;                (5)  a United States Treasury bond that is readily   convertible to cash; or                (6)  an irrevocable assignment of a federally insured   account in a bank, savings and loan institution, or credit union.   (V.A.C.S. Art. 179e, Sec. 4.04(b).)          Sec. 2024.053.  CERTIFICATION OF NONCOMPLIANCE;   ADMINISTRATIVE APPEAL. (a)  The comptroller shall certify to the   commission the fact that a racetrack association or totalisator   company:                (1)  does not comply with a rule adopted by the   comptroller under this chapter;                (2)  refuses to allow access to or inspection of any of   the racetrack association's or totalisator company's required   books, records, or financial statements;                (3)  refuses to allow access to or inspection of the   totalisator system; or                (4)  becomes delinquent for:                      (A)  the state's share of a pari-mutuel pool; or                      (B)  any other tax collected by the comptroller.          (b)  With regard to the state's share of a pari-mutuel pool   and any penalty related to the state's share, the comptroller,   acting independently of the commission, may take any collection or   enforcement action authorized under the Tax Code against a   delinquent taxpayer.          (c)  An administrative appeal related to the state's share of   a pari-mutuel pool or late reporting or deposit of the state's share   is to the comptroller and then to the courts, as provided by Title   2, Tax Code. (V.A.C.S. Art. 179e, Secs. 4.05(a), (b) (part).)          Sec. 2024.054.  PENALTIES FOR LATE PAYMENT OR REPORT.   (a)  A racetrack association is liable for a penalty if the   racetrack association does not pay the state's share of a   pari-mutuel pool or file a report related to the payment of that   share on or before the time the payment or report is due.          (b)  The amount of the penalty under Subsection (a) is the   greater of:                (1)  five percent of the total amount due; or                (2)  $1,000.          (c)  An additional penalty in an amount equal to one percent   of the unpaid amount of the state's share of the pari-mutuel pool   shall be added for each business day that the required report or   payment is late, up to a maximum penalty of 12 percent.          (d)  A penalty under this section may be waived in a   situation in which a penalty would be waived under Section 111.103,   Tax Code. (V.A.C.S. Art. 179e, Sec. 4.06.)          Sec. 2024.055.  DEPOSIT OF STATE'S SHARE. The comptroller   shall deposit the state's share of each pari-mutuel pool from horse   racing and greyhound racing in the general revenue fund. (V.A.C.S.   Art. 179e, Sec. 3.09(a).)   SUBCHAPTER C.  APPLICABILITY OF OTHER LAW          Sec. 2024.101.  APPLICABILITY OF CERTAIN TAX CODE   PROVISIONS. (a)  Unless inconsistent with this subtitle, Chapters   111 through 113, Tax Code, including provisions relating to the   assessment of penalties and interest, apply to the collection of   the state's share of a pari-mutuel pool under this subtitle.          (b)  The state's share of a pari-mutuel pool under this   subtitle is treated as if it were a tax for purposes of this section   in applying the provisions of the Tax Code described by Subsection   (a).          (c)  The comptroller may use any procedure authorized under   Title 2, Tax Code, for purposes of collecting the state's share of a   pari-mutuel pool under this subtitle. (V.A.C.S. Art. 179e, Sec. 6.10.)     CHAPTER 2025.  LICENSING   SUBCHAPTER A.  GENERAL PROVISIONS   Sec. 2025.001.  COMMISSION LICENSING DUTIES    Sec. 2025.002.  LICENSE AS PRIVILEGE    Sec. 2025.003.  FINGERPRINTS REQUIRED    SUBCHAPTER B.  RACETRACK LICENSE APPLICATION REQUIREMENTS   Sec. 2025.051.  RACETRACK LICENSE REQUIRED; CRIMINAL                    PENALTY    Sec. 2025.052.  APPLICATION    Sec. 2025.053.  APPLICATION FEE    Sec. 2025.054.  MANAGEMENT, CONCESSION, AND TOTALISATOR                    CONTRACTS    Sec. 2025.055.  CONFIDENTIALITY OF APPLICATION                    DOCUMENTS    Sec. 2025.056.  BACKGROUND CHECK    Sec. 2025.057.  BOND    Sec. 2025.058.  NOTIFICATION OF COMPLETED APPLICATION    SUBCHAPTER C.  RACETRACK LICENSE ISSUANCE AND RENEWAL   Sec. 2025.101.  LICENSE ELIGIBILITY REQUIREMENTS AND                    LIMITATIONS    Sec. 2025.102.  QUALIFICATIONS FOR ISSUANCE OF                    RACETRACK LICENSE    Sec. 2025.103.  ISSUANCE OF TEMPORARY LICENSE    Sec. 2025.104.  DESIGNATION OF RACETRACK LICENSE AS                    ACTIVE OR INACTIVE    Sec. 2025.105.  RENEWAL OF INACTIVE RACETRACK LICENSE;                    FEES    Sec. 2025.106.  COMMISSION REVIEW OF ACTIVE RACETRACK                    LICENSE; FEE    Sec. 2025.107.  RACETRACK LICENSE NOT TRANSFERABLE;                    TEMPORARY LICENSE    Sec. 2025.108.  RACETRACK LICENSE ANNUAL FEE    SUBCHAPTER D.  GREYHOUND RACETRACK LICENSES   Sec. 2025.151.  LIMITATION ON NUMBER OF GREYHOUND                    RACETRACK LICENSES    Sec. 2025.152.  LOCATION RESTRICTION FOR GREYHOUND                    RACETRACK    SUBCHAPTER E. DISCIPLINARY ACTION FOR RACETRACK LICENSE HOLDERS   Sec. 2025.201.  GROUNDS FOR DENIAL, REVOCATION, OR                    SUSPENSION OF RACETRACK LICENSE    Sec. 2025.202.  DISCIPLINARY ACTION; ADMINISTRATIVE                    PENALTY    Sec. 2025.203.  SUMMARY SUSPENSION    Sec. 2025.204.  SUMMARY SUSPENSION HEARING    Sec. 2025.205.  SUMMARY SUSPENSION FINAL ORDER    SUBCHAPTER F.  OCCUPATIONAL LICENSES   Sec. 2025.251.  OCCUPATIONAL LICENSE REQUIRED    Sec. 2025.252.  LICENSE CATEGORIES    Sec. 2025.253.  EXAMINATION NOTIFICATION    Sec. 2025.254.  ISSUANCE OF LICENSE    Sec. 2025.255.  ISSUANCE OF IDENTIFICATION CARD    Sec. 2025.256.  LICENSE FEES    Sec. 2025.257.  TERM OF LICENSE; RENEWAL    Sec. 2025.258.  CRIMINAL HISTORY RECORD INFORMATION    Sec. 2025.259.  LICENSE VALID THROUGHOUT STATE    Sec. 2025.260.  TEMPORARY LICENSES    Sec. 2025.261.  RECIPROCAL LICENSES; OUT-OF-STATE                    APPLICANTS    Sec. 2025.262.  GROUNDS FOR DENIAL, REVOCATION, AND                    SUSPENSION OF OCCUPATIONAL LICENSE    CHAPTER 2025.  LICENSING   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 2025.001.  COMMISSION LICENSING DUTIES. (a)  To   preserve and protect the public health, welfare, and safety, the   commission shall adopt rules relating to license applications and   the financial responsibility, moral character, and ability of   applicants.          (b)  The commission shall prescribe application forms for   licenses issued under this subtitle and shall provide each   occupational license holder with a credential.          (c)  The commission shall annually prescribe reasonable   license fees for each category of license issued under this   subtitle.          (d)  The commission by rule shall set fees in amounts   reasonable and necessary to cover the commission's costs of   regulating, overseeing, and licensing live and simulcast racing at   racetracks. (V.A.C.S. Art. 179e, Secs. 5.01(a), (b), (d), 6.06(a)   (part).)          Sec. 2025.002.  LICENSE AS PRIVILEGE. 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.   (V.A.C.S. Art. 179e, Sec. 5.01(c).)          Sec. 2025.003.  FINGERPRINTS REQUIRED. (a)  An applicant   for a license or license renewal under this subtitle must, except as   otherwise provided by Section 2025.261, submit to the commission a   complete set of fingerprints for:                (1)  the applicant; or                (2)  if the applicant is not an individual, each   officer or director of, and each person who owns at least a five   percent interest in, the applicant.          (b)  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.          (c)  A peace officer of any state, or any district office of   the commission, shall take the fingerprints of an applicant for a   license or license renewal on forms approved and furnished by the   Department of Public Safety and immediately deliver the forms to   the commission.          (d)  If a complete set of fingerprints is required by the   commission, the commission shall, not later than the 10th business   day after the date the commission receives the fingerprints,   forward the fingerprints to the Department of Public Safety or the   Federal Bureau of Investigation. If the fingerprints are forwarded   to the Department of Public Safety, the department shall:                (1)  classify the fingerprints and check the   fingerprints against the department's fingerprint files; and                (2)  report to the commission the department's findings   concerning the existence or lack of a criminal record of the   applicant.          (e)  The commission may not issue a racetrack license until   the report under Subsection (d) is made to the commission. The   commission may issue a temporary occupational license before the   report is made to the commission. (V.A.C.S. Art. 179e, Sec. 5.03.)   SUBCHAPTER B.  RACETRACK LICENSE APPLICATION REQUIREMENTS          Sec. 2025.051.  RACETRACK LICENSE REQUIRED; CRIMINAL   PENALTY.  A person may not conduct wagering on a horse or greyhound   race meeting without first obtaining a racetrack license issued by   the commission. A person who violates this section commits an   offense. (V.A.C.S. Art. 179e, Sec. 6.01.)          Sec. 2025.052.  APPLICATION.  (a)  The commission shall   require each applicant for an original racetrack license to submit   an application, on a form prescribed by the commission, containing   the following information:                (1)  if the applicant is an individual:                      (A)  the individual's full name;                      (B)  the individual's date of birth;                      (C)  the individual's physical description;                      (D)  the individual's current address and   telephone number; and                      (E)  a statement by the individual disclosing any   arrest or conviction for a felony or for a misdemeanor, except a   misdemeanor under Subtitle C, Title 7, Transportation Code, or a   similar misdemeanor traffic offense;                (2)  if the applicant is a corporation:                      (A)  the state of incorporation;                      (B)  the names and addresses of the corporation's   agents for service of process in this state;                      (C)  the name and address of each officer and   director of the corporation;                      (D)  the name and address of each stockholder of   the corporation;                      (E)  for each individual named under this   subdivision, the information required by Subdivision (1); and                      (F)  identification of:                            (i)  any other beneficial owner of a share in   the applicant that has absolute or contingent voting rights;                            (ii)  any other person who directly or   indirectly exercises any participation in the applicant; and                            (iii)  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 name and address of each member of the   association and, for each individual named under this subdivision,   the information required by Subdivision (1); and                      (B)  identification of:                            (i)  any other person who exercises voting   rights in the applicant or directly or indirectly exercises any   participation in the applicant; and                            (ii)  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 racetrack is in existence, whether it is   owned by the applicant and, if leased to the applicant:                      (A)  the name and address of the owner; and                      (B)  if the owner is a corporation or   unincorporated business association, the name and address of each   officer and director, any stockholder or member, and each agent for   service of process in this state;                (6)  if construction of the racetrack has not been   initiated, whether it is to be owned by the applicant and, if it is   to be leased to the applicant:                      (A)  the name and address of the prospective   owner; and                      (B)  if the owner is a corporation or   unincorporated business association, the information required by   Subdivision (5)(B);                (7)  identification of:                      (A)  any other beneficial owner of a share that   has absolute or contingent voting rights in the owner or   prospective owner of the racetrack;                      (B)  any other person that directly or indirectly   exercises any participation in the owner or prospective owner; and                      (C)  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 applicant's assets and   liabilities;                (9)  the type of racing to be conducted and the dates   requested;                (10)  proof of residency as required by Section   2025.201; and                (11)  any other information required by the commission.          (b)  An application must be sworn to:                (1)  by the applicant; or                (2)  if the applicant is a corporation or association,   by its chief executive officer.          (c)  If the applicant is a nonprofit corporation, only   directors and officers of the corporation must disclose the   information required under Subsection (a)(2). (V.A.C.S. Art. 179e,   Secs. 6.03(a) (part), (c), (f).)          Sec. 2025.053.  APPLICATION FEE.  (a)  The commission shall   require each applicant for an original racetrack license to pay the   required application fee.  The fee must accompany the application   and be paid in the form of a cashier's check or certified check.          (b)  The commission shall set application fees in amounts   reasonable and necessary to cover the costs of administering this   subtitle. The commission by rule shall establish a schedule of   application fees for the various types and classifications of   racetracks using minimum application fees.  The minimum application   fee:                (1)  for a horse racetrack is:                      (A)  $15,000 for a class 1 racetrack;                      (B)  $7,500 for a class 2 racetrack;                      (C)  $2,500 for a class 3 racetrack; and                      (D)  $1,500 for a class 4 racetrack; and                (2)  for a greyhound racetrack is $20,000.          (c)  Notwithstanding this section, if a licensed racetrack   petitions for a higher racetrack classification, the commission   shall impose fees equal to the difference between the fees   previously paid and the fees required for the higher   classification. (V.A.C.S. Art. 179e, Secs. 6.03(a) (part), (d),   (e), (i).)          Sec. 2025.054.  MANAGEMENT, CONCESSION, AND TOTALISATOR   CONTRACTS.  (a)  The commission shall require each applicant for an   original racetrack license to submit with the application for   inspection and review by the commission a copy of each management,   concession, and totalisator contract associated with the proposed   license at the proposed location in which the applicant has an   interest.          (b)  An applicant or license holder shall advise the   commission of any change in any management, concession, or   totalisator contract.          (c)  The criminal history record information, fingerprint,   and other information required of a license applicant under   Sections 2023.057, 2025.003, and 2025.052(a)(1)-(3) are required   of proposed totalisator firms, concessionaires, and managers and   management firms. (V.A.C.S. Art. 179e, Sec. 6.03(a) (part).)          Sec. 2025.055.  CONFIDENTIALITY OF APPLICATION DOCUMENTS.   Documents submitted to the commission under Sections   2025.051-2025.054 by an applicant are subject to discovery in a   suit brought under this subtitle but are not public records and are   not subject to Chapter 552, Government Code. (V.A.C.S. Art. 179e,   Sec. 6.03(b) (part).)          Sec. 2025.056.  BACKGROUND CHECK.  (a)  The commission shall   require a complete personal, financial, and business background   check of the applicant or of any person who owns an interest in or   exercises control over an applicant for a racetrack license,   including the partners, stockholders, concessionaires, management   personnel, management firms, and creditors.          (b)  The commission shall refuse to issue or renew a license   if, in the commission's sole discretion, the background checks   reveal anything that may be detrimental to the public interest or   the racing industry.          (c)  The commission may not hold a hearing on the   application, or any part of the application, of a racetrack license   applicant before the 14th day after the date the completed   background check of the applicant has been on file with the   commission. (V.A.C.S. Art. 179e, Sec. 6.031 (part).)          Sec. 2025.057.  BOND. (a)  The commission may, at any time,   require a holder of or applicant for a racetrack license to post   security in an amount reasonably necessary, as provided by   commission rule, to adequately ensure the license holder's or   applicant's compliance with substantive requirements of this   subtitle and commission rules.          (b)  The following are acceptable as security for purposes of   this section:                (1)  cash;                (2)  a cashier's check;                (3)  a surety bond;                (4)  an irrevocable bank letter of credit;                (5)  a United States Treasury bond that is readily   convertible to cash; or                (6)  an irrevocable assignment of a federally insured   deposit in a bank, savings and loan institution, or credit union.          (c)  The security described by Subsection (b) must be:                (1)  conditioned on compliance with this subtitle and   commission rules adopted under this subtitle; and                (2)  returned after satisfying the conditions of the   security. (V.A.C.S. Art. 179e, Sec. 6.032.)          Sec. 2025.058.  NOTIFICATION OF COMPLETED APPLICATION. When   all requirements for the applicant's licensure described in this   chapter have been satisfied, the commission shall notify the   applicant that the application is complete. (V.A.C.S. Art. 179e,   Sec. 6.04(a-1).)   SUBCHAPTER C.  RACETRACK LICENSE ISSUANCE AND RENEWAL          Sec. 2025.101.  LICENSE ELIGIBILITY REQUIREMENTS AND   LIMITATIONS. (a)  The burden of proof is on the applicant for an   original racetrack license to show compliance with this subtitle   and commission rules. An applicant who does not show the necessary   compliance is not eligible for a license under this chapter.          (b)  In considering an application for a horse racetrack   license under this chapter, the commission shall give additional   weight to evidence concerning an applicant who has experience   operating a horse racetrack licensed under this subtitle.          (c)  The commission may not issue a license to operate a   class 1 or class 2 racetrack or a greyhound racetrack to a   corporation unless:                (1)  the corporation is incorporated under the laws of   this state; and                (2)  a majority of any of its corporate stock is owned   at all times by individuals who meet the residency qualifications   prescribed by Section 2025.201 for individual applicants.          (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   Section 2025.201 for individual applicants. A corporation that   holds a license to operate a racetrack under this subtitle and that   violates this subsection is subject to forfeiture of its charter.     The attorney general, on receipt of information relating to the   violation, shall file suit in a district court of Travis County for   cancellation of the charter and revocation of the license issued   under this subtitle.          (e)  Subsections (c) and (d) and Section 2025.201(a)(12) 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.          (f)  The commission may condition the issuance of a license   under this chapter on the observance of commission 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.          (g)  A person may not own more than a five percent interest in   more than three racetracks licensed under this subtitle.          (h)  Notwithstanding any other law, a person who owns an   interest in two or more racetracks licensed under this subtitle and   who also owns an interest in a license issued under Subtitle B,   Title 3, Alcoholic Beverage Code, may own an interest in the   premises of another holder of a license or permit under Title 3,   Alcoholic Beverage Code, if the premises of that other license or   permit holder are part of the premises of a racetrack licensed under   this subtitle. (V.A.C.S. Art. 179e, Secs. 6.03(g), (h), 6.06(c),   (d) (part), (e), (h), (i), (j).)          Sec. 2025.102.  QUALIFICATIONS FOR ISSUANCE OF RACETRACK   LICENSE. (a)  The commission may issue a racetrack license to a   qualified person if the commission:                (1)  determines that the conduct of race meetings at   the proposed racetrack and location:                      (A)  will be in the public interest;                      (B)  complies with all zoning laws; and                      (C)  complies with this subtitle and commission   rules; and                (2)  determines by clear and convincing evidence that   the applicant will comply with all criminal laws of this state.          (b)  In determining whether to grant or deny an application   for any class of racetrack license, the commission may consider:                (1)  the applicant's financial stability;                (2)  the applicant's resources for supplementing the   purses for races for various breeds;                (3)  the location of the proposed racetrack;                (4)  the effect of the proposed racetrack on traffic   flow;                (5)  facilities for patrons and occupational license   holders;                (6)  facilities for race animals;                (7)  availability to the racetrack of support services   and emergency services;                (8)  the experience of the applicant's employees;                (9)  the potential for conflict with other licensed   race meetings;                (10)  the anticipated effect of the race meeting on the   horse or greyhound breeding industry in this state; and                (11)  the anticipated effect of the race meeting on the   state and local economy from tourism, increased employment, and   other sources.          (c)  The commission shall make a determination on a pending   application not later than the 120th day after the date the   commission provides the notice required under Section 2025.058.   (V.A.C.S. Art. 179e, Secs. 6.04(a), (a-2).)          Sec. 2025.103.  ISSUANCE OF TEMPORARY LICENSE. (a)  After a   racetrack association has been granted a license to operate a   racetrack and before the completion of construction at the   designated place for which the license was issued, the commission   may, on application by the racetrack association, issue a temporary   license that authorizes the racetrack association to conduct races   at a location in the same county until the earlier of:                (1)  the second anniversary of the date of issuance of   the temporary license; or                (2)  the completion of the permanent facility.          (b)  An applicant for a temporary license must pay the   application fees and post the bonds required of other license   holders before the issuance of a temporary license.          (c)  The commission may set conditions and standards for   issuance of a temporary license and allocation of appropriate race   days.          (d)  The commission may not issue a new temporary license or   an extension of a temporary license to a person or to an individual   belonging to a corporation or association that has been granted a   temporary license after the temporary license has expired.   (V.A.C.S. Art. 179e, Sec. 6.15.)          Sec. 2025.104.  DESIGNATION OF RACETRACK LICENSE AS ACTIVE   OR INACTIVE. (a)  The commission shall designate each racetrack   license as an active license or an inactive license.  The commission   may change the designation of a racetrack license as appropriate.          (b)  The commission shall designate a racetrack license as an   active license if the license holder:                (1)  holds live racing events at the racetrack; or                (2)  makes good faith efforts to conduct live racing.          (c)  The commission by rule shall provide guidance on actions   that constitute, for purposes of this subtitle, good faith efforts   to conduct live racing.          (d)  Before the first anniversary of the date a new racetrack   license is issued, the commission shall conduct an evaluation of   the license to determine whether the license is an active or   inactive license.          (e)  An active license is effective until the license is   designated as an inactive license or is surrendered, suspended, or   revoked under this subtitle. (V.A.C.S. Art. 179e, Sec. 6.0601.)          Sec. 2025.105.  RENEWAL OF INACTIVE RACETRACK LICENSE; FEES.   (a)  The commission by rule shall establish an annual renewal   process for inactive licenses and may require the license holder to   provide any information required for an original license   application under this subtitle.  An inactive license holder must   complete the annual renewal process established under this section   until the commission:                (1)  designates the license as an active license; or                (2)  refuses to renew the license.          (b)  In determining whether to renew an inactive license, the   commission shall consider:                (1)  the inactive license holder's:                      (A)  financial stability;                      (B)  ability to conduct live racing;                      (C)  ability to construct and maintain a   racetrack; and                      (D)  other good faith efforts to conduct live   racing; and                (2)  other necessary factors considered in the issuance   of the original license.          (c)  The commission may refuse to renew an inactive license   if, after notice and a hearing, the commission determines that:                (1)  renewal of the license is not in the best interests   of the racing industry or the public; or                (2)  the license holder has failed to make a good faith   effort to conduct live racing.          (d)  The commission shall consult with members of the racing   industry and other key stakeholders in developing the license   renewal process under this section.          (e)  The commission shall set and collect renewal fees in   amounts reasonable and necessary to cover the costs of   administering and enforcing this section.          (f)  The commission by rule shall establish criteria to make   the determinations under Subsection (c). (V.A.C.S. Art. 179e, Sec.   6.0602.)          Sec. 2025.106.  COMMISSION REVIEW OF ACTIVE RACETRACK   LICENSE; FEE. (a)  The commission shall review the ownership and   management of an active license issued under this chapter every   five years beginning on the fifth anniversary of the date of   issuance of the license.          (b)  In performing the review, the commission may require the   license holder to provide any information that would be required to   be provided in connection with an original license application   under this chapter.          (c)  The commission shall charge fees for the review in   amounts sufficient to implement this section. (V.A.C.S. Art. 179e,   Sec. 6.06(k).)          Sec. 2025.107.  RACETRACK LICENSE NOT TRANSFERABLE;   TEMPORARY LICENSE. (a)  A racetrack license is not transferable.          (b)  If the death of any person causes a violation of the   licensing provisions of this subtitle, the commission may issue, in   accordance with commission rules, a temporary license for a period   not to exceed one year. (V.A.C.S. Art. 179e, Sec. 6.12.)          Sec. 2025.108.  RACETRACK LICENSE ANNUAL FEE.  The   commission may prescribe a reasonable annual fee to be paid by each   racetrack license holder.  The fee must be in an amount sufficient   to provide that the total amount of fees imposed under this section,   the license fees prescribed under Section 2025.001(c), and the   renewal fees prescribed under Section 2025.105(e) are sufficient to   cover the costs of administering and enforcing this subtitle.   (V.A.C.S. Art. 179e, Sec. 6.18.)   SUBCHAPTER D.  GREYHOUND RACETRACK LICENSES          Sec. 2025.151.  LIMITATION ON NUMBER OF GREYHOUND RACETRACK   LICENSES. The commission may not issue licenses for more than three   greyhound racetracks in this state. (V.A.C.S. Art 179e, Secs.   6.04(c) (part), 6.14(b).)          Sec. 2025.152.  LOCATION RESTRICTION FOR GREYHOUND   RACETRACK. Each greyhound racetrack must be located in a county   that:                (1)  has a population of more than 190,000;                (2)  borders the Gulf of Mexico; and                (3)  includes all or part of an island that borders the   Gulf of Mexico. (V.A.C.S. Art. 179e, Secs. 6.04(c) (part),   6.14(c).)   SUBCHAPTER E. DISCIPLINARY ACTION FOR RACETRACK LICENSE HOLDERS          Sec. 2025.201.  GROUNDS FOR DENIAL, REVOCATION, OR   SUSPENSION OF RACETRACK LICENSE. (a)  The commission may refuse to   issue a racetrack license or may revoke or suspend a license if,   after notice and hearing, the commission finds that the applicant   or license holder, as appropriate:                (1)  has been convicted of a violation of this subtitle   or a commission rule, or has aided, abetted, or conspired to commit   a violation of this subtitle or a commission rule;                (2)  has been convicted of a felony or a crime involving   moral turpitude, including a conviction for which the punishment   received was a suspended sentence, probation, or a nonadjudicated   conviction, that is reasonably related to the person's present   fitness to hold a license under this subtitle;                (3)  has violated or has caused to be violated this   subtitle or a commission rule in a manner that involves moral   turpitude, as distinguished from a technical violation of this   subtitle or a rule;                (4)  is unqualified, by experience or otherwise, to   perform the duties required of a license holder under this   subtitle;                (5)  failed to answer or falsely or incorrectly   answered a question in an application;                (6)  fails to disclose the true ownership or interest   in a horse or greyhound as required by commission rules;                (7)  is indebted to this state for any fee or for the   payment of a penalty imposed by this subtitle or a commission rule;                (8)  is not of good moral character or the person's   reputation as a peaceable, law-abiding citizen in the community   where the person resides is bad;                (9)  is not at least the minimum age necessary to   purchase alcoholic beverages in this state;                (10)  is in the habit of using alcoholic beverages to an   excess or uses a controlled substance as defined by Chapter 481,   Health and Safety Code, or a dangerous drug as defined in Chapter   483, Health and Safety Code, or is mentally incapacitated;                (11)  may be excluded from an enclosure under this   subtitle;                (12)  has not been a United States citizen residing in   this state for the 10 consecutive years preceding the filing of the   application;                (13)  has improperly used a credential, including a   license certificate or identification card, issued under this   subtitle;                (14)  resides with a person whose license was revoked   for cause during the 12 months preceding the date of the present   application;                (15)  has failed or refused to furnish a true copy of   the application to the commission's district office in the district   in which the premises for which the license is sought are located;                (16)  is engaged or has engaged in activities or   practices the commission determines are detrimental to the best   interests of the public and the sport of horse racing or greyhound   racing; or                (17)  fails to fully disclose the true owners of all   interests, beneficial or otherwise, in a proposed racetrack.          (b)  Subsection (a) applies to a corporation, partnership,   limited partnership, or any other organization or group whose   application is composed of more than one person if a shareholder,   partner, limited partner, director, or officer is disqualified   under Subsection (a).          (c)  The commission may refuse to issue a license or may   suspend or revoke a license of a license holder under this   subchapter who knowingly or intentionally allows access to an   enclosure where horse races or greyhound races are conducted to a   person:                (1)  who has engaged in bookmaking, touting, or illegal   wagering;                (2)  whose income is from illegal activities or   enterprises; or                (3)  who has been convicted of a violation of this   subtitle. (V.A.C.S. Art. 179e, Secs. 6.06(a) (part), (b), (f).)          Sec. 2025.202.  DISCIPLINARY ACTION; ADMINISTRATIVE   PENALTY. (a)  The commission by rule shall establish procedures   for disciplinary action against a racetrack license holder.          (b)  Notwithstanding the requirements of Section 2033.151,   if, after notice and hearing as provided by Section 2033.152, the   commission finds that a racetrack license holder or a person   employed by the racetrack has violated this subtitle or a   commission rule, or if the commission finds during a review or   renewal that the racetrack is ineligible for a license under this   chapter, the commission may:                (1)  revoke, suspend, or refuse to renew the racetrack   license;                (2)  impose an administrative penalty as provided under   Section 2033.051; or                (3)  take any other action as provided by commission   rule.          (c)  The commission may not revoke an active license unless   the commission reasonably determines that other disciplinary   actions are inadequate to remedy the violation. (V.A.C.S. Art.   179e, Sec. 6.0603; New.)          Sec. 2025.203.  SUMMARY SUSPENSION. (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 racing participants or the patrons.          (b)  After issuing a summary suspension order, the executive   director shall serve on the racetrack association an order:                (1)  stating the specific charges; and                (2)  requiring the license holder immediately to cease   and desist from all conduct permitted by the license.          (c)  The executive director shall serve the order by personal   delivery or registered or certified mail, return receipt requested,   to the license holder's last known address. The order must contain   a notice that a request for hearing may be filed under this   subchapter.          (d)  A summary suspension order continues in effect unless   the order is stayed by the executive director. The executive   director may impose any condition before granting a stay of the   order. (V.A.C.S. Art. 179e, Secs. 6.063(a), (b), (e).)          Sec. 2025.204.  SUMMARY SUSPENSION HEARING. (a)  A   racetrack association that is the subject of a summary suspension   order may request a hearing. The request must be filed with the   executive director not later than the 10th day after the date the   order was received or delivered.  The request must:                (1)  be in writing;                (2)  be directed to the executive director; and                (3)  state the grounds for the request to set aside or   modify the order.          (b)  Unless a license holder 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 license holder.          (c)  On receiving a request for a hearing, the executive   director 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 director receives the request for a   hearing unless the parties agree to a later hearing date.          (d)  At the hearing, the commission has the burden of proof   and must present evidence in support of the order. The license   holder requesting the hearing may cross-examine witnesses and show   cause why the order should not be affirmed.          (e)  Section 2003.021(b), Government Code, does not apply to   a hearing conducted under this section. (V.A.C.S. Art. 179e, Secs.   6.063(c), (d).)          Sec. 2025.205.  SUMMARY SUSPENSION FINAL ORDER. After the   hearing on the suspension of a racetrack license, the executive   director shall affirm, modify, or set aside, wholly or partly, the   summary suspension order. An order affirming or modifying the   summary suspension order is final for purposes of enforcement and   appeal. (V.A.C.S. Art. 179e, Sec. 6.063(f).)   SUBCHAPTER F.  OCCUPATIONAL LICENSES          Sec. 2025.251.  OCCUPATIONAL LICENSE REQUIRED. (a)  Except   as provided by this section, a person, other than as a spectator or   as a person placing a wager, may not participate in racing with   pari-mutuel wagering without first obtaining a license from the   commission.  A person may not engage in any occupation for which   commission rules require a license under this subtitle without   first obtaining a license from the commission.          (b)  The commission by rule shall categorize the occupations   of racetrack employees and determine the occupations that afford   the employee an opportunity to influence racing with pari-mutuel   wagering.  The rules must require an employee to be licensed under   this subtitle if the employee:                (1)  works in an occupation determined by the   commission to afford the employee an opportunity to influence   racing with pari-mutuel wagering; or                (2)  will likely have significant access to the   backside of a racetrack or to restricted areas of the frontside of a   racetrack. (V.A.C.S. Art. 179e, Secs. 7.01(a), (b).)          Sec. 2025.252.  LICENSE CATEGORIES. The commission shall   adopt categories of licenses for the various occupations licensed   under this subchapter and shall specify by rule the qualifications   and experience required for licensing in each category that   requires specific qualifications or experience. (V.A.C.S. Art.   179e, Sec. 7.02(b).)          Sec. 2025.253.  EXAMINATION NOTIFICATION. (a)  If an   examination is required for the issuance of a license under this   subchapter, the commission shall notify each examinee of the   results of the examination not later than the 30th day after the   date the licensing examination is administered under this subtitle.          (b)  If requested in writing by a person who fails a   licensing examination administered under this subtitle, the   commission shall furnish the person with an analysis of the   person's performance on the examination. (V.A.C.S. Art. 179e, Secs.   7.02(c), (d).)          Sec. 2025.254.  ISSUANCE OF LICENSE.  The commission shall   issue a license to a qualified person on application and payment of   the license fee. (V.A.C.S. Art. 179e, Sec. 7.03.)          Sec. 2025.255.  ISSUANCE OF IDENTIFICATION CARD.  The   commission shall issue a license certificate under this subchapter   in the form of an identification card with a photograph and other   information as prescribed by the commission. (V.A.C.S. Art. 179e,   Sec. 7.06.)          Sec. 2025.256.  LICENSE FEES.  (a)  The commission by rule   shall adopt a fee schedule for licenses issued under this   subchapter.          (b)  The commission shall base the license fee amounts on the   relative or comparative incomes or property interests of the   various categories of license holders, with the lower income   categories charged nearer the minimum fee and the higher income   categories charged nearer the maximum fee.          (c)  In setting the fee schedule under Subsection (a), the   commission shall include the cost of criminal history record   information obtained under Section 2023.058. The commission may   determine the best method for recovering this cost and complying   with this section, including collecting the costs over an extended   period. (V.A.C.S. Art. 179e, Sec. 7.05.)          Sec. 2025.257.  TERM OF LICENSE; RENEWAL.  (a)  A license   issued under this subchapter is valid for a period set by the   commission not to exceed 36 months following the date of issuance.     The license is renewable on the:                (1)  completion of an application;                (2)  receipt of satisfactory results of a criminal   history record information check; and                (3)  payment of the fee in accordance with commission   rules.          (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 license holder 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. (V.A.C.S. Art. 179e, Secs. 7.07(a), (b).)          Sec. 2025.258.  CRIMINAL HISTORY RECORD INFORMATION.     (a)  The commission shall obtain criminal history record   information on each applicant renewing an occupational license   under this subchapter.          (b)  The commission shall ensure that criminal history   record information is obtained on each license holder at least once   every 36 months. (V.A.C.S. Art. 179e, Sec. 7.07(a-1).)          Sec. 2025.259.  LICENSE VALID THROUGHOUT STATE.  A license   issued under this subchapter is valid, as determined by the   commission, at all race meetings conducted in this state. (V.A.C.S.   Art. 179e, Sec. 7.08.)          Sec. 2025.260.  TEMPORARY LICENSES.  (a)  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 subchapter whose application   appears to comply with the requirements of law and who has paid the   necessary fee.          (b)  The temporary license is valid for a period not to   exceed 120 days following the date of issuance. (V.A.C.S. Art.   179e, Sec. 7.09.)          Sec. 2025.261.  RECIPROCAL LICENSES; OUT-OF-STATE   APPLICANTS. (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 license from   another state that has license requirements substantially   equivalent to the requirements 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 who holds a license from another state with which   this state has a reciprocity agreement. The commission may enter   into agreements with other states to allow for licensing by   reciprocity. (V.A.C.S. Art. 179e, Sec. 7.10.)          Sec. 2025.262.  GROUNDS FOR DENIAL, REVOCATION, AND   SUSPENSION OF OCCUPATIONAL LICENSE.  The commission may refuse to   issue any original or renewal license under this subchapter or may   revoke or suspend the license if, after notice and hearing, the   commission finds that the applicant or license holder, as   appropriate:                (1)  has been convicted of a violation of this subtitle   or a commission rule or has aided, abetted, or conspired to commit a   violation of this subtitle or a commission rule;                (2)  has been convicted of a felony or a crime involving   moral turpitude that is reasonably related to the person's present   fitness to hold a license under this subtitle;                (3)  has violated or has caused to be violated this   subtitle or a commission rule in a manner that involves moral   turpitude, as distinguished from a technical violation of this   subtitle or a rule;                (4)  is unqualified, by experience or otherwise, to   perform the duties required of a license holder under this   subtitle;                (5)  failed to answer or has falsely or incorrectly   answered a question in an original or renewal application;                (6)  fails to disclose the true ownership or interest   in a horse or greyhound as required by commission rules;                (7)  is indebted to this state for any fee or for the   payment of a penalty imposed by this subtitle or a commission rule;                (8)  is not of good moral character or the person's   reputation as a peaceable, law-abiding citizen in the community   where the person resides is bad;                (9)  is in the habit of using alcoholic beverages to an   excess or uses a controlled substance as defined in Chapter 481,   Health and Safety Code, or a dangerous drug as defined in Chapter   483, Health and Safety Code, or is mentally incapacitated;                (10)  may be excluded from an enclosure under this   subtitle;                (11)  has improperly used a temporary pass, license   certificate, credential, or identification card issued under this   subtitle;                (12)  resides with a person whose license was revoked   for cause during the 12 months preceding the date of the present   application;                (13)  has failed or refused to furnish a true copy of   the application to the commission's district office in the district   in which the premises for which the license is sought are located;   or                (14)  is engaged or has engaged in activities or   practices that are detrimental to the best interests of the public   and the sport of horse racing or greyhound racing. (V.A.C.S. Art. 179e, Sec. 7.04.)     CHAPTER 2026. RACETRACK OPERATION AND PREMISES   SUBCHAPTER A.  REGULATION OF RACETRACK   Sec. 2026.001.  PLANNING, CONSTRUCTION, AND OPERATION                    RULES    Sec. 2026.002.  PREVENTION OF SUBTERFUGE IN RACETRACK                    OWNERSHIP OR OPERATION    Sec. 2026.003.  FINANCIAL DISCLOSURE    Sec. 2026.004.  RACING LOCATION    Sec. 2026.005.  CHANGE OF RACING LOCATION    Sec. 2026.006.  LEASE OF RACETRACK PREMISES    Sec. 2026.007.  INAPPROPRIATE OR UNSAFE CONDITIONS;                    ENFORCEMENT; RULES    Sec. 2026.008.  SUPERVISION OF CONSTRUCTION, RENOVATION,                    AND MAINTENANCE; ENFORCEMENT    Sec. 2026.009.  RACETRACK SECURITY    Sec. 2026.010.  KENNELS    Sec. 2026.011.  AUTOMOBILE RACING FACILITY PROHIBITED                    NEAR RACETRACK IN CERTAIN COUNTIES    Sec. 2026.012.  OTHER LAWFUL BUSINESSES AUTHORIZED    Sec. 2026.013.  EMPLOYEE COMPLIANCE    SUBCHAPTER B.  EXCLUSION OR EJECTION FROM RACETRACK   Sec. 2026.051.  COMMISSION RULES REGARDING EXCLUSION OR                    EJECTION    Sec. 2026.052.  EXCLUSION OR EJECTION FROM ENCLOSURE;                    HEARING; APPEAL    Sec. 2026.053.  EXCLUSION OR EJECTION BY RACETRACK                    ASSOCIATION    Sec. 2026.054.  CRIMINAL TRESPASS AT ENCLOSURE    SUBCHAPTER C.  CLASSIFICATION OF HORSE RACETRACKS   Sec. 2026.101.  CLASSIFICATION    Sec. 2026.102.  CLASS 1 RACETRACK    Sec. 2026.103.  CLASS 2 RACETRACK    Sec. 2026.104.  CLASS 3 RACETRACK    Sec. 2026.105.  CLASS 4 RACETRACK    Sec. 2026.106.  WAIVER OR DEFERRAL OF CERTAIN STANDARDS                    FOR CLASS 4 RACETRACK    Sec. 2026.107.  CALCULATION OF LIVE AND SIMULCAST RACE                    DATES    SUBCHAPTER D.  CONCESSION, MANAGEMENT, OR TOTALISATOR CONTRACTS;   SECURITY PLANS   Sec. 2026.151.  COMMISSION APPROVAL REQUIRED    Sec. 2026.152.  COMMISSION REVIEW OF SECURITY PLANS AND                    CERTAIN CONTRACTS    Sec. 2026.153.  MANAGEMENT CONTRACT:  REQUIREMENTS AND                    LIMITATIONS    CHAPTER 2026. RACETRACK OPERATION AND PREMISES   SUBCHAPTER A.  REGULATION OF RACETRACK          Sec. 2026.001.  PLANNING, CONSTRUCTION, AND OPERATION   RULES. To preserve and protect the public health, welfare, and   safety, the commission shall adopt rules relating to all matters   concerning the planning, construction, and operation of   racetracks. (V.A.C.S. Art. 179e, Sec. 6.06(a) (part).)          Sec. 2026.002.  PREVENTION OF SUBTERFUGE IN RACETRACK   OWNERSHIP OR OPERATION. This subtitle shall be liberally construed   to prevent subterfuge in the ownership and operation of a   racetrack. (V.A.C.S. Art. 179e, Sec. 6.06(d) (part).)          Sec. 2026.003.  FINANCIAL DISCLOSURE. (a)  The commission   by rule shall require that each racetrack association that holds a   license for a class 1 racetrack, class 2 racetrack, or greyhound   racetrack annually file with the commission a detailed financial   statement that:                (1)  contains the names and addresses of all   stockholders, members, and owners of any interest in the racetrack;                (2)  indicates compliance during the filing period with   Section 2025.101; and                (3)  includes any other information required by the   commission.          (b)  Each transaction that involves an acquisition or a   transfer of a pecuniary interest in the racetrack association must   receive prior approval from the commission.  A transaction that   changes the ownership of the racetrack association requires   submission of updated information of the type required to be   disclosed under Section 2025.052 and payment of a fee to recover the   costs of the criminal background check. (V.A.C.S. Art. 179e, Sec.   6.13.)          Sec. 2026.004.  RACING LOCATION. (a)  Except as provided by   this section, Section 2026.005, or Section 2025.103, a racetrack   association may not conduct horse racing or greyhound racing at any   place other than the place designated in the license.          (b)  If the racetrack or enclosure designated in the license   becomes unsuitable for racing because of fire, flood, or other   catastrophe, the affected racetrack 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   if the other racetrack license holder:                (1)  is licensed by the commission to conduct the same   type of racing as may be conducted by the affected racetrack   association; and                (2)  consents to the usage. (V.A.C.S. Art. 179e, Sec.   6.14(a).)          Sec. 2026.005.  CHANGE OF RACING LOCATION. On request of a   racetrack association, the commission shall amend a racetrack   license to change the location of the racetrack if the commission   determines that:                (1)  the conduct of race meetings at the proposed new   location will be in the public interest;                (2)  there was not a competing applicant for the   original license; and                (3)  the racetrack association's desire to change   location is not the result of a subterfuge in the original licensing   proceeding. (V.A.C.S. Art. 179e, Sec. 6.14(d).)          Sec. 2026.006.  LEASE OF RACETRACK PREMISES.  (a)  The   commission by rule may authorize a racetrack 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)  the lease appears to be a subterfuge to evade   compliance with Section 2025.101 or 2025.201;                (2)  the racetrack and surrounding structures do not   conform to the rules adopted under this subtitle; 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 Section 2025.052(a)(1). The   commission may not approve a lease if the lessor and lessee do not   provide the required information. (V.A.C.S. Art. 179e, Sec. 6.07.)          Sec. 2026.007.  INAPPROPRIATE OR UNSAFE CONDITIONS;   ENFORCEMENT; RULES. (a)  The executive director shall issue a   notice of violation to a racetrack association on a determination   that an inappropriate or unsafe condition exists at a racetrack.          (b)  If the executive director determines that an   inappropriate or unsafe condition exists at the racetrack, the   executive director shall order the racetrack association to take   action within a specified period to remedy the inappropriate or   unsafe condition. In determining the period for compliance, the   executive director shall consider:                (1)  the nature and severity of the problem; and                (2)  the threat to the health, safety, and welfare of   race participants, patrons, and animals.          (c)  The commission by rule shall require a report of any   corrective action taken by a racetrack association in response to   an order of the executive director under Subsection (b).          (d)  If a racetrack association fails to take action as   required under Subsection (b), the executive director shall   initiate an enforcement action against the racetrack association.   The executive director may rescind any live or simulcast race date   of a racetrack association that does not take corrective action   within the period set by the executive director.          (e)  The commission shall adopt rules implementing this   section, including rules:                (1)  requiring the report and correction of:                      (A)  an inappropriate condition on the premises of   a racetrack, including a failure to properly maintain the premises,   that interferes with the administration of this subtitle; and                      (B)  a condition on the premises that makes the   premises unsafe for a race participant, patron, or animal; and                (2)  determining the methods and manner by which the   executive director may determine and remedy inappropriate or unsafe   conditions on the premises, including the methods and manner in   which the executive director may conduct inspections of the   premises and remedy emergency situations.          (f)  The commission shall adopt rules relating to the   commission's review of an action taken under this section by the   executive director.  A review procedure adopted under this   subsection must be consistent with Chapter 2001, Government Code.     (V.A.C.S. Art. 179e, Sec. 6.061.)          Sec. 2026.008.  SUPERVISION OF CONSTRUCTION, RENOVATION,   AND MAINTENANCE; ENFORCEMENT.  (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.          (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 association to the commission;                (5)  the inspection by the commission or others;                (6)  the method for making a change or amendment to an   approved plan or specification; and                (7)  any other method of supervision or oversight   necessary.          (c)  If the commission has grounds to believe that a   racetrack association has failed to comply with the requirements of   this section, a representative of the racetrack association shall   appear before the commission to consider the issue of compliance   with rules adopted under this section.          (d)  Before a building or improvement may be used by a   racetrack association, the commission shall determine whether:                (1)  the construction, renovation, or maintenance of   the building or improvement was completed in accordance with the   approved plans and specifications; and                (2)  other commission requirements were met.          (e)  If the commission determines that the racetrack   association failed to comply with a requirement of this section or a   rule adopted under this section, the commission shall initiate an   enforcement action against the racetrack association. In addition   to any other authorized enforcement action, the commission may   rescind any live or simulcast race date of any racetrack   association that has failed to comply with the requirements of this   section. (V.A.C.S. Art. 179e, Sec. 6.062.)          Sec. 2026.009.  RACETRACK SECURITY.  A horse racetrack   association shall provide adequate security at the racetrack   association's racetrack to ensure the safety of the spectators,   employees, and animals. (V.A.C.S. Art. 179e, Sec. 9.07.)          Sec. 2026.010.  KENNELS.  (a)  Each greyhound racetrack   association shall:                (1)  contract for a maximum of 18 kennels; and                (2)  provide free kennel rent and schooling.          (b)  In contracting with kennel owners for a racetrack, a   racetrack association shall ensure that at least 50 percent of the   kennels with which the racetrack association contracts are wholly   owned by residents of this state.          (c)  For purposes of this section, "residents of this state"   are individuals who have resided in Texas for the five-year period   preceding the date the kennel contract is signed. (V.A.C.S. Art.   179e, Secs. 10.03, 10.06.)          Sec. 2026.011.  AUTOMOBILE RACING FACILITY PROHIBITED NEAR   RACETRACK IN CERTAIN COUNTIES. An automobile racing facility may   not be located within 10,000 feet of a horse or greyhound racetrack   that is located in a county with a population of 1.8 million or   more. (V.A.C.S. Art. 179e, Sec. 11.10.)          Sec. 2026.012.  OTHER LAWFUL BUSINESSES AUTHORIZED.  A   racetrack association may conduct other lawful business on the   racetrack association's grounds. (V.A.C.S. Art. 179e, Sec. 18.03.)          Sec. 2026.013.  EMPLOYEE COMPLIANCE. (a)  A racetrack is   responsible for ensuring that the racetrack's employees comply with   this subtitle and commission rules.          (b)  The commission may impose disciplinary action against a   racetrack for violations of this subtitle and commission rules by   the racetrack's employees as provided by Section 2025.202.   (V.A.C.S. Art. 179e, Sec. 7.01(c).)   SUBCHAPTER B.  EXCLUSION OR EJECTION FROM RACETRACK          Sec. 2026.051.  COMMISSION RULES REGARDING EXCLUSION OR   EJECTION.  The commission shall adopt rules providing for the   exclusion or ejection from an enclosure where horse or greyhound   races are conducted, or from specified portions of an enclosure, of   a person:                (1)  who has engaged in bookmaking, touting, or illegal   wagering;                (2)  whose income is from illegal activities or   enterprises;                (3)  who has been convicted of a violation of this   subtitle;                (4)  who has been convicted of theft;                (5)  who has been convicted under the penal law of   another jurisdiction for committing an act that would have   constituted a violation of any rule described in this section;                (6)  who has committed a corrupt or fraudulent act in   connection with horse or greyhound racing or pari-mutuel wagering   or who has committed any act tending or intended to corrupt horse or   greyhound racing or pari-mutuel wagering;                (7)  who is under suspension or has been excluded or   ejected from a racetrack by the commission or a steward in this   state or by a corresponding authority in another state because of   corrupt or fraudulent practices or other acts detrimental to   racing;                (8)  who has submitted a forged pari-mutuel ticket or   has altered or forged a pari-mutuel ticket for cashing or who has   cashed or caused to be cashed an altered, raised, or forged   pari-mutuel ticket;                (9)  who has been convicted of committing a lewd or   lascivious act or other crime involving moral turpitude;                (10)  who is guilty of boisterous or disorderly conduct   while inside an enclosure;                (11)  who is an agent or habitual associate of a person   excludable under this section; or                (12)  who has been convicted of a felony. (V.A.C.S.   Art. 179e, Sec. 13.01.)          Sec. 2026.052.  EXCLUSION OR EJECTION FROM ENCLOSURE;   HEARING; APPEAL. (a)  A person who is excluded or ejected from an   enclosure under a commission rule may apply to the commission for a   hearing on the question of the applicability of the rule to that   person.          (b)  An application for a hearing under Subsection (a)   constitutes a contested case under Chapter 2001, Government Code.   If, after a hearing as provided under Subchapter C of that chapter,   the commission determines that the exclusion or ejection was   proper:                (1)  the commission shall issue an order to that effect   and enter the order in the commission's minutes; and                (2)  the person shall continue to be excluded from each   racetrack association's enclosure.          (c)  A person excluded or ejected may appeal an adverse   decision of the commission by filing a petition for judicial review   in the manner provided by Subchapter G, Chapter 2001, Government   Code. 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 subtitle shall continue to be excluded from all enclosures in   this state during the pendency of the appeal. (V.A.C.S. Art. 179e,   Secs. 13.02(a), (b), (c) (part), (d).)          Sec. 2026.053.  EXCLUSION OR EJECTION BY RACETRACK   ASSOCIATION. This subtitle does not prohibit a racetrack   association from excluding or ejecting a person from the racetrack   association's enclosure for any lawful reason. (V.A.C.S. Art. 179e,   Sec. 13.04.)          Sec. 2026.054.  CRIMINAL TRESPASS AT ENCLOSURE. 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 subchapter;                (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. (V.A.C.S. Art. 179e, Sec. 13.03.)   SUBCHAPTER C.  CLASSIFICATION OF HORSE RACETRACKS          Sec. 2026.101.  CLASSIFICATION. A horse racetrack is   classified as:                (1)  a class 1 racetrack;                (2)  a class 2 racetrack;                (3)  a class 3 racetrack; or                (4)  a class 4 racetrack. (V.A.C.S. Art. 179e, Sec.   6.02(a).)          Sec. 2026.102.  CLASS 1 RACETRACK. (a)  A class 1 racetrack   is a racetrack on which live racing is conducted for a number of   days in a calendar year, as determined by the commission under   Subchapter A, Chapter 2029.          (b)  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   such a county.          (c)  Not more than three class 1 racetracks may be licensed   and operated in this state. (V.A.C.S. Art. 179e, Sec. 6.02(b).)          Sec. 2026.103.  CLASS 2 RACETRACK. (a)  A class 2 racetrack   is a racetrack on which live racing is conducted for a number of   days, as determined by the commission under Subchapter A, Chapter   2029.          (b)  A class 2 racetrack is entitled to conduct 60 days of   live racing in a calendar year. A racetrack association may request   additional or fewer days of live racing. If, after receipt of a   request from a racetrack association, the commission determines   additional or fewer days to be economically feasible and in the best   interest of this state and the racing industry, the commission   shall grant the request.          (c)  The commission may permit a racetrack 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. (V.A.C.S. Art. 179e, Sec. 6.02(c).)          Sec. 2026.104.  CLASS 3 RACETRACK.  (a)  A class 3 racetrack   is a racetrack operated by a county or a nonprofit fair under   Chapter 2032.          (b)  A racetrack 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 racetrack association. (V.A.C.S. Art.   179e, Sec. 6.02(d).)          Sec. 2026.105.  CLASS 4 RACETRACK.  (a)  A class 4 racetrack   is a racetrack operated by a county fair under Section 2032.002.          (b)  A racetrack 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 racetrack   association and approved by the commission. (V.A.C.S. Art. 179e,   Sec. 6.02(g).)          Sec. 2026.106.  WAIVER OR DEFERRAL OF CERTAIN STANDARDS FOR   CLASS 4 RACETRACK. (a)  In considering an application for a class 4   racetrack license, except as provided by Subsection (b), the   commission may waive or defer compliance with the commission's   standards regarding the physical facilities or operations of a   horse racetrack.          (b)  The commission may not waive or defer compliance with   standards that relate to the testing of horses or license holders   for the presence of a prohibited substance, including a prohibited   drug or chemical.          (c)  If the commission defers compliance, the commission   shall, when granting the application, establish a schedule under   which the license holder must comply with the standards. (V.A.C.S.   Art. 179e, Sec. 6.04(d).)          Sec. 2026.107.  CALCULATION OF LIVE AND SIMULCAST RACE   DATES. (a)  For purposes of this subchapter, live race dates are   counted separately from the dates on which the racetrack   association presents simulcast races.          (b)  The number of race dates allowed under this subchapter   relates only to live race dates. A racetrack may present simulcast   races on other dates as approved by the commission. (V.A.C.S. Art.   179e, Secs. 6.02(e), (f).)   SUBCHAPTER D.  CONCESSION, MANAGEMENT, OR TOTALISATOR CONTRACTS;   SECURITY PLANS          Sec. 2026.151.  COMMISSION APPROVAL REQUIRED. (a)  All   concession, management, and totalisator contracts submitted by an   applicant under Section 2025.054 must have the prior approval of   the commission.          (b)  The commission shall refuse to approve a concession or   management contract if, in the sole discretion of the commission,   the background checks conducted under Section 2025.056 reveal   anything that might be detrimental to the public interest or the   racing industry. (V.A.C.S. Art. 179e, Secs. 6.03(a) (part), 6.031   (part).)          Sec. 2026.152.  COMMISSION REVIEW OF SECURITY PLANS AND   CERTAIN CONTRACTS. (a)  On receipt of a plan for the security of a   racetrack, or a copy of a concession, management, or totalisator   contract for review under Section 2026.151, the commission shall   review the security plan or contract in an executive session.   Documents submitted by an applicant to the commission under this   section or Section 2025.052 or 2025.054 are subject to discovery in   a suit brought under this subtitle but are not public records and   are not subject to Chapter 552, Government Code.          (b)  In reviewing and approving contracts under Subsection   (a), the commission shall attempt to ensure the involvement of   minority-owned businesses whenever possible. (V.A.C.S. Art. 179e,   Sec. 6.03(b).)          Sec. 2026.153.  MANAGEMENT CONTRACT:  REQUIREMENTS AND   LIMITATIONS. (a)  A person awarded a management contract to   operate a racetrack must meet all of the requirements for a license   under Sections 2025.101 and 2025.201.          (b)  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. (V.A.C.S. Art. 179e, Secs. 6.06(g), 7.02(e).)     CHAPTER 2027.  WAGERING   SUBCHAPTER A.  PARI-MUTUEL WAGERING   Sec. 2027.001.  PARI-MUTUEL WAGERING RULES    Sec. 2027.002.  WAGERING RESTRICTIONS    Sec. 2027.003.  WAGERING COMPUTATION EQUIPMENT    Sec. 2027.004.  AUTOMATED TELLER MACHINES:  RULES,                    LIMITATIONS, AND FEES    Sec. 2027.005.  TICKET INFORMATION RULES    Sec. 2027.006.  CLAIM AFTER RACE MEETING    SUBCHAPTER B.  SIMULCAST WAGERING   Sec. 2027.051.  SIMULCAST WAGERING RULES    Sec. 2027.052.  CONSTRUCTION OF LAWS RELATED TO                    SIMULCAST RACES    Sec. 2027.053.  COMMISSION APPROVAL REQUIRED FOR                    PARI-MUTUEL POOL INCLUSION    Sec. 2027.054.  REQUIREMENTS AND LIMITATIONS ON                    SIMULCAST RACES    Sec. 2027.055.  CONTRACT REQUIRED FOR SIMULCAST RACES    Sec. 2027.056.  SIMULCAST CONTRACT TERMS AND                    ARBITRATION    SUBCHAPTER C.  WAGERING PROHIBITIONS   Sec. 2027.101.  RULES PROHIBITING WAGERING BY MINOR AND                    VIEWING BY UNACCOMPANIED CHILD    Sec. 2027.102.  UNLAWFUL WAGERING    CHAPTER 2027.  WAGERING   SUBCHAPTER A.  PARI-MUTUEL WAGERING          Sec. 2027.001.  PARI-MUTUEL WAGERING RULES. (a)  The   commission shall adopt rules to regulate wagering on horse races   and greyhound races under the system known as pari-mutuel wagering.          (b)  Rules adopted under this subtitle must include rules to:                (1)  regulate wagering by a person licensed under this   subtitle;                (2)  prohibit wagering by a commission employee;                (3)  prohibit a racetrack association from accepting a   wager made by telephone; and                (4)  prohibit a racetrack association from accepting a   wager made on credit.          (c)  Commission rules adopted under this subtitle must be   written and updated to ensure maximum enforceability. (V.A.C.S.   Art. 179e, Secs. 11.01(a) (part), (b), 11.04(a) (part), (b), (c)   (part).)          Sec. 2027.002.  WAGERING RESTRICTIONS. (a)  Wagering may be   conducted only by a racetrack association within the racetrack   association's enclosure.          (b)  A person may not accept, in person, by telephone, or   over the Internet, a wager for a horse or greyhound race conducted   inside or outside this state from a person in this state unless the   wager is authorized under this subtitle.          (c)  Only a person inside an enclosure where both live and   simulcast race meetings are authorized may wager on the result of a   live or simulcast race presented by a racetrack association in   accordance with commission rules.          (d)  Except as provided by Subsection (c), a person may not   place, in person, by telephone, or over the Internet, a wager for a   horse or greyhound race conducted inside or outside this state.   (V.A.C.S. Art. 179e, Secs. 11.01(a) (part), 11.04(a) (part).)          Sec. 2027.003.  WAGERING COMPUTATION EQUIPMENT.   (a)  Wagering authorized under this chapter may be calculated only   by state-of-the-art computational equipment approved by the   commission.          (b)  The commission may not require the use of a particular   make of equipment. (V.A.C.S. Art. 179e, Sec. 11.02.)          Sec. 2027.004.  AUTOMATED TELLER MACHINES:  RULES,   LIMITATIONS, AND FEES. (a)  The commission shall:                (1)  adopt rules providing for the use of automated   teller machines in an enclosure; and                (2)  limit the use of automated teller machines by   allowing a person access only to the person's checking account at a   bank or other financial institution.          (b)  A racetrack association that allows an automated teller   machine in an enclosure as provided by Subsection (a) shall collect   a fee of $1 for each transaction authorized under that subsection   and forward the fee to the commission.          (c)  The commission shall:                (1)  adopt rules providing for collection, reporting,   and auditing of the transaction fee authorized under Subsection   (b); and                (2)  deposit the fee collected under Subsection (b) to   the credit of the general revenue fund. (V.A.C.S. Art. 179e, Secs.   11.04(c) (part), (e).)          Sec. 2027.005.  TICKET INFORMATION RULES. The commission by   rule shall prescribe the information to be printed on each   pari-mutuel ticket. (V.A.C.S. Art. 179e, Sec. 11.03.)          Sec. 2027.006.  CLAIM AFTER RACE MEETING. (a)  A person who   claims to be entitled to any part of a distribution from a   pari-mutuel pool may, not later than the first anniversary of the   day the ticket was purchased, file with the appropriate racetrack   association a claim for the money accompanied by a substantial   portion of the pari-mutuel ticket sufficient to identify the   racetrack association, race, horse or greyhound involved, amount   wagered, and type of ticket.          (b)  A person who claims to be entitled to money from a   pari-mutuel voucher may before the first anniversary of the day the   voucher was issued file with the appropriate racetrack association   a claim for the money accompanied by a substantial portion of the   pari-mutuel voucher sufficient to identify the racetrack   association, serial number, date issued, and amount of the voucher.          (c)  If the claimant satisfactorily establishes a right to   distribution from a pari-mutuel pool, the racetrack association   shall pay the amount due the claimant.          (d)  If the racetrack association refuses to pay a claimant   who has established satisfactorily a right to distribution from a   pari-mutuel pool, the claimant may appeal to the commission under   procedures prescribed by commission rule. (V.A.C.S. Art. 179e, Sec.   11.07.)   SUBCHAPTER B.  SIMULCAST WAGERING          Sec. 2027.051.  SIMULCAST WAGERING RULES. The commission   shall adopt rules to license and regulate pari-mutuel wagering on:                (1)  races conducted in this state and simulcast to   in-state racetrack associations or out-of-state receiving   locations; and                (2)  races conducted out-of-state and simulcast to   in-state racetrack associations. (V.A.C.S. Art. 179e, Sec.   11.011(a).)          Sec. 2027.052.  CONSTRUCTION OF LAWS RELATED TO SIMULCAST   RACES. (a)  This subtitle may not be construed to allow wagering in   this state on simulcast races at any location other than a racetrack   licensed under this subtitle that has been granted live race dates   by the commission.          (b)  This subtitle may not be construed to prohibit wagering   on:                (1)  a simulcast horse race at a greyhound racetrack in   this state; or                (2)  a simulcast greyhound race at a horse racetrack in   this state. (V.A.C.S. Art. 179e, Secs. 11.011(f), (g) (part).)          Sec. 2027.053.  COMMISSION APPROVAL REQUIRED FOR   PARI-MUTUEL POOL INCLUSION. (a)  With commission approval:                (1)  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 in-state racetrack association;   and                (2)  wagers accepted by an in-state racetrack   association 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   track.          (b)  The commission may adopt rules necessary to facilitate   the interstate commingling of pari-mutuel pools as provided by   Subsection (a).          (c)  The racetrack where the wager is made is responsible for   reporting and remitting this state's share of the pari-mutuel pool.   (V.A.C.S. Art. 179e, Secs. 11.011(b), (c), (d), (e).)          Sec. 2027.054.  REQUIREMENTS AND LIMITATIONS ON SIMULCAST   RACES.  (a)  A horse racetrack may not be required to accept a   greyhound simulcast signal. A horse racetrack that offers wagering   on interstate greyhound simulcast races must offer wagering on all   Texas greyhound races made available for simulcast wagering.          (b)  A greyhound racetrack may not be required to accept a   horse simulcast signal.  A greyhound racetrack that offers wagering   on interstate horse simulcast races must offer wagering on all   Texas horse races made available for simulcast wagering.          (c)  The commission may 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. (V.A.C.S. Art. 179e, Secs. 11.011(g) (part), (j), (m).)          Sec. 2027.055.  CONTRACT REQUIRED FOR SIMULCAST RACES.     (a)  Except as provided by this subchapter, a horse racetrack may   offer wagering on interstate greyhound race simulcast signals only   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 to the nearest   greyhound racetrack the amounts specified under Section   2028.202(c)(1).          (b)  Except as provided by this subchapter, a greyhound   racetrack may offer wagering on interstate horse race simulcast   signals only 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 to the nearest Class 1 horse racetrack the   amounts specified in Section 2028.202(b)(1).          (c)  Wagering on a simulcast greyhound race at a horse   racetrack that conducted its inaugural meet within 12 months of   September 1, 1997, or at an operational horse racetrack within 60   miles of that racetrack may be conducted only in accordance with an   agreement between the racetracks. (V.A.C.S. Art. 179e, Secs.   11.011(h), (i), (k).)          Sec. 2027.056.  SIMULCAST CONTRACT TERMS AND ARBITRATION.   (a)  Notwithstanding any other provisions of law, a greyhound   racetrack association and the state greyhound breed registry shall   by contract agree that each simulcast contract to which the   greyhound racetrack association is a party, including a simulcast   contract with a horse racetrack association or with another   greyhound racetrack association, include terms that provide   adequately for:                (1)  the development of greyhound racing, breeding, and   purses; and                (2)  any actual or potential loss of live racing handle   based on the racetrack association's historical live racing   schedule and handle in this state.          (b)  If a greyhound racetrack association and the state   greyhound breed registry fail to reach an agreement under   Subsection (a), the racetrack association or the breed registry may   submit the contract negotiations for binding arbitration under   Chapter 171, Civil Practice and Remedies Code, and commission   rules.          (c)  The arbitration must be conducted by a board of three   arbitrators as follows:                (1)  one arbitrator appointed by the greyhound   racetrack association;                (2)  one arbitrator appointed by the state greyhound   breed registry; and                (3)  one arbitrator appointed by the arbitrators   appointed under Subdivisions (1) and (2).          (d)  A greyhound racetrack association and the state   greyhound breed registry shall each pay its own arbitration   expenses. The greyhound racetrack association and the state   greyhound breed registry shall equally pay the arbitrator fees and   costs. (V.A.C.S. Art. 179e, Sec. 11.011(l) (part).)   SUBCHAPTER C.  WAGERING PROHIBITIONS          Sec. 2027.101.  RULES PROHIBITING WAGERING BY MINOR AND   VIEWING BY UNACCOMPANIED CHILD. (a)  The commission shall adopt   rules to prohibit:                (1)  wagering by a minor; and                (2)  a child from entering the viewing section of a   racetrack unless accompanied by the child's parent or guardian.          (b)  The rules adopted under Subsection (a) may except any   conduct described as an affirmative defense by Section 2033.017.   (V.A.C.S. Art. 179e, Sec. 11.06.)          Sec. 2027.102.  UNLAWFUL WAGERING. (a)  A person may not   wager on the result of a horse or greyhound race in this state   except as authorized by this subtitle.          (b)  A person other than a racetrack association may not   accept from a Texas resident while the resident is in this state a   wager on the result of a horse or greyhound race conducted inside or outside this state. (V.A.C.S. Art. 179e, Sec. 11.05.)     CHAPTER 2028. PARI-MUTUEL POOLS, PURSES, AND FEES   SUBCHAPTER A. COMMISSION OVERSIGHT OF PARI-MUTUEL RACING FUNDS   Sec. 2028.001.  ADOPTION OF REQUIREMENTS OR OTHER                    PERFORMANCE MEASURES    Sec. 2028.002.  INDEPENDENT AUDIT REPORT; RECORDS                    REVIEW    Sec. 2028.003.  SUSPENSION AND WITHHOLDING OF FUNDS    SUBCHAPTER B. GENERAL DEDUCTIONS FROM LIVE PARI-MUTUEL POOL   Sec. 2028.051.  SET-ASIDE FROM LIVE PARI-MUTUEL POOL    SUBCHAPTER C. DISPOSITION OF HORSE PARI-MUTUEL POOLS AND OTHER   AMOUNTS RELATED TO HORSE RACING   Sec. 2028.101.  DEDUCTIONS FROM HORSE PARI-MUTUEL POOLS    Sec. 2028.102.  HORSE RACETRACK ASSOCIATION SET-ASIDES                    FOR PURSES; PURSE ACCOUNTS    Sec. 2028.103.  SET-ASIDE FOR TEXAS-BRED PROGRAM    Sec. 2028.104.  RACETRACK ASSOCIATION COMMISSION    Sec. 2028.105.  ALLOCATION OF BREAKAGE    Sec. 2028.106.  LIMITATION ON PURSE DEDUCTION    Sec. 2028.107.  LIMITATION ON INCENTIVES AWARDED TO                    CERTAIN HORSES    SUBCHAPTER D. DISPOSITION OF GREYHOUND PARI-MUTUEL POOLS AND OTHER   AMOUNTS RELATED TO GREYHOUND RACING   Sec. 2028.151.  APPLICATION OF SUBCHAPTER    Sec. 2028.152.  DISTRIBUTION OF PARI-MUTUEL POOL    Sec. 2028.153.  STATE FEE    Sec. 2028.154.  BREAKAGE    Sec. 2028.155.  ALLOCATION OF PURSE IN GREYHOUND RACES    SUBCHAPTER E. DISTRIBUTION OF SIMULCAST PARI-MUTUEL POOLS   Sec. 2028.201.  RULES    Sec. 2028.202.  REQUIRED DISTRIBUTIONS    Sec. 2028.203.  REIMBURSEMENT FOR SIMULCAST SIGNAL COST    Sec. 2028.204.  ALLOCATION OF ESCROWED PURSES    Sec. 2028.205.  ADDITIONAL ALLOCATIONS FOR CERTAIN                    RACETRACKS    Sec. 2028.206.  HOST FEE    SUBCHAPTER F. COUNTY AND MUNICIPAL FEES   Sec. 2028.251.  ADMISSION FEES AUTHORIZED    Sec. 2028.252.  ADDITIONAL FEES FOR CERTAIN COUNTIES    Sec. 2028.253.  PROCEDURES FOR FEE COLLECTION    Sec. 2028.254.  OTHER FEES AND TAXES PROHIBITED    CHAPTER 2028. PARI-MUTUEL POOLS, PURSES, AND FEES   SUBCHAPTER A. COMMISSION OVERSIGHT OF PARI-MUTUEL RACING FUNDS          Sec. 2028.001.  ADOPTION OF REQUIREMENTS OR OTHER   PERFORMANCE MEASURES. (a)  For any organization that receives   funds generated by live or simulcast pari-mutuel racing, the   commission shall adopt reporting, monitoring, and auditing   requirements or other appropriate performance measures for:                (1)  any funds distributed to or used by the   organization; and                (2)  any function or service provided by the   expenditure of the funds described by Subdivision (1).          (b)  The commission shall adopt the requirements or   performance measures after consultation with the affected   organization. In adopting the rules, the commission shall consider   the concerns of the affected organization. (V.A.C.S. Art. 179e,   Secs. 6.092(a), (b).)          Sec. 2028.002.  INDEPENDENT AUDIT REPORT; RECORDS REVIEW.   (a)  An organization that receives 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 must include a verification   of any performance report sent to or required by the commission.          (b)  The commission may review any record or book 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. (V.A.C.S. Art.   179e, Secs. 6.092(c), (d).)          Sec. 2028.003.  SUSPENSION AND WITHHOLDING OF FUNDS. The   commission by rule may suspend or withhold funds from an   organization:                (1)  that the commission determines has failed to   comply with the requirements or performance measures adopted under   Section 2028.001; or                (2)  for which material questions on the use of funds by   the organization are raised following an independent audit or other   report to the commission. (V.A.C.S. Art. 179e, Sec. 6.092(e).)   SUBCHAPTER B. GENERAL DEDUCTIONS FROM LIVE PARI-MUTUEL POOL          Sec. 2028.051.  SET-ASIDE FROM LIVE PARI-MUTUEL POOL. A   horse or greyhound racetrack association shall set aside for this   state from each live pari-mutuel pool at the racetrack an amount   equal to:                (1)  one percent of each live pari-mutuel pool from the   total amount of all of the racetrack association's live pari-mutuel   pools in a calendar year in excess of $100 million but less than   $200 million;                (2)  two percent of each live pari-mutuel pool from the   total amount of all of the racetrack association's live pari-mutuel   pools in a calendar year in excess of $200 million but less than   $300 million;                (3)  three percent of each live pari-mutuel pool from   the total amount of all of the racetrack association's live   pari-mutuel pools in a calendar year in excess of $300 million but   less than $400 million;                (4)  four percent of each live pari-mutuel pool from   the total amount of all of the racetrack association's live   pari-mutuel pools in a calendar year in excess of $400 million but   less than $500 million; and                (5)  five percent of each live pari-mutuel pool from   the total amount of all of the racetrack association's live   pari-mutuel pools in a calendar year in excess of $500 million.   (V.A.C.S. Art. 179e, Sec. 6.093(b).)   SUBCHAPTER C. DISPOSITION OF HORSE PARI-MUTUEL POOLS AND OTHER   AMOUNTS RELATED TO HORSE RACING          Sec. 2028.101.  DEDUCTIONS FROM HORSE PARI-MUTUEL POOLS.   (a)  A horse racetrack association shall deduct an amount from each   pari-mutuel pool to be distributed as provided by Sections   2028.102, 2028.103, and 2028.104.          (b)  The total maximum deduction under Subsection (a) is:                (1)  18 percent from a regular wagering pool;                (2)  21 percent from a multiple two wagering pool; and                (3)  25 percent from a multiple three wagering pool.   (V.A.C.S. Art. 179e, Sec. 6.08(a).)          Sec. 2028.102.  HORSE RACETRACK ASSOCIATION SET-ASIDES FOR   PURSES; PURSE ACCOUNTS. (a)  A horse racetrack association shall   set aside for purses an amount not less than:                (1)  for live pari-mutuel pools:                      (A)  seven percent of a live regular wagering pool   or live multiple two wagering pool; and                      (B)  8.5 percent of a live multiple three wagering   pool; and                (2)  for simulcast pari-mutuel pools from the takeout   of the sending track:                      (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.          (b)  If the cost of the simulcast signal exceeds five percent   of the simulcast handle, the receiving horse racetrack association   shall split the cost of the signal in excess of five percent evenly   with the horsemen's organization by allocating that cost against   the purse money derived from that simulcast signal.          (c)  The horse racetrack association shall:                (1)  transfer the amount set aside for purses from any   live and simulcast pool; and                (2)  deposit the amounts in purse accounts maintained   by breed by the horsemen's organization in one or more federally   insured depositories.          (d)  Legal title to purse accounts is vested in the   horsemen's organization. The horsemen's organization may contract   with a horse racetrack association to manage and control the purse   accounts and to make disbursements from the purse accounts:                (1)  to an owner whose horse won a purse;                (2)  to the horsemen's organization for the   organization's expenses; or                (3)  for other disbursements as provided by contract   between the horsemen's organization and the horse racetrack   association.          (e)  A horse racetrack association may pay a portion of the   revenue set aside under this section to an organization recognized   under Section 2023.051, as provided by a contract approved by the   commission. (V.A.C.S. Art. 179e, Sec. 6.08(b).)          Sec. 2028.103.  SET-ASIDE FOR TEXAS-BRED PROGRAM. (a)  A   horse racetrack association shall set aside for the Texas-bred   program an amount equal to one percent of a live multiple two   wagering pool and a live multiple three wagering pool. From the   set-aside amounts:                (1)  two percent shall be set aside for purposes of   Subchapter F, Chapter 88, Education Code; and                (2)  the remaining amount shall be allocated as   follows:                      (A) 10 percent may be used by the appropriate   state horse breed registry for administration; and                      (B)  the remainder shall be used for awards.          (b)  The amount set aside under Subsection (a) is in addition   to any money received from the breakage.          (c)  The commission shall adopt rules relating to the   accounting, auditing, and distribution of all amounts set aside for   the Texas-bred program under this subchapter. (V.A.C.S. Art. 179e,   Secs. 6.08(d), (f), (g).)          Sec. 2028.104.  RACETRACK ASSOCIATION COMMISSION. After   allocation of the amounts specified in Sections 2028.102 and   2028.103, the horse racetrack association shall retain as the   racetrack association's commission the remainder of the amount   deducted under Section 2028.101 from a regular wagering pool, a   multiple two wagering pool, or a multiple three wagering pool.   (V.A.C.S. Art. 179e, Sec. 6.08(e).)          Sec. 2028.105.  ALLOCATION OF BREAKAGE.  (a)  A horse   racetrack association shall allocate two percent of the breakage   from a pari-mutuel pool for purposes of Subchapter F, Chapter 88,   Education Code. The remaining 98 percent of the breakage   constitutes "total breakage" and must be allocated as provided by   Subsections (b), (c), and (d).          (b)  A horse racetrack association shall pay to the   commission for use by the appropriate state horse breed registry,   subject to commission rules, 10 percent of the total breakage from a   live pari-mutuel pool or a simulcast pari-mutuel pool. The   appropriate state horse breed registries are as follows:                (1)  the Texas Thoroughbred Breeders Association for   Thoroughbred horses;                (2)  the Texas Quarter Horse Association for quarter   horses;                (3)  the Texas Appaloosa Horse Club for Appaloosa   horses;                (4)  the Texas Arabian Breeders Association for Arabian   horses; and                (5)  the Texas Paint Horse Breeders Association for   paint horses.          (c)  A horse racetrack association shall retain 10 percent of   the total breakage from a live pari-mutuel pool or a simulcast   pari-mutuel pool to be used in stakes races restricted to   accredited Texas-bred horses.          (d)  The appropriate state horse breed registry shall pay the   remaining 80 percent of the total breakage as follows:                (1)  40 percent to the owners of the accredited   Texas-bred horses that finish first, second, or third;                (2)  40 percent to the breeders of accredited   Texas-bred horses that finish first, second, or third; and                (3)  20 percent to the owner of the stallion standing in   this state at the time of conception whose Texas-bred get finish   first, second, or third.          (e)  If a share of the breakage cannot be distributed to the   person entitled to the share, the appropriate state horse breed   registry shall retain that share.          (f)  For purposes of this section:                (1)  "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.                (2)  "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.  (V.A.C.S. Art. 179e, Secs. 6.08(h),   (i), (j), (k) (part), (m).)          Sec. 2028.106.  LIMITATION ON PURSE DEDUCTION. (a)  In this   section, "horse owner" means a person who is owner of record of an   accredited Texas-bred horse at the time of a race.          (b)  A horse racetrack association may not deduct 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 chosen by the horse owner. (V.A.C.S. Art. 179e, Secs.   6.08(k) (part), (l).)          Sec. 2028.107.  LIMITATION ON INCENTIVES AWARDED TO CERTAIN   HORSES. An accredited Texas-bred Thoroughbred or Arabian horse   described by Section 2021.003(50)(C) is eligible for one-half of   the incentives awarded under Sections 2028.103(a) and   2028.105(d)(2). The appropriate state horse breed registry shall   retain the remaining portion for general distribution at the same   meeting in accordance with Sections 2028.103(a) and 2028.105(d).   (V.A.C.S. Art. 179e, Sec. 6.08(n).)   SUBCHAPTER D. DISPOSITION OF GREYHOUND PARI-MUTUEL POOLS AND OTHER   AMOUNTS RELATED TO GREYHOUND RACING          Sec. 2028.151.  APPLICATION OF SUBCHAPTER. The deductions   and allocations made under this subchapter apply to live   pari-mutuel pools. (V.A.C.S. Art. 179e, Sec. 6.09(e).)          Sec. 2028.152.  DISTRIBUTION OF PARI-MUTUEL POOL. Each   greyhound racetrack association shall distribute all money   deposited in any pari-mutuel pool to the winning ticket holders who   present tickets for payment not later than the 60th day after the   closing day of the greyhound race meeting at which the pool was   formed less:                (1)  an amount paid as a commission of 18 percent of the   total deposits in pools resulting from regular win, place, and show   wagering;                (2)  an amount not to exceed 21 percent of the total   deposits in pools resulting from multiple two wagering; and                (3)  an amount not to exceed 25 percent of the total   deposits in pools resulting from multiple three wagering. (V.A.C.S.   Art. 179e, Sec. 6.09(a).)          Sec. 2028.153.  STATE FEE. On each racing day, a greyhound   racetrack association shall pay to the comptroller the fee due this   state. (V.A.C.S. Art. 179e, Sec. 6.09(c).)          Sec. 2028.154.  BREAKAGE. (a)  A greyhound racetrack   association shall pay 50 percent of the breakage to the appropriate   state greyhound breed registry. Of that breakage percentage:                (1)  25 percent is to be used in stakes races; and                (2)  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 use by the state greyhound breed registry,   subject to commission rules.          (b)  The commission by rule shall require the state greyhound   breed registry to award a grant, in an amount equal to two percent   of the money paid under Subsection (a)(2), to a person for the   rehabilitation of greyhounds or to locate homes for greyhounds.   (V.A.C.S. Art. 179e, Secs. 6.09(d), (f).)          Sec. 2028.155.  ALLOCATION OF PURSE IN GREYHOUND RACES.   (a)  The purse in a greyhound race may not be less than 4.7 percent   of the total deposited in each pari-mutuel pool.          (b)  Of the portion of a purse allocated to a greyhound:                (1)  35 percent shall be paid directly to the greyhound   owner; and                (2)  the balance shall be paid to the greyhound's   contract kennel as provided by commission rules. (V.A.C.S. Art.   179e, Sec. 6.11.)   SUBCHAPTER E. DISTRIBUTION OF SIMULCAST PARI-MUTUEL POOLS          Sec. 2028.201.  RULES. The commission shall adopt rules   relating to this subchapter and the oversight of the amounts   allocated under Sections 2028.202(b) and (c). (V.A.C.S. Art. 179e,   Sec. 6.091(j).)          Sec. 2028.202.  REQUIRED DISTRIBUTIONS. (a)  A racetrack   association shall distribute from the total amount deducted as   provided by Sections 2028.101 and 2028.152 from each simulcast   pari-mutuel pool and each simulcast cross-species pari-mutuel pool   the following shares:                (1)  an amount equal to one percent of each simulcast   pari-mutuel pool as the amount set aside for this state;                (2)  an amount equal to 1.25 percent of each simulcast   cross-species pari-mutuel pool as the amount set aside for this   state;                (3)  for a horse racetrack association, an amount equal   to one percent of a multiple two wagering pool or multiple three   wagering pool as the amount set aside for the Texas-bred program to   be used as provided by Section 2028.103;                (4)  for a greyhound racetrack association, an amount   equal to one percent of a multiple two wagering pool or a multiple   three wagering pool as the amount set aside for the Texas-bred   program for greyhound races, to be distributed and used in   accordance with commission rules adopted to promote greyhound   breeding in this state; and                (5)  the remainder as the amount set aside for purses,   expenses, the sending track, and the receiving location under a   contract approved by the commission between the sending track and   the receiving location.          (b)  From the total amount deducted under Subsection (a), a   greyhound racetrack association that receives an interstate   cross-species simulcast signal shall distribute the following   amounts from each pari-mutuel pool wagered on the signal at the   racetrack:                (1)  a fee of 1.5 percent to be paid to the racetrack in   this state sending the signal;                (2)  a purse in the amount of 0.75 percent to be paid to   the official state horse 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 horse 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 provided by Section 2028.204.          (c)  From the total amount deducted under Subsection (a), a   horse racetrack association that receives an interstate   cross-species simulcast signal shall distribute the following   amounts from each pool wagered on the signal at the racetrack:                (1)  a fee of 1.5 percent to be paid to the racetrack in   this state sending the signal; and                (2)  a purse in the amount of 5.5 percent to be paid to   the official state greyhound breed registry for use at racetracks   in this state.          (d)  The official state greyhound breed registry may use not   more than 20 percent of the amount described by Subsection (c)(2) to   administer that subsection.          (e)  A racetrack association offering wagering on an   intrastate cross-species simulcast signal shall send the purse   amount specified under Subsection (b)(4) or (c)(2), as appropriate,   to the racetrack conducting the live race that is being simulcast.   (V.A.C.S. Art. 179e, Secs. 6.091(a), (c), (d), (h).)          Sec. 2028.203.  REIMBURSEMENT FOR SIMULCAST SIGNAL COST. If   a racetrack association purchases an interstate simulcast signal   and the signal cost exceeds five percent of the pari-mutuel pool,   the commission, from the escrowed purse account under Section   2028.202(b)(4), shall reimburse the racetrack association an   amount equal to one-half of the signal cost that exceeds five   percent of the pari-mutuel pool. (V.A.C.S. Art. 179e, Sec.   6.091(g).)          Sec. 2028.204.  ALLOCATION OF ESCROWED PURSES. (a)  A   greyhound racetrack association shall deposit into an escrow   account in the commission's registry the purse set aside under   Section 2028.202(b)(4).          (b)  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 the horse   racetrack associations to be allocated money from the escrowed   purse account and the percentages to be allocated, taking into   consideration purse levels, racing opportunities, and the   financial status of the requesting racetrack association.   (V.A.C.S. Art. 179e, Sec. 6.091(e) (part).)          Sec. 2028.205.  ADDITIONAL ALLOCATIONS FOR CERTAIN   RACETRACKS. (a)  In addition to money allocated under Section   2028.204, a horse racetrack association operating a racetrack that   is located not more than 75 miles from a greyhound racetrack that   offers wagering on a cross-species simulcast signal and that sends   the cross-species simulcast signal to the greyhound racetrack may   apply to the commission for an allocation of up to 20 percent of the   money in the escrowed purse account that is attributable to the   wagering on a cross-species simulcast signal at the greyhound   racetrack.          (b)  If the applying horse racetrack association can prove to   the commission's satisfaction that the racetrack association's   handle has decreased directly due to wagering on an interstate   cross-species simulcast signal at a greyhound racetrack located not   more than 75 miles from the applying racetrack association, the   commission shall allocate amounts from the escrowed purse account   as the commission considers appropriate to compensate the racetrack   association for the decrease. The amounts allocated may not exceed   20 percent of the money in the escrowed purse account that is   attributable to the wagering on the interstate cross-species   simulcast signal at the greyhound racetrack.          (c)  Money allocated by the commission under this section may   be used by the racetrack association for any purpose. (V.A.C.S.   Art. 179e, Sec. 6.091(f).)          Sec. 2028.206.  HOST FEE. A racetrack association   conducting a live race that is being simulcast may charge the   receiving racetrack a host fee in addition to the amounts described   in this subchapter. (V.A.C.S. Art. 179e, Sec. 6.091(i).)   SUBCHAPTER F. COUNTY AND MUNICIPAL FEES          Sec. 2028.251.  ADMISSION FEES AUTHORIZED. (a)  A   commissioners court may collect a fee not to exceed 15 cents as an   admission fee to a racetrack located in the county.          (b)  If the racetrack is located in a municipality, the   governing body of the municipality may collect a fee not to exceed   15 cents as an admission fee to the racetrack.          (c)  If the racetrack is not located in a municipality, the   commissioners court may collect an additional fee not to exceed 15   cents as an admission fee to a racetrack located in the county for   allocation among the municipalities in the county.          (d)  If the racetrack is not located in a municipality, the   commissioners court on request of the governing bodies of a   majority of the municipalities in the county shall collect the   additional fee.  Allocation of the fees must be based on the   population of the municipalities in the county. (V.A.C.S. Art.   179e, Sec. 6.17(a).)          Sec. 2028.252.  ADDITIONAL FEES FOR CERTAIN COUNTIES. 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 Section 2028.251. (V.A.C.S.   Art. 179e, Sec. 6.17(b).)          Sec. 2028.253.  PROCEDURES FOR FEE COLLECTION. (a)  A   commissioners court by order may establish procedures for the   collection of the fees under Section 2028.251.          (b)  The procedures may require a racetrack association to   keep records and file the reports considered necessary by the   commissioners court. (V.A.C.S. Art. 179e, Sec. 6.17(c).)          Sec. 2028.254.  OTHER FEES AND TAXES PROHIBITED. 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 racetrack. (V.A.C.S. Art. 179e, Sec. 6.17(d).)     CHAPTER 2029.  ALLOCATION OF RACING DAYS   SUBCHAPTER A.  HORSE RACING   Sec. 2029.001.  ALLOCATION OF HORSE RACING DAYS;                    PROHIBITED RACING DAYS    Sec. 2029.002.  CHARITY DAYS    Sec. 2029.003.  ACCESS TO RACES    SUBCHAPTER B.  GREYHOUND RACING   Sec. 2029.051.  NUMBER OF GREYHOUND RACING DAYS    Sec. 2029.052.  CHARITY DAYS    Sec. 2029.053.  SUBSTITUTE RACING DAYS OR ADDITIONAL                    RACES    CHAPTER 2029.  ALLOCATION OF RACING DAYS   SUBCHAPTER A.  HORSE RACING          Sec. 2029.001.  ALLOCATION OF HORSE RACING DAYS; PROHIBITED   RACING DAYS. (a)  The commission shall allocate the live and   simulcast horse racing days for the conduct of live and simulcast   racing at each racetrack.          (b)  In allocating race dates under this section, the   commission shall consider live race dates separately from simulcast   race dates.          (c)  The commission may prohibit racing on Sunday unless the   prohibition would conflict with another provision of this subtitle.   (V.A.C.S. Art. 179e, Sec. 8.01 (part).)          Sec. 2029.002.  CHARITY DAYS. (a) The commission shall   grant to each racetrack association additional horse racing days   during a horse race meeting to be conducted as charity days.  The   commission shall grant to each class 1 racetrack and to each class 2   racetrack at least two and not more than five additional days.          (b)  Each class 1 and class 2 racetrack shall conduct charity   race days in accordance with this section.          (c)  The commission shall ensure that races conducted by a   racetrack association on a charity day are comparable in all   respects, including the generation of revenue, to races conducted   by that racetrack association on any other horse racing day.          (d)  The commission shall adopt rules relating to the conduct   of charity days. (V.A.C.S. Art. 179e, Sec. 8.02.)          Sec. 2029.003.  ACCESS TO RACES. (a)  Each racetrack shall   provide reasonable access to races for all breeds of horses as   determined by the racetrack association through negotiations with   the representative state horse breed registry with the final   approval of the commission.          (b)  In granting approval under Subsection (a), the   commission shall consider:                (1)  the availability of competitive horses;                (2)  economic feasibility; and                (3)  public interest. (V.A.C.S. Art. 179e, Sec. 8.01   (part).)   SUBCHAPTER B.  GREYHOUND RACING          Sec. 2029.051.  NUMBER OF GREYHOUND RACING DAYS. A   greyhound racetrack association is entitled to 300 evening   performances and 150 matinee performances in a calendar year.   (V.A.C.S. Art. 179e, Sec. 10.01 (part).)          Sec. 2029.052.  CHARITY DAYS. (a)  The commission shall   grant not less than five additional greyhound racing days during a   greyhound race meeting to be conducted as charity days.          (b)  The commission shall ensure that races conducted by a   racetrack association on a charity day are comparable in all   respects, including the generation of revenue, to races conducted   by that racetrack association on any other greyhound racing day.          (c)  The commission shall adopt rules relating to the conduct   of charity days. (V.A.C.S. Art. 179e, Sec. 10.01 (part).)          Sec. 2029.053.  SUBSTITUTE RACING DAYS OR ADDITIONAL RACES.   If, for a reason beyond a greyhound racetrack association's control   and not caused by the racetrack association's fault or neglect, it   is impossible for the racetrack association to conduct a race on a   day authorized by the commission, the commission in its discretion   and at the request of the racetrack association, as a substitute for   the race, may:                (1)  specify another day for the racetrack association   to conduct racing; or                (2)  add additional races to already programmed events. (V.A.C.S. Art. 179e, Sec. 10.02.)     CHAPTER 2030.  TEXAS-BRED HORSES AND GREYHOUNDS   SUBCHAPTER A. TEXAS-BRED HORSES; BREED REGISTRIES; RACING   Sec. 2030.001.  QUALIFICATIONS OF ACCREDITED TEXAS-BRED                    HORSES    Sec. 2030.002.  STATE HORSE BREED REGISTRIES    Sec. 2030.003.  TEXAS-BRED RACES    Sec. 2030.004.  PURSE SUPPLEMENTS FOR TEXAS-BRED RACES    Sec. 2030.005.  EQUITABLE NUMBER OF RACES FOR EACH                    BREED    Sec. 2030.006.  EQUITABLE STABLING    SUBCHAPTER B. TEXAS-BRED GREYHOUNDS   Sec. 2030.051.  QUALIFICATIONS OF TEXAS-BRED GREYHOUNDS    Sec. 2030.052.  STATE GREYHOUND BREED REGISTRY    Sec. 2030.053.  BREAKAGE DISTRIBUTIONS DUE STATE                    GREYHOUND BREED REGISTRY    CHAPTER 2030.  TEXAS-BRED HORSES AND GREYHOUNDS   SUBCHAPTER A. TEXAS-BRED HORSES; BREED REGISTRIES; RACING          Sec. 2030.001.  QUALIFICATIONS OF ACCREDITED TEXAS-BRED   HORSES. (a)  Subject to this subtitle or commission rule, a state   horse breed registry shall adopt reasonable rules to establish the   qualifications of accredited Texas-bred horses to promote,   develop, and improve the breeding of horses in this state.          (b)  Rules adopted under this section are subject to approval   by the commission. (V.A.C.S. Art. 179e, Sec. 9.01.)          Sec. 2030.002.  STATE HORSE BREED REGISTRIES. (a)  The   officially designated state horse breed registries for accredited   Texas-bred horses are:                (1)  the Texas Thoroughbred Breeders Association for   Thoroughbred horses;                (2)  the Texas Quarter Horse Association for quarter   horses;                (3)  the Texas Appaloosa Horse Club for Appaloosa   horses;                (4)  the Texas Arabian Breeders Association for Arabian   horses; and                (5)  the Texas Paint Horse Breeders Association for   paint horses.          (b)  The appropriate state horse breed registry shall act in   an advisory capacity to each racetrack association and to the   commission for the purpose of administering Sections 2030.003 and   2030.004. (V.A.C.S. Art. 179e, Secs. 9.02, 9.03(b) (part).)          Sec. 2030.003.  TEXAS-BRED RACES. (a)  In this section,   "Texas-bred race" means a race limited to accredited Texas-bred   horses.          (b)  A racetrack association shall provide for the running of   Texas-bred races.          (c)  Except as provided by Subsection (d), on each horse   racing day, a racetrack association shall provide for the running   of at least two Texas-bred races, including one race restricted to   maidens.          (d)  In accordance with commission rule, a racetrack   association may defer the running of one or both of the races   required by Subsection (c) for each horse racing day if the   racetrack association provides that the total number of accredited   Texas-bred races in a horse race meeting is equal to twice the total   number of horse racing days in the horse race meeting. (V.A.C.S.   Art. 179e, Sec. 9.03(a) (part).)          Sec. 2030.004.  PURSE SUPPLEMENTS FOR TEXAS-BRED RACES.   (a)  In this section, "Texas-bred race" has the meaning assigned by   Section 2030.003.          (b)  To encourage horse breeding in this state, an accredited   Texas-bred horse finishing first, second, or third in a race in this   state, except a restricted stakes race, is entitled to receive a   purse supplement.          (c)  Funds for the purse supplements shall be derived from   the breakage as provided by Subchapters C and E, Chapter 2028.          (d)  An accredited Texas-bred Thoroughbred horse that   finishes first, second, or third in a race other than a Texas-bred   race is entitled to receive an owner's bonus award as a purse   supplement. Twenty-five percent of the Texas-bred program funds   received under Subchapters C and E, Chapter 2028, excluding   expenses for administration of the Texas-bred program, shall be   allocated to fund the bonus awards. (V.A.C.S. Art. 179e, Secs.   9.03(a) (part), (b) (part), (c) (part), 9.04.)          Sec. 2030.005.  EQUITABLE NUMBER OF RACES FOR EACH BREED.   (a)  A racetrack association that conducts a horse race meeting for   more than one breed of horse at one racetrack shall provide that the   number of races run by each breed on each day is equitable as   determined by the commission under Section 2029.003.          (b)  The commission by rule or by order may allow an   exception to Subsection (a) if an insufficient number of horses of a   breed are available to provide sufficient competition. (V.A.C.S.   Art. 179e, Sec. 9.05.)          Sec. 2030.006.  EQUITABLE STABLING. A racetrack association   that conducts a horse race meeting for more than one breed of horse   at one racetrack shall provide on-track stalls on an equitable   basis as determined by the commission under Section 2029.003.   (V.A.C.S. Art. 179e, Sec. 9.06.)   SUBCHAPTER B. TEXAS-BRED GREYHOUNDS          Sec. 2030.051.  QUALIFICATIONS OF TEXAS-BRED GREYHOUNDS.   (a)  Subject to this subtitle or commission rule, the state   greyhound breed registry shall adopt reasonable rules to establish   the qualifications of accredited Texas-bred greyhounds to promote,   develop, and improve the breeding of greyhounds in this state.          (b)  Rules adopted under this section are subject to approval   by the commission. (V.A.C.S. Art. 179e, Sec. 10.04(a).)          Sec. 2030.052.  STATE GREYHOUND BREED REGISTRY. The   officially designated state greyhound breed registry for   accredited Texas-bred greyhounds is the Texas Greyhound   Association. (V.A.C.S. Art. 179e, Sec. 10.05 (part).)          Sec. 2030.053.  BREAKAGE DISTRIBUTIONS DUE STATE GREYHOUND   BREED REGISTRY. (a)  The state greyhound breed registry shall   adopt rules to provide for the use of breakage received by the   registry under Section 2028.154(a).          (b)  A racetrack association shall pay the appropriate state   greyhound breed registry at least every 30 days the breakage due to the breed registry. (V.A.C.S. Art. 179e, Sec. 10.05 (part).)     CHAPTER 2031. TEXAS DERBIES   Sec. 2031.001.  ESTABLISHMENT OF TEXAS DERBIES    Sec. 2031.002.  RACE CONDITIONS, ENTRANCE                    QUALIFICATIONS, AND PREFERENCE SYSTEM    Sec. 2031.003.  PRERACE EXAMINATION    Sec. 2031.004.  TEXAS DERBY ESCROW PURSE FUND    CHAPTER 2031. TEXAS DERBIES          Sec. 2031.001.  ESTABLISHMENT OF TEXAS DERBIES. (a)  The   commission shall establish as Texas Derbies the following annual   stakes races:                (1)  one race open to three-year-old Thoroughbreds;                (2)  one race open only to three-year-old Texas-bred   Thoroughbreds;                (3)  one race open to three-year-old quarter horses;   and                (4)  one race open only to three-year-old Texas-bred   quarter horses.          (b)  Each Texas Derby must be held annually on a date and at   the class 1 racetrack determined by the commission. The commission   shall determine the location of each Texas Derby in consultation   with:                (1)  each class 1 racetrack;                (2)  the official state horse breed registries; and                (3)  the official horsemen's organization.          (c)  The commission may sell the right to name a Texas Derby.   The commission shall deposit the proceeds from the sale of the right   to name a Texas Derby into the Texas Derby escrow purse fund   established under Section 2031.004. (V.A.C.S. Art. 179e, Secs.   9A.001(a), (e), (f).)          Sec. 2031.002.  RACE CONDITIONS, ENTRANCE QUALIFICATIONS,   AND PREFERENCE SYSTEM. (a)  For each Texas Derby, the race   conditions, the entrance qualifications, and the preference system   used to determine race finalists shall be developed by:                (1)  the racetrack that is awarded the derby, for a race   described by Section 2031.001(a)(1) or (3); or                (2)  the respective official state horse breed   registries and the official horsemen's organization, for a race   described by Section 2031.001(a)(2) or (4).          (b)  The race conditions, the entrance qualifications, and   the preference system developed under Subsection (a) are subject to   review and approval by the executive director. (V.A.C.S. Art. 179e,   Secs. 9A.001(b), (c), (d).)          Sec. 2031.003.  PRERACE EXAMINATION. (a)  For each Texas   Derby, the commission shall appoint a state veterinarian to conduct   a prerace examination of each horse entered in the race to determine   whether the horse:                (1)  is healthy; and                (2)  meets standards set by commission rule for racing.          (b)  The examination may:                (1)  be conducted at any time before the race; and                (2)  include any procedure that the state veterinarian   considers necessary to make the determination required by   Subsection (a). (V.A.C.S. Art. 179e, Sec. 9A.002.)          Sec. 2031.004.  TEXAS DERBY ESCROW PURSE FUND. (a)  The   commission shall establish a Texas Derby escrow purse fund.          (b)  Notwithstanding Section 2023.053 or 2024.055 or any   other law, the commission by rule shall determine a portion of the   fees, charges, and other revenue collected under this subtitle to   be deposited to the credit of the Texas Derby escrow purse fund in   the amount reasonably necessary to maintain competitive purses for   each Texas Derby.          (c)  The commission shall by rule establish a schedule of   entrance fees for participants in each Texas Derby. A portion of   each entrance fee, in the amount determined by the commission under   Subsection (b), shall be deposited in the Texas Derby escrow purse   fund.          (d)  The commission by rule may assess under this subtitle   additional charges and fees, including gate fees, to supplement the   funds otherwise deposited in the Texas Derby escrow purse fund   under this section.          (e)  The commission may not:                (1)  use funds from the accredited Texas-bred program   under Subchapter A, Chapter 2030, or the escrowed purse account   under Section 2028.204 to fund the Texas Derby escrow purse fund; or                (2)  order a state horse breed registry to fund a purse   for a Texas Derby, make contributions to the Texas Derby escrow   purse fund, or pay the expenses of a Texas Derby race.          (f)  State revenue may not be deposited to the credit of the   Texas Derby escrow purse fund except as provided by this section. (V.A.C.S. Art. 179e, Sec. 9A.003.)     CHAPTER 2032.  LIVESTOCK SHOWS, EXHIBITS, AND FAIRS   Sec. 2032.001.  COUNTY LIVESTOCK SHOWS AND EXHIBITS;                    COUNTY RIGHTS    Sec. 2032.002.  COUNTIES HOLDING CERTAIN RACETRACK                    LICENSES    Sec. 2032.003.  PUBLIC FAIRS AND LIVESTOCK EXHIBITIONS    CHAPTER 2032.  LIVESTOCK SHOWS, EXHIBITS, AND FAIRS          Sec. 2032.001.  COUNTY LIVESTOCK SHOWS AND EXHIBITS; COUNTY   RIGHTS. (a)  Subject to the licensing requirements and other   provisions of this subtitle, a county may conduct an annual race   meeting, not to exceed 16 racing days, in connection with a   livestock show or exhibit held under Chapter 319, Local Government   Code.          (b)  An agent qualified to hold a license under this subtitle   and selected by the commissioners court under Section 319.004,   Local Government Code, may conduct the race meeting.          (c)  This subtitle does not prohibit a county from exercising   any right otherwise granted to any person by this subtitle.   (V.A.C.S. Art. 179e, Sec. 12.01.)          Sec. 2032.002.  COUNTIES HOLDING CERTAIN RACETRACK   LICENSES. (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 exhibit held under Chapter 319,   Local Government Code. A racing day of the annual 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.   The agent must hold a license issued under this subtitle that is   appropriate for the service the agent provides. (V.A.C.S.   Art. 179e, Sec. 12.03.)          Sec. 2032.003.  PUBLIC FAIRS AND LIVESTOCK EXHIBITIONS.   Subject to the licensing requirements and other provisions of this   subtitle, a nonprofit corporation may conduct a race meeting, not   to exceed 16 racing days, for the purpose of encouraging   agriculture through the operation of public fairs and livestock exhibitions. (V.A.C.S. Art. 179e, Sec. 12.02.)     CHAPTER 2033.  CRIMINAL AND ADMINISTRATIVE PENALTIES; DISCIPLINARY   POWERS   SUBCHAPTER A. CRIMINAL PENALTIES AND PROCEDURES   Sec. 2033.001.  GENERAL CRIMINAL PENALTY    Sec. 2033.002.  UNLAWFUL RACING    Sec. 2033.003.  PARI-MUTUEL WAGERING WITHOUT LICENSE    Sec. 2033.004.  RACING WITHOUT LICENSE    Sec. 2033.005.  IMPERSONATING LICENSE HOLDER    Sec. 2033.006.  UNLAWFUL POSSESSION OR USE OF                    CREDENTIAL    Sec. 2033.007.  FAILURE TO DISPLAY CREDENTIAL    Sec. 2033.008.  RACES CONDUCTED ON CERTAIN INDIAN LANDS    Sec. 2033.009.  ILLEGAL ACCESS TO ENCLOSURE    Sec. 2033.010.  HINDERING ENTRY OR SEARCH    Sec. 2033.011.  FORGING PARI-MUTUEL TICKET    Sec. 2033.012.  FALSE STATEMENTS    Sec. 2033.013.  TOUTING    Sec. 2033.014.  BRIBERY AND CORRUPT INFLUENCE    Sec. 2033.015.  POSSESSION OR USE OF PROHIBITED DEVICE                    OR SUBSTANCE    Sec. 2033.016.  CRIMINAL CONFLICT OF INTEREST    Sec. 2033.017.  OFFENSE INVOLVING MINOR    Sec. 2033.018.  SEARCH AND SEIZURE    Sec. 2033.019.  PROSECUTION    Sec. 2033.020.  VENUE FOR PROSECUTION    Sec. 2033.021.  COMMISSION AUTHORITY    SUBCHAPTER B. ADMINISTRATIVE PENALTY   Sec. 2033.051.  IMPOSITION OF PENALTY    Sec. 2033.052.  AMOUNT OF PENALTY    Sec. 2033.053.  PRELIMINARY REPORT AND NOTICE OF                    VIOLATION AND PENALTY    Sec. 2033.054.  PENALTY TO BE PAID OR HEARING REQUESTED    Sec. 2033.055.  HEARING    Sec. 2033.056.  OPTIONS FOLLOWING DECISION:  PAY OR                    APPEAL    Sec. 2033.057.  COMPLAINTS    SUBCHAPTER C.  CEASE AND DESIST ORDERS   Sec. 2033.101.  CEASE AND DESIST ORDER    Sec. 2033.102.  HEARING CONCERNING PROPOSED CEASE AND                    DESIST ORDER; FINAL ORDER    Sec. 2033.103.  PETITION FOR JUDICIAL REVIEW OF CEASE                    AND DESIST ORDER    Sec. 2033.104.  EMERGENCY CEASE AND DESIST ORDER    Sec. 2033.105.  HEARING CONCERNING EMERGENCY CEASE AND                    DESIST ORDER; FINAL ORDER    Sec. 2033.106.  VIOLATION OF FINAL CEASE AND DESIST                    ORDER    SUBCHAPTER D. OTHER DISCIPLINARY POWERS   Sec. 2033.151.  DISCIPLINARY ACTIONS    Sec. 2033.152.  HEARING CONCERNING SUSPENSION,                    REVOCATION, OR REFUSAL TO RENEW                    LICENSE    Sec. 2033.153.  INJUNCTION    Sec. 2033.154.  ENFORCEMENT REGARDING HORSEMEN'S                    ACCOUNT    CHAPTER 2033.  CRIMINAL AND ADMINISTRATIVE PENALTIES; DISCIPLINARY   POWERS   SUBCHAPTER A. CRIMINAL PENALTIES AND PROCEDURES          Sec. 2033.001.  GENERAL CRIMINAL PENALTY. If a provision of   this subtitle creates an offense without providing a specific   penalty, a person who violates that provision commits a state jail   felony. (V.A.C.S. Art. 179e, Sec. 15.01.)          Sec. 2033.002.  UNLAWFUL RACING. A person commits an   offense if:                (1)  the person participates in, permits, or conducts a   horse or greyhound race at a racetrack;                (2)  the person wagers on the partial or final outcome   of the horse or greyhound race or knows or reasonably should know   that another person is betting on the partial or final outcome of   the race; and                (3)  the race is not part of a performance or race   meeting conducted under this subtitle or commission rule. (V.A.C.S.   Art. 179e, Sec. 14.14.)          Sec. 2033.003.  PARI-MUTUEL WAGERING WITHOUT LICENSE.     (a)  A person commits an offense if, without a license, the person   in any capacity participates or is otherwise involved in horse   racing or greyhound racing with pari-mutuel wagering.          (b)  An offense under Subsection (a) is a Class A   misdemeanor, unless the actor was required by this subtitle to   obtain a racetrack license, in which event the offense is a state   jail felony.          (c)  It is an affirmative defense to prosecution under   Subsection (a) that the actor was a spectator or a person placing a   wager. (V.A.C.S. Art. 179e, Sec. 14.15.)          Sec. 2033.004.  RACING WITHOUT LICENSE. (a)  A person   commits an offense if the person:                (1)  conducts a horse or greyhound race without a   racetrack license; and                (2)  knows or reasonably should know that another   person is betting on the final or partial outcome of the race.          (b)  An offense under this section is a felony of the third   degree. (V.A.C.S. Art. 179e, Sec. 14.16.)          Sec. 2033.005.  IMPERSONATING LICENSE HOLDER. (a)  A person   commits an offense if the person impersonates a license holder with   the intent to induce another person to submit to the actor's   purported authority as a license holder or to rely on the actor's   actions as an alleged license holder.          (b)  An offense under this section is a Class A misdemeanor.   (V.A.C.S. Art. 179e, Sec. 14.09.)          Sec. 2033.006.  UNLAWFUL POSSESSION OR USE OF CREDENTIAL.   (a)  A person commits an offense if the person knowingly possesses   or displays a credential or false credential that identifies the   person as the holder of the credential and the person knows that:                (1)  the credential is not issued to the person; or                (2)  the person is not a license holder.          (b)  An offense under this section is a Class C misdemeanor.   (V.A.C.S. Art. 179e, Sec. 14.02.)          Sec. 2033.007.  FAILURE TO DISPLAY CREDENTIAL. (a)  For   purposes of this section, a request is lawful if it is made:                (1)  at any time by:                      (A)  the commission;                      (B)  an authorized commission agent;                      (C)  the director or a commissioned officer of the   Department of Public Safety;                      (D)  a peace officer; or                      (E)  a steward or judge; and                (2)  at any restricted location that is at a racetrack   and is not a public place.          (b)  A person commits an offense if, after a lawful request,   the person knowingly fails or refuses to:                (1)  display a credential to another person; or                (2)  give the person's name, residence address, or date   of birth to another person.          (c)  Except as provided by Subsection (d), an offense under   this section is a Class B misdemeanor.          (d)  At the punishment stage of a trial for an offense under   Subsection (b)(1), the defendant may raise an issue as to whether   the defendant was a license holder at the time of the offense.  If   the defendant proves the issue, the offense is a Class C   misdemeanor. (V.A.C.S. Art. 179e, Sec. 14.17.)          Sec. 2033.008.  RACES CONDUCTED ON CERTAIN INDIAN LANDS.   (a)  A person commits an offense if the person knowingly wagers on   the result of a horse or greyhound race conducted in this state   that:                (1)  is held on an American Indian reservation or on   American Indian trust land located in this state; and                (2)  is not held under the supervision of the   commission under rules adopted under this subtitle.          (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.   (V.A.C.S. Art. 179e, Sec. 14.05.)          Sec. 2033.009.  ILLEGAL ACCESS TO ENCLOSURE. (a)  A person   commits an offense if the person is a license holder and the person   knowingly 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   subtitle; or                (4)  is excluded by the commission from entering a   racetrack.          (b)  An offense under this section is a Class B misdemeanor.   (V.A.C.S. Art. 179e, Sec. 14.04.)          Sec. 2033.010.  HINDERING ENTRY OR SEARCH. (a)  A person   commits an offense if the person with criminal negligence refuses,   denies, or hinders entry to another person who is exercising or   attempting to exercise a power of entry under this subtitle 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 who is   exercising or attempting to exercise a power to search under this   subtitle or a commission rule.          (c)  An offense under this section is a Class B misdemeanor.   (V.A.C.S. Art. 179e, Sec. 14.07.)          Sec. 2033.011.  FORGING PARI-MUTUEL TICKET.  (a)  In this   section, "forge" has the meaning assigned by Section 32.21, Penal   Code.          (b)  A person commits an offense if the person knowingly   forges a pari-mutuel ticket with the intent to defraud or harm   another person.          (c)  An offense under this section is a felony of the third   degree. (V.A.C.S. Art. 179e, Sec. 14.08.)          Sec. 2033.012.  FALSE STATEMENTS. (a)  In this section,   "statement" means a representation of fact, including:                (1)  a written or oral statement; or                (2)  a sworn or unsworn statement.          (b)  A person commits an offense if the person knowingly   makes a material and false, incorrect, or deceptive statement to   another person who is conducting an investigation or exercising   discretion under this subtitle or a rule adopted under this   subtitle.          (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. (V.A.C.S. Art. 179e, Sec. 14.06.)          Sec. 2033.013.  TOUTING. (a)  A person commits an offense   if, with an intent to deceive and an intent to obtain a benefit, the   person knowingly:                (1)  makes a false statement about a horse or greyhound   race to another person; or                (2)  offers, agrees to convey, or conveys false   information about a horse or greyhound race to another person.          (b)  Except as provided by Subsection (c), 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:                      (A)  is a license holder under this subtitle or a   commission member or employee; and                      (B)  knowingly represents that a commission   member or employee 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. (V.A.C.S.   Art. 179e, Sec. 14.01.)          Sec. 2033.014.  BRIBERY AND CORRUPT INFLUENCE. (a)  A   person commits an offense if, with the intent to influence or affect   the outcome of a race in a manner contrary to this subtitle or a   commission rule, the person offers, confers, or agrees to confer on   another person, or solicits, accepts, or agrees to accept from   another person, any benefit as consideration for the actions of a   person who receives the benefit relating to the conduct, decision,   opinion, recommendation, vote, or exercise of discretion as a   license holder or other person associated with or interested in any   stable, kennel, horse, greyhound, or horse or greyhound race.          (b)  An offense under this section is a state jail felony   unless the recipient of the benefit is a steward, judge, or other   racetrack official exercising authority over a horse or greyhound   race that the person providing or offering the benefit intended to   influence, in which event the offense is a felony of the third   degree. (V.A.C.S. Art. 179e, Sec. 14.11.)          Sec. 2033.015.  POSSESSION OR USE OF PROHIBITED DEVICE OR   SUBSTANCE. (a)  A person commits an offense if the person   possesses a prohibited device or prohibited substance at a   racetrack, in an enclosure, or at a training facility.          (b)  A person commits an offense if, with the intent to   influence or affect a horse or greyhound race in a manner contrary   to this subtitle or a commission rule, the person uses or offers to   use:                (1)  a prohibited device; or                (2)  a prohibited substance.          (c)  An offense under Subsection (a) is a Class A misdemeanor   unless the actor possessed the prohibited device or prohibited   substance with the intent to influence or affect the outcome of a   horse or greyhound race in a manner contrary to this subtitle or a   commission rule, in which event the offense is a state jail felony.          (d)  An offense under Subsection (b) is a felony of the third   degree. (V.A.C.S. Art. 179e, Sec. 14.10.)          Sec. 2033.016.  CRIMINAL CONFLICT OF INTEREST. A person who   is a commission member commits an offense if the person:                (1)  accepts, directly or indirectly, employment or   remuneration from a racetrack, racetrack association, or other   license holder, including a racetrack, racetrack association, or   license holder located or residing in another state;                (2)  wagers or causes a wager to be placed on the   outcome of a horse or greyhound race conducted in this state; or                (3)  accepts or is entitled to any part of a purse to be   paid to an animal in a race conducted in this state. (V.A.C.S.   Art. 179e, Sec. 14.12.)          Sec. 2033.017.  OFFENSE INVOLVING MINOR. (a)  A person   commits an offense if the person with criminal negligence permits,   facilitates, or allows:                (1)  wagering by a minor at a racetrack; or                (2)  entry by a child to the viewing section of a   racetrack.          (b)  A person commits an offense if the person is a minor and   knowingly engages in wagering at a racetrack.          (c)  An offense under Subsection (a) is a Class B   misdemeanor.          (d)  An offense under Subsection (b) 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) 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. (V.A.C.S. Art. 179e, Sec. 14.13.)          Sec. 2033.018.  SEARCH AND SEIZURE. (a)  A person consents   to a search for a prohibited device, prohibited substance, or other   contraband at a time and location described by Subsection (b) if the   person:                (1)  accepts a license or other credential issued under   this subtitle; or                (2)  enters a racetrack under the authority of a   license or other credential alleged to have been issued under this   subtitle.          (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 at a racetrack, except a location:                (1)  excluded by commission rule from searches under   this section; or                (2)  provided by a racetrack association under   commission rule for private storage of personal items belonging to   a license holder entering a racetrack.          (c)  A person conducting a search under Subsection (b) may   seize a prohibited device, prohibited substance, or other   contraband discovered during the search. (V.A.C.S. Art. 179e, Sec.   14.18.)          Sec. 2033.019.  PROSECUTION. A person subject to   prosecution for an offense under this subtitle and another law may   be prosecuted under either law. (V.A.C.S. Art. 179e, Sec. 14.19.)          Sec. 2033.020.  VENUE FOR PROSECUTION. Venue for the   prosecution of an offense under this subtitle is in Travis County or   in a county in which an element of the offense occurred. (V.A.C.S.   Art. 179e, Sec. 14.21.)          Sec. 2033.021.  COMMISSION AUTHORITY. This subchapter does   not restrict the commission's administrative authority to enforce   this subtitle or commission rules to the fullest extent authorized   by this subtitle. (V.A.C.S. Art. 179e, Sec. 14.20.)   SUBCHAPTER B. ADMINISTRATIVE PENALTY          Sec. 2033.051.  IMPOSITION OF PENALTY. If the commission   determines that a person regulated under this subtitle has violated   this subtitle or a rule or order adopted under this subtitle in a   manner that constitutes a ground for a disciplinary action under   this subtitle, the commission may assess an administrative penalty   against that person as provided by this subchapter. (V.A.C.S. Art.   179e, Sec. 15.03(a).)          Sec. 2033.052.  AMOUNT OF PENALTY. (a)  The commission may   assess an administrative penalty under this subchapter in an amount   not to exceed $10,000 for each violation.          (b)  In determining the amount of the penalty, the commission   shall consider the seriousness of the violation. (V.A.C.S. Art.   179e, Sec. 15.03(b).)          Sec. 2033.053.  PRELIMINARY REPORT AND NOTICE OF VIOLATION   AND PENALTY. (a)  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:                (1)  the facts on which the conclusion is based;                (2)  the fact that an administrative penalty is to be   imposed; and                (3)  the amount of the penalty to be assessed.          (b)  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.   (V.A.C.S. Art. 179e, Sec. 15.03(c).)          Sec. 2033.054.  PENALTY TO BE PAID OR HEARING REQUESTED.   (a)  Not later than the 20th day after the date on which the   commission sends the preliminary report under Section 2033.053, the   person charged may:                (1)  make a written request for a hearing; or                (2)  remit the amount of the administrative penalty to   the commission.          (b)  Failure to request a hearing or to remit the amount of   the administrative penalty in the period provided under this   section results in a waiver of a right to a hearing under this   subtitle. (V.A.C.S. Art. 179e, Sec. 15.03(d) (part).)          Sec. 2033.055.  HEARING. (a)  If the person charged   requests a hearing, the hearing shall be conducted in the manner   provided for a contested case hearing under Chapter 2001,   Government Code.          (b)  If it is determined after the hearing that the person   has committed the alleged violation, the commission shall:                (1)  provide written notice to the person of the   findings established by the hearing and the amount of the penalty;   and                (2)  enter an order requiring the person to pay the   penalty. (V.A.C.S. Art. 179e, Sec. 15.03(d) (part).)          Sec. 2033.056.  OPTIONS FOLLOWING DECISION:  PAY OR APPEAL.   (a)  Not later than the 30th day after the date on which the notice   required under Section 2033.055 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.          (b)  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.          (c)  Except as otherwise provided by Section 2024.053(c),   all administrative appeals are to the commission and then to the   courts. (V.A.C.S. Art. 179e, Secs. 4.05(b) (part), 15.03(e).)          Sec. 2033.057.  COMPLAINTS. (a)  A complaint alleging a   violation of this subtitle may be instituted by the Department of   Public Safety, the commission, or the attorney general.          (b)  The complaint must be decided by the commission under   the contested case provisions of Chapter 2001, Government Code.   (V.A.C.S. Art. 179e, Sec. 15.04.)   SUBCHAPTER C.  CEASE AND DESIST ORDERS          Sec. 2033.101.  CEASE AND DESIST ORDER.  (a)  The executive   director may issue a cease and desist order if the executive   director reasonably believes a racetrack association or other   license holder is engaging or is likely to engage in conduct that   violates this subtitle or a commission rule.          (b)  On issuance of a cease and desist order, the executive   director shall serve a proposed cease and desist order on the   racetrack association or other license holder by personal delivery   or registered or certified mail, return receipt requested, to the   person's last known address.          (c)  The proposed order must state the specific acts or   practices alleged to violate this subtitle or a commission rule.   The proposed order must state the effective date, which may not be   earlier than the 21st day after the date the proposed order is   mailed or delivered. (V.A.C.S. Art. 179e, Secs. 3.18(a), (b)   (part).)          Sec. 2033.102.  HEARING CONCERNING PROPOSED CEASE AND DESIST   ORDER; FINAL ORDER.  (a)  If the person against whom a proposed   cease and desist 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.          (b)  On receiving a request for a hearing, the executive   director shall serve notice of the time and place of the hearing by   personal delivery or registered or certified mail, return receipt   requested.          (c)  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 must require the person to immediately   cease and desist from the conduct that violates this subtitle or a   commission rule. (V.A.C.S. Art. 179e, Secs. 3.18(b) (part), (c),   (d).)          Sec. 2033.103.  PETITION FOR JUDICIAL REVIEW OF CEASE AND   DESIST ORDER. (a)  A person affected by a cease and desist order   issued, affirmed, or modified after a hearing under Section   2033.102 may file a petition for judicial review in a district court   of Travis County under Chapter 2001, Government Code.          (b)  A petition for judicial review does not stay or vacate   the cease and desist order unless the court, after hearing,   specifically stays or vacates the order. (V.A.C.S. Art. 179e, Sec.   3.18(e).)          Sec. 2033.104.  EMERGENCY CEASE AND DESIST ORDER. (a)  The   executive director may issue an emergency cease and desist order if   the executive director reasonably believes a racetrack association   or other license holder is engaged in a continuing activity that   violates this subtitle 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 director shall serve on the racetrack association or   other license holder by personal delivery or registered or   certified mail, return receipt requested, to the person's last   known address, an order stating the specific charges and requiring   the person immediately to cease and desist from the conduct that   violates this subtitle or a commission rule. The order must contain   a notice that a request for hearing may be filed under this section.   (V.A.C.S. Art. 179e, Secs. 3.19(a), (b).)          Sec. 2033.105.  HEARING CONCERNING EMERGENCY CEASE AND   DESIST ORDER; FINAL ORDER. (a)  A racetrack association or other   license holder that is the subject of an emergency cease and desist   order may request a hearing. The request must:                (1)  be filed with the executive director not later   than the 10th day after the date the order was received or   delivered;                (2)  be in writing and directed to the executive   director; and                (3)  state the grounds for the request to set aside or   modify the order.          (b)  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.          (c)  On receiving a request for a hearing, the executive   director 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 director receives the request for a   hearing unless the parties agree to a later hearing date.          (d)  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 director. The executive   director may impose any condition before granting a stay of the   order.          (f)  After the hearing, the executive director shall affirm,   modify, or set aside, wholly or partly, 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.   (V.A.C.S. Art. 179e, Secs. 3.19(c), (d), (e), (f).)          Sec. 2033.106.  VIOLATION OF FINAL CEASE AND DESIST ORDER.   (a)  If the executive director reasonably believes that a person   has violated a final and enforceable cease and desist order, the   executive director may:                (1)  initiate administrative penalty proceedings under   Subchapter B;                (2)  refer the matter to the attorney general for   enforcement by injunction and any other available remedy; or                (3)  pursue any other action that the executive   director considers appropriate, including suspension of the   person's license.          (b)  If the attorney general prevails in an action brought   under Subsection (a)(2), the attorney general is entitled to   recover reasonable attorney's fees. (V.A.C.S. Art. 179e, Sec.   3.20.)   SUBCHAPTER D. OTHER DISCIPLINARY POWERS          Sec. 2033.151.  DISCIPLINARY ACTIONS. (a)  The commission   shall revoke, suspend, or refuse to renew a license, place on   probation a person whose license has been suspended, or reprimand a   license holder for a violation of this subtitle or a commission   rule.          (b)  If a license suspension is probated, the commission may   require the license holder to report regularly to the commission on   matters that are the basis of the probation. (V.A.C.S. Art. 179e,   Sec. 3.14.)          Sec. 2033.152.  HEARING CONCERNING SUSPENSION, REVOCATION,   OR REFUSAL TO RENEW LICENSE. (a)  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.          (b)  Proceedings for a disciplinary action, other than those   conducted by a steward or judge, are governed by Chapter 2001,   Government Code.          (c)  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 a steward   or judge, may not conflict with rules adopted by the State Office of   Administrative Hearings. (V.A.C.S. Art. 179e, Sec. 3.15.)          Sec. 2033.153.  INJUNCTION.  The commission may institute an   action in its own name to enjoin the violation of this subtitle. An   action for an injunction is in addition to any other action,   proceeding, or remedy authorized by law. (V.A.C.S.  Art. 179e, Sec.   3.21.)          Sec. 2033.154.  ENFORCEMENT REGARDING HORSEMEN'S ACCOUNT.   (a)  The commission by rule shall develop a system for monitoring   the activities of managers and employees of a racetrack association   relating to the horsemen's account. The monitoring system may   include review of the financial operations of the racetrack   association, including inspections of records at the racetrack   association's offices, at any racetrack, or at any other place the   racetrack association transacts business.          (b)  The executive director may issue an order prohibiting   the racetrack association from making any transfer from a bank   account held by the racetrack association for the conduct of   business under this subtitle, pending commission review of the   records of the account, if the executive director reasonably   believes that the racetrack association has failed to maintain the   proper amount of money in the horsemen's account. The executive   director shall provide in the order a procedure for the racetrack   association to pay certain expenses necessary for the operation of   the racetrack, subject to the executive director's approval.          (c)  An order issued under this section may be made valid for   a period not to exceed 14 days.          (d)  The executive director may issue an order requiring the   appropriate transfers to or from the horsemen's account if, after   reviewing the racetrack association's records of its bank accounts,   the executive director determines there is an improper amount of   money in the horsemen's account. (V.A.C.S. Art. 179e, Sec. 3.22.)   CHAPTER 2034.  UNLAWFUL INFLUENCE ON RACING   Sec. 2034.001.  RULES RELATING TO UNLAWFUL INFLUENCES                    ON RACING AND REQUIRED TESTING    Sec. 2034.002.  MEDICATION AND DRUG TESTING PROCEDURES    Sec. 2034.003.  CHARGES FOR MEDICATION OR DRUG TESTING    Sec. 2034.004.  RESPONSIBILITY OF LICENSED TRAINER                    CONCERNING PROHIBITED SUBSTANCE    Sec. 2034.005.  PROHIBITED SUBSTANCE IN TEST SAMPLE OR                    SPECIMEN    Sec. 2034.006.  DISCIPLINARY ACTION FOR PROHIBITED                    DEVICE OR SUBSTANCE    Sec. 2034.007.  DISCIPLINARY ACTION FOR RULE VIOLATION                    OF PROHIBITED DEVICE OR SUBSTANCE    CHAPTER 2034.  UNLAWFUL INFLUENCE ON RACING          Sec. 2034.001.  RULES RELATING TO UNLAWFUL INFLUENCES ON   RACING AND REQUIRED TESTING.  (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 at a   training facility.          (b)  The commission shall require testing to determine   whether a prohibited substance has been used.          (c)  The commission's rules must require state-of-the-art   testing methods.  The testing may:                (1)  be prerace or postrace as determined by the   commission; and                (2)  be by an invasive or noninvasive method.          (d)  The commission shall adopt rules relating to the drug   testing of license holders. (V.A.C.S. Art. 179e, Secs. 3.16(a),   (b), (i).)          Sec. 2034.002.  MEDICATION AND DRUG TESTING PROCEDURES.   (a)  Medication or drug testing performed on a race animal under   this subtitle must be conducted by:                (1)  the Texas A&M Veterinary Medical Diagnostic   Laboratory; or                (2)  a laboratory operated by or in conjunction with or   by a private or public agency selected by the commission after   consultation with the Texas A&M Veterinary Medical Diagnostic   Laboratory.          (b)  Medication or drug testing performed on a human under   this subtitle must be conducted by a laboratory approved by the   commission. (V.A.C.S. Art. 179e, Sec. 3.07(d) (part).)          Sec. 2034.003.  CHARGES FOR MEDICATION OR DRUG TESTING.   (a)  The commission by rule shall:                (1)  prescribe procedures for approving and paying   medical and drug testing laboratory charges under this section; and                (2)  allocate responsibility for the costs of human   drug testing of a license holder.          (b)  The racetrack association that receives medication or   drug testing services conducted under this subtitle shall pay the   reasonable charges associated with those services.          (c)  Charges for services performed under this section must   be forwarded to the commission for approval of the reasonableness   of the charges. Charges may include expenses incurred for travel,   lodging, testing, and processing of test results.          (d)  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.          (e)  The racetrack association that receives the services is   responsible for the cost of approved charges for animal drug   testing services under this section.  The commission shall forward   a copy of the charges to the racetrack association for immediate   payment.          (f)  To pay the charges associated with the medication or   drug testing, a racetrack association may use the money held by the   racetrack association to pay outstanding tickets and pari-mutuel   vouchers. The racetrack association shall pay any additional   amount needed for the charges. (V.A.C.S. Art. 179e, Secs. 3.07(d)   (part), (e), (f).)          Sec. 2034.004.  RESPONSIBILITY OF LICENSED TRAINER   CONCERNING PROHIBITED SUBSTANCE.  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. (V.A.C.S. Art. 179e, Sec.   3.16(h).)          Sec. 2034.005.  PROHIBITED SUBSTANCE IN TEST SAMPLE OR   SPECIMEN.  (a)  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.          (b)  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.          (c)  A license holder 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 subtitle and selected by the   license holder. The commission shall adopt rules relating to split   testing procedures. (V.A.C.S. Art. 179e, Secs. 3.16(e), (f), (g).)          Sec. 2034.006.  DISCIPLINARY ACTION FOR PROHIBITED DEVICE OR   SUBSTANCE.  (a)  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 or judges. The steward or judge may   also disqualify an animal as provided by a commission rule adopted   under this chapter.          (b)  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. (V.A.C.S. Art. 179e, Secs. 3.16(c), (d).)          Sec. 2034.007.  DISCIPLINARY ACTION FOR RULE VIOLATION OF   PROHIBITED DEVICE OR SUBSTANCE.  A person who violates a rule   adopted under this chapter 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. (V.A.C.S. Art. 179e, Sec.   3.16(j).)   CHAPTER 2035.  LOCAL OPTION ELECTION TO LEGALIZE PARI-MUTUEL   WAGERING   SUBCHAPTER A. LEGALIZATION ELECTION   Sec. 2035.001.  VOTER APPROVAL OF RACETRACK REQUIRED    Sec. 2035.002.  INITIATION OF LEGALIZATION ELECTION    Sec. 2035.003.  ELECTION TO APPROVE WAGERING ON                    SIMULCAST RACES    Sec. 2035.004.  APPLICATION FOR PETITION; ISSUANCE    Sec. 2035.005.  CONTENTS OF PETITION APPLICATION    Sec. 2035.006.  CONTENTS OF PETITION    Sec. 2035.007.  COPIES    Sec. 2035.008.  REQUIREMENTS TO ORDER ELECTION    Sec. 2035.009.  VERIFICATION OF PETITION    Sec. 2035.010.  CERTIFICATION OF PETITION SIGNATURES    Sec. 2035.011.  RECORD IN MINUTES    Sec. 2035.012.  ORDER FOR ELECTION; ELECTION DATE    Sec. 2035.013.  EVIDENCE OF VALIDITY    Sec. 2035.014.  ELECTION PROCEDURES GOVERNED BY                    ELECTION CODE    Sec. 2035.015.  BALLOT PROPOSITION    Sec. 2035.016.  CERTIFICATION OF ELECTION RESULTS    Sec. 2035.017.  FREQUENCY OF ELECTIONS    SUBCHAPTER B. ELECTION CONTEST   Sec. 2035.051.  INITIATION OF ELECTION CONTEST    Sec. 2035.052.  PARTIES    Sec. 2035.053.  CONDUCT OF CONTEST SUIT    Sec. 2035.054.  BOND    Sec. 2035.055.  APPEAL    Sec. 2035.056.  CONTESTEE    Sec. 2035.057.  COSTS OF CONTEST    SUBCHAPTER C. RESCISSION ELECTION   Sec. 2035.101.  INITIATION OF RESCISSION ELECTION    Sec. 2035.102.  EARLIEST DATE FOR HOLDING ELECTION    Sec. 2035.103.  PETITION REQUIREMENTS    Sec. 2035.104.  MANNER OF CONDUCTING ELECTION    Sec. 2035.105.  BALLOT PROPOSITION    Sec. 2035.106.  EFFECT OF RESCISSION    CHAPTER 2035.  LOCAL OPTION ELECTION TO LEGALIZE PARI-MUTUEL   WAGERING   SUBCHAPTER A. LEGALIZATION ELECTION          Sec. 2035.001.  VOTER APPROVAL OF RACETRACK REQUIRED.   (a)  The commission may not issue a racetrack license or accept a   license application for a racetrack to be located in a county until   the commissioners court has certified to the secretary of state   that the qualified voters of the county have approved the   legalization of pari-mutuel wagering on horse races or greyhound   races in the county at an election held under this chapter.          (b)  A racetrack may not be located within a home-rule   municipality unless a majority of the votes cast in the   municipality in the election held under this chapter that legalized   pari-mutuel wagering on horse races in the county favored   legalization.          (c)  Subsection (b) does not apply to a racetrack that:                (1)  was located outside the boundaries of the   municipality when the racetrack was first licensed; and                (2)  has continuously held a license since the issuance   of the original license. (V.A.C.S. Art. 179e, Secs. 16.01(a)   (part), (b).)          Sec. 2035.002.  INITIATION OF LEGALIZATION ELECTION. The   commissioners court:                (1)  may, on its own motion by a majority vote of its   members, order an election to approve the legalization of   pari-mutuel wagering on horse races or greyhound races; and                (2)  shall order an election on presentation of a   petition meeting the requirements of this chapter. (V.A.C.S.   Art. 179e, Sec. 16.02.)          Sec. 2035.003.  ELECTION TO APPROVE WAGERING ON SIMULCAST   RACES. The commissioners court of a county in which a racetrack is   conducting live racing may, on its own motion by a majority vote of   its members, order an election to approve pari-mutuel wagering on   simulcast horse races or greyhound races. (V.A.C.S. Art. 179e, Sec.   16.021.)          Sec. 2035.004.  APPLICATION FOR PETITION; ISSUANCE. If 10   or more registered voters of the county file a written application,   the county clerk shall issue to the applicants a petition to be   circulated among registered voters for their signatures. (V.A.C.S.   Art. 179e, Sec. 16.03.)          Sec. 2035.005.  CONTENTS OF PETITION APPLICATION. To be   valid, the petition application must contain:                (1)  a heading, as follows: "Application for a   Petition for a Local Option Election to Approve the Legalization of   Pari-mutuel Wagering on Horse Races" or "Application for a Petition   for a Local Option Election to Approve the Legalization of   Pari-mutuel Wagering on Greyhound Races," as appropriate;                (2)  a statement of the issue to be voted on, as   follows: "Legalizing pari-mutuel wagering on horse races in   __________ County" or "Legalizing pari-mutuel wagering on   greyhound races in __________ County," as appropriate;                (3)  a statement immediately above the signatures of   the applicants, as follows: "It is the hope, purpose, and intent of   the applicants whose signatures appear below that pari-mutuel   wagering on horse races be legalized in __________ County" or "It is   the hope, purpose, and intent of the applicants whose signatures   appear below that pari-mutuel wagering on greyhound races be   legalized in __________ County," as appropriate; and                (4)  the printed name, signature, residence address,   and voter registration certificate number of each applicant.   (V.A.C.S. Art. 179e, Sec. 16.04.)          Sec. 2035.006.  CONTENTS OF PETITION. To be valid, the   petition must contain:                (1)  a heading, as follows: "Petition for a Local   Option Election to Approve the Legalization of Pari-mutuel Wagering   on Horse Races" or "Petition for a Local Option Election to Approve   the Legalization of Pari-mutuel Wagering on Greyhound Races," as   appropriate;                (2)  a statement of the issue to be voted on, in the   same words used in the application;                (3)  a statement immediately above the signatures of   the petitioners, as follows: "It is the hope, purpose, and intent   of the petitioners whose signatures appear below that pari-mutuel   wagering on horse races be legalized in __________ County" or "It is   the hope, purpose, and intent of the petitioners whose signatures   appear below that pari-mutuel wagering on greyhound races be   legalized in __________ County," as appropriate;                (4)  lines and spaces for the names, signatures,   addresses, and voter registration certificate numbers of the   petitioners; and                (5)  the date of issuance, the serial number, and the   seal of the county clerk on each page. (V.A.C.S. Art. 179e, Sec.   16.05.)          Sec. 2035.007.  COPIES. The county clerk shall keep the   application and a copy of the petition in the clerk's office files.   The clerk shall issue to the applicants the number of copies   requested by the applicants. (V.A.C.S. Art. 179e, Sec. 16.06.)          Sec. 2035.008.  REQUIREMENTS TO ORDER ELECTION. The   commissioners court shall order an election if the petition:                (1)  is filed with the county clerk not later than the   30th day after the date of the petition's issuance; and                (2)  contains a number of signatures of registered   county voters equal to at least five percent of the number of votes   cast in the county for all candidates for governor in the most   recent gubernatorial general election. (V.A.C.S. Art. 179e, Sec.   16.07.)          Sec. 2035.009.  VERIFICATION OF PETITION. (a)  Except as   otherwise provided by Section 277.003, Election Code, the county   clerk shall, on request of any person, check each name on the   petition to determine whether the signer is a registered county   voter.          (b)  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.          (c)  The county clerk may not count a signature if there is   reason to believe that:                (1)  the signature is not the actual signature of the   purported signer;                (2)  the voter registration certificate number is   incorrect;                (3)  the signature duplicates a name or handwriting   used in any other signature on the petition;                (4)  the residence address of the signer is incorrect;   or                (5)  the name of the voter is not signed exactly as the   name appears on the official copy of the current list of registered   voters for the voting year in which the petition is issued.   (V.A.C.S. Art. 179e, Sec. 16.08.)          Sec. 2035.010.  CERTIFICATION OF PETITION SIGNATURES. 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. (V.A.C.S. Art. 179e, Sec. 16.09.)          Sec. 2035.011.  RECORD IN MINUTES. The commissioners court   shall record in the court's minutes:                (1)  the date the petition is filed; and                (2)  the date the petition is certified by the county   clerk. (V.A.C.S. Art. 179e, Sec. 16.10(a).)          Sec. 2035.012.  ORDER FOR ELECTION; ELECTION DATE. (a)  If   the petition contains the required number of signatures and is in   proper order, the commissioners court shall, at the court's 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.          (b)  The commissioners court shall state in the order the   issue to be voted on in the election. (V.A.C.S. Art. 179e, Sec.   16.10(b) (part).)          Sec. 2035.013.  EVIDENCE OF VALIDITY. An order under   Section 2035.012 is prima facie evidence of compliance with all   provisions necessary to give the order validity. (V.A.C.S.   Art. 179e, Sec. 16.10(b) (part).)          Sec. 2035.014.  ELECTION PROCEDURES GOVERNED BY ELECTION   CODE. An election under this chapter shall be held and the returns   shall be prepared and canvassed in conformity with the Election   Code. (V.A.C.S. Art. 179e, Sec. 16.11(a).)          Sec. 2035.015.  BALLOT PROPOSITION. The ballots for an   election under this subchapter shall be printed to permit voting   for or against the proposition: "Legalizing pari-mutuel wagering   on horse races in __________ County," "Legalizing pari-mutuel   wagering on greyhound races in __________ County," or "Authorizing   pari-mutuel wagering on simulcast races in _____ County," as   appropriate. (V.A.C.S. Art. 179e, Sec. 16.11(b).)          Sec. 2035.016.  CERTIFICATION OF ELECTION RESULTS. If a   majority of the votes cast in the election favor the legalization of   pari-mutuel wagering on horse races or greyhound races in the   county, or the authorization of pari-mutuel wagering on simulcast   races in the county, as appropriate, the commissioners court shall   certify that fact to the secretary of state not later than the 10th   day after the date of the canvass of the returns. (V.A.C.S.   Art. 179e, Sec. 16.12(a).)          Sec. 2035.017.  FREQUENCY OF ELECTIONS. Another election   may not be held in the county under this chapter before the fifth   anniversary of the preceding election date. (V.A.C.S. Art. 179e,   Sec. 16.12(b).)   SUBCHAPTER B. ELECTION CONTEST          Sec. 2035.051.  INITIATION OF ELECTION CONTEST. 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.   (V.A.C.S. Art. 179e, Sec. 16.13(a) (part).)          Sec. 2035.052.  PARTIES.  Any person who is licensed or who   has submitted to the commission an application to be licensed in any   capacity under this subtitle may become a named party to the contest   proceedings by pleading to the petition on or before the time set   for hearing and trial as provided by Section 2035.053(b) or after   that time by intervention on leave of court. (V.A.C.S. Art. 179e,   Sec. 16.13(a) (part).)          Sec. 2035.053.  CONDUCT OF CONTEST SUIT. (a)  The   proceedings in the contest 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.          (b)  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 for the proceedings that will   enable the judge to:                (1)  try and determine the questions; and                (2)  render a final judgment with the least possible   delay. (V.A.C.S. Art. 179e, Secs. 16.13(b) (part), (c).)          Sec. 2035.054.  BOND. (a)  Before entry of a final judgment   in the contest proceedings, any party may move that the court   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 as a   result of the delay caused by the contestant's continued   participation in the proceedings if the contestant fails to finally   prevail and obtain substantially the judgment prayed for in the   petition.          (b)  If a motion is made under this section, the court shall   issue an order directed to the contestant that:                (1)  is served personally or by registered mail on all   parties, or on their attorneys of record, together with a copy of   the motion; and                (2)  requires the contestant to:                      (A)  appear at the time and place, not sooner than   five days and not later than 10 days after the receipt of the order   and motion, as the court may direct; and                      (B)  show cause why the motion should not be   granted.          (c)  Motions involving more than one contestant may be heard   together at the court's direction.          (d)  Unless at the hearing on the motion the contestant   establishes facts that in the court's judgment would entitle the   contestant to a temporary injunction against issuance of the   license based on the election in question, the court shall:                (1)  grant the movant's motion; and                (2)  in the court's order, subject to Subsection (e),   set the bond to be posted by the contestant in an amount the court   finds to be sufficient to cover all damages and costs that may   accrue as described by Subsection (a).          (e)  The maximum bond that the court may set is:                (1)  $100,000 for an election contest for a racetrack   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; or                (2)  $10,000 for an election contest for a racetrack to   be located in any other county. (V.A.C.S. Art. 179e, Sec. 16.14.)          Sec. 2035.055.  APPEAL. (a)  A party to the contest suit may   appeal to the appropriate court of appeals an order or judgment   entered by the trial court under Section 2035.053.          (b)  An order or judgment from which an appeal is not taken is   final. If a party does not file an appeal before the 31st day after   the date the result of the election is declared, the election is   presumed valid.          (c)  An order or judgment of a court of appeals may be   appealed to the supreme court.          (d)  An appeal under this section has priority over any other   matter, except habeas corpus. The appellate court shall render its   final order or judgment with the least possible delay.          (e)  The contestee or the county may not be required to give   bond on appeal. (V.A.C.S. Art. 179e, Secs. 16.15 (part), 16.17(b)   (part).)          Sec. 2035.056.  CONTESTEE. The county attorney is the   contestee of a suit brought under Section 2035.051. If there is not   a county attorney of the county, the criminal district attorney or   district attorney is the contestee. (V.A.C.S. Art. 179e, Sec.   16.17(a).)          Sec. 2035.057.  COSTS OF CONTEST.  Costs of the election   contest may not be adjudged against the contestee or county.   (V.A.C.S. Art. 179e, Sec. 16.17(b) (part).)   SUBCHAPTER C. RESCISSION ELECTION          Sec. 2035.101.  INITIATION OF RESCISSION ELECTION. (a)  The   commissioners court of a county that has approved the legalization   of racing with pari-mutuel wagering in that county may hold an   election on the question of rescinding that approval.          (b)  The commissioners court shall order the rescission   election on the presentation of a petition requesting the election.   (V.A.C.S. Art. 179e, Sec. 16.18(a) (part).)          Sec. 2035.102.  EARLIEST DATE FOR HOLDING ELECTION.  A   rescission election may not be held before the second anniversary   of the date of the election conducted under Section 2035.012 at   which the legalization of pari-mutuel wagering was approved.   (V.A.C.S. Art. 179e, Sec. 16.18(a) (part).)          Sec. 2035.103.  PETITION REQUIREMENTS.  A rescission   election petition must meet the requirements imposed by this   chapter for a petition to request a local option election on the   question of the legalization of racing with pari-mutuel wagering.   (V.A.C.S. Art. 179e, Sec. 16.18(a) (part).)          Sec. 2035.104.  MANNER OF CONDUCTING ELECTION.  An election   under this subchapter to rescind legalization of racing shall be   conducted in the manner provided for the original local option   election under this chapter. (V.A.C.S. Art. 179e, Sec. 16.18(a)   (part).)          Sec. 2035.105.  BALLOT PROPOSITION.  The ballots for an   election under this subchapter shall be printed to permit voting   for or against the proposition: "Rescinding the legalization of   pari-mutuel wagering on horse races in __________ County" or   "Rescinding the legalization of pari-mutuel wagering on greyhound   races in __________ County," as appropriate. (V.A.C.S. Art. 179e,   Sec. 16.18(a) (part).)          Sec. 2035.106.  EFFECT OF RESCISSION. (a)  If the majority   of the votes cast in an election under this subchapter favor the   rescission, racing with pari-mutuel wagering may not be conducted   in that county except as provided by Subsection (b).          (b)  A racetrack 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 2021.008. (V.A.C.S. Art. 179e, Secs.   16.18(b), (c).)   ARTICLE 2.  CONFORMING AMENDMENTS          SECTION 2.01.  Section 102.07(f), Alcoholic Beverage Code,   is amended to read as follows:          (f)  Notwithstanding Subsection (a) of this section, Section   108.05 [of this code], or any other provision of this code, a holder   of a brewer's permit, nonresident brewer's permit, distiller's and   rectifier's permit, winery permit, nonresident seller's permit,   manufacturer's license, or nonresident manufacturer's license may,   in order to promote the brand name of the permittee's or licensee's   products, contract with a person licensed under Subtitle A-1, Title   13, Occupations Code ([the] Texas Racing Act [(Article 179e,   Vernon's Texas Civil Statutes]), for on-site advertising signs, for   advertising in programs, and to supplement purses for races even   though the licensees under that subtitle [Act] or the owners or   operators of the racing facilities also hold a mixed beverage   permit or other permit or license under this code. In addition, a   permittee or licensee described by this subsection may contract for   off-site advertising promoting specific races. A part of the cost   of an advertisement or promotion authorized by this section may not   be charged to or paid, directly or indirectly, by the holder of a   wholesale permit, general class B wholesaler's permit, local class   B wholesaler's permit, local distributor's permit, general   distributor's license, or local distributor's license, except   through the price paid by that holder for products purchased from   the holder's supplier.          SECTION 2.02.  Section 153.555, Business Organizations   Code, is amended to read as follows:          Sec. 153.555.  PERMITTED TRANSFER IN CONNECTION WITH   RACETRACK LICENSE. The following transfer relating to a limited   partnership is not a prohibited transfer that violates Section   2025.107(a), Occupations Code [6.12(a), Texas Racing Act (Article   179e, Vernon's Texas Civil Statutes)]:                (1)  a transfer by a general partnership of its assets   to a limited partnership, the corporate general partner of which is   controlled by the partners of the general partnership; or                (2)  a transfer by a limited partnership of the   beneficial use of or interest in any of its rights, privileges, or   assets to a local development corporation incorporated before   January 31, 1993, under Subchapter D, Chapter 431, Transportation   Code.          SECTION 2.03.  Section 88.522(c), Education Code, is amended   to read as follows:          (c)  The comptroller shall periodically transfer the amounts   specified by Sections 2028.103(a) [6.08(f)] and 2028.105(a) [(h)],   Occupations Code [Texas Racing Act (Article 179e, Vernon's Texas   Civil Statutes)], to the account.          SECTION 2.04.  Section 411.096(a), Government Code, is   amended to read as follows:          (a)  The Texas Racing Commission is entitled to obtain from   the department criminal history record information maintained by   the department that pertains to a person who is:                (1)  appointed to the commission;                (2)  an applicant for employment by the commission; or                (3)  an applicant for a license under Subtitle A-1,   Title 13, Occupations Code ([the] Texas Racing Act [(Article 179e,   Vernon's Texas Civil Statutes]).          SECTION 2.05.  Section 751.0021(a), Health and Safety Code,   is amended to read as follows:          (a)  This chapter applies to a horse or greyhound race that   attracts or is expected to attract at least 100 persons, except that   this chapter does not apply if the race is held at a location at   which pari-mutuel wagering is authorized under Subtitle A-1, Title   13, Occupations Code ([the] Texas Racing Act [(Article 179e,   Vernon's Texas Civil Statutes]).          SECTION 2.06.  Section 802.003(c), Occupations Code, is   amended to read as follows:          (c)  This chapter does not apply to an animal regulated under   Subtitle A-1, Title 13 ([the] Texas Racing Act [(Article 179e,   Vernon's Texas Civil Statutes]).          SECTION 2.07.  Section 46.01(15), Penal Code, is amended to   read as follows:                (15)  "Racetrack" has the meaning assigned that term by   Section 2021.003(41), Occupations Code [the Texas Racing Act   (Article 179e, Vernon's Texas Civil Statutes)].          SECTION 2.08.  Section 47.02(c), Penal Code, is amended to   read as follows:          (c)  It is a defense to prosecution under this section that   the actor reasonably believed that the conduct:                (1)  was permitted under Chapter 2001, Occupations   Code;                (2)  was permitted under Chapter 2002, Occupations   Code;                (3)  was permitted under Chapter 2004, Occupations   Code;                (4)  consisted entirely of participation in the state   lottery authorized by the State Lottery Act (Chapter 466,   Government Code);                (5)  was permitted under Subtitle A-1, Title 13,   Occupations Code ([the] Texas Racing Act [(Article 179e, Vernon's   Texas Civil Statutes]); or                (6)  consisted entirely of participation in a drawing   for the opportunity to participate in a hunting, fishing, or other   recreational event conducted by the Parks and Wildlife Department.          SECTION 2.09.  Section 47.05(b), Penal Code, is amended to   read as follows:          (b)  It is an exception to the application of Subsection (a)   that the information communicated is intended for use in placing a   lawful wager under Chapter 2027, Occupations Code [Article 11,   Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes)],   and is not communicated in violation of Section 2033.013,   Occupations Code [14.01 of that Act].          SECTION 2.10.  Section 47.09(a), Penal Code, is amended to   read as follows:          (a)  It is a defense to prosecution under this chapter that   the conduct:                (1)  was authorized under:                      (A)  Chapter 2001, Occupations Code;                      (B)  Chapter 2002, Occupations Code;                      (C)  Chapter 2004, Occupations Code; or                      (D)  Subtitle A-1, Title 13, Occupations Code   ([the] Texas Racing Act [(Article 179e, Vernon's Texas Civil   Statutes]);                (2)  consisted entirely of participation in the state   lottery authorized by Chapter 466, Government Code; or                (3)  was a necessary incident to the operation of the   state lottery and was directly or indirectly authorized by:                      (A)  Chapter 466, Government Code;                      (B)  the lottery division of the Texas Lottery   Commission;                      (C)  the Texas Lottery Commission; or                      (D)  the director of the lottery division of the   Texas Lottery Commission.          SECTION 2.11.  Section 11.23(h), Tax Code, is amended to   read as follows:          (h)  County Fair Associations. A county fair association   organized to hold agricultural fairs and encourage agricultural   pursuits is entitled to an exemption from taxation of the land and   buildings that it owns and uses to hold agricultural fairs. An   association that holds a license issued after January 1, 2001,   under Subtitle A-1, Title 13, Occupations Code ([the] Texas Racing   Act [(Article 179e, Vernon's Texas Civil Statutes]), to conduct a   horse race meeting or a greyhound race meeting with pari-mutuel   wagering is not entitled to an exemption under this subsection.   Land or a building used to conduct a horse race meeting or a   greyhound race meeting with pari-mutuel wagering under a license   issued after January 1, 2001, under that subtitle [Act] may not be   exempted under this subsection. To qualify for an exemption under   this subsection, a county fair association must:                (1)  be a nonprofit corporation governed by Chapter 22,   Business Organizations Code [as defined by the Texas Non-Profit   Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil   Statutes)];                (2)  be exempt from federal income taxes as an   organization described by Section 501(c)(3), (4), or (5), Internal   Revenue Code of 1986[, as amended];                (3)  qualify for an exemption from the franchise tax   under Section 171.060; and                (4)  meet the requirements of a charitable organization   provided by Sections 11.18(e) and (f), for which purpose the   functions for which the association is organized are considered to   be charitable functions.          SECTION 2.12.  Section 151.0035, Tax Code, is amended to   read as follows:          Sec. 151.0035.  "DATA PROCESSING SERVICE".  "Data processing   service" includes word processing, data entry, data retrieval, data   search, information compilation, payroll and business accounting   data production, the performance of a totalisator service with the   use of computational equipment required by Subtitle A-1, Title 13,   Occupations Code ([the] Texas Racing Act [(Article 179e, Vernon's   Texas Civil Statutes]), and other computerized data and information   storage or manipulation. "Data processing service" also includes   the use of a computer or computer time for data processing whether   the processing is performed by the provider of the computer or   computer time or by the purchaser or other beneficiary of the   service. "Data processing service" does not include the   transcription of medical dictation by a medical transcriptionist.   "Data storage," as used in this section, does not include a   classified advertisement, banner advertisement, vertical   advertisement, or link when the item is displayed on an Internet   website owned by another person.   ARTICLE 3.  REPEALER          SECTION 3.01.  The following provisions of the Texas Racing   Act (Article 179e, Vernon's Texas Civil Statutes), are repealed:                (1)  Articles 1, 2, 3, 4, 5, 7, 8, 9, 9A, 10, 11, 12, 13,   14, 15, 16, and 18; and                (2)  Sections 6.01, 6.02, 6.03, 6.031, 6.032, 6.04,   6.06, 6.0601, 6.0602, 6.0603, 6.061, 6.062, 6.063, 6.07, 6.08,   6.09, 6.091, 6.092, 6.093, 6.10, 6.11, 6.12, 6.13, 6.14, 6.15,   6.16, 6.17, and 6.18.   ARTICLE 4. GENERAL MATTERS          SECTION 4.01.  This Act is enacted under Section 43, Article   III, Texas Constitution.  This Act is intended as a recodification   only, and no substantive change in law is intended by this Act.          SECTION 4.02.  This Act takes effect April 1, 2019.