H.B. No. 254

	AN ACT
	relating to establishing the Texas Derbies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The Texas Racing Act (Article 179e, Vernon's
	Texas Civil Statutes) is amended by adding Article 9A to read as
	follows:
	ARTICLE 9A. TEXAS DERBIES
	Sec. 9A.001.  TEXAS DERBIES. (a)  The commission shall
	establish as Texas Derbies the following annual stakes races:
	(1)  one race open to three-year-old Thoroughbreds;
	(2)  one race open only to three-year-old Texas-bred
	Thoroughbreds;
	(3)  one race open to three-year-old quarter horses;
	and
	(4)  one race open only to three-year-old Texas-bred
	quarter horses.
	(b)  For a Texas Derby open only to Texas-bred horses, the
	respective official state breed registries and the official
	horsemen's organization shall develop:
	(1)  the race conditions and entrance qualifications;
	and
	(2)  the preference system used to determine the race
	finalists.
	(c)  Each class 1 racetrack that is awarded a Texas Derby
	that is not limited to Texas-bred horses shall develop for the
	derby:
	(1)  the race conditions and entrance qualifications;
	and
	(2)  the preference system used to determine the race
	finalists.
	(d)  The race conditions and qualifications and preference
	systems developed for the Texas Derbies under Subsection (b) or (c)
	of this section are subject to review and approval by the executive
	secretary.
	(e)  The commission shall set the date of and the location
	for each Texas Derby.  Each Texas Derby must be held annually at the
	class 1 racetrack determined by the commission.  The commission
	shall determine the location of each Texas Derby in consultation
	with:
	(1)  each class 1 racetrack;
	(2)  the official state breed registries; and
	(3)  the official horsemen's organization.
	(f)  The commission may sell the right to name a Texas Derby.
	The commission shall deposit the proceeds from the sale of the right
	to name a Texas Derby into the Texas Derby escrow purse fund
	established under Section 9A.003 of this article.
	(g)  The date of the initial Texas Derby may not be earlier
	than January 1, 2015.  This subsection expires January 1, 2016.
	Sec. 9A.002.  INSPECTION AND EXAMINATION OF HORSE. (a)  For
	each Texas Derby, the commission shall appoint a state veterinarian
	to conduct  a prerace examination of each horse entered in the race
	to determine whether the horse is healthy and meets standards set by
	commission rule for racing.
	(b)  The examination may include any procedure that the state
	veterinarian considers necessary to make the determination
	required by Subsection (a) of this section.
	(c)  The examination may be conducted at any time before the
	race.
	Sec. 9A.003.  TEXAS DERBY ESCROW PURSE FUND.  (a)  The
	commission shall establish a Texas Derby escrow purse fund.
	(b)  The commission shall by rule establish a schedule of
	entrance fees for participants in each Texas Derby. A portion
	determined by the commission of each entrance fee shall be
	deposited in the Texas Derby escrow purse fund.
	(c)  Notwithstanding Section 3.09 of this Act or any other
	law, the commission by rule shall determine a portion of the fees,
	charges, and other revenue collected under this Act to be deposited
	to the credit of the Texas Derby escrow purse fund as reasonably
	necessary to maintain competitive purses for each Texas Derby.
	(d)  The commission by rule may assess under this Act
	additional charges and fees, including gate fees, to supplement the
	funds otherwise deposited in the Texas Derby escrow purse fund
	under this section.
	(e)  The commission may not:
	(1)  use funds from the accredited Texas-bred program
	under Article 9 of this Act or the escrowed purse account under
	Section 6.091(e) of this Act to fund the Texas Derby escrow purse
	fund; or
	(2)  order a breed registry to fund a purse for a Texas
	Derby, make contributions to the Texas Derby escrow purse fund, or
	pay the expenses of a Texas Derby race.
	(f)  Other than as provided by this section, no other state
	revenue may be deposited to the credit of the Texas Derby escrow
	purse fund.
	SECTION 2.  As soon as practicable after the effective date
	of this Act, the Texas Racing Commission shall adopt the rules
	necessary to implement Section 9A.003, Texas Racing Act (Article
	179e, Vernon's Texas Civil Statutes), as added by this Act.
	SECTION 3.  This Act takes effect September 1, 2011.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 254 was passed by the House on May 13,
	2011, by the following vote:  Yeas 101, Nays 34, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 254 on May 24, 2011, by the following vote:  Yeas 118, Nays 23,
	2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 254 was passed by the Senate, with
	amendments, on May 21, 2011, by the following vote:  Yeas 29, Nays
	2.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor