By: Buckingham, et al. S.B. No. 704     A BILL TO BE ENTITLED   AN ACT   relating to the transfer of the regulation of racing to the Texas   Department of Licensing and Regulation, the abolishment of the   Texas Racing Commission, and the creation of the Texas Racing   Advisory Board, following recommendations of the Sunset Advisory   Commission.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. GENERAL PROVISIONS          SECTION 1.01.  Subchapter C, Chapter 51, Occupations Code,   is amended by adding Section 51.1041 to read as follows:          Sec. 51.1041.  PEACE OFFICERS. (a) The department may   commission as a peace officer an employee who has been certified as   qualified to be a peace officer by the Texas Commission on Law   Enforcement.          (b)  A peace officer commissioned by the department may   enforce any provision of this chapter relating to the regulation of   racing or any law establishing a program regulated by the   department under Subtitle A-1, Title 13, related to the regulation   of racing.          (c)  A peace officer commissioned under this section has the   powers, privileges, and immunities of a peace officer while   carrying out duties authorized by this chapter or a law   establishing a program regulated by the department.          SECTION 1.02.  Section 2021.003, Occupations Code, is   amended by amending Subdivisions (2), (8), (9), (14), (20), (21),   (24), (35), and (54) and adding Subdivisions (2-a) and (12-a) to   read as follows:                (2)  "Active license" means a racetrack license   designated by the department [commission] as active.                (2-a)  "Advisory board" means the Texas Racing Advisory   Board.                (8)  "Commission" means the Texas [Racing] Commission   of Licensing and Regulation.                (9)  "Concessionaire" means a person licensed by the   department [commission] to sell refreshments or souvenirs at a   racetrack.                (12-a) "Department" means the Texas Department of   Licensing and Regulation.                (14)  "Executive director" means the executive   director of the department [commission].                (20)  "Horsemen's organization" means an organization   recognized by the department [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 department [commission] as inactive.                (24)  "Maiden" means a horse that has never won a race   at a race meeting authorized by the department [commission] or by   another racing jurisdiction.                (35)  "Performance" means the consecutive running of a   specified number of greyhound races as determined by the department   [commission].                (54)  "Trainer" means a person who is licensed by the   department [commission] to train horses or greyhounds.          SECTION 1.03.  Sections 2021.004(1) and (5), Occupations   Code, are amended to read as follows:                (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 department   [commission] acknowledges and approves.                (5)  "Jockey" or "apprentice jockey" means a   professional rider licensed by the department [commission] to ride   in horse races.          SECTION 1.04.  Section 2021.006, Occupations Code, is   amended to read as follows:          Sec. 2021.006.  RELEASE OF CIVIL LIABILITY.  A commission   member, the executive director, a department [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.          SECTION 1.05.  Sections 2021.008(a), (b), (c), and (d),   Occupations Code, are amended to read as follows:          (a)  The advisory board [commission] is subject to Chapter   325, Government Code (Texas Sunset Act). The advisory board shall   be reviewed during the period in which the commission and   department are reviewed under Section 51.002. Unless the advisory   board is continued in existence and the commission and department   are continued in existence as provided by that section, [chapter,]   and except as provided by Subsections (b) and (c), [the commission   is abolished and] this subtitle expires on the date provided by that   section [September 1, 2021].          (b)  If, at the time the commission, department, and advisory   board 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, the department, and this subtitle   are continued in effect for the purpose of regulating that   racetrack association under this subtitle.          (c)  If the commission, the department, and this subtitle are   continued in effect under Subsection (b), the commission and the   department are [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   or department approval. At the beginning of that period, the   commission or department 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.   ARTICLE 2. TEXAS RACING ADVISORY BOARD; DEPARTMENT RECORDS AND   INFORMATION          SECTION 2.01.  The heading to Chapter 2022, Occupations   Code, is amended to read as follows:   CHAPTER 2022.  TEXAS RACING ADVISORY BOARD [COMMISSION]          SECTION 2.02.  The heading to Section 2022.001, Occupations   Code, is amended to read as follows:          Sec. 2022.001.  ADVISORY BOARD [COMMISSION] MEMBERSHIP.          SECTION 2.03.  Section 2022.001(a), Occupations Code, is   amended to read as follows:          (a)  The Texas Racing Advisory Board [commission] consists   of nine[:                [(1)  seven] members appointed by the presiding officer   of the commission, with commission approval, as follows:                (1)  one member who is a representative of a racetrack   association holding a class 1 racetrack license;                (2)  one member who is a representative of a racetrack   association holding a class 2 racetrack license;                (3)  one member who is a representative of a racetrack   association holding a class 3 racetrack license;                (4)  one member who is:                      (A)  a representative of a racetrack association   holding a greyhound racetrack license; or                      (B)  a representative of the Texas Horsemen's   Partnership;                (5)  one member who is a representative of the Texas   Thoroughbred Association;                (6)  one member who is a representative of the Texas   Quarter Horse Association;                (7)  one member who is a veterinarian; and                (8)  two members of the public [governor with the   advice and consent of the senate; and                [(2)  two ex officio members who have the right to   vote].          SECTION 2.04.  Subchapter A, Chapter 2022, Occupations Code,   is amended by adding Section 2022.0011 to read as follows:          Sec. 2022.0011.  DUTIES OF ADVISORY BOARD. The advisory   board shall provide advice and recommendations to the department on   technical matters relevant to the administration of this subtitle.          SECTION 2.05.  The heading to Section 2022.002, Occupations   Code, is amended to read as follows:          Sec. 2022.002.  TERM OF OFFICE; VACANCIES.          SECTION 2.06.  Section 2022.002, Occupations Code, is   amended by amending Subsection (a) and adding Subsection (c) to   read as follows:          (a)  Advisory board [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.          (c)  If a vacancy occurs during a member's term, the   presiding officer of the commission, with commission approval,   shall appoint a member to fill the vacancy for the remainder of the   unexpired term.          SECTION 2.07.  Section 2022.008, Occupations Code, is   amended to read as follows:          Sec. 2022.008.  PRESIDING OFFICER.  (a) The presiding   officer of the commission [governor] shall designate a [public]   member of the advisory board [commission] as the presiding officer   of the advisory board [commission] to serve in that capacity for a   one-year term [at the pleasure of the governor].          (b)  The presiding officer of the advisory board may vote on   any matter before the advisory board.          SECTION 2.08.  The heading to Section 2022.009, Occupations   Code, is amended to read as follows:          Sec. 2022.009.  ADVISORY BOARD [COMMISSION] MEETINGS[;   RECORD OF COMMISSION VOTES].          SECTION 2.09.  Section 2022.009(a), Occupations Code, is   amended to read as follows:          (a)  The advisory board [commission] shall meet at the call   of the presiding officer of the commission or the executive   director [hold at least six regular meetings each year on dates   fixed by the commission].          SECTION 2.10.  The heading to Section 2022.052, Occupations   Code, is amended to read as follows:          Sec. 2022.052.  [EMPLOYEES;] RESTRICTIONS ON EMPLOYMENT.          SECTION 2.11.  The heading to Section 2022.103, Occupations   Code, is amended to read as follows:          Sec. 2022.103.  DEPARTMENT [COMMISSION] INVESTIGATIVE FILES   CONFIDENTIAL.          SECTION 2.12.  Sections 2022.103(a), (b), and (c),   Occupations Code, are amended to read as follows:          (a)  The contents of the investigatory files of the   department [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 of Public Safety's   [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 of Public Safety   [department] in the discharge of the Department of Public Safety's   [department's] duties under this subtitle.          (c)  An investigation report or other document submitted by   the Department of Public Safety to the department [commission]   becomes part of the investigative files of the department   [commission] and is subject to discovery by a person who is the   subject of the investigation report or other document submitted by   the Department of Public Safety [department] to the department   [commission] that is part of the investigative files of the   department [commission].          SECTION 2.13.  Section 2022.105(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] shall require racetrack   associations, managers, totalisator license holders, and   concessionaires to keep books and records and to submit financial   statements to the commission.   ARTICLE 3. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL   POWERS AND DUTIES          SECTION 3.01.  The heading to Chapter 2023, Occupations   Code, is amended to read as follows:   CHAPTER 2023. COMMISSION, DEPARTMENT, AND RACE MEETING OFFICIAL   POWERS AND DUTIES          SECTION 3.02.  Section 2023.001, Occupations Code, is   amended to read as follows:          Sec. 2023.001.  LICENSING, REGULATION, AND SUPERVISION OF   HORSE RACING AND GREYHOUND RACING. (a) Notwithstanding any   contrary provision in this subtitle, the department under the   direction of 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 the department   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.          SECTION 3.03.  Section 2023.002, Occupations Code, is   amended to read as follows:          Sec. 2023.002.  REGULATION AND SUPERVISION OF WAGERING AT   RACE MEETINGS. (a) The department [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 department [commission].          (b)  The commission shall adopt rules on the issuance of   licenses and other rules necessary to regulate horse racing and   greyhound racing and the department shall[,] issue licenses[,] and   take any other necessary action relating [exclusively] to the   regulation of horse racing or greyhound racing.          SECTION 3.04.  Section 2023.003(b), Occupations Code, is   amended to read as follows:          (b)  The department [commission] may charge in the amount set   by the commission 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 by the commission for the licensing and regulation of   races and workouts at such a facility.          SECTION 3.05.  Section 2023.004(d), Occupations Code, is   amended to read as follows:          (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.          SECTION 3.06.  Section 2023.006, Occupations Code, is   amended to read as follows:          Sec. 2023.006.  CONSIDERATION OF PAST PERFORMANCE OF   RACETRACK ASSOCIATION.  In considering a pleading of a racetrack   association, the department [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.          SECTION 3.07.  Section 2023.007, Occupations Code, is   amended to read as follows:          Sec. 2023.007.  RIGHT OF ENTRY.  A department employee   [commission member], an authorized department [commission] agent   or peace officer, 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.          SECTION 3.08.  Section 2023.008, Occupations Code, is   amended to read as follows:          Sec. 2023.008.  TESTIMONY AND SUBPOENA POWER. (a) For   purposes of this section, "agent" means an appointed agent of the   department [commission].          (b)  A department employee [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   executive director or the executive director's designee   [commission or an agent]. A person designated by the executive   director [commission] must serve the subpoena.          (d)  A department employee [commission member] or an agent   may administer an oath to a witness appearing before the department   [commission] or an agent.          (e)  If a subpoena issued under this section is disobeyed,   the department [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.          SECTION 3.09.  Sections 2023.051 and 2023.052, Occupations   Code, are amended to read as follows:          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 department [commission].          (b)  The department [commission] may recognize an   organization that meets the criteria adopted under Subsection (a).          Sec. 2023.052.  SECURITY FOR FEES AND CHARGES. The   department [commission] may require a racetrack association to post   security in an amount and form determined by the department   [commission] to adequately ensure the payment of any fee or charge   due to this state or the department [commission] relating to   pari-mutuel racing, including a charge for drug testing.          SECTION 3.10.  Section 2023.053(f), Occupations Code, is   amended to read as follows:          (f)  This section does not apply to:                (1)  money deposited into the Texas-bred incentive fund   established under Section 2028.301; or                (2)  an administrative penalty remitted to the   comptroller for deposit in the general revenue fund under Section   2033.058.          SECTION 3.11.  The heading to Section 2023.054, Occupations   Code, is amended to read as follows:          Sec. 2023.054.  [COMMISSION] STANDARDS ON GREYHOUND FARMS   AND FACILITIES.          SECTION 3.12.  Sections 2023.056, 2023.057, 2023.058,   2023.059, and 2023.061, Occupations Code, are amended to read as   follows:          Sec. 2023.056.  COOPERATION WITH LAW ENFORCEMENT. (a) The   department [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 department [commission], under department   [commission] authority to obtain criminal history record   information under Section 2023.057, shall maintain and exchange   pertinent intelligence data with other states and agencies.          Sec. 2023.057.  ACCESS TO CRIMINAL HISTORY RECORDS.  The   department [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 under this   subtitle by the department, including an occupational license   described by Section 2025.251(c), [commission] and that is   maintained by the Department of Public Safety or the Federal Bureau   of Investigation Identification Division. The department   [commission] may refuse to issue a license to [recommend] an   applicant who fails to provide a complete set of fingerprints.          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 to the   department of conducting a criminal history record check on a   license applicant.          (b)  The department [commission] shall reimburse the   Department of Public Safety for the cost of conducting a criminal   history record check under this subtitle.          Sec. 2023.059.  DISTANCE LEARNING. The department   [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.          Sec. 2023.061.  BIENNIAL [ANNUAL] REPORT. (a) Not later   than January 31 of each odd-numbered year, the department   [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 department   under this subtitle [commission] and the condition of horse   breeding and racing and greyhound breeding and racing during the   preceding two-year period [previous year].          (c)  The department [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   related to this subtitle known to exist in this state. The   department [commission] shall include in the biennial [annual]   report the Department of Public Safety's [department's] report and   any recommendations the department [commission] considers   appropriate.          SECTION 3.13.  Sections 2023.101(b), (c), and (d),   Occupations Code, are amended to read as follows:          (b)  The department [commission] shall employ or contract   with each steward and judge for the supervision of a horse race or   greyhound race meeting.          (c)  The department [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 department [commission] for the   department's [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 department [commission].          SECTION 3.14.  Section 2023.102(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] shall require each steward   or judge to annually take and pass a written examination and a   medical examination.          SECTION 3.15.  Section 2023.103, Occupations Code, is   amended to read as follows:          Sec. 2023.103.  [EMPLOYMENT OF] STATE VETERINARIANS.  For   each race meeting, the department [commission] shall employ or   contract for at least one state veterinarian.          SECTION 3.16.  Section 2023.104(b), Occupations Code, is   amended to read as follows:          (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 department   [commission] for compensating the officials.          SECTION 3.17.  Section 2023.105, Occupations Code, is   amended to read as follows:          Sec. 2023.105.  EMPLOYMENT OF OTHER RACETRACK OFFICIALS.     The racetrack association shall appoint, with the department's   [commission's] approval, all racetrack officials other than the   officials listed in Section 2023.104. Compensation for officials   not compensated by the department [commission] is determined by the   racetrack association.          SECTION 3.18.  Section 2023.106(b), Occupations Code, is   amended to read as follows:          (b)  The commission shall adopt rules that specify:                (1)  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;   and                (2)  procedures for hearings conducted under this   section.          SECTION 3.19.  Section 2023.109, Occupations Code, is   amended by adding Subsection (c) to read as follows:          (c)  The commission may adopt rules specifying the   requirements for appealing a decision and eligibility of orders for   consideration under this section.   ARTICLE 4. POWERS AND DUTIES OF COMPTROLLER          SECTION 4.01.  Section 2024.002(a), Occupations Code, is   amended to read as follows:          (a)  The comptroller may inspect all books, records, and   financial statements required by the commission or obtained by the   department under Section 2022.105.          SECTION 4.02.  Sections 2024.053(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The comptroller shall certify to the department   [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 department [commission], may take any   collection or enforcement action authorized under the Tax Code   against a delinquent taxpayer.   ARTICLE 5. LICENSING          SECTION 5.01.  Sections 2025.001 and 2025.002, Occupations   Code, are amended to read as follows:          Sec. 2025.001.  COMMISSION AND DEPARTMENT 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 department [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 department's [commission's]   costs of regulating, overseeing, and licensing live and simulcast   racing at racetracks.          Sec. 2025.002.  LICENSE AS PRIVILEGE.  The operation of a   racetrack and the participation in racing are privileges, not   rights, granted only by the department [commission] by license and   subject to reasonable and necessary conditions set by the   commission and department.          SECTION 5.02.  Sections 2025.003(a), (c), (d), and (e),   Occupations Code, are amended to read as follows:          (a)  An applicant for a license or license renewal under this   subtitle must, except as otherwise provided by Section 2025.261,   submit to the department [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.          (c)  A peace officer of any state[,] or any department   employee designated by the executive director [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 department [commission].          (d)  If a complete set of fingerprints is required by the   department [commission], the department [commission] shall, not   later than the 10th business day after the date the department   [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 of Public Safety [department]   shall:                (1)  classify the fingerprints and check the   fingerprints against the Department of Public Safety's   [department's] fingerprint files; and                (2)  report to the department [commission] the   Department of Public Safety's [department's] findings concerning   the existence or lack of a criminal record of the applicant.          (e)  The department [commission] may not issue a racetrack   license until the report under Subsection (d) is made to the   department [commission]. The department [commission] may issue a   temporary occupational license before the report is made to the   department [commission].          SECTION 5.03.  Section 2025.051, Occupations Code, is   amended to read as follows:          Sec. 2025.051.  RACETRACK LICENSE REQUIRED; CRIMINAL   PENALTY.  A person may not conduct wagering on a horse or greyhound   race meeting without first obtaining a racetrack license issued by   the department [commission]. A person who violates this section   commits an offense.          SECTION 5.04.  Sections 2025.052(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall require each   applicant for an original racetrack license to submit an   application, on a form prescribed by the department [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 department   [commission].          (b)  An application must be attested [sworn] to:                (1)  by the applicant; or                (2)  if the applicant is a corporation or association,   by its chief executive officer.          SECTION 5.05.  Sections 2025.053(a) and (c), Occupations   Code, are amended to read as follows:          (a)  The department [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, or other   form of payment acceptable to the department.          (c)  Notwithstanding this section, if a licensed racetrack   petitions for a higher racetrack classification, the department   [commission] shall impose fees equal to the difference between the   fees previously paid and the fees required for the higher   classification.          SECTION 5.06.  Sections 2025.054(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall require each   applicant for an original racetrack license to submit with the   application for inspection and review by the department   [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:                (1)  advise the department [commission] of any change   in any management, concession, or totalisator contract; and                (2)  at the request of the department, provide any   information the department considers necessary to review the   change.          SECTION 5.07.  Sections 2025.055 and 2025.056, Occupations   Code, are amended to read as follows:          Sec. 2025.055.  CONFIDENTIALITY OF APPLICATION DOCUMENTS.     Documents submitted to the department [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.          Sec. 2025.056.  BACKGROUND CHECK. (a) The department   [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 department may [commission shall] refuse to issue or   renew a license or may revoke 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. A   proceeding under this section is subject to Subchapter G, Chapter   51.          (c)  The executive director [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 department [commission].          SECTION 5.08.  Section 2025.057(a), Occupations Code, is   amended to read as follows:          (a)  The department [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.          SECTION 5.09.  Section 2025.058, Occupations Code, is   amended to read as follows:          Sec. 2025.058.  NOTIFICATION OF COMPLETED APPLICATION.  When   all requirements for the applicant's licensure described in this   chapter have been satisfied, the department [commission] shall   notify the applicant that the application is complete.          SECTION 5.10.  Sections 2025.101(b), (c), (e), and (f),   Occupations Code, are amended to read as follows:          (b)  In considering an application for a horse racetrack   license under this chapter, the department [commission] shall give   additional weight to evidence concerning an applicant who has   experience operating a horse racetrack licensed under this   subtitle.          (c)  The department [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.          (e)  Subsections (c) and (d) and Section 2025.201(a)(10)   [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 department [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.]          SECTION 5.11.  Section 2025.102, Occupations Code, is   amended to read as follows:          Sec. 2025.102.  QUALIFICATIONS FOR ISSUANCE OF RACETRACK   LICENSE. (a) The department [commission] may issue a racetrack   license to a qualified person if the department [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 department [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 department [commission] shall make a determination   on a pending application not later than the 120th day after the date   the department [commission] provides the notice required under   Section 2025.058.          SECTION 5.12.  Sections 2025.103(a), (c), and (d),   Occupations Code, are amended to read as follows:          (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   department [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.          (c)  The department [commission] may set conditions and   standards for issuance of a temporary license and allocation of   appropriate race days.          (d)  The department [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.          SECTION 5.13.  Sections 2025.104(a), (b), and (d),   Occupations Code, are amended to read as follows:          (a)  The department [commission] shall designate each   racetrack license as an active license or an inactive license. The   department [commission] may change the designation of a racetrack   license as appropriate.          (b)  The department [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.          (d)  Before the first anniversary of the date a new racetrack   license is issued, the department [commission] shall conduct an   evaluation of the license to determine whether the license is an   active or inactive license.          SECTION 5.14.  Section 2025.105, Occupations Code, is   amended by amending Subsections (a), (b), (c), (d), and (e) and   adding Subsection (g) to read as follows:          (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 department [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   department [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 department [commission] may refuse to renew an   inactive license if, after notice and a hearing, the department   [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 department [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 the department shall    collect renewal fees in amounts reasonable and necessary to cover   the costs of administering and enforcing this section.          (g)  A proceeding under this section is a contested case for   purposes of Chapter 2001, Government Code.          SECTION 5.15.  Section 2025.106, Occupations Code, is   amended to read as follows:          Sec. 2025.106.  DEPARTMENT [COMMISSION] REVIEW OF ACTIVE   RACETRACK LICENSE; FEE. (a) The department [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 department [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 department [commission] shall charge fees for the   review in amounts set by the commission as sufficient to implement   this section.          SECTION 5.16.  Section 2025.107(b), Occupations Code, is   amended to read as follows:          (b)  If the death of any person causes a violation of the   licensing provisions of this subtitle, the department [commission]   may issue, in accordance with commission rules, a temporary license   for a period not to exceed one year.          SECTION 5.17.  Sections 2025.108 and 2025.151, Occupations   Code, are amended to read as follows:          Sec. 2025.108.  RACETRACK LICENSE ANNUAL FEE.  The   commission may prescribe a reasonable annual fee to be paid to the   department 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.          Sec. 2025.151.  LIMITATION ON NUMBER OF GREYHOUND RACETRACK   LICENSES.  The department [commission] may not issue licenses for   more than three greyhound racetracks in this state.          SECTION 5.18.  Section 2025.201, Occupations Code, is   amended by amending Subsections (a) and (c) and adding Subsection   (d) to read as follows:          (a)  The department [commission] may refuse to issue a   racetrack license or may revoke or suspend a license if, after   notice and hearing, the department [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 misdemeanor [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;                (4) [(5)]  failed to answer or falsely or incorrectly   answered a question in an application;                (5) [(6)]  fails to disclose the true ownership or   interest in a horse or greyhound as required by commission rules;                (6) [(7)]  is indebted to this state for any fee or for   the payment of a penalty imposed by this subtitle or a commission   rule;                (7)  has developed an incapacity that prevents or could   prevent the applicant or license holder from conducting the   applicant's or license holder's business with reasonable skill and   competence and in a manner that does not endanger public safety;                (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;                (9) [(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;                (10) [(12)]  has not been a United States citizen   residing in this state for the 10 consecutive years preceding the   filing of the application;                (11) [(13)]  has improperly used a credential,   including a license certificate or identification card, issued   under this subtitle;                (12) [(14)]  resides with a person whose license was   revoked for cause during the 12 months preceding the date of the   present application;                (13) [(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 department [commission] determines are detrimental   to the best interests of the public and the sport of horse racing or   greyhound racing; or                (14) [(17)]  fails to fully disclose the true owners of   all interests, beneficial or otherwise, in a proposed racetrack.          (c)  The department [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.          (d)  A proceeding under this section is a contested case for   purposes of Chapter 2001, Government Code.          SECTION 5.19.  Section 2025.202(b), Occupations Code, is   amended to read as follows:          (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 department [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.          SECTION 5.20.  Section 2025.203(a), Occupations Code, is   amended to read as follows:          (a)  The executive director [commission] may summarily   suspend a racetrack license if the executive director [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.          SECTION 5.21.  Section 2025.204(d), Occupations Code, is   amended to read as follows:          (d)  At the hearing, the department [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.          SECTION 5.22.  Sections 2025.205, 2025.251, 2025.253,   2025.254, and 2025.255, Occupations Code, are amended to read as   follows:          Sec. 2025.205.  SUMMARY SUSPENSION FINAL ORDER. (a)  After   the hearing on the suspension of a racetrack license, the   commission [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.          (b)  A final order under this section may be appealed in the   manner provided by Subchapter G, Chapter 2001, Government Code.          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   department [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 department [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   department [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.          (c)  The commission by rule may require the following persons   to hold an occupational license under this subtitle:                (1)  an adoption program employee;                (2)  an announcer;                (3)  an apprentice jockey;                (4)  an assistant farrier, plater, or blacksmith;                (5)  an assistant starter;                (6)  an assistant trainer;                (7)  an assistant trainer/owner;                (8)  an association assistant management employee;                (9)  an association management employee;                (10)  an association officer or director;                (11)  an association staff employee;                (12)  an association employee other than an employee   described in this subsection;                (13)  an association veterinarian;                (14)  an authorized agent;                (15)  a chaplain;                (16)  a chaplain assistant;                (17)  an equine dental provider;                (18)  an exercise rider;                (19)  a farrier, plater, or blacksmith;                (20)  a groom/exercise rider;                (21)  a groom/hot walker;                (22)  a groom/pony person;                (23)  a jockey;                (24)  a jockey agent;                (25)  a kennel helper;                (26)  a kennel owner;                (27)  a kennel owner/owner;                (28)  a kennel owner/owner/trainer;                (29)  a kennel owner/trainer;                (30)  a kennel registration employee;                (31)  a lead-out;                (32)  a maintenance employee;                (33)  a medical employee;                (34)  miscellaneous racetrack employees;                (35)  a multiple owner/stable/farm registration   employee;                (36)  a mutuel clerk;                (37)  a mutuel employee other than a clerk;                (38)  an owner;                (39)  an owner-trainer;                (40)  a pony person;                (41)  a racing industry representative;                (42)  a racing industry employee;                (43)  a racing official;                (44)  a security officer;                (45)  a stable foreman;                (46)  a tattooer;                (47)  a test technician;                (48)  a trainer;                (49)  a training facility employee;                (50)  a training facility general manager;                (51)  a valet;                (52)  a vendor concessionaire;                (53)  a vendor concessionaire employee;                (54)  a vendor-totalisator company;                (55)  a vendor-totalisator employee;                (56)  a veterinarian; and                (57)  a veterinarian assistant.          Sec. 2025.253.  EXAMINATION NOTIFICATION. (a) If an   examination is required for the issuance of a license under this   subchapter, the department [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   department [commission] shall furnish the person with an analysis   of the person's performance on the examination.          Sec. 2025.254.  ISSUANCE OF LICENSE.  The department   [commission] shall issue a license to a qualified person on   application and payment of the license fee.          Sec. 2025.255.  ISSUANCE OF IDENTIFICATION CARD.  The   department [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 department   [commission].          SECTION 5.23.  Section 2025.256(c), Occupations Code, is   amended to read as follows:          (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 department   [commission] may determine the best method for recovering this cost   and complying with this section, including collecting the costs   over an extended period.          SECTION 5.24.  Section 2025.258(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] shall obtain criminal   history record information on each applicant renewing an   occupational license under this subchapter.          SECTION 5.25.  Section 2025.259, Occupations Code, is   amended to read as follows:          Sec. 2025.259.  LICENSE VALID THROUGHOUT STATE.  A license   issued under this subchapter is valid, as determined by the   department [commission], at all race meetings conducted in this   state.          SECTION 5.26.  Section 2025.260(a), Occupations Code, is   amended to read as follows:          (a)  Pending investigation of an applicant's qualifications   to receive an original or renewal license, the department   [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.          SECTION 5.27.  Sections 2025.261 and 2025.262, Occupations   Code, are amended to read as follows:          Sec. 2025.261.  RECIPROCAL LICENSES; OUT-OF-STATE   APPLICANTS. (a) The executive director [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 executive director [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 department [commission] may enter into agreements   with other states to allow for licensing by reciprocity.          Sec. 2025.262.  GROUNDS FOR DENIAL, REVOCATION, AND   SUSPENSION OF OCCUPATIONAL LICENSE. (a) The department   [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 department [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 misdemeanor [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;                (4) [(5)]  failed to answer or has falsely or   incorrectly answered a question in an original or renewal   application;                (5) [(6)]  fails to disclose the true ownership or   interest in a horse or greyhound as required by commission rules;                (6) [(7)]  is indebted to this state for any fee or for   the payment of a penalty imposed by this subtitle or a commission   rule;                (7)  has developed an incapacity that prevents or could   prevent the applicant or license holder from conducting the   applicant's or license holder's business with reasonable skill and   competence and in a manner that does not endanger public safety;                (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;                (9) [(11)]  has improperly used a temporary pass,   license certificate, credential, or identification card issued   under this subtitle;                (10) [(12)]  resides with a person whose license was   revoked for cause during the 12 months preceding the date of the   present application;                (11) [(13)]  has failed or refused to furnish a true   copy of the application to the department's [commission's] district   office in the district in which the premises for which the license   is sought are located; or                (12) [(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.          (b)  A proceeding under this section is a contested case for   purposes of Chapter 2001, Government Code.   ARTICLE 6. RACETRACK OPERATIONS AND PREMISES          SECTION 6.01.  Section 2026.003, Occupations Code, is   amended to read as follows:          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 department [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   department [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 department [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.          SECTION 6.02.  Section 2026.004(b), Occupations Code, is   amended to read as follows:          (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 executive director [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 department [commission] to   conduct the same type of racing as may be conducted by the affected   racetrack association; and                (2)  consents to the usage.          SECTION 6.03.  Sections 2026.005 and 2026.006, Occupations   Code, are amended to read as follows:          Sec. 2026.005.  CHANGE OF RACING LOCATION. On request of a   racetrack association, the department [commission] shall amend a   racetrack license to change the location of the racetrack if the   department [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.          Sec. 2026.006.  LEASE OF RACETRACK PREMISES. (a) The   commission by rule may provide for the department to authorize a   racetrack association, as lessee, to contract for the lease of a   racetrack and the surrounding structures.          (b)  The department [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   department [commission] may not approve a lease if the lessor and   lessee do not provide the required information.          SECTION 6.04.  Section 2026.007(e), Occupations Code, is   amended to read as follows:          (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 department [executive director] may conduct inspections   of the premises and remedy emergency situations.          SECTION 6.05.  Section 2026.008, Occupations Code, is   amended to read as follows:          Sec. 2026.008.  SUPERVISION OF CONSTRUCTION, RENOVATION,   AND MAINTENANCE; ENFORCEMENT. (a) The commission by rule 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 department   [commission];                (5)  the inspection by the department [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 department [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 or department 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 department [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 under this   subtitle were met.          (e)  If the department [commission] determines that the   racetrack association failed to comply with a requirement of this   section or a rule adopted under this section, the department   [commission] shall initiate an enforcement action against the   racetrack association. In addition to any other authorized   enforcement action, the department [commission] may rescind any   live or simulcast race date of any racetrack association that has   failed to comply with the requirements of this section.          SECTION 6.06.  Section 2026.013(b), Occupations Code, is   amended to read as follows:          (b)  The department [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.          SECTION 6.07.  Section 2026.051, Occupations Code, is   amended to read as follows:          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 department [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;                (10) [(11)]  who is an agent [or habitual associate] of   a person excludable under this section; or                (11) [(12)]  who has been convicted of a felony.          SECTION 6.08.  Sections 2026.052(a) and (b), Occupations   Code, are amended to read as follows:          (a)  A person who is excluded or ejected from an enclosure   under a commission rule may apply to the department [commission]   for a hearing on the question of the applicability of the rule to   that person.          (b)  A proceeding [An application for a hearing] under this   section is [Subsection (a) constitutes] a contested case for   purposes of [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.          SECTION 6.09.  Section 2026.102(a), Occupations Code, is   amended to read as follows:          (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 department [commission] under Subchapter A, Chapter 2029.          SECTION 6.10.  Section 2026.103, Occupations Code, is   amended to read as follows:          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 department [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 department [commission]   determines additional or fewer days to be economically feasible and   in the best interest of this state and the racing industry, the   department [commission] shall grant the request.          (c)  The department [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.          SECTION 6.11.  Section 2026.105(b), Occupations Code, is   amended to read as follows:          (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 department [commission].          SECTION 6.12.  Section 2026.106, Occupations Code, is   amended to read as follows:          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   executive director [commission] may waive or defer compliance with   the department's [commission's] standards regarding the physical   facilities or operations of a horse racetrack.          (b)  The executive director [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 executive director [commission] defers   compliance, the department [commission] shall, when granting the   application, establish a schedule under which the license holder   must comply with the standards.          SECTION 6.13.  Section 2026.107(b), Occupations Code, is   amended to read as follows:          (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 department [commission].          SECTION 6.14.  Sections 2026.151 and 2026.152, Occupations   Code, are amended to read as follows:          Sec. 2026.151.  DEPARTMENT [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 department [commission].          (b)  The department [commission] shall refuse to approve a   concession or management contract if, in the sole discretion of the   department [commission], the background checks conducted under   Section 2025.056 reveal anything that might be detrimental to the   public interest or the racing industry.          Sec. 2026.152.  DEPARTMENT [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   department [commission] shall review the security plan or contract   [in an executive session]. Documents submitted by an applicant to   the department [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 department [commission] shall attempt to ensure the   involvement of minority-owned businesses whenever possible.          SECTION 6.15.  Section 2026.153(b), Occupations Code, is   amended to read as follows:          (b)  The department [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.   ARTICLE 7. WAGERING          SECTION 7.01.  Section 2027.001(b), Occupations Code, is   amended to read as follows:          (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 department [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.          SECTION 7.02.  Sections 2027.003 and 2027.004, Occupations   Code, are amended to read as follows:          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   department [commission].          (b)  The department [commission] may not require the use of a   particular make of equipment.          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)  direct the department to 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 department [commission].          (c)  The commission shall:                (1)  adopt rules providing for collection, reporting,   and auditing of the transaction fee authorized under Subsection   (b); and                (2)  direct the department to deposit the fee collected   under Subsection (b) to the credit of the general revenue fund.          SECTION 7.03.  Section 2027.006(d), Occupations Code, is   amended to read as follows:          (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 department   [commission] under procedures prescribed by commission rule.          SECTION 7.04.  Section 2027.052(a), Occupations Code, is   amended to read as follows:          (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 department [commission].          SECTION 7.05.  The heading to Section 2027.053, Occupations   Code, is amended to read as follows:          Sec. 2027.053.  DEPARTMENT [COMMISSION] APPROVAL REQUIRED   FOR PARI-MUTUEL POOL INCLUSION.          SECTION 7.06.  Section 2027.053(a), Occupations Code, is   amended to read as follows:          (a)  With department [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.          SECTION 7.07.  Section 2027.054(c), Occupations Code, is   amended to read as follows:          (c)  The department [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.   ARTICLE 8. PARI-MUTUEL POOLS, PURSES, AND FEES          SECTION 8.01.  The heading to Subchapter A, Chapter 2028,   Occupations Code, is amended to read as follows:   SUBCHAPTER A.  [COMMISSION] OVERSIGHT OF PARI-MUTUEL RACING FUNDS          SECTION 8.02.  Section 2028.001(a), Occupations Code, is   amended to read as follows:          (a)  For any organization that receives funds generated by   live or simulcast pari-mutuel racing, the commission shall adopt   rules specifying the 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).          SECTION 8.03.  Sections 2028.002 and 2028.003, Occupations   Code, are amended to read as follows:          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   department [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   department [commission].          (b)  The department [commission] may review any record or   book of an organization that submits an independent audit to the   department [commission] as the department [commission] determines   necessary to confirm or further investigate the findings of an   audit or report.          Sec. 2028.003.  SUSPENSION AND WITHHOLDING OF FUNDS. The   commission [by rule] may adopt rules authorizing the department to   suspend or withhold funds from an organization:                (1)  that the department [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 department [commission].          SECTION 8.04.  Section 2028.102(e), Occupations Code, is   amended to read as follows:          (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   department [commission].          SECTION 8.05.  Sections 2028.103(a) and (a-1), Occupations   Code, are amended to read as follows:          (a)  A horse racetrack association shall set aside for the   Texas-bred program and pay to the department [commission] 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.          (a-1)  The department [commission] shall deposit money paid   to the commission under Subsection (a) into the Texas-bred   incentive fund established under Section 2028.301.  The department   [commission] shall distribute the money collected under this   section and deposited into the fund to the appropriate state horse   breed registries for the Texas-bred program in accordance with   rules adopted under Subsection (c).          SECTION 8.06.  Sections 2028.105(b), (d), and (d-1),   Occupations Code, are amended to read as follows:          (b)  A horse racetrack association shall pay to the   department [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.          (d)  The horse racetrack association shall pay to the   department [commission] for deposit into the Texas-bred incentive   fund established under Section 2028.301 and distribution to the   appropriate state horse breed registry the remaining 80 percent of   the total breakage to be allocated 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.          (d-1)  The department [commission] shall deposit the   portions of total breakage paid to the department [commission]   under Subsections (b) and (d) into the Texas-bred incentive fund   established under Section 2028.301. The department [commission]   shall distribute the money collected under this section and   deposited into the fund to the appropriate state horse breed   registries in accordance with this section and with rules adopted   by the commission under Section 2028.103.          SECTION 8.07.  Section 2028.154(a), Occupations Code, is   amended to read as follows:          (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 department [commission] for deposit into the Texas-bred   incentive fund established under Section 2028.301.  The department   [commission] shall distribute the money collected under this   section and deposited into the fund to the state greyhound breed   registry for use in accordance with this section and commission   rules.          SECTION 8.08.  Section 2028.201, Occupations Code, is   amended to read as follows:          Sec. 2028.201.  RULES.  (a) The commission shall adopt   rules relating to this subchapter and the oversight of the amounts   allocated under Sections 2028.202(b)(1), (2), and (3)   [2028.202(b)] and (c).          (b)  The commission shall adopt rules relating to the   oversight of the amounts allocated under Section 2028.202(b)(4).          SECTION 8.09.  Sections 2028.202(a), (a-1), and (b),   Occupations Code, are amended to read as follows:          (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 to the department [commission] for the   administration of this subtitle;                (2)  an amount equal to 1.25 percent of each simulcast   cross-species pari-mutuel pool to the department [commission] for   the administration of this subtitle;                (3)  for a horse racetrack association, an amount equal   to one percent of a multiple two wagering pool or multiple three   wagering pool as the amount set aside for the Texas-bred program to   be used as provided by Section 2028.103;                (4)  for a greyhound racetrack association, an amount   equal to one percent of a multiple two wagering pool or a multiple   three wagering pool as the amount set aside for the Texas-bred   program for greyhound races, to be distributed and used in   accordance with commission rules adopted to promote greyhound   breeding in this state; and                (5)  the remainder as the amount set aside for purses,   expenses, the sending track, and the receiving location under a   contract approved by the department [commission] between the   sending track and the receiving location.          (a-1)  A racetrack association shall pay to the department   [commission] for deposit into the Texas-bred incentive fund   established under Section 2028.301 the shares to be distributed   under Subsections (a)(3) and (a)(4) for the Texas-bred program.   The department [commission] shall distribute the money collected   under this section and deposited into the fund to the appropriate   state breed registries for use under the Texas-bred program.          (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 deposited in the horse   industry escrow account as [escrowed with the commission in the   manner] provided by Section 2028.204.          SECTION 8.10.  Sections 2028.203 and 2028.204, Occupations   Code, are amended to read as follows:          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 department [commission], from the horse industry escrow   [escrowed] account established under Section 2028.204   [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.          Sec. 2028.204.  HORSE INDUSTRY ESCROW ACCOUNT; DEPOSIT AND   ALLOCATION OF MONEY [IN ESCROW ACCOUNTS]. (a) The horse industry   escrow account is a trust account in the department's registry   composed of money deposited to the account in accordance with this   subtitle.          (b)  A greyhound racetrack association shall deposit into   the horse industry [an] escrow account [in the commission's   registry] the purse set aside under Section 2028.202(b)(4).          (c) [(b)]  Any horse racetrack association in this state may   apply to the department [commission] for receipt of money in the   horse industry escrow account for use as purses.  Any state horse   breed registry listed in Section 2030.002(a) may apply for receipt   of money in the account for any event that furthers the horse   industry.  The department [commission]:                (1)  shall determine the horse racetrack associations   and state horse breed registries to be allocated money from the   account and the percentages to be allocated, taking into   consideration purse levels, racing opportunities, and the   financial status of the requesting racetrack association or   requesting breed registry; and                (2)  may not annually allocate more than 70 percent of   the amount deposited into the account to horse racetrack   associations for use as purses.          SECTION 8.11.  Section 2028.2041, Occupations Code, is   amended to read as follows:          Sec. 2028.2041.  ALLOCATION OF CERTAIN FUNDS IN HORSE   INDUSTRY ESCROW ACCOUNT TO GENERAL REVENUE FUND; MAXIMUM ACCOUNT   BALANCE. (a) In each state fiscal biennium, the comptroller shall   deposit the amounts allocated under Section 151.801(c-3), Tax Code,   into the horse industry escrow account established under Section   2028.204 [2028.204(b)], until the comptroller determines the   amount deposited into the account in that fiscal biennium equals   the greater of:                (1)  the amount appropriated to the department   [commission] for the purposes of Section 2028.204 for that fiscal   biennium; or                (2)  $50 million.          (b)  Once the comptroller determines the greater of the   amount described by Subsection (a)(1) or (2) has been deposited   during a state fiscal biennium into the horse industry escrow   account established under Section 2028.204 [2028.204(b)], for the   remainder of that fiscal biennium the comptroller shall deposit the   amounts allocated under Section 151.801(c-3), Tax Code, into the   general revenue fund.          (c)  The balance of the horse industry escrow account   established under Section 2028.204 [2028.204(b)] shall not exceed   $50 million.          SECTION 8.12.  Section 2028.205, Occupations Code, is   amended to read as follows:          Sec. 2028.205.  ADDITIONAL ALLOCATIONS FROM HORSE INDUSTRY   ESCROW ACCOUNT 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 department [commission]   for an allocation of up to 20 percent of the money in the horse   industry escrow [escrowed] account established under Section   2028.204 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 department's [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 department [commission] shall allocate amounts   from the horse industry escrow [escrowed] account as the department   [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] account that is   attributable to the wagering on the interstate cross-species   simulcast signal at the greyhound racetrack.          (c)  Money allocated by the department [commission] under   this section may be used by the racetrack association for any   purpose.          SECTION 8.13.  Section 2028.301, Occupations Code, is   amended to read as follows:          Sec. 2028.301.  TEXAS-BRED INCENTIVE FUND. (a)  The   department [commission] shall deposit money set aside for the   Texas-bred program or set aside for use by state breed registries   under this chapter into an escrow account in the state treasury in   the registry of the department [commission] to be known as the   Texas-bred incentive fund.          (b)  The department [commission] shall distribute money from   the Texas-bred incentive fund in accordance with this chapter and   commission rules.          SECTION 8.14.  Chapter 2028, Occupations Code, is amended by   adding Subchapter H to read as follows:   SUBCHAPTER H.  NATIONAL EVENT INCENTIVES          Sec. 2028.401.  NATIONAL EVENT INCENTIVES. (a) In this   section:                (1)  "Breeders' Cup costs" means all costs for capital   improvements and extraordinary expenses reasonably incurred for   the operation of the Breeders' Cup races, including purses offered   on other days in excess of the purses that the host association is   required to pay by this subtitle.                (2)  "Breeders' Cup races" means a series of   thoroughbred races known as the Breeders' Cup Championship races   conducted annually by Breeders' Cup Limited on a day known as   Breeders' Cup Championship day.                (3)  "Development organization" means an organization   whose primary purpose is the marketing, promotion, or economic   development of a city, county, or region of the state, including   chambers of commerce, convention and visitors bureaus, and sports   commissions.                (4)  "Political subdivision" means a city, county, or   other political subdivision of the state and includes any entity   created by a political subdivision.          (b)  An association conducting the Breeders' Cup races may   apply to the reimbursement of Breeders' Cup costs amounts that   would otherwise be set aside by the association for the state under   Sections 2028.051 and 2028.202(a)(1) during the year in which the   association hosts the Breeders' Cup races, limited to an amount   equal to the lesser of the aggregate amount contributed to pay   Breeders' Cup costs by political subdivisions and development   organizations or $2 million. Beginning on January 1 of the year for   which the association has been officially designated to host the   Breeders' Cup races, amounts that would otherwise be set aside by   the association for the state during that year under Sections   2028.051 and 2028.202(a)(1) shall be set aside, in accordance with   procedures prescribed by the comptroller, for deposit into the   Breeders' Cup Developmental Account. The Breeders' Cup   Developmental Account is an account in the general revenue fund.   The department shall administer the account. Money in the account   may be appropriated only to the department and may be used only for   the purposes specified in this section. The account is exempt from   the application of Section 403.095, Government Code.          (c)  The department shall make disbursements from the   Breeders' Cup Developmental Account to reimburse Breeders' Cup   costs actually incurred and paid by the association, after the   association files a request for reimbursement. Disbursements from   the account may not at any time exceed the aggregate amount actually   paid for Breeders' Cup costs by political subdivisions and   development organizations, as certified by the department to the   comptroller, or $2 million, whichever is less.          (d)  Not later than January 31 of the year following the year   in which the association hosts the Breeders' Cup races, the   association shall submit to the department a report that shows:                (1)  the total amount of Breeders' Cup costs incurred   and paid by the association;                (2)  the total payments made by political subdivisions   and development organizations for Breeders' Cup costs; and                (3)  any other information requested by the commission.          (e)  Following receipt of the report required by Subsection   (d), the department shall take any steps it considers appropriate   to verify the report. Not later than March 31 of the year following   the event, the department shall transfer to the credit of the   general revenue fund any balance remaining in the Breeders' Cup   Developmental Account after reimbursement of any remaining   Breeders' Cup costs authorized under this section.          (f)  In addition to the authority otherwise granted in this   subtitle, the commission and the comptroller may adopt rules for   the administration of this section as follows:                (1)  the commission may adopt rules relating to:                      (A)  auditing or other verification of Breeders'   Cup costs and amounts paid or set aside by political subdivisions   and development organizations; and                      (B)  the disbursement of funds from the Breeders'   Cup Developmental Account; and                (2)  the comptroller may adopt rules relating to:                      (A)  procedures and requirements for transmitting   or otherwise delivering to the treasury the money set aside under   this section; and                      (B)  depositing funds into the Breeders' Cup   Developmental Account.          (g)  The commission may adopt rules to facilitate the conduct   of the Breeders' Cup races, including the adoption of rules or   waiver of existing rules relating to the overall conduct of racing   during the Breeders' Cup races in order to assure the integrity of   the races, licensing for all participants, special stabling and   training requirements for foreign horses, and commingling of   pari-mutuel pools.          (h)  To the extent of any conflict between this section and   another provision of this subtitle, this section prevails.          SECTION 8.15.  Section 2029.001, Occupations Code, is   amended to read as follows:          Sec. 2029.001.  ALLOCATION OF HORSE RACING DAYS; PROHIBITED   RACING DAYS. (a) The department [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   department [commission] shall consider live race dates separately   from simulcast race dates.          (c)  The commission by rule may prohibit racing on Sunday   unless the prohibition would conflict with another provision of   this subtitle. The commission may delegate to the executive   director the commission's authority under this subsection.   ARTICLE 9. ALLOCATION OF RACING DAYS          SECTION 9.01.  Sections 2029.002(a) and (c), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall grant to each   racetrack association additional horse racing days during a horse   race meeting to be conducted as charity days. The department   [commission] shall grant to each class 1 racetrack and to each class   2 racetrack at least two and not more than five additional days.          (c)  The department [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.          SECTION 9.02.  Section 2029.003, Occupations Code, is   amended to read as follows:          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 department [commission].          (b)  In granting approval under Subsection (a), the   department [commission] shall consider:                (1)  the availability of competitive horses;                (2)  economic feasibility; and                (3)  public interest.          SECTION 9.03.  Sections 2029.052(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall grant not less than   five additional greyhound racing days during a greyhound race   meeting to be conducted as charity days.          (b)  The department [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.          SECTION 9.04.  Section 2029.053, Occupations Code, is   amended to read as follows:          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 department [commission], the executive   director [commission] in the executive director's [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.   ARTICLE 10.  TEXAS-BRED HORSES AND GREYHOUNDS          SECTION 10.01.  Section 2030.001(b), Occupations Code, is   amended to read as follows:          (b)  Rules adopted under this section are subject to approval   by the department [commission].          SECTION 10.02.  Section 2030.002(b), Occupations Code, is   amended to read as follows:          (b)  The appropriate state horse breed registry shall act in   an advisory capacity to each racetrack association and to the   department [commission] for the purpose of administering Sections   2030.003 and 2030.004.          SECTION 10.03.  Sections 2030.005 and 2030.006, Occupations   Code, are amended to read as follows:          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 department [commission] under Section 2029.003.          (b)  The commission by rule [or by order] may allow for an   exception to Subsection (a) if an insufficient number of horses of a   breed are available to provide sufficient competition.  The   commission may delegate to the executive director the commission's   authority under this subsection.          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 department [commission] under Section   2029.003.          SECTION 10.04.  Section 2030.051(b), Occupations Code, is   amended to read as follows:          (b)  Rules adopted under this section are subject to approval   by the department [commission].   ARTICLE 11.  TEXAS DERBIES          SECTION 11.01.  Section 2031.001, Occupations Code, is   amended to read as follows:          Sec. 2031.001.  ESTABLISHMENT OF TEXAS DERBIES. (a) The   commission by rule 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 department [commission].   The department [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 department [commission] may sell the right to name a   Texas Derby. The department [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.          SECTION 11.02.  Section 2031.003(a), Occupations Code, is   amended to read as follows:          (a)  For each Texas Derby, the department [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.          SECTION 11.03.  Sections 2031.004(a) and (e), Occupations   Code, are amended to read as follows:          (a)  The department [commission] shall establish a Texas   Derby escrow purse fund.          (e)  The department [commission] may not:                (1)  use funds from the accredited Texas-bred program   under Subchapter A, Chapter 2030, or the horse industry escrow   [escrowed purse] account established 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.   ARTICLE 12.  LIVESTOCK SHOWS, EXHIBITS, AND FAIRS          SECTION 12.01.  Chapter 2032, Occupations Code, is amended   by adding Section 2032.004 to read as follows:          Sec. 2032.004.  RULES. The commission may adopt rules as   necessary to:                (1)  administer this chapter; and                (2)  ensure public safety and welfare.   ARTICLE 13.  CRIMINAL AND ADMINISTRATIVE PENALTIES; DISCIPLINARY   POWERS          SECTION 13.01.  Section 2033.006(a), Occupations Code, is   amended to read as follows:          (a)  A person commits an offense if the person knowingly   possesses or displays a credential issued by the department or a   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.          SECTION 13.02.  Sections 2033.007(a) and (b), Occupations   Code, are amended to read as follows:          (a)  For purposes of this section, a request is lawful if it   is made:                (1)  at any time by:                      (A)  the department [commission];                      (B)  an authorized department [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 issued by the department to   another person; or                (2)  give the person's name, residence address, or date   of birth to another person.          SECTION 13.03.  Section 2033.008(a), Occupations Code, is   amended to read as follows:          (a)  A person commits an offense if the person knowingly   wagers on the result of a horse or greyhound race conducted in this   state that:                (1)  is held on an American Indian reservation or on   American Indian trust land located in this state; and                (2)  is not held under the supervision of the   department [commission] under rules adopted under this subtitle.          SECTION 13.04.  Section 2033.009(a), Occupations Code, is   amended to read as follows:          (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 department [commission] from   entering a racetrack.          SECTION 13.05.  Section 2033.012(c), Occupations Code, is   amended to read as follows:          (c)  An offense under this section is a state jail felony   unless the statement was material in a department [commission]   action relating to a racetrack license, in which event the offense   is a felony of the third degree.          SECTION 13.06.  Section 2033.013(c), Occupations Code, is   amended to read as follows:          (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 department employee; and                      (B)  knowingly represents that a commission   member or department employee or a person licensed by the   department [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.          SECTION 13.07.  Sections 2033.018(a) and (b), Occupations   Code, are amended to read as follows:          (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 by   the department under this subtitle; or                (2)  enters a racetrack under the authority of a   license or other credential alleged to have been issued by the   department 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 department [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.          SECTION 13.08.  Sections 2033.021, 2033.051, and 2033.052,   Occupations Code, are amended to read as follows:          Sec. 2033.021.  DEPARTMENT [COMMISSION] AUTHORITY.  This   subchapter does not restrict the department's [commission's]   administrative authority to enforce this subtitle or commission   rules to the fullest extent authorized by this subtitle.          Sec. 2033.051.  IMPOSITION OF PENALTY.  If the commission or   the executive director 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 or the   executive director may assess an administrative penalty against   that person as provided by this subchapter or Subchapter F, Chapter   51.          Sec. 2033.052.  AMOUNT OF PENALTY. (a) Notwithstanding   Subchapter F, Chapter 51, the [The] commission or the executive   director 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   or the executive director shall consider the seriousness of the   violation.          SECTION 13.09.  Section 2033.057(a), Occupations Code, is   amended to read as follows:          (a)  A complaint alleging a violation of this subtitle may be   instituted by the Department of Public Safety, the department   [commission], or the attorney general.          SECTION 13.10.  Subchapter B, Chapter 2033, Occupations   Code, is amended by adding Section 2033.058 to read as follows:          Sec. 2033.058.  DISPOSITION OF ADMINISTRATIVE PENALTY. The   commission shall remit an administrative penalty collected under   this subtitle to the comptroller for deposit in the general revenue   fund.          SECTION 13.11.  Section 2033.106(a), Occupations Code, is   amended to read as follows:          (a)  If the executive director reasonably believes that a   person has violated a final and enforceable cease and desist or   emergency 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.          SECTION 13.12.  Section 2033.151, Occupations Code, is   amended to read as follows:          Sec. 2033.151.  DISCIPLINARY ACTIONS. (a) The commission   may [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 department   [commission] on matters that are the basis of the probation.          (c)  A disciplinary proceeding under this subtitle is   governed by:                (1)  Chapter 51; and                (2)  commission rules adopted under Chapter 51.          SECTION 13.13.  The heading to Section 2033.152, Occupations   Code, is amended to read as follows:          Sec. 2033.152.  PROCEEDING FOR DISCIPLINARY ACTION   [HEARING] CONCERNING SUSPENSION, REVOCATION, OR REFUSAL TO RENEW   LICENSE.          SECTION 13.14.  Section 2033.152(b), Occupations Code, is   amended to read as follows:          (b)  A proceeding [Proceedings] for a disciplinary action,   other than those conducted by a steward or judge, in which the   commission proposes to suspend, revoke, or refuse to renew a   person's license is [are] governed by Chapter 2001, Government   Code.          SECTION 13.15.  Section 2033.153, Occupations Code, is   amended to read as follows:          Sec. 2033.153.  INJUNCTION. The department [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.          SECTION 13.16.  Section 2033.154(b), Occupations Code, is   amended to read as follows:          (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 department [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.   ARTICLE 14.  UNLAWFUL INFLUENCE ON RACING          SECTION 14.01.  Section 2034.001, Occupations Code, is   amended by amending Subsections (b) and (c) and adding Subsection   (e) to read as follows:          (b)  The rules adopted under this section by the commission   shall require testing to determine whether a prohibited substance   has been used.          (c)  The [commission's] rules adopted under this section   must require state-of-the-art testing methods. The testing may:                (1)  be prerace or postrace as determined by the   department [commission]; and                (2)  be by an invasive or noninvasive method.          (e)  The commission shall adopt rules regarding disciplinary   actions under this chapter, including the right of appeal to the   commission from a disciplinary action under Section 2034.006.          SECTION 14.02.  Section 2034.002, Occupations Code, is   amended to read as follows:          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 department   [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   department [commission].          SECTION 14.03.  Sections 2034.003(c), (d), and (e),   Occupations Code, are amended to read as follows:          (c)  Charges for services performed under this section must   be forwarded to the department [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 department [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 department [commission]   shall forward a copy of the charges to the racetrack association for   immediate payment.          SECTION 14.04.  Sections 2034.005(a) and (b), Occupations   Code, are amended to read as follows:          (a)  The department [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 department [commission],   shall be maintained until final disposition of the matter.          SECTION 14.05.  Section 2034.007, Occupations Code, is   amended to read as follows:          Sec. 2034.007.  DISCIPLINARY ACTION FOR RULE VIOLATION OF   PROHIBITED DEVICE OR SUBSTANCE.  In addition to any other   disciplinary action authorized by Chapter 51, this subtitle, or   commission rule, a [A] person who violates a rule adopted under this   chapter may:                (1)  have any license issued to the person by the   department [commission] revoked or suspended; or                (2)  be barred for life or any other period from   applying for or receiving a license issued by the department   [commission] or entering any portion of a racetrack.   ARTICLE 15.  LOCAL OPTION ELECTION TO LEGALIZE PARI-MUTUEL WAGERING          SECTION 15.01.  Section 2035.001(a), Occupations Code, is   amended to read as follows:          (a)  The department [commission] may not issue a racetrack   license or accept a license application for a racetrack to be   located in a county until the commissioners court has certified to   the secretary of state that the qualified voters of the county have   approved the legalization of pari-mutuel wagering on horse races or   greyhound races in the county at an election held under this   chapter.          SECTION 15.02.  Section 2035.052, Occupations Code, is   amended to read as follows:          Sec. 2035.052.  PARTIES.  Any person who is licensed or who   has submitted to the department [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.   ARTICLE 16. CONFORMING AMENDMENTS          SECTION 16.01.  Section 411.096(a), Government Code, is   amended to read as follows:          (a)  The Texas [Racing] Commission of Licensing and   Regulation and the Texas Department of Licensing and Regulation are   [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 (Texas Racing Act), including an   occupational license described by Section 2025.251, Occupations   Code.          SECTION 16.02.  Section 151.801(c-3), Tax Code, is amended   to read as follows:          (c-3)  Subject to the limitation imposed under Section   2028.2041, Occupations Code, an amount equal to the proceeds from   the collection of the taxes imposed by this chapter on the sale,   storage, or use of horse feed, horse supplements, horse tack, horse   bedding and grooming supplies, and other taxable expenditures   directly related to horse ownership, riding, or boarding shall be   deposited to the credit of the horse industry escrow account   administered by the Texas Department of Licensing and Regulation   [Racing Commission] and established under Section 2028.204,   Occupations Code.   ARTICLE 17.  REPEALER          SECTION 17.01.  (a) The following provisions of the   Occupations Code are repealed:                (1)  Sections 2022.001(b), (c), (d), (e), and (f);                (2)  Section 2022.002(b);                (3)  Sections 2022.003, 2022.004, 2022.005, 2022.006,   and 2022.007;                (4)  Sections 2022.009(b) and (c);                (5)  Sections 2022.010, 2022.011, 2022.012, 2022.013,   2022.014, and 2022.051;                (6)  Sections 2022.052(a) and (b);                (7)  Sections 2022.053, 2022.054, 2022.055, 2022.056,   2022.057, 2022.101, 2022.102, and 2022.106;                (8)  Sections 2023.004(b), (c), and (f);                (9)  Section 2023.009;                (10)  Section 2025.204(e);                (11)  Section 2025.258(b);                (12)  Sections 2033.053, 2033.054, 2033.055, and   2033.056;                (13)  Section 2033.057(b); and                (14)  Sections 2033.152(a) and (c).          (b)  Title 6, Vernon's Texas Civil Statutes, is repealed.   ARTICLE 18. TRANSITION AND SAVINGS PROVISIONS          SECTION 18.01.  (a)  On the effective date of this Act, the   Texas Racing Commission is abolished but continues in existence   until December 1, 2021, for the sole purpose of transferring   obligations, property, rights, powers, and duties to the Texas   Department of Licensing and Regulation. The Texas Department of   Licensing and Regulation assumes all of the obligations, property,   rights, powers, and duties of the Texas Racing Commission as they   exist immediately before the effective date of this Act. All   unexpended funds appropriated to the Texas Racing Commission are   transferred to the Texas Department of Licensing and Regulation.          (b)  The Texas Racing Commission and the Texas Department of   Licensing and Regulation shall, in consultation with appropriate   state entities, ensure that the transfer of the obligations,   property, rights, powers, and duties of the Texas Racing Commission   to the Texas Department of Licensing and Regulation is completed   not later than December 1, 2021.          (c)  All rules of the Texas Racing Commission are continued   in effect as rules of the Texas Department of Licensing and   Regulation until superseded by a rule of the Texas Commission of   Licensing and Regulation. A license issued by the Texas Racing   Commission is continued in effect as provided by the law in effect   immediately before the effective date of this Act. An application   for a license, endorsement, or certificate of registration pending   on the effective date of this Act is continued without change in   status after the effective date of this Act. A complaint,   investigation, contested case, or other proceeding pending on the   effective date of this Act is continued without change in status   after the effective date of this Act.          (d)  Not later than September 1, 2022, the Texas Commission   of Licensing and Regulation shall adopt any rules necessary to   implement the changes in law made by this Act to Subtitle A-1, Title   13, Occupations Code.          (e)  Unless the context indicates otherwise, a reference to   the Texas Racing Commission in a law or administrative rule means   the Texas Department of Licensing and Regulation.          SECTION 18.02.  (a)  Not later than December 1, 2021, the   presiding officer of the Texas Commission of Licensing and   Regulation, with the approval of the Texas Commission of Licensing   and Regulation, shall appoint members to the Texas Racing Advisory   Board in accordance with Section 2022.001, Occupations Code, as   amended by this Act. A member of the Texas Racing Commission whose   term expired under Section 18.01 of this Act is eligible for   appointment to the advisory board.          (b)  The members of the Texas Racing Commission whose terms   expire under Section 18.01 of this Act shall continue to provide   advice to the Texas Department of Licensing and Regulation until a   majority of the members of the Texas Racing Advisory Board are   appointed under Subsection (a) of this section and qualified.          SECTION 18.03.  (a)  Not later than September 1, 2023, the   executive director of the Texas Department of Licensing and   Regulation in accordance with Section 51.202(c), Occupations Code,   shall determine with reasonable accuracy the cost to the department   of the racing program and activities for which a fee is charged.          (b)  The executive director of the Texas Department of   Licensing and Regulation, on development of the cost management   procedures, shall make recommendations to the Texas Commission of   Licensing and Regulation for review and consideration.          SECTION 18.04.  The changes in law made by this Act apply to   revenue received from the imposition of an administrative penalty   on or after the effective date of this Act, regardless of whether   the penalty was imposed before, on, or after the effective date of   this Act.          SECTION 18.05.  (a)  A violation of a law that is repealed by   this Act is governed by the law in effect when the violation was   committed, and the former law is continued in effect for that   purpose.          (b)  For purposes of this section, a violation was committed   before the effective date of this Act if any element of the   violation occurred before that date.          SECTION 18.06.  To the extent of any conflict, this Act   prevails over another Act of the 87th Legislature, Regular Session,   2021, relating to nonsubstantive additions to and corrections in   enacted codes.          SECTION 18.07.  The Texas Legislative Council, with the   assistance of the Sunset Advisory Commission, shall prepare for   consideration by the 88th Legislature a nonsubstantive revision of   the statutes of this state as necessary to reflect the changes in   law made by this Act.   ARTICLE 19. EFFECTIVE DATE          SECTION 19.01.  This Act takes effect September 1, 2021.