2015S0018-1 12/12/14
 
  By: Estes S.B. No. 364
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the abolishment of the Texas Racing Commission and the
  transfer of its powers and duties to the Texas Commission of
  Licensing and Regulation; providing penalties; authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. TRANSFER OF DUTIES TO TEXAS COMMISSION OF LICENSING AND
  REGULATION
         SECTION 1.01.  Section 1.03, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended by amending Subdivisions
  (3), (5), and (79) and adding Subdivisions (82) and (83) to read as
  follows:
               (3)  "Commission" means the Texas [Racing] Commission
  of Licensing and Regulation.
               (5)  "Director" means the director of the racing
  division ["Executive secretary" means the executive secretary of
  the Texas Racing Commission].
               (79)  "Executive director" means the executive
  director [secretary] of the department [Texas Racing Commission].
               (82)  "Department" means the Texas Department of
  Licensing and Regulation.
               (83)  "Racing division" means the division of the
  department assigned to oversee horse and greyhound racing.
         SECTION 1.02.  The heading to Article 2, Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
  as follows:
  ARTICLE 2. [TEXAS] RACING DIVISION [COMMISSION]
         SECTION 1.03.  Sections 2.12, 2.13, 2.14, and 2.15, Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         Sec. 2.12.  DIRECTOR [EXECUTIVE SECRETARY]; EMPLOYEES.
  (a)  The department [commission] shall employ a director of the
  racing division [an executive secretary] and other employees as
  necessary to administer this Act.
         [(a-1)     The commission and the executive secretary may use
  the title "executive director" for any purpose in referring to the
  office of executive secretary.]
         (b)  The racing division [commission] may not employ or
  continue to employ a person:
               (1)  who owns or controls a financial interest in a
  licensee of the department [commission];
               (2)  who is employed by or serves as a paid consultant
  to a licensee of the department [commission], an official breed
  registry, or a Texas trade association[, as defined by Section
  2.071(c) of this Act,] in the field of horse or greyhound racing or
  breeding;
               (3)  who owns or leases a race animal that participates
  in pari-mutuel racing in this state; or
               (4)  who accepts or is entitled to any part of the purse
  or Texas-bred incentive award to be paid on a greyhound or a horse
  in a race conducted in this state.
         (c)  The racing division [commission] may not employ or
  continue to employ a person who is residentially domiciled with or
  related within the first degree by affinity or consanguinity to a
  person who is subject to a disqualification prescribed by
  Subsection (b) of this section.
         (d)  The commission shall employ the director [executive
  secretary] and other employees to reflect the diversity of the
  population of the state as regards race, color, handicap, sex,
  religion, age, and national origin.
         (e)  In this section, "Texas trade association" means a
  cooperative and voluntarily joined statewide association of
  business or professional competitors in this state designed to
  assist its members and its industry or profession in dealing with
  mutual business or professional problems and in promoting their
  common interest.
         Sec. 2.13.  DIRECTOR [EXECUTIVE SECRETARY]; DUTIES. The
  director [executive secretary] shall keep the records of the racing
  division [commission] and shall perform other duties as required by
  the commission. The director [executive secretary] serves at the
  pleasure of the commission on a full-time basis and may not hold
  other employment.
         Sec. 2.14.  LEGAL REPRESENTATION. The attorney general
  shall designate at least one member of the attorney general's staff
  to counsel and advise the racing division [commission] and to
  represent the racing division [commission] in legal proceedings.
  The attorney general shall make available to the appropriate
  prosecuting attorneys any information obtained regarding
  violations of this Act.
         Sec. 2.15.  RECORDS. (a)  All records of the racing
  division [commission] that are not made confidential by other law
  are open to inspection by the public during regular office hours.  
  All applications for a license under this Act shall be maintained by
  the department [commission] and shall be available for public
  inspection during regular office hours.
         (b)  The contents of the investigatory files of the racing
  division [commission] are not public records and are confidential
  except in a criminal proceeding, in a hearing conducted by the
  department [commission], on court order, or with the consent of the
  party being investigated.
         (c)  The department [commission] may share with another
  regulatory agency of this state any investigatory file information
  that creates a reasonable suspicion of a person's violation of a law
  or rule under that agency's jurisdiction. The agency may use the
  information as if it was obtained through that agency's
  investigatory process.
         SECTION 1.04.  Section 2.16(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (b)  An investigation report or other document submitted by
  the Department of Public Safety to the racing division [commission]
  becomes part of the investigative files of the racing division
  [commission] and is subject to discovery by a person that is the
  subject of the investigation report or other document submitted by
  the Department of Public Safety to the racing division [commission
  that is part of the investigative files of the commission].
         SECTION 1.05.  Section 2.18, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 2.18.  FUNDS PAID TO DEPARTMENT [COMMISSION]. All
  money paid to the department [commission] under this Act is subject
  to Subchapter F, Chapter 404, Government Code.
         SECTION 1.06.  Sections 3.02(a), (b), (d), and (g), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (a)  The commission shall regulate and the department shall
  supervise every race meeting in this state involving wagering on
  the result of greyhound or horse racing. All persons and things
  relating to the operation of those meetings are subject to
  regulation and supervision by the commission and department. The
  commission shall adopt rules for conducting greyhound or horse
  racing in this state involving wagering and shall adopt other rules
  to administer this Act that are consistent with this Act. The
  commission or department, as applicable, shall also make rules,
  issue licenses, and take any other necessary action relating
  exclusively to horse racing or to greyhound racing.
         (b)  The department [commission] may establish separate
  sections to review or propose rules of the commission.
         (d)  The department [commission] shall post notice of a
  meeting under Subsection (c) of this section at each racetrack
  facility. The notice shall include an agenda of the meeting and a
  summary of the proposed rule.
         (g)  The commission, in adopting rules, and the department,
  in the supervision and conduct of racing, shall consider the effect
  of a proposed commission or department action on the state's
  agricultural, horse breeding, horse training, greyhound breeding,
  and greyhound training industry.
         SECTION 1.07.  Sections 3.021(a) and (c), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (a)  Any provision in this Act to the contrary
  notwithstanding, the department [commission] may license and
  regulate all aspects of greyhound racing and horse racing in this
  state, whether or not that racing involves pari-mutuel wagering.
         (c)  The department [commission] may charge an annual fee for
  licensing and regulating a racetrack that does not offer
  pari-mutuel wagering or a training facility in a reasonable amount
  that may not exceed the actual cost of enforcing rules adopted for
  the licensing and regulation of races and workouts at such a
  facility.
         SECTION 1.08.  Sections 3.03 and 3.04, Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         Sec. 3.03.  POWER OF ENTRY. A member of the commission, an
  authorized agent of the commission or department, a commissioned
  officer of the Department of Public Safety, or a peace officer of
  the local jurisdiction in which the association maintains a place
  of business may enter any part of the racetrack facility or any
  other place of business of an association at any time for the
  purpose of enforcing and administering this Act.
         Sec. 3.04.  REQUIREMENT OF BOOKS AND RECORDS; FINANCIAL
  STATEMENTS. The department [commission] shall require
  associations, managers, totalisator licensees, and concessionaires
  to keep books and records and to submit financial statements to the
  department [commission]. The commission shall adopt reasonable
  rules relating to those matters.
         SECTION 1.09.  Sections 3.07(a), (c), and (d), Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         (a)  The department [commission] shall employ all of the
  judges and all of the stewards for the supervision of a horse race
  or greyhound race meeting. Each horse race or greyhound race
  meeting shall be supervised by three stewards for horse racing or by
  three judges for greyhound racing. The department [commission]
  shall designate one of the stewards or judges as the presiding
  steward or judge for each race meeting. The association, following
  the completion of the race meeting, may submit written comments to
  the department [commission] regarding the job performance of the
  stewards and judges for the department's [commission's] review.
  Comments received are not binding, in any way, on the department
  [commission]. For each race meeting, the department [commission]
  shall employ at least one state veterinarian. The commission may,
  by rule, impose a fee on an association to offset the costs of
  compensating the stewards, judges, and state veterinarians. The
  amount of the fee for the compensation of stewards, judges, and
  state veterinarians must be reasonable according to industry
  standards for the compensation of those officials at other
  racetracks and may not exceed the actual cost to the department
  [commission] for compensating the officials. All other racetrack
  officials shall be appointed by the association, with the approval
  of the department [commission]. Compensation for those officials
  not compensated by the department [commission] shall be determined
  by the association.
         (c)  The department [commission] shall require each steward
  or judge to take and pass both a written examination and a medical
  examination annually. The commission by rule shall prescribe the
  methods and procedures for taking the examinations and the
  standards for passing. Failure to pass an examination is a ground
  for refusal to issue an original or renewal license to a steward or
  judge or for suspension or revocation of such a license.
         (d)  Medication or drug testing performed on a race animal
  under this Act shall be conducted by the Texas Veterinary Medical
  Diagnostic Laboratory or by a laboratory operated by or in
  conjunction with or by a private or public agency selected by the
  department [commission] after consultation with the Texas
  Veterinary Medical Diagnostic Laboratory.  Medication or drug
  testing performed on a human under this Act shall be conducted by a
  laboratory approved by the department [commission]. Charges for
  services performed under this section shall be forwarded to the
  department [commission] for approval as to the reasonableness of
  the charges for the services. Charges may include but are not
  limited to expenses incurred for travel, lodging, testing, and
  processing of test results. The reasonable charges associated with
  medication or drug testing conducted under this Act shall be paid by
  the association that receives the services. The commission shall
  adopt rules for the procedures for approving and paying laboratory
  charges under this section. The 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. The
  department [commission] shall forward a copy of the charges to the
  association that receives the services for immediate payment.
         SECTION 1.10.  Section 3.08(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  Except as provided by Subsection (b) of this section, a
  final decision of the stewards or judges may be appealed to the
  department [commission] in the manner provided for a contested case
  under Chapter 2001, Government Code [the Administrative Procedure
  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  Statutes)].
         SECTION 1.11.  Section 3.09(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (b)  The department [commission] shall deposit the money it
  collects under this Act in the State Treasury to the credit of a
  special fund to be known as the Texas racing [Racing Commission]
  fund. The Texas racing [Racing Commission] fund may be
  appropriated only for the administration and enforcement of this
  Act. Any unappropriated money exceeding $750,000 that remains in
  the fund at the close of each fiscal biennium shall be transferred
  to the General Revenue Fund and may be appropriated for any legal
  purpose. The legislature may also appropriate money from the
  General Revenue Fund for the administration and enforcement of this
  Act. Any amount of general revenue appropriated for the
  administration and enforcement of this Act in excess of the
  cumulative amount deposited in the Texas racing [Racing Commission]
  fund shall be reimbursed from the Texas racing [Racing Commission]
  fund not later than one year after the date on which the general
  revenue funds are appropriated, with 6-3/4 percent interest with
  all payments first attributable to interest.
         SECTION 1.12.  Sections 3.10 and 3.11, Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         Sec. 3.10.  ANNUAL REPORT. The racing division [commission]
  shall make a report to the governor, lieutenant governor, and
  speaker of the house of representatives not later than January 31 of
  each year. The report shall cover the operations of the racing
  division [commission] and the condition of horse breeding and
  racing and greyhound breeding and racing during the previous year.
  The racing division [commission] shall also obtain from the
  Department of Public Safety a comprehensive report of any organized
  crime activities in this state which the Department of Public
  Safety [department] may wish to report and information concerning
  any and all illegal gambling which may be known to exist in the
  state and shall include the report by the Department of Public
  Safety [department] in its report and shall include any
  recommendations it considers appropriate.
         Sec. 3.11.  COOPERATION WITH PEACE OFFICERS. The commission
  and the department shall cooperate with all district attorneys,
  criminal district attorneys, county attorneys, the Department of
  Public Safety, the attorney general, and all peace officers in
  enforcing this Act. Under the [its] authority to conduct criminal
  history information record checks under this Act or Section
  51.4012, Occupations Code [5.04 of this Act], the department 
  [commission] shall maintain and exchange pertinent intelligence
  data with other states and agencies.
         SECTION 1.13.  Section 3.13(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (b)  The department [commission] may recognize an
  organization that meets the requirements of Subsection (a) of this
  section.
         SECTION 1.14.  Sections 3.16(b), (d), (e), (f), and (j),
  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (b)  The department [commission] shall require testing to
  determine whether a prohibited substance has been used.  The
  testing may be prerace or postrace as determined by the department
  [commission].  The testing may be by an invasive or noninvasive
  method. The commission's rules shall require state-of-the-art
  testing methods.
         (d)  Except as otherwise provided, a person may appeal a
  ruling of the stewards or judges to the department [commission].
  The department [commission] may stay a suspension during the period
  the matter is before the department [commission].
         (e)  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.
         (f)  If a test sample or specimen shows the presence of a
  prohibited substance, the entire sample, including any split
  portion remaining in the custody of the department [commission],
  shall be maintained until final disposition of the matter.
         (j)  A person who violates a rule adopted under this section
  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 facility.
         SECTION 1.15.  Sections 3.17, 3.18, 3.19, 3.20, and 3.21,
  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         Sec. 3.17.  SECURITY FOR FEES AND CHARGES. The department
  [commission] may require an association to post security in an
  amount and form determined by the commission to adequately ensure
  the payment of any fees or charges due to the state or the
  department [commission] relating to pari-mutuel racing, including
  charges for drug testing.
         Sec. 3.18.  CEASE AND DESIST ORDER. (a)  The executive
  director [secretary] may issue a cease and desist order if the
  executive director [secretary] reasonably believes an association
  or other licensee is engaging or is likely to engage in conduct that
  violates this Act or a commission rule.
         (b)  On issuance of a cease and desist order, the executive
  director [secretary] shall serve on the association or other
  licensee by personal delivery or registered or certified mail,
  return receipt requested, to the person's last known address, a
  proposed cease and desist order. The proposed order must state the
  specific acts or practices alleged to violate this Act or a
  commission rule. The proposed order must state its effective date.
  The effective date may not be before the 21st day after the date the
  proposed order is mailed or delivered. If the person against whom
  the proposed order is directed requests, in writing, a hearing
  before the effective date of the proposed order, the order is
  automatically stayed pending final adjudication of the order.
  Unless the person against whom the proposed order is directed
  requests, in writing, a hearing before the effective date of the
  proposed order, the order takes effect and is final and
  nonappealable as to that person.
         (c)  On receiving a request for a hearing, the executive
  director [secretary] shall serve notice of the time and place of the
  hearing by personal delivery or registered or certified mail,
  return receipt requested. At a hearing, the department
  [commission] has the burden of proof and must present evidence in
  support of the order. Each person against whom the order is
  directed may cross-examine and show cause why the order should not
  be issued.
         (d)  After the hearing, the department [commission] shall
  issue or decline to issue a cease and desist order. The proposed
  order may be modified as necessary to conform to the findings at the
  hearing. An order issued under this section is final for purposes
  of enforcement and appeal and shall require the person to
  immediately cease and desist from the conduct that violates this
  Act or a commission rule.
         (e)  A person affected by a cease and desist order issued,
  affirmed, or modified after a hearing may file a petition for
  judicial review in a district court of Travis County under Chapter
  2001, Government Code. A petition for judicial review does not stay
  or vacate the order unless the court, after hearing, specifically
  stays or vacates the order.
         Sec. 3.19.  EMERGENCY CEASE AND DESIST ORDER. (a)  The
  executive director [secretary] may issue an emergency cease and
  desist order if the executive director [secretary] reasonably
  believes an association or other licensee is engaged in a
  continuing activity that violates this Act or a commission rule in a
  manner that threatens immediate and irreparable public harm.
         (b)  After issuing an emergency cease and desist order, the
  executive director [secretary] shall serve on the association or
  other licensee by personal delivery or registered or certified
  mail, return receipt requested, to the person's last known address,
  an order stating the specific charges and requiring the person
  immediately to cease and desist from the conduct that violates this
  Act or a commission rule. The order must contain a notice that a
  request for hearing may be filed under this section.
         (c)  An association or other licensee that is the subject of
  an emergency cease and desist order may request a hearing. The
  request must be filed with the executive director [secretary] not
  later than the 10th day after the date the order was received or
  delivered. A request for a hearing must be in writing and directed
  to the executive director [secretary] and must state the grounds
  for the request to set aside or modify the order. Unless a person
  who is the subject of the emergency order requests a hearing in
  writing before the 11th day after the date the order is received or
  delivered, the emergency order is final and nonappealable as to
  that person.
         (d)  On receiving a request for a hearing, the executive
  director [secretary] shall serve notice of the time and place of the
  hearing by personal delivery or registered or certified mail,
  return receipt requested. The hearing must be held not later than
  the 10th day after the date the executive director [secretary]
  receives the request for a hearing unless the parties agree to a
  later hearing date. At the hearing, the department [commission]
  has the burden of proof and must present evidence in support of the
  order. The person requesting the hearing may cross-examine
  witnesses and show cause why the order should not be affirmed.
  Section 2003.021(b), Government Code, does not apply to hearings
  conducted under this section.
         (e)  An emergency cease and desist order continues in effect
  unless the order is stayed by the executive director [secretary].
  The executive director [secretary] may impose any condition before
  granting a stay of the order.
         (f)  After the hearing, the executive director [secretary]
  shall affirm, modify, or set aside in whole or part the emergency
  cease and desist order. An order affirming or modifying the
  emergency cease and desist order is final for purposes of
  enforcement and appeal.
         Sec. 3.20.  VIOLATION OF FINAL CEASE AND DESIST ORDER.
  (a)  If the executive director [secretary] reasonably believes
  that a person has violated a final and enforceable cease and desist
  order, the executive director [secretary] may:
               (1)  initiate administrative penalty proceedings under
  Article 15 of this Act;
               (2)  refer the matter to the attorney general for
  enforcement by injunction and any other available remedy; or
               (3)  pursue any other action, including suspension of
  the person's license, that the executive director [secretary]
  considers appropriate.
         (b)  If the attorney general prevails in an action brought
  under Subsection (a)(2) of this section, the attorney general is
  entitled to recover reasonable attorney's fees.
         Sec. 3.21.  INJUNCTION. The department [commission] may
  institute an action in its own name to enjoin the violation of this
  Act. An action for an injunction is in addition to any other
  action, proceeding, or remedy authorized by law.
         SECTION 1.16.  Sections 3.22(b) and (c), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (b)  The executive director [secretary] may issue an order
  prohibiting the association from making any transfer from a bank
  account held by the association for the conduct of its business
  under this Act, pending department [commission] review of the
  records of the account, if the executive director [secretary]
  reasonably believes that the association has failed to maintain the
  proper amount of money in the horsemen's account. The executive
  director [secretary] shall provide in the order a procedure for the
  association to pay certain expenses necessary for the operation of
  the racetrack, subject to the executive director's [secretary's]
  approval. An order issued under this section may be made valid for
  a period not to exceed 14 days.
         (c)  The executive director [secretary] may issue an order
  requiring the appropriate transfers to or from the horsemen's
  account if, after reviewing the association's records of its bank
  accounts, the executive director [secretary] determines there is an
  improper amount of money in the horsemen's account.
         SECTION 1.17.  Sections 4.01, 4.05, 5.01, 5.02, 5.03, 5.04,
  5.05, and 6.01, Texas Racing Act (Article 179e, Vernon's Texas
  Civil Statutes), are amended to read as follows:
         Sec. 4.01.  BOOKS AND RECORDS. All books, records, and
  financial statements required by the department [commission] under
  Section 3.04 of this Act are open to inspection by the comptroller.  
  The comptroller by rule may specify the form and manner in which the
  books, records, and statements are to be kept and reports are to be
  filed that relate to the state's share of a pari-mutuel pool.
         Sec. 4.05.  COMPLIANCE. (a)  If an association or
  totalisator company does not comply with a rule adopted by the
  comptroller under this article, refuses to allow access to or
  inspection of any of its required books, records, or financial
  statements, refuses to allow access to or inspection of the
  totalisator system, or becomes delinquent for the state's portion
  of the pari-mutuel pool or for any other tax collected by the
  comptroller, the comptroller shall certify that fact to the
  department [commission].
         (b)  With regard to the state's portion of the pari-mutuel
  pool and any penalties related to the state's portion, the
  comptroller, acting independently of the department [commission],
  may take any collection or enforcement actions authorized under the
  Tax Code against a delinquent or dilatory taxpayer. Administrative
  appeals related to the state's portion of the pari-mutuel pool or
  late reporting or deposit of the state's portion shall be to the
  comptroller and then to the courts as under Title 2, Tax Code. All
  other administrative appeals shall be to the department
  [commission] and then to the courts.
         Sec. 5.01.  FORM; CERTIFICATE; FEES. (a)  The department
  [commission] shall prescribe forms for applications for licenses
  and shall provide each occupational licensee with a license
  certificate or credentials.
         (b)  The commission shall annually prescribe reasonable
  license fees for each category of license issued under this Act.
         (c)  The operation of a racetrack and the participation in
  racing are privileges, not rights, granted only by the department
  [commission] by license and subject to reasonable and necessary
  conditions set by the department and commission.
         (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. 5.02.  JUDICIAL REVIEW. (a)  Judicial review of an
  order of the department or commission is under the substantial
  evidence rule.
         (b)  Venue for judicial review of an order of the department
  or commission is in a district court in Travis County.
         Sec. 5.03.  FINGERPRINTS. (a)  An applicant for any license
  or license renewal under this Act must, except as allowed under
  Section 7.10 of this Act, submit to the racing division
  [commission] a complete set of fingerprints of the individual
  natural person applying for the license or license renewal or, if
  the applicant is not an individual natural person, a complete set of
  fingerprints of each officer or director and of each person owning
  an interest of at least five percent in the applicant.  The
  Department of Public Safety may request any person owning any
  interest in an applicant for a racetrack license to submit a
  complete set of fingerprints.
         (b)  If a complete set of fingerprints is required by the
  commission, the racing division [commission] shall, not later than
  the 10th business day after the date the racing division
  [commission] receives the prints, forward the prints to the
  Department of Public Safety or the Federal Bureau of
  Investigation.  If the prints are forwarded to the Department of
  Public Safety, the Department of Public Safety [department] shall
  classify the prints and check them against its fingerprint files
  and shall report to the racing division [commission] its findings
  concerning the criminal record of the applicant or the lack of such
  a record.  A racetrack license may not be issued until the report is
  made to the racing division [commission].  A temporary
  occupational license may be issued before a report is made to the
  racing division [commission].
         (c)  A peace officer of this or any other state, or any
  district office of the department [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
  shall immediately deliver them to the racing division [commission].
         Sec. 5.04.  ACCESS TO CRIMINAL HISTORY RECORDS. In addition
  to any other authorizations to obtain criminal history record
  information provided by law, the department [(a) The commission]
  is authorized to obtain any criminal history record information
  that relates to each applicant for employment by the racing
  division [commission] and to each applicant for a license issued by
  the department [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
  recommend an applicant who fails to provide a complete set of
  fingerprints.
         Sec. 5.05.  COST OF CRIMINAL HISTORY CHECK. (a)  The
  commission shall, in determining the amount of a license fee, set
  the fee in an amount that will cover, at least, the cost of
  conducting a criminal history check on the applicant for a license.
         (b)  The racing division [commission] shall reimburse the
  Department of Public Safety for the cost, if any, of conducting a
  criminal history check under this article.
         Sec. 6.01.  LICENSE REQUIRED. A person may not conduct
  wagering on a greyhound race or a horse race meeting without first
  obtaining a racetrack license from the department [commission]. A
  person who violates this section commits an offense.
         SECTION 1.18.  Sections 6.02(b), (c), (f), and (g), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (b)  A class 1 racetrack is a racetrack on which live racing
  is conducted for a number of days in a calendar year, the number of
  days and the actual dates to be determined by the department
  [commission] under Article 8 of this Act. A class 1 racetrack may
  operate only in a county with a population of not less than 1.3
  million, or in a county adjacent to a county with such a population.
  Not more than three class 1 racetracks may be licensed and operated
  in this state.
         (c)  A class 2 racetrack is a racetrack on which live racing
  is conducted for a number of days to be determined by the department
  [commission] under Article 8 of this Act.  A class 2 racetrack is
  entitled to conduct 60 days of live racing in a calendar year. An
  association may request additional or fewer days of live racing. If
  after receipt of a request from an association the department
  [commission] determines additional or fewer days to be economically
  feasible and in the best interest of the state and the racing
  industry, the department [commission] shall grant the additional or
  fewer days.  The department [commission] may permit an association
  that holds a class 2 racetrack license and that is located in a
  national historic district to conduct horse races for more than 60
  days in a calendar year.
         (f)  The number of race dates allowed under this section
  relates only to live race dates. A racetrack may present simulcast
  races on other dates as approved by the department [commission].
         (g)  A class 4 racetrack is a racetrack operated by a county
  fair under Section 12.03 of this Act.  An association that holds a
  class 4 racetrack license may conduct live races for a number of
  days not to exceed five days in a calendar year on dates selected by
  the association and approved by the department [commission].
         SECTION 1.19.  Sections 6.03(a), (b), and (h), Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes), 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 and to submit an application, on a form prescribed
  by the department [commission], containing the following
  information:
               (1)  if the applicant is an individual, the full name of
  the applicant, the applicant's date of birth, a physical
  description of the applicant, the applicant's current address and
  telephone number, and a statement by the applicant disclosing any
  arrest or conviction for a felony or for a misdemeanor, except a
  misdemeanor under Subtitle C, Title 7, Transportation Code, [the
  Uniform Act Regulating Traffic on Highways (Article 6701d, Vernon's
  Texas Civil Statutes)] or a similar misdemeanor traffic offense;
               (2)  if the applicant is a corporation:
                     (A)  the state in which it is incorporated, the
  names and addresses of the corporation's agents for service of
  process in this state, the names and addresses of its officers and
  directors, the names and addresses of its stockholders, and, for
  each individual named under this subdivision, the individual's date
  of birth, current address and telephone number, and physical
  description, and a statement disclosing any arrest or conviction
  for a felony or for a misdemeanor, except a misdemeanor under
  Subtitle C, Title 7, Transportation Code, [the Uniform Act
  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
  Statutes)] or a similar misdemeanor traffic offense; and
                     (B)  identification of any other beneficial owner
  of shares in the applicant that bear voting rights, absolute or
  contingent, any other person that directly or indirectly exercises
  any participation in the applicant, and any other ownership
  interest in the applicant that the applicant making its best effort
  is able to identify;
               (3)  if the applicant is an unincorporated business
  association:
                     (A)  the names and addresses of each of its
  members and, for each individual named under this subdivision, the
  individual's date of birth, current address and telephone number,
  and physical description, and a statement disclosing any arrest or
  conviction for a felony or for a misdemeanor, except a misdemeanor
  under Subtitle C, Title 7, Transportation Code, [the Uniform Act
  Regulating Traffic on Highways (Article 6701d, Vernon's Texas Civil
  Statutes)] or a similar misdemeanor traffic offense; and
                     (B)  identification of any other person that
  exercises voting rights in the applicant or that directly or
  indirectly exercises any participation in the applicant and any
  other ownership interest in the applicant that the applicant making
  its best effort is able to identify;
               (4)  the exact location at which a race meeting is to be
  conducted;
               (5)  if the racing facility is in existence, whether it
  is owned by the applicant and, if leased to the applicant, the name
  and address of the owner and, if the owner is a corporation or
  unincorporated business association, the names and addresses of its
  officers and directors, its stockholders and members, if any, and
  its agents for service of process in this state;
               (6)  if construction of the racing facility has not
  been initiated, whether it is to be owned by the applicant and, if
  it is to be leased to the applicant, the name and address of the
  prospective owner and, if the owner is a corporation or
  unincorporated business association, the names and addresses of its
  officers and directors, the names and addresses of its
  stockholders, the names and addresses of its members, if any, and
  the names and addresses of its agents for service of process in this
  state;
               (7)  identification of any other beneficial owner of
  shares that bear voting rights, absolute or contingent, in the
  owner or prospective owner of the racing facility, or any other
  person that directly or indirectly exercises any participation in
  the owner or prospective owner and all other ownership interest in
  the owner or prospective owner that the applicant making its best
  effort is able to identify;
               (8)  a detailed statement of the assets and liabilities
  of the applicant;
               (9)  the kind of racing to be conducted and the dates
  requested;
               (10)  proof of residency as required by Section 6.06 of
  this Act;
               (11)  a copy of each management, concession, and
  totalisator contract dealing with the proposed license at the
  proposed location in which the applicant has an interest for
  inspection and review by the department [commission]; the applicant
  or licensee shall advise the department [commission] of any change
  in any management, concession, or totalisator contract; all
  management, concession, and totalisator contracts must have prior
  approval of the department [commission]; the same fingerprint,
  criminal records history, and other information required of license
  applicants pursuant to Sections 5.03 and 5.04 and Subdivisions (1)
  through (3) of this subsection shall be required of proposed
  totalisator firms, concessionaires, and managers and management
  firms; and
               (12)  any other information required by the department
  [commission].
         (b)  When the department [commission] receives a plan for the
  security of a racetrack facility, or a copy of a management,
  concession, or totalisator contract for review under Subdivision
  (11) of Subsection (a) of this section, the department [commission]
  shall review the contract or security plan in an executive session.
  Documents submitted to the department [commission] under this
  section by an applicant are subject to discovery in a suit brought
  under this Act but are not public records and are not subject to
  Chapter 552, Government Code [424, Acts of the 63rd Legislature,
  Regular Session, 1973 (Article 6252-17a, Vernon's Texas Civil
  Statutes)].  In reviewing and approving contracts under this
  subsection, the department [commission] shall attempt to ensure the
  involvement of minority owned businesses whenever possible.
         (h)  In considering an application for a horse racetrack
  license under this section, the department [commission] shall give
  additional weight to evidence concerning an applicant who has
  experience operating a horse racetrack licensed under this Act.
         SECTION 1.20.  Section 6.031, Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 6.031.  BACKGROUND CHECK. The department [commission]
  shall require a complete personal, financial, and business
  background check of the applicant or any person owning an interest
  in or exercising control over an applicant for a racetrack license,
  the partners, stockholders, concessionaires, management personnel,
  management firms, and creditors and shall refuse to issue or renew a
  license or approve a concession or management contract if, in the
  sole discretion of the department [commission], the background
  checks reveal anything which might be detrimental to the public
  interest or the racing industry.  The department [commission] may
  not hold a hearing on the application, or any part of the
  application, of an applicant for a racetrack license before the
  completed background check of the applicant has been on file with
  the department [commission] for at least 14 days.
         SECTION 1.21.  Section 6.032(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  The department [commission] at any time may require a
  holder of a racetrack license or an 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 Act and commission rules.
         SECTION 1.22.  Section 6.04, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 6.04.  ISSUANCE OF LICENSE. (a)  The department
  [commission] may issue a racetrack license to a qualified person if
  it finds that the conduct of race meetings at the proposed track and
  location will be in the public interest, complies with all zoning
  laws, and complies with this Act and the rules adopted by the
  commission and if the department [commission] finds by clear and
  convincing evidence that the applicant will comply with all
  criminal laws of this state. In determining whether to grant or
  deny an application for any class of racetrack license, the
  department [commission] may consider the following factors:
               (1)  the applicant's financial stability;
               (2)  the applicant's resources for supplementing the
  purses for races for various breeds;
               (3)  the location of the proposed track;
               (4)  the effect of the proposed track on traffic flow;
               (5)  facilities for patrons and occupational
  licensees;
               (6)  facilities for race animals;
               (7)  availability to the track of support services and
  emergency services;
               (8)  the experience of the applicant's employees;
               (9)  the potential for conflict with other licensed
  race meetings;
               (10)  the anticipated effect of the race meeting on the
  greyhound or horse breeding industry in this state; and
               (11)  the anticipated effect of the race meeting on the
  state and local economy from tourism, increased employment, and
  other sources.
         (b) [(a-1)]  When all of the requirements of licensure for
  the applicant described in this article have been satisfied, the
  department [commission] shall notify the applicant that the
  application is complete.
         (c) [(a-2)]  The department [commission] shall make a
  determination with respect to a pending application not later than
  the 120th day after the date on which the department [commission]
  provided to the applicant the notice required under Subsection (b)
  [(a-1)] of this section.
         (d) [(c)]  The department [commission] shall not issue
  licenses for more than three greyhound racetracks in this state.
  Those racetracks must be located in counties that border the Gulf of
  Mexico.
         (e) [(d)]  In considering an application for a class 4
  racetrack license, the department [commission] may waive or defer
  compliance with the department's [commission's] standards
  regarding the physical facilities or operations of a horse
  racetrack. The department [commission] may not waive or defer
  compliance with standards that relate to the testing of horses or
  licensees for the presence of a prohibited drug, chemical, or other
  substance. If the department [commission] defers compliance, the
  department [commission] shall, when granting the application,
  establish a schedule under which the licensee must comply with the
  standards.
         SECTION 1.23.  Sections 6.06(e), (f), and (k), Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         (e)  The department [commission] may condition the issuance
  of a license under this article on the observance of commission
  [its] rules. The commission may amend the rules at any time, and
  the department may condition the continued holding of the license
  on compliance with the rules as amended.
         (f)  The department [commission] may refuse to issue a
  license or may suspend or revoke a license of a licensee under this
  article who knowingly or intentionally allows access to an
  enclosure where greyhound races or horse races are conducted to a
  person who has engaged in bookmaking, touting, or illegal wagering,
  whose income is from illegal activities or enterprises, or who has
  been convicted of a violation of this Act.
         (k)  The department [commission] shall review the ownership
  and management of an active license issued under this article every
  five years beginning on the fifth anniversary of the issuance of the
  license. 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 Article 5 of this Act or this article. The
  department [commission] shall charge fees for the review in amounts
  sufficient to implement this subsection.
         SECTION 1.24.  Sections 6.0601(a), (b), and (d), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), 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 1.25.  Sections 6.0602(a), (b), (c), and (d), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (a)  The commission by rule shall establish an annual renewal
  process for inactive licenses, and the department may require the
  license holder to provide any information required for an original
  license application under this Act. 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
  facility; 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.
         SECTION 1.26.  Sections 6.0603(b) and (c), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (b)  If, after notice and hearing, the department
  [commission] finds that a racetrack license holder or a person
  employed by the racetrack has violated this Act 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 article,
  the department [commission] may:
               (1)  revoke, suspend, or refuse to renew the racetrack
  license;
               (2)  impose an administrative penalty as provided under
  Section 15.03 of this Act; or
               (3)  take any other action as provided by commission
  rule.
         (c)  The department [commission] may not revoke an active
  license unless the department [commission] reasonably determines
  that other disciplinary actions are inadequate to remedy the
  violation.
         SECTION 1.27.  Sections 6.061, 6.062, and 6.063, Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         Sec. 6.061.  REGULATION OF INAPPROPRIATE OR UNSAFE
  CONDITIONS. (a)  The commission shall adopt rules implementing
  this section, including rules:
               (1)  requiring the report of and correction of:
                     (A)  an inappropriate condition on the premises of
  a racetrack facility, including a failure to properly maintain the
  facility, that interferes with the administration of this Act; or
                     (B)  a condition on the premises of a racetrack
  facility that makes the facility unsafe for a race participant,
  patron, or animal; and
               (2)  determining the methods and manner in which the
  director [executive secretary] may determine and remedy
  inappropriate conditions or unsafe facilities on the premises of a
  racetrack facility, including the methods and manner in which the
  department [executive secretary] may conduct inspections of the
  racetrack facility and remedy emergency situations.
         (b)  The director [executive secretary] shall issue a notice
  of violation to a racetrack facility on a finding that an
  inappropriate or unsafe condition exists.
         (c)  If the director [executive secretary] determines that
  an inappropriate or unsafe condition exists at the racetrack
  facility, the director [executive secretary] shall order the
  racetrack facility to take action within a specified period to
  remedy the inappropriate condition or unsafe condition. In
  determining the period for compliance, the director [executive
  secretary] shall consider the nature and severity of the problem
  and the threat to the health, safety, and welfare of the race
  participants, patrons, or animals.
         (d)  The commission shall adopt rules requiring the
  reporting of any corrective action taken by a racetrack facility in
  response to an order of the director [executive secretary] under
  Subsection (c) of this section.
         (e)  If a racetrack facility fails to take any action as
  required under Subsection (c) of this section, the director
  [executive secretary] shall initiate an enforcement action against
  the racetrack facility. The director [executive secretary] may
  rescind any live or simulcast race date of any racetrack
  association that does not take corrective action within the period
  set by the director [executive secretary].
         (f)  The commission shall adopt rules relating to the
  department's [commission's] review of an action taken under this
  section by the director [executive secretary]. A review procedure
  adopted under this subsection must be consistent with Chapter 2001,
  Government Code.
         Sec. 6.062.  SUPERVISION OF CHANGES TO PREMISES. (a)  The
  department [commission] shall adopt a method of supervising and
  approving the construction, renovation, or maintenance of any
  building or improvement on the premises of a racetrack facility.
         (b)  The commission shall adopt rules relating to:
               (1)  the approval of plans and specifications;
               (2)  the contents of plans and specifications;
               (3)  the maintenance of records to ensure compliance
  with approved plans and specifications;
               (4)  the content and filing of construction progress
  reports by the racetrack facility to the 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 an association has failed to comply with the requirements of
  this section, a representative of the association shall appear
  before the department [commission] to consider the issue of
  compliance with the rules adopted under this section.
         (d)  Before a building or improvement may be used by the
  association, the department [commission] shall determine whether
  the construction, renovation, or maintenance of the building or
  improvement was completed in accordance with the approved plans and
  specifications and whether other requirements of the department or
  commission were met.
         (e)  If the department [commission] determines that the
  association failed to comply with a requirement of this section or
  rule adopted under this section, the department [commission] shall
  initiate an enforcement action against the association. In
  addition to any other authorized enforcement action, the department
  [commission] may rescind any live or simulcast race date of any
  association that has failed to comply with the requirement of this
  section.
         Sec. 6.063.  SUMMARY SUSPENSION. (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 participants in racing or
  the patrons.
         (b)  After issuing a summary suspension order, the executive
  director [secretary] shall serve on the association by personal
  delivery or registered or certified mail, return receipt requested,
  to the licensee's last known address, an order stating the specific
  charges and requiring the licensee immediately to cease and desist
  from all conduct permitted by the license. The order must contain a
  notice that a request for hearing may be filed under this section.
         (c)  An association that is the subject of a summary
  suspension order may request a hearing. The request must be filed
  with the executive director [secretary] not later than the 10th day
  after the date the order was received or delivered. A request for a
  hearing must be in writing and directed to the executive director
  [secretary] and must state the grounds for the request to set aside
  or modify the order. Unless a licensee who is the subject of the
  order requests a hearing in writing before the 11th day after the
  date the order is received or delivered, the order is final and
  nonappealable as to that licensee.
         (d)  On receiving a request for a hearing, the executive
  director [secretary] shall serve notice of the time and place of the
  hearing by personal delivery or registered or certified mail,
  return receipt requested. The hearing must be held not later than
  the 10th day after the date the executive director [secretary]
  receives the request for a hearing unless the parties agree to a
  later hearing date. At the hearing, the department [commission]
  has the burden of proof and must present evidence in support of the
  order. The licensee requesting the hearing may cross examine
  witnesses and show cause why the order should not be affirmed.
  Section 2003.021(b), Government Code, does not apply to hearings
  conducted under this section.
         (e)  A summary suspension order continues in effect unless
  the order is stayed by the executive director [secretary]. The
  executive director [secretary] may impose any condition before
  granting a stay of the order.
         (f)  After the hearing, the executive director [secretary]
  shall affirm, modify, or set aside in whole or part the summary
  suspension order. An order affirming or modifying the summary
  suspension order is final for purposes of enforcement and appeal.
         SECTION 1.28.  Sections 6.07(b) and (c), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (b)  The department [commission] may not approve a lease if:
               (1)  it appears that the lease is a subterfuge to evade
  compliance with Section [6.05 or] 6.06 of this Act;
               (2)  the racetrack and surrounding structures do not
  conform to the rules adopted under this Act; or
               (3)  the lessee, prospective lessee, or lessor is
  disqualified from holding a racetrack license.
         (c)  Each lessor and lessee under this section must comply
  with the disclosure requirements of Subdivision (1) of Subsection
  (a) of Section 6.03 of this Act. The department [commission] may
  not approve a lease if the lessor and lessee do not provide the
  required information.
         SECTION 1.29.  Section 6.08(b)(4), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
               (4)  An association[, after January 1, 1999,] may pay a
  portion of the revenue set aside under this subsection to an
  organization recognized under Section 3.13 of this Act, as provided
  by a contract approved by the department [commission].
         SECTION 1.30.  Section 6.08(i), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (i)  Ten percent of the total breakage from a live
  pari-mutuel pool or a simulcast pari-mutuel pool is to be paid to
  the department [commission] for use by the appropriate state horse
  breed registry, subject to rules promulgated by the commission.  
  The appropriate breed registry for Thoroughbred horses is the Texas
  Thoroughbred Breeders Association, for quarter horses is the Texas
  Quarter Horse Association, for Appaloosa horses is the Texas
  Appaloosa Horse Club, for Arabian horses is the Texas Arabian
  Breeders Association, and for paint horses is the Texas Paint Horse
  Breeders Association.
         SECTION 1.31.  Sections 6.09(d) and (f), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (d)  Fifty percent of the breakage is to be paid to the
  appropriate state greyhound breeding registry. Of that portion of
  the breakage 25 percent of that breakage is to be used in stakes
  races and 25 percent of that total breakage from a live pari-mutuel
  pool or a simulcast pari-mutuel pool is to be paid to the department
  [commission] for the use by the state greyhound breed registry,
  subject to rules promulgated by the commission.
         (f)  The commission in adopting rules relating to money paid
  to the department [commission] for use by the state greyhound breed
  registry under Subsection (d) of this section shall require the
  award of a grant in an amount equal to two percent of the amount paid
  to the department [commission] for use by the state greyhound breed
  registry to a person for the rehabilitation of greyhounds or to
  locate homes for greyhounds.
         SECTION 1.32.  Sections 6.091(a), (c), (e), (f), and (g),
  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (a)  An association shall distribute from the total amount
  deducted as provided by Sections 6.08(a) and 6.09(a) of this Act
  from each simulcast pari-mutuel pool and each simulcast
  cross-species pool the following shares:
               (1)  an amount equal to one percent of each simulcast
  pool as the amount set aside for the state;
               (2)  an amount equal to 1.25 percent of each simulcast
  cross-species pool as the amount set aside for the state;
               (3)  if the association is a horse racing association,
  an amount equal to one percent of a multiple two wagering pool or
  multiple three wagering pool as the amount set aside for the
  Texas-bred program to be used as provided by Section 6.08(f) of this
  Act;
               (4)  if the association is a greyhound association, an
  amount equal to one percent of a multiple two wagering pool or a
  multiple three wagering pool as the amount set aside for the
  Texas-bred program for greyhound races, to be distributed and used
  in accordance with rules of the commission adopted to promote
  greyhound breeding in this state; and
               (5)  the remainder as the amount set aside for purses,
  expenses, the sending association, and the receiving location
  pursuant to a contract approved by the department [commission]
  between the sending association and the receiving location.
         (c)  A greyhound racetrack association that receives an
  interstate cross-species simulcast signal shall distribute the
  following amounts from the total amount deducted as provided by
  Subsection (a) of this section from each pool wagered on the signal
  at the facility:
               (1)  a fee of 1.5 percent to be paid to the racetrack
  facility in this state sending the signal;
               (2)  a purse in the amount of 0.75 percent to be paid to
  the official state breed registry for thoroughbred horses for use
  as purses at racetracks in this state;
               (3)  a purse in the amount of 0.75 percent to be paid to
  the official state breed registry for quarter horses for use as
  purses at racetracks in this state; and
               (4)  a purse of 4.5 percent to be escrowed with the
  department [commission] for purses in the manner set forth in
  Subsection (e) of this section.
         (e)  The purse set aside under Subsection (c)(4) of this
  section shall be deposited into an escrow account in the registry of
  the department [commission]. Any horse racetrack association in
  this state may apply to the department [commission] for receipt of
  all or part of the escrowed purse account for use as purses. The
  department [commission] shall determine to which horse racetracks
  the escrowed purse account shall be allocated and in what
  percentages, taking into consideration purse levels, racing
  opportunities, and the financial status of the requesting
  racetrack. [The first distribution of the escrowed purse account
  allocated to a racetrack under this section may not be made before
  October 1, 1998.]
         (f)  A [After October 15, 1998, a] horse racetrack
  association that is located not more than 75 miles from a greyhound
  racetrack facility that offers wagering on a cross-species
  simulcast signal may apply to the department [commission] for an
  additional allocation of up to 20 percent of the funds in the
  escrowed purse account that is attributable to the wagering on a
  cross-species simulcast signal at the greyhound racetrack
  facility, if the horse racetrack facility sends the cross-species
  simulcast signal to the greyhound racetrack. If the applying horse
  racetrack can prove to the department's [commission's] satisfaction
  that a decrease in the racetrack's handle has occurred that is
  directly due to wagering on an interstate cross-species simulcast
  signal at a greyhound racetrack facility that is located not more
  than 75 miles from the applying racetrack, the department
  [commission] shall allocate the amounts from the escrowed purse
  account as the department [commission] considers appropriate to
  compensate the racetrack for the decrease, but the amount allocated
  may not exceed 20 percent of the funds in the escrowed purse account
  that are attributable to the wagering on the interstate
  cross-species simulcast signal at the greyhound racetrack
  facility. Any amount allocated by the department [commission]
  under this subsection may be used by the racetrack facility for any
  purpose.
         (g)  If a racing association purchases an interstate
  simulcast signal and the cost of the signal is more than five
  percent of the pari-mutuel pool, the department [commission] shall
  reimburse the racing association an amount equal to one-half of the
  signal cost that is more than five percent of the pari-mutuel pool
  from the escrowed purse account under Subsection (c)(4) of this
  section.
         SECTION 1.33.  Sections 6.092(c), (d), and (e), Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         (c)  An organization receiving 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 shall include a
  verification of any performance report sent to or required by the
  department [commission].
         (d)  The department [commission] may review any records or
  books 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.
         (e)  The commission by rule may suspend or withhold funds
  from an organization that:
               (1)  it determines has failed to comply with the
  requirements or performance measures adopted under Subsection (a)
  of this section; or
               (2)  has, following an independent audit or other
  report to the department [commission], material questions raised on
  the use of funds by the organization.
         SECTION 1.34.  Section 6.093(a)(3), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), is amended to read
  as follows:
               (3)  All amounts set aside by the association for the
  state in Subdivisions (1) and (2) of this subsection shall be
  applied to the reimbursement of all amounts of general revenue
  appropriated for the administration and enforcement of this Act in
  excess of the cumulative amount deposited to the Texas racing
  [Racing Commission] fund until the earlier of:
                     (A)  the excesses together with interest thereon
  are reimbursed in full; or
                     (B)  January 1, 1999.
         SECTION 1.35.  Sections 6.094(b), (c), (d), and (e), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (b)  An association conducting the Breeders' Cup races may
  apply to the reimbursement of Breeders' Cup costs amounts that
  would otherwise be set aside by the association for the state under
  Sections 6.091(a)(1) and 6.093 of this Act during the year in which
  the association hosts the Breeders' Cup races, limited to an amount
  equal to the lesser of the aggregate amount contributed to pay
  Breeders' Cup costs by political subdivisions and development
  organizations or $2 million. Beginning on January 1 of the year for
  which the association has been officially designated to host the
  Breeders' Cup races, amounts that would otherwise be set aside by
  the association for the state during that year under Sections
  6.091(a)(1) and 6.093 of this Act shall be set aside, in accordance
  with procedures prescribed by the comptroller, for deposit into the
  Breeders' Cup Developmental Account. The Breeders' Cup
  Developmental Account is an account in the general revenue fund.
  The department [commission] shall administer the account. Money in
  the account may be appropriated only to the department [commission]
  and may be used only for the purposes specified in this section.
  The account is exempt from the application of Section 403.095,
  Government Code.
         (c)  The department [commission] shall make disbursements
  from the Breeders' Cup Developmental Account to reimburse Breeders'
  Cup costs actually incurred and paid by the association, after the
  association files a request for reimbursement. Disbursements from
  the account may not at any time exceed the aggregate amount actually
  paid for Breeders' Cup costs by political subdivisions and
  development organizations, as certified by the department
  [commission] to the comptroller, or $2 million, whichever is less.
         (d)  Not later than January 31 of the year following the year
  in which the association hosts the Breeders' Cup races, the
  association shall submit to the department [commission] a report
  that shows:
               (1)  the total amount of Breeders' Cup costs incurred
  and paid by the association;
               (2)  the total payments made by political subdivisions
  and development organizations for Breeders' Cup costs; and
               (3)  any other information requested by the department
  [commission].
         (e)  Following receipt of the report required by Subsection
  (d) of this section, the department [commission] shall take any
  steps it considers appropriate to verify the report. Not later than
  March 31 of the year following the event, the department
  [commission] shall transfer to the credit of the general revenue
  fund any balance remaining in the Breeders' Cup Developmental
  Account after reimbursement of any remaining Breeders' Cup costs
  authorized under this section.
         SECTION 1.36.  Section 6.12(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (b)  In the event of the death of any person whose death
  causes a violation of the licensing provisions of this Act, the
  department [commission] may issue a temporary license for a period
  not to exceed one year under rules adopted by the commission.
         SECTION 1.37.  Section 6.13, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 6.13.  FINANCIAL DISCLOSURE. (a)  The commission by
  rule shall require that each association holding a license for a
  class 1 racetrack, class 2 racetrack, or greyhound racetrack must
  annually file with the 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
  facility;
               (2)  indicates compliance during the filing period with
  Section 6.06 of this Act; 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 association must receive
  prior approval from the department [commission].  A transaction
  that changes the ownership of the association requires submission
  of updated information of the type required to be disclosed under
  Subsection (a) of Section 6.03 of this Act and payment of a fee to
  recover the costs of the criminal background check.
         SECTION 1.38.  Sections 6.14(a), (b), and (d), Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         (a)  An association may not conduct greyhound or horse racing
  at any place other than the place designated in the license except
  as provided by this section or by Section 6.15 of this Act.  
  However, if the racetrack or enclosure designated in the license
  becomes unsuitable for racing because of fire, flood, or other
  catastrophe, the affected association, with the prior approval of
  the department [commission], may conduct a race meeting or any
  remaining portion of a meeting temporarily at any other racetrack
  licensed by the department [commission] to conduct the same type of
  racing as may be conducted by the affected association if the
  licensee of the other racetrack also consents to the usage.
         (b)  The department [commission] shall not issue more than
  three racetrack licenses for greyhound racing.
         (d)  On request of an association, the department
  [commission] shall amend a racetrack license to change the location
  of the racetrack if the commission finds that:
               (1)  the conduct of race meetings at the proposed track
  at the new location will be in the public interest;
               (2)  there was not a competing applicant for the
  original license; and
               (3)  the association's desire to change location is not
  the result of a subterfuge in the original licensing proceeding.
         SECTION 1.39.  Section 6.15, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 6.15.  RACING AT TEMPORARY LOCATION. After an
  association has been granted a license to operate a racetrack and
  before the completion of construction at the designated place for
  which the license was issued, the department [commission] may, on
  application by the association, issue a temporary license that
  permits the association to conduct races at a location in the same
  county for a period expiring two years after the date of issuance of
  the temporary license or on the completion of the permanent
  facility, whichever occurs first. The department [commission] may
  set the conditions and standards for issuance of a temporary
  license and allocation of appropriate race days. An applicant for a
  temporary license must pay the application fees and must post the
  bonds required of other licensees before the issuance of a
  temporary license. After a temporary license has expired, no
  individual, corporation, or association, nor any individual
  belonging to a corporation or association which has been granted a
  temporary license, may get an extension of the temporary license or
  a new temporary license.
         SECTION 1.40.  Section 6.16(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  An association may not employ any person who has been a
  member of the commission, the executive director [secretary of the
  commission], or an employee employed by the racing division
  [commission] in a position in the state employment classification
  plan of grade 12 or above, or any person related within the second
  degree by affinity or the third degree by consanguinity, as
  determined under Chapter 573, Government Code, to such a member or
  employee, during the one-year period immediately preceding the
  employment by the association.
         SECTION 1.41.  Sections 7.01(a) and (c), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (a)  Except as provided by this section, a person may not
  participate in racing with pari-mutuel wagering other than as a
  spectator or as a person placing a wager 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 Act without first obtaining a license from the
  department [commission].
         (c)  A racetrack licensed under this Act is responsible for
  ensuring that its employees comply with this Act and commission
  rules. The department or commission may impose disciplinary action
  against a licensed racetrack for violations of this Act and
  commission rules by its employees as provided by Section 6.0603 of
  this Act.
         SECTION 1.42.  Sections 7.02(c), (d), and (e), Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         (c)  If an examination is required for the issuance of a
  license under this article, not later than the 30th day after the
  date on which a licensing examination is administered under this
  Act, the department [commission] shall notify each examinee of the
  results of the examination.
         (d)  If requested in writing by a person who fails a
  licensing examination administered under this Act, the department
  [commission] shall furnish the person with an analysis of the
  person's performance on the examination.
         (e)  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.
         SECTION 1.43.  Sections 7.03, 7.04, and 7.06, Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         Sec. 7.03.  ISSUANCE. The department [commission] shall
  issue a license to a qualified person on application and payment of
  the license fee.
         Sec. 7.04.  LICENSES; GROUNDS FOR DENIAL, REVOCATION, AND
  SUSPENSION. The department [commission], after notice and hearing,
  may refuse to issue any original or renewal license under this
  article or may revoke or suspend the license if it has reasonable
  grounds to believe and finds that:
               (1)  the applicant has been convicted in a court of
  competent jurisdiction of a violation of this Act or of any rule
  adopted by the commission or has aided, abetted, or conspired with
  any person to commit such a violation;
               (2)  the applicant has been convicted of a felony or of
  any crime involving moral turpitude that is reasonably related to
  the applicant's present fitness to hold a license under this Act;
               (3)  the applicant has violated or has caused to be
  violated this Act or a rule of the commission in a manner that
  involves moral turpitude, as distinguished from a technical
  violation of this Act or of a rule;
               (4)  the applicant is unqualified, by experience or
  otherwise, to perform the duties required of a licensee under this
  Act;
               (5)  the applicant failed to answer or has falsely or
  incorrectly answered a question in an original or renewal
  application;
               (6)  the applicant fails to disclose the true ownership
  or interest in a greyhound or horse as required by the rules of the
  commission;
               (7)  the applicant is indebted to the state for any fees
  or for the payment of a penalty imposed by this Act or by a rule of
  the commission;
               (8)  the applicant is not of good moral character or the
  applicant's reputation as a peaceable, law-abiding citizen in the
  community where the applicant resides is bad;
               (9)  the applicant is in the habit of using alcoholic
  beverages to an excess or uses a controlled substance as defined in
  Chapter 481, Health and Safety Code, or a dangerous drug as defined
  in Chapter 483, Health and Safety Code, or is mentally
  incapacitated;
               (10)  the applicant may be excluded from a track
  enclosure under this Act;
               (11)  the department or commission determines that the
  applicant has improperly used a temporary pass, license
  certificate, credential, or identification card issued under this
  Act;
               (12)  the applicant is residentially domiciled with a
  person whose license has been revoked for cause within the 12 months
  immediately preceding the date of the present application;
               (13)  the applicant has failed or refused to furnish a
  true copy of the application to the department's [commission's]
  district office in the district in which the premises for which the
  permit is sought are located; or
               (14)  the applicant is engaged or has engaged in
  activities or practices that are detrimental to the best interests
  of the public and the sport of horse racing or greyhound racing.
         Sec. 7.06.  FORM OF LICENSE. The department [commission]
  shall issue a license certificate under this article in the form of
  an identification card with a photograph and other information as
  prescribed by the commission.
         SECTION 1.44.  Section 7.07(a-1), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a-1)  The department [commission] shall obtain criminal
  history record information on each applicant renewing an
  occupational license under this article.  The department
  [commission] shall ensure that criminal history record information
  is obtained on each license holder at least once every 36 months.
         SECTION 1.45.  Sections 7.09, 8.01, 8.02, and 9.01, Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         Sec. 7.09.  TEMPORARY LICENSES. 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 article whose application appears to
  comply with the requirements of law and who has paid the necessary
  fee. The temporary license is valid for a period not to exceed 120
  days from the date of issuance.
         Sec. 8.01.  ALLOCATION. The department [commission] shall
  allocate the live and simulcast racing days for the conduct of live
  and simulcast racing at each racetrack licensed under this Act.  
  Each racetrack shall accord reasonable access to races for all
  breeds of horses as determined by the racetrack through
  negotiations with the representative state breed registry with the
  final approval of the department [commission]. In granting
  approval, the department [commission] shall consider the factors of
  availability of competitive horses, economic feasibility, and
  public interest. In allocating race dates under this section, the
  department [commission] shall consider live race dates separately
  from simulcast race dates.  The department [commission] may
  prohibit Sunday racing unless the prohibition would conflict with
  another provision of this Act.
         Sec. 8.02.  CHARITY DAYS. (a)  The department [commission]
  shall grant additional racing days to each association during a
  race meeting to be conducted as charity days. The department
  [commission] shall grant at least two and not more than five
  additional days to each class 1 racetrack and to each class 2
  racetrack.  Each class 1 and class 2 racetrack shall conduct charity
  race days in accordance with this section.
         (b)  The commission shall adopt rules relating to the conduct
  of charity days. The department [commission] shall insure that the
  races held by an association on a charity day are comparable in all
  respects, including the generation of revenue, to the races held by
  that association on any other racing day.
         Sec. 9.01.  TEXAS-BRED HORSES. Subject to this Act or any
  rule of the commission, the state horse breed registries shall make
  reasonable rules to establish the qualifications of accredited
  Texas-bred horses to promote, develop, and improve the breeding of
  horses in this state. Rules adopted by a registry are subject to
  department [commission] approval.
         SECTION 1.46.  Section 9.03(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (b)  To encourage the breeding of horses in this state, any
  accredited Texas-bred horse finishing first, second, or third in
  any race in this state except a restricted stakes race shall receive
  a purse supplement. The appropriate state breed registry shall act
  in an advisory capacity to the association and the department
  [commission] for the purpose of administering the provisions of
  this section.
         SECTION 1.47.  Sections 9.05 and 9.06, Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         Sec. 9.05.  TYPES OF RACING. When a horse racing association
  conducts a race meeting for more than one breed of horse at one
  racetrack, the number of races to be run by each breed on each day
  shall be equitable as determined by the department [commission]
  under Section 8.01 of this Act.  The commission, by rule or by
  order, may allow an exception if there are not enough horses of a
  breed available to provide sufficient competition.
         Sec. 9.06.  STABLING. When a horse racing association
  conducts a race meeting for more than one breed of horse at one
  racetrack, on-track stalls shall be provided on an equitable basis
  as determined by the department [commission] under Section 8.01 of
  this Act.
         SECTION 1.48.  Sections 9A.001(d), (e), and (f), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (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
  director [secretary].
         (e)  The department [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 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 breed registries; and
               (3)  the official horsemen's organization.
         (f)  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 9A.003 of
  this article.
         SECTION 1.49.  Section 9A.002(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), 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 is
  healthy and meets standards set by commission rule for racing.
         SECTION 1.50.  Sections 10.01 and 10.02, Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         Sec. 10.01.  NUMBER OF RACING DAYS. Any greyhound racing
  licensee shall be entitled to have 300 evening and 150 matinee
  performances in a calendar year. The department [commission] shall
  grant at least five additional racing days during a race meeting to
  be conducted as charity days. The commission shall adopt rules
  relating to the conduct of charity days. The department
  [commission] shall insure that the races held by an association on a
  charity day are comparable in all respects, including the
  generation of revenue, to the races held by that association on any
  other racing day.
         Sec. 10.02.  SUBSTITUTE RACING DAYS OR ADDITIONAL RACES. If
  for a reason beyond the licensee's control and not caused by the
  licensee's fault or neglect it is impossible for the licensee to
  hold or conduct a race or races on a day authorized by the
  department [commission], the department [commission] in its
  discretion and at the request of the licensee, as a substitute for
  the race or races, may specify another day for the holding or
  conducting of racing by the licensee or may add additional races to
  already programmed events.
         SECTION 1.51.  Section 10.04(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  Subject to this Act or any rule of the commission, the
  state greyhound breed registry shall make reasonable rules to
  establish the qualifications of accredited Texas-bred greyhounds
  to promote, develop, and improve the breeding of greyhounds in this
  state. Rules adopted by the registry are subject to department
  [commission] approval.
         SECTION 1.52.  Section 11.01(a-1), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a-1)  The department [commission] may commission as many
  investigators as the department [commission] determines necessary
  to enforce this Act and the rules of the commission.  Each
  investigator shall take the constitutional oath of office and file
  it with the department [commission].  Each commissioned
  investigator has the powers of a peace officer.
         SECTION 1.53.  Sections 11.011(b), (c), (f), and (m), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (b)  With approval of the department [commission], wagers
  accepted on a simulcast race by any out-of-state receiving location
  may be included in the pari-mutuel pool for the race at the sending
  racetrack association in this state.
         (c)  With approval of the department [commission], wagers
  accepted by a licensed racetrack association in this state on a race
  simulcast from out-of-state may be included in the pari-mutuel
  pools for the race at the out-of-state sending racetrack.
         (f)  Nothing in this Act is to be construed to allow wagering
  in Texas on simulcast races at any location other than a racetrack
  licensed under this Act that has been granted live race dates by the
  department [commission].
         (m)  The department [commission] shall not approve wagering
  on an interstate simulcast race unless the receiving location
  consents to wagering on interstate simulcast races at all other
  receiving locations in this state.
         SECTION 1.54.  Section 11.02, Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 11.02.  COMPUTATION OF WAGERING. The wagering may be
  calculated only by state-of-the-art computational equipment that
  is approved by the department [commission]. The department
  [commission] may not require the use of a particular make of
  equipment.
         SECTION 1.55.  Sections 11.04(a) and (e), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (a)  Only a person inside the enclosure where both live and
  simulcast race meetings are authorized may wager on the result of a
  live or simulcast race presented by the association in accordance
  with commission rules. Except as provided by this section, a person
  may not place, in person, by telephone, or over the Internet, a
  wager for a horse race or greyhound race conducted inside or outside
  this state.  The commission shall adopt rules to prohibit wagering
  by employees of the racing division [commission] and to regulate
  wagering by persons licensed under this Act.
         (e)  An association that allows a machine in an enclosure as
  provided by Subsection (c) shall collect a fee of $1 for each
  transaction under Subsection (c). The commission shall adopt rules
  providing for collection, reporting, and auditing of the
  transaction fee. The association shall forward the fee to the
  department [commission]. The department [commission] shall
  deposit the fee to the credit of the general revenue fund.
         SECTION 1.56.  Section 11.07(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (b)  If the claimant satisfactorily establishes a right to
  distribution from the pool, the association shall pay the amount
  due the claimant.  If the association refuses to pay a claimant who
  has established satisfactorily a right to distribution from the
  pool, the claimant may appeal to the department [commission] under
  procedures prescribed by commission rule.
         SECTION 1.57.  Section 13.01, Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 13.01.  REGULATION BY COMMISSION. The commission shall
  adopt rules providing for the exclusion or ejection from an
  enclosure where greyhound races or horse races are conducted, or
  from specified portions of an enclosure, of a person:
               (1)  who has engaged in bookmaking, touting, or illegal
  wagering;
               (2)  whose income is from illegal activities or
  enterprises;
               (3)  who has been convicted of a violation of this Act;
               (4)  who has been convicted of theft;
               (5)  who has been convicted under the penal law of
  another jurisdiction for committing an act that would have
  constituted a violation of any of the rules mentioned in this
  section;
               (6)  who has committed a corrupt or fraudulent act in
  connection with greyhound racing or horse racing or pari-mutuel
  wagering or who has committed any act tending or intended to corrupt
  greyhound racing or horse racing or pari-mutuel wagering in this
  state or elsewhere;
               (7)  who is under suspension or ruled off a racetrack by
  the department [commission] or a steward in this state or by a
  corresponding authority in another state because of fraudulent or
  corrupt practices or other acts detrimental to racing;
               (8)  who has submitted a forged pari-mutuel ticket or
  has altered or forged a pari-mutuel ticket for cashing or who has
  cashed or caused to be cashed an altered, raised, or forged
  pari-mutuel ticket;
               (9)  who has been convicted of committing a lewd or
  lascivious act or other crime involving moral turpitude;
               (10)  who is guilty of boisterous or disorderly conduct
  while inside a racing enclosure;
               (11)  who is an agent or habitual associate of a person
  excludable under this section; or
               (12)  who has been convicted of a felony.
         SECTION 1.58.  Sections 13.02(b) and (c), Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         (b)  Such an application constitutes a contested case under
  Chapter 2001, Government Code [the Administrative Procedure and
  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
  Statutes)]. If, after a hearing as provided under that chapter
  [Section 13 of that Act], the commission determines that the
  exclusion or ejection was proper, it shall make and enter an order
  to that effect in its minutes, and the person shall continue to be
  excluded from each association.
         (c)  The person excluded or ejected may appeal an adverse
  decision of the commission by filing a petition for judicial review
  in the manner provided by Chapter 2001, Government Code [Section 19
  of the Administrative Procedure and Texas Register Act (Article
  6252-13a, Vernon's Texas Civil Statutes)]. Judicial review under
  this subsection is subject to the substantial evidence rule. Venue
  for the review is in a district court in Travis County.
         SECTION 1.59.  Section 14.01(c), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (c)  An offense under this section is a state jail felony if:
               (1)  the actor is a licensee under this Act or an
  employee or member of the commission or the department and the actor
  knowingly represents that a member or employee of the commission or
  the department or a person licensed by the commission or department
  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 1.60.  Section 14.04(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  A person commits an offense if the person is a licensee
  and the person knowingly or intentionally permits, facilitates, or
  allows access, to an enclosure where races are conducted, to
  another person who the person knows:
               (1)  has engaged in bookmaking, touting, or illegal
  wagering;
               (2)  derives income from illegal activities or
  enterprises;
               (3)  has been convicted of a violation of this Act; or
               (4)  is excluded by the department [commission] from
  entering a racetrack facility.
         SECTION 1.61.  Section 14.05(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  A person who is subject to this section commits an
  offense if the person intentionally or knowingly wagers on the
  result of a greyhound race or horse race conducted in this state
  that:
               (1)  is held on an American Indian reservation or on
  American Indian trust land located in this state; and
               (2)  is not held under the supervision of the
  department [commission] under rules adopted under this Act.
         SECTION 1.62.  Section 14.06(c), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (c)  An offense under this section is a state jail felony
  unless the statement was material in a commission or department 
  action relating to a racetrack license, in which event the offense
  is a felony of the third degree.
         SECTION 1.63.  Section 14.12, Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 14.12.  CRIMINAL CONFLICT OF INTEREST. A person who is
  a member of the commission or an employee of the racing division
  commits an offense if the person:
               (1)  accepts, directly or indirectly, employment or
  remuneration from a racetrack facility, association, or other
  licensee, including a facility, association, or licensee located or
  residing in another state;
               (2)  wagers or causes a wager to be placed on the
  outcome of a horse or greyhound race conducted in this state; or
               (3)  accepts or is entitled to any part of a purse to be
  paid to an animal in a race conducted in this state.
         SECTION 1.64.  Section 14.17(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (b)  In this section, "lawful request" means a request from
  the commission or the department, an authorized agent of the
  commission or the department, the director or a commissioned
  officer of the Department of Public Safety, a peace officer, or a
  steward or judge at any time and any restricted location that:
               (1)  is on a racetrack facility; and
               (2)  is not a public place.
         SECTION 1.65.  Section 14.18(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (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 that is on a racetrack facility, except a
  location:
               (1)  excluded by commission rule from searches under
  this section; or
               (2)  provided by an association under commission rule
  for private storage of personal items belonging to a licensee
  entering a racetrack facility.
         SECTION 1.66.  Sections 14.20 and 15.04, Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), are amended to read
  as follows:
         Sec. 14.20.  COMMISSION AND DEPARTMENT AUTHORITY. This
  article may not be construed to restrict the department's or the
  commission's administrative authority to enforce this Act or
  commission rules to the fullest extent authorized by this Act or
  other law.
         Sec. 15.04.  COMPLAINTS. Complaints alleging violations of
  this Act may be instituted by the Department of Public Safety, the
  department [commission], or the attorney general. Such complaints
  shall be adjudicated by the department [commission] pursuant to the
  provisions for a contested case proceeding under Chapter 2001,
  Government Code [the Administrative Procedure and Texas Register
  Act (Article 6252-13a, Vernon's Texas Civil Statutes)].
         SECTION 1.67.  Section 16.01(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  The department [commission] shall not issue a racetrack
  license or accept an application for a license for a racetrack to be
  located in a county until the commissioners court has certified to
  the secretary of state that the qualified voters of the county have
  approved the legalization of pari-mutuel wagering on horse races or
  greyhound races in the county at an election held under this
  article. [A local option election may not be held under this
  article before January 1, 1987.]
         SECTION 1.68.  Section 16.13(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  Not later than the 30th day after the date the result of
  the election is declared, any qualified voter of the county may
  contest the election by filing a petition in the district court of
  the county. Any person who is licensed or who has made application
  to the department [commission] to be licensed in any capacity under
  this Act may become a named party to the proceedings by pleading to
  the petition on or before the time set for hearing and trial as
  provided by Subsection (c) of this section or thereafter by
  intervention on leave of court.
         SECTION 1.69.  Sections 18.06, 18.07, and 18.08, Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         Sec. 18.06.  RELEASE OF LIABILITY. A member of the
  commission, an employee of the department [commission], a steward
  or judge, an association, a horsemen's organization, or any other
  person regulated under this Act is not liable to any individual,
  corporation, business association, or other entity for a cause of
  action that arises out of that person's performance or exercise of
  discretion in the implementation or enforcement of this Act or a
  rule adopted under this Act if the person has acted in good faith.
         Sec. 18.07.  PAST PERFORMANCE OF ASSOCIATION. In
  considering a pleading of a racetrack association, the department
  [commission] shall take into account the operating experience of
  the racetrack association in Texas, which includes, but is not
  limited to, the financial condition of the track, regulatory
  compliance and conduct, and any other relevant matters concerning
  the operation of a track.
         Sec. 18.08.  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.
         SECTION 1.70.  Sections 2.01, 2.02, 2.03, 2.04, 2.05, 2.06,
  2.071, 2.073, 2.074, 2.08, 2.09, 2.10, 2.11, 2.19, 2.20, 2.21,
  2.22, 2.23, 2.24, 2.25, and 18.01, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), are repealed.
 
  ARTICLE 2. CONFORMING AMENDMENTS
         SECTION 2.01.  Section 87.002, Civil Practice and Remedies
  Code, is amended to read as follows:
         Sec. 87.002.  APPLICABILITY OF CHAPTER. This chapter does
  not apply to an activity regulated by the racing division of the 
  Texas Department of Licensing and Regulation [Racing Commission].
         SECTION 2.02.  Section 104.001, Civil Practice and Remedies
  Code, is amended to read as follows:
         Sec. 104.001.  STATE LIABILITY; PERSONS COVERED. In a cause
  of action based on conduct described in Section 104.002, the state
  shall indemnify the following persons, without regard to whether
  the persons performed their services for compensation, for actual
  damages, court costs, and attorney's fees adjudged against:
               (1)  an employee, a member of the governing board, or
  any other officer of a state agency, institution, or department;
               (2)  a former employee, former member of the governing
  board, or any other former officer of a state agency, institution,
  or department who was an employee or officer when the act or
  omission on which the damages are based occurred;
               (3)  a physician or psychiatrist licensed in this state
  who was performing services under a contract with any state agency,
  institution, or department or a racing official performing services
  under a contract with the Texas Department of Licensing and
  Regulation [Racing Commission] when the act or omission on which
  the damages are based occurred;
               (3-a)  a phlebotomist licensed in this state who was
  performing services under a contract with the Texas Department of
  Criminal Justice when the act or omission on which the damages are
  based occurred;
               (4)  a chaplain or spiritual advisor who was performing
  services under contract with the Texas Department of Criminal
  Justice[, the Texas Youth Commission,] or the Texas Juvenile
  Justice Department [Probation Commission] when the act or omission
  on which the damages are based occurred;
               (5)  a person serving on the governing board of a
  foundation, corporation, or association at the request and on
  behalf of an institution of higher education, as that term is
  defined by Section 61.003(8), Education Code, not including a
  public junior college;
               (6)  a state contractor who signed a waste manifest as
  required by a state contract; or
               (7)  the estate of a person listed in this section.
         SECTION 2.03.  Article 2.12, Code of Criminal Procedure, is
  amended to read as follows:
         Art. 2.12.  WHO ARE PEACE OFFICERS. The following are peace
  officers:
               (1)  sheriffs, their deputies, and those reserve
  deputies who hold a permanent peace officer license issued under
  Chapter 1701, Occupations Code;
               (2)  constables, deputy constables, and those reserve
  deputy constables who hold a permanent peace officer license issued
  under Chapter 1701, Occupations Code;
               (3)  marshals or police officers of an incorporated
  city, town, or village, and those reserve municipal police officers
  who hold a permanent peace officer license issued under Chapter
  1701, Occupations Code;
               (4)  rangers and officers commissioned by the Public
  Safety Commission and the Director of the Department of Public
  Safety;
               (5)  investigators of the district attorneys', criminal
  district attorneys', and county attorneys' offices;
               (6)  law enforcement agents of the Texas Alcoholic
  Beverage Commission;
               (7)  each member of an arson investigating unit
  commissioned by a city, a county, or the state;
               (8)  officers commissioned under Section 37.081,
  Education Code, or Subchapter E, Chapter 51, Education Code;
               (9)  officers commissioned by the General Services
  Commission;
               (10)  law enforcement officers commissioned by the
  Parks and Wildlife Commission;
               (11)  airport police officers commissioned by a city
  with a population of more than 1.18 million located primarily in a
  county with a population of 2 million or more that operates an
  airport that serves commercial air carriers;
               (12)  airport security personnel commissioned as peace
  officers by the governing body of any political subdivision of this
  state, other than a city described by Subdivision (11), that
  operates an airport that serves commercial air carriers;
               (13)  municipal park and recreational patrolmen and
  security officers;
               (14)  security officers and investigators commissioned
  as peace officers by the comptroller;
               (15)  officers commissioned by a water control and
  improvement district under Section 49.216, Water Code;
               (16)  officers commissioned by a board of trustees
  under Chapter 54, Transportation Code;
               (17)  investigators commissioned by the Texas Medical
  Board;
               (18)  officers commissioned by:
                     (A)  the board of managers of the Dallas County
  Hospital District, the Tarrant County Hospital District, the Bexar
  County Hospital District, or the El Paso County Hospital District
  under Section 281.057, Health and Safety Code;
                     (B)  the board of directors of the Ector County
  Hospital District under Section 1024.117, Special District Local
  Laws Code; and
                     (C)  the board of directors of the Midland County
  Hospital District of Midland County, Texas, under Section 1061.121,
  Special District Local Laws Code;
               (19)  county park rangers commissioned under
  Subchapter E, Chapter 351, Local Government Code;
               (20)  investigators employed by the racing division of
  the Texas Department of Licensing and Regulation [Racing
  Commission];
               (21)  officers commissioned under Chapter 554,
  Occupations Code;
               (22)  officers commissioned by the governing body of a
  metropolitan rapid transit authority under Section 451.108,
  Transportation Code, or by a regional transportation authority
  under Section 452.110, Transportation Code;
               (23)  investigators commissioned by the attorney
  general under Section 402.009, Government Code;
               (24)  security officers and investigators commissioned
  as peace officers under Chapter 466, Government Code;
               (25)  an officer employed by the Department of State
  Health Services under Section 431.2471, Health and Safety Code;
               (26)  officers appointed by an appellate court under
  Subchapter F, Chapter 53, Government Code;
               (27)  officers commissioned by the state fire marshal
  under Chapter 417, Government Code;
               (28)  an investigator commissioned by the commissioner
  of insurance under Section 701.104, Insurance Code;
               (29)  apprehension specialists and inspectors general
  commissioned by the Texas Juvenile Justice Department as officers
  under Sections 242.102 and 243.052, Human Resources Code;
               (30)  officers appointed by the inspector general of
  the Texas Department of Criminal Justice under Section 493.019,
  Government Code;
               (31)  investigators commissioned by the Texas
  Commission on Law Enforcement under Section 1701.160, Occupations
  Code;
               (32)  commission investigators commissioned by the
  Texas Private Security Board under Section 1702.061(f),
  Occupations Code;
               (33)  the fire marshal and any officers, inspectors, or
  investigators commissioned by an emergency services district under
  Chapter 775, Health and Safety Code;
               (34)  officers commissioned by the State Board of
  Dental Examiners under Section 254.013, Occupations Code, subject
  to the limitations imposed by that section;
               (35)  investigators commissioned by the Texas Juvenile
  Justice Department as officers under Section 221.011, Human
  Resources Code; and
               (36)  the fire marshal and any related officers,
  inspectors, or investigators commissioned by a county under
  Subchapter B, Chapter 352, Local Government Code.
         SECTION 2.04.  Sections 88.526(a) and (c), Education Code,
  are amended to read as follows:
         (a)  The director shall prepare an annual report on equine
  research funded under this subchapter. The director shall
  distribute the report to the racing division of the Texas
  Department of Licensing and Regulation [Racing Commission] and
  members of the Texas horse racing industry. The director shall make
  copies of the report available to interested parties.
         (c)  The director shall, at least annually, consult with the
  racing division of the Texas Department of Licensing and Regulation
  [Racing Commission] on the use of the account and the impact of
  equine research funded by the account.
         SECTION 2.05.  Section 411.096, Government Code, is amended
  to read as follows:
         Sec. 411.096.  ACCESS TO CRIMINAL HISTORY RECORD
  INFORMATION:  RACING DIVISION OF THE TEXAS DEPARTMENT OF LICENSING
  AND REGULATION [RACING COMMISSION]. (a)  The racing division of
  the Texas Department of Licensing and Regulation [Racing
  Commission] is entitled to obtain from the department criminal
  history record information maintained by the department that
  pertains to a person who is:
               (1)  appointed to the racing division [commission];
               (2)  an applicant for employment by the racing division
  [commission]; or
               (3)  an applicant for a license under the Texas Racing
  Act (Article 179e, Vernon's Texas Civil Statutes).
         (b)  Criminal history record information obtained by the
  racing division [commission] under Subsection (a) may not be
  released or disclosed to any person except in a criminal
  proceeding, in a hearing conducted by the Texas Department of
  Licensing and Regulation [commission], on court order, or with the
  consent of the applicant.
         SECTION 2.06.  Section 572.003(c), Government Code, is
  amended to read as follows:
         (c)  The term means a member of:
               (1)  the Public Utility Commission of Texas;
               (2)  the Texas Commission on Environmental Quality;
               (3)  the Texas Alcoholic Beverage Commission;
               (4)  The Finance Commission of Texas;
               (5)  the Texas Facilities Commission;
               (6)  the Texas Board of Criminal Justice;
               (7)  the board of trustees of the Employees Retirement
  System of Texas;
               (8)  the Texas Transportation Commission;
               (9)  the Texas Department of Insurance;
               (10)  the Parks and Wildlife Commission;
               (11)  the Public Safety Commission;
               (12)  the Texas Ethics Commission;
               (13)  the State Securities Board;
               (14)  the Texas Water Development Board;
               (15)  the governing board of a public senior college or
  university as defined by Section 61.003, Education Code, or of The
  University of Texas Southwestern Medical Center, The University of
  Texas Medical Branch at Galveston, The University of Texas Health
  Science Center at Houston, The University of Texas Health Science
  Center at San Antonio, The University of Texas M. D. Anderson Cancer
  Center, The University of Texas Health Science Center at Tyler,
  University of North Texas Health Science Center at Fort Worth,
  Texas Tech University Health Sciences Center, Texas State Technical
  College--Harlingen, Texas State Technical College--Marshall, Texas
  State Technical College--Sweetwater, or Texas State Technical
  College--Waco;
               (16)  the Texas Higher Education Coordinating Board;
               (17)  the Texas Workforce Commission;
               (18)  the board of trustees of the Teacher Retirement
  System of Texas;
               (19)  the Credit Union Commission;
               (20)  the School Land Board;
               (21)  the board of the Texas Department of Housing and
  Community Affairs;
               (22)  [the Texas Racing Commission;
               [(23)]  the State Board of Dental Examiners;
               (23) [(24)]  the Texas Medical Board;
               (24) [(25)]  the Board of Pardons and Paroles;
               (25) [(26)]  the Texas State Board of Pharmacy;
               (26) [(27)]  the Department of Information Resources
  governing board;
               (27) [(28)]  the Motor Vehicle Board;
               (28) [(29)]  the Texas Real Estate Commission;
               (29) [(30)]  the board of directors of the State Bar of
  Texas;
               (30) [(31)]  the bond review board;
               (31) [(32)]  the Health and Human Services Commission;
               (32) [(33)]  the Texas Funeral Service Commission;
               (33) [(34)]  the board of directors of a river
  authority created under the Texas Constitution or a statute of this
  state; or
               (34) [(35)]  the Texas Lottery Commission.
         SECTION 2.07.  Section 2054.352(a), Government Code, is
  amended to read as follows:
         (a)  The following licensing entities shall participate in
  the system established under Section 2054.353:
               (1)  Texas Board of Chiropractic Examiners;
               (2)  Judicial Branch Certification Commission;
               (3)  State Board of Dental Examiners;
               (4)  Texas Funeral Service Commission;
               (5)  Texas Board of Professional Land Surveying;
               (6)  Texas Medical Board;
               (7)  Texas Board of Nursing;
               (8)  Texas Optometry Board;
               (9)  Department of Agriculture, for licenses issued
  under Chapter 1951, Occupations Code;
               (10)  Texas State Board of Pharmacy;
               (11)  Executive Council of Physical Therapy and
  Occupational Therapy Examiners;
               (12)  Texas State Board of Plumbing Examiners;
               (13)  Texas State Board of Podiatric Medical Examiners;
               (14)  Texas State Board of Examiners of Psychologists;
               (15)  State Board of Veterinary Medical Examiners;
               (16)  Texas Real Estate Commission;
               (17)  Texas Appraiser Licensing and Certification
  Board;
               (18)  Texas Department of Licensing and Regulation;
               (19)  Texas State Board of Public Accountancy;
               (20)  State Board for Educator Certification;
               (21)  Texas Board of Professional Engineers;
               (22)  Department of State Health Services;
               (23)  Texas Board of Architectural Examiners;
               (24)  [Texas Racing Commission;
               [(25)]  Texas Commission on Law Enforcement; and
               (25) [(26)]  Texas Private Security Board.
  ARTICLE 3. TRANSITION AND EFFECTIVE DATE
         SECTION 3.01.  The change in law made by this Act to the
  requirements for the issuance or renewal of a license issued under
  the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes)
  applies only to the issuance or renewal of a certificate under that
  Act that expires on or after January 1, 2016. A certificate that
  expires before that date is governed by the law in effect on the
  date the certificate expires, and the former law is continued in
  effect for that purpose.
         SECTION 3.02.  The change in law made by this Act to the
  procedures relating to disciplinary actions for persons licensed
  under the Texas Racing Act (Article 179e, Vernon's Texas Civil
  Statutes) applies only to a disciplinary action initiated on or
  after January 1, 2016. A disciplinary action initiated before that
  date is governed by the law in effect on the date the action is
  initiated, and the former law is continued in effect for that
  purpose.
         SECTION 3.03.  A person described by Section 6.16(a), Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes), is
  governed by that section as it existed immediately before the
  effective date of the amendment to that section by this Act, and
  that law is continued in effect for that purpose.
         SECTION 3.04.  (a)  On January 1, 2016:
               (1)  the Texas Racing Commission is abolished and all
  powers and duties of the Texas Racing Commission under the Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes) and other
  law are transferred to the Texas Commission of Licensing and
  Regulation and the Texas Department of Licensing and Regulation;
               (2)  all obligations, rights, contracts, bonds,
  appropriations, records, and property of the Texas Racing
  Commission are transferred to the Texas Department of Licensing and
  Regulation;
               (3)  a rule, policy, procedure, or decision of the
  Texas Racing Commission continues in effect as a rule, policy,
  procedure, or decision of the Texas Commission of Licensing and
  Regulation or the Texas Department of Licensing and Regulation, in
  accordance with Subdivision (1) of this subsection, until
  superseded by a later act of the Texas Commission of Licensing and
  Regulation or the Texas Department of Licensing and Regulation; and
               (4)  except as otherwise provided by this Act, a
  reference in law to the Texas Racing Commission means the Texas
  Commission of Licensing and Regulation.
         (b)  Not later than October 1, 2015, the Texas Racing
  Commission, the Texas Commission of Licensing and Regulation, and
  the Texas Department of Licensing and Regulation shall adopt a
  comprehensive transition plan for the transfer described by
  Subsection (a) of this section.
         (c)  Not later than November 1, 2015, the Texas Racing
  Commission shall meet with the Texas Department of Licensing and
  Regulation to provide for the transfer of essential personnel to
  the Texas Department of Licensing and Regulation.
         (d)  The Texas Racing Commission shall continue, as
  necessary, to perform the duties and functions being transferred to
  the Texas Commission of Licensing and Regulation or the Texas
  Department of Licensing and Regulation until the transfer of agency
  duties and functions is complete.
         (e)  Subsections (b), (c), and (d) of this section take
  effect September 1, 2015.
         SECTION 3.05.  (a)  The Texas Racing Commission and the
  Texas Commission of Licensing and Regulation shall enter into or
  revise a joint memorandum of understanding to coordinate the Texas
  Racing Commission's and the Texas Department of Licensing and
  Regulation's information systems to allow for the sharing of
  information so that each entity may effectively and efficiently
  perform the functions and duties assigned to it. Neither the Texas
  Racing Commission nor the Texas Department of Licensing and
  Regulation may impose or collect a fee or charge in connection with
  the sharing of information under the joint memorandum of
  understanding entered into or revised under this section.
         (b)  The Texas Racing Commission and the Texas Department of
  Licensing and Regulation shall implement the joint memorandum of
  understanding using existing personnel and resources.
         (c)  Otherwise confidential information shared under the
  memorandum of understanding remains subject to the same
  confidentiality requirements and legal restrictions on access to
  the information that are imposed by law on the entity that
  originally obtained or collected the information.
         (d)  Information may be shared under the memorandum of
  understanding without the consent of the person who is the subject
  of the information.
         (e)  The memorandum of understanding required by Subsection
  (a) of this section must be entered into or revised at the first
  official meeting of the Texas Commission of Licensing and
  Regulation occurring after the effective date of this section.
         (f)  This section takes effect September 1, 2015.
         SECTION 3.06.  (a)  In addition to the memorandum of
  understanding required by Section 3.05 of this article, the Texas
  Racing Commission and the Texas Commission of Licensing and
  Regulation may enter into or revise one or more other joint
  memoranda of understanding necessary to effect the transfer of the
  powers and duties of the Texas Racing Commission to the Texas
  Commission of Licensing and Regulation and the Texas Department of
  Licensing and Regulation under this Act. A memorandum of
  understanding may include an agreement for the provision of office
  space, utilities and other facility services, and support services
  and for the transfer of information technology as necessary or
  appropriate to effect the transfer of the powers and duties of the
  Texas Racing Commission to the Texas Commission of Licensing and
  Regulation and the Texas Department of Licensing and Regulation.
         (b)  Sections 3.05(b), (c), and (d) of this article apply to
  a memorandum of understanding entered into or revised under
  Subsection (a) of this section.
         (c)  This section takes effect September 1, 2015.
         SECTION 3.07.  Except as otherwise provided by this Act,
  this Act takes effect January 1, 2016.