HB 5013

relating to the Texas Racing Commission and the regulation of dog
races, including greyhound races, as live events in this state and
of simulcast wagering on greyhound races conducted out of state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 481.172(a), Government Code, is amended
(1)  as the primary state governmental entity
responsible for out-of-state tourism marketing and promotion
efforts, promote and advertise within the United States and in
foreign countries, by radio, television, newspaper, the Internet,
and other means considered appropriate, tourism in this state by
non-Texans, including persons from foreign countries, and
distribute promotional materials through appropriate distribution
(2)  represent the state in domestic and international
travel trade shows, trade missions, and seminars;
(3)  encourage travel by Texans to this state's scenic,
historical, cultural, natural, agricultural, educational,
recreational, and other attractions;
(4)  conduct a public relations campaign to create a
responsible and accurate national and international image of this
(5)  use current market research to develop a tourism
marketing plan to increase travel to the state by domestic and
(6)  develop methods to attract tourist attractions to
(7)  assist communities to develop tourist
(8)  not later than December 31, 2003, enter into a
memorandum of understanding with the Parks and Wildlife Department,
the Texas Department of Transportation, the Texas Historical
Commission, and the Texas Commission on the Arts to direct the
efforts of those agencies in all matters relating to tourism;
(9)  promote and encourage the horse racing [and
greyhound racing] industry, if funds are appropriated for the
promotion or encouragement; and
(10)  promote the sports industry and related
industries in this state, including promoting this state as a host
for national and international amateur athletic competition and
promoting sports or fitness programs for the residents of this
state, if funds are appropriated for the promotion.
SECTION 2.  The heading to Section 751.0021, Health and
Safety Code, is amended to read as follows:
Sec. 751.0021.  APPLICABILITY TO CERTAIN HORSE [AND
SECTION 3.  Section 751.0021(a), Health and Safety Code, is
(a)  This chapter applies to a horse [or greyhound] race that
attracts or is expected to attract at least 100 persons, except that
this chapter does not apply if the race is held at a location at
which pari-mutuel wagering is authorized under Subtitle A-1, Title
13, Occupations Code (Texas Racing Act).
SECTION 4.  Section 2021.002, Occupations Code, is amended
Sec. 2021.002.  PURPOSE.  The purpose of this subtitle is to
provide for the strict regulation of horse racing [and greyhound
racing] and the control of pari-mutuel wagering in connection with
SECTION 5.  Sections 2021.003(30), (34), (41), (42), (44),
(45), and (54), Occupations Code, are amended to read as follows:
(30)  "Outstanding ticket" means a pari-mutuel ticket
not presented for payment before the end of the horse racing day [or
greyhound racing day] for which the ticket was purchased.
(34)  "Pari-mutuel wagering" means the form of wagering
on the outcome of horse racing [or greyhound racing] in which
persons who wager purchase tickets of various denominations on an
animal or animals and all wagers for each race are pooled and held
by the racetrack association for distribution of the total amount,
less the deductions authorized by this subtitle, to holders of
tickets on the winning animals.
(41)  "Racetrack" means a facility licensed under this
subtitle for the conduct of pari-mutuel wagering on horse racing
(42)  "Racetrack association" means a person licensed
under this subtitle to conduct a horse race meeting [or a greyhound
race meeting] with pari-mutuel wagering.
(44)  "Regular wagering" means wagering on a single
horse [or greyhound] in a single race. The term includes wagering on
the win pool, the place pool, or the show pool.
(45)  "Sending track" means any licensed track for
horse [or greyhound] racing in this state or another state from
(54)  "Trainer" means a person who is licensed by the
commission to train horses [or greyhounds].
SECTION 6.  Chapter 2021, Occupations Code, is amended by
adding Section 2021.010 to read as follows:
Sec. 2021.010.  DOG RACING PROHIBITED.  Any form of dog
racing, including greyhound racing, conducted as a live racing
event in this state is prohibited.
SECTION 7.  Section 2022.001(c), Occupations Code, is
(c)  Of the appointed commission members:
(1)  five members must be representatives of the
general public and have general knowledge of business or
(2)  two members [one additional member] must have
special knowledge or experience related to horse racing[; and
[(3)  one additional member must have special knowledge
or experience related to greyhound racing].
SECTION 8.  Section 2022.004(b), Occupations Code, is
(b)  A person may not be a commission member and may not be a
commission employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.), if:
(1)  the person is an officer, employee, or paid
consultant of a Texas trade association in the field of horse [or
greyhound] racing or breeding; or
(2)  the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of horse [or
SECTION 9.  Section 2022.052(c), Occupations Code, is
(c)  The commission may not employ or continue to employ a
(1)  owns or controls a financial interest in a
(2)  is employed by or serves as a paid consultant to a
commission license holder, an official state breed registry, or a
Texas trade association, as defined by Section 2022.004(a), in the
field of horse [or greyhound] racing or breeding;
(3)  owns or leases a race animal that participates in
pari-mutuel racing in this state;
(4)  accepts or is entitled to any part of the purse or
Texas-bred incentive award to be paid on a horse [or a greyhound] in
a race conducted in this state; or
(5)  resides with or is related within the first degree
by affinity or consanguinity to a person subject to a
disqualification prescribed by this subsection.
SECTION 10.  The heading to Subchapter A, Chapter 2023,
Occupations Code, is amended to read as follows:
SUBCHAPTER A. REGULATION, SUPERVISION, AND LICENSING RELATING TO
HORSE RACING [AND GREYHOUND RACING]
SECTION 11.  Section 2023.001, Occupations Code, is amended
Sec. 2023.001.  LICENSING, REGULATION, AND SUPERVISION OF
HORSE RACING [AND GREYHOUND RACING].  (a)  Notwithstanding any
contrary provision in this subtitle, the commission may license and
regulate all aspects of horse racing [and greyhound racing] in this
state, regardless of whether that racing involves pari-mutuel
(b)  The commission, in adopting rules and in the supervision
and conduct of racing, shall consider the effect of a proposed
commission action on the state's agricultural, horse breeding, and
horse training[, greyhound breeding, and greyhound training]
SECTION 12.  Section 2023.002, Occupations Code, is amended
Sec. 2023.002.  REGULATION AND SUPERVISION OF WAGERING AT
RACE MEETINGS.  (a)  The commission shall regulate and supervise
each race meeting in this state that involves wagering on the result
of horse racing [or greyhound racing]. Each person and thing
relating to the operation of a race meeting is subject to regulation
and supervision by the commission.
(b)  The commission shall adopt rules, issue licenses, and
take any other necessary action relating exclusively to horse
SECTION 13.  Section 2023.004(a), Occupations Code, is
(a)  The commission shall adopt:
(1)  rules for conducting horse racing [or greyhound
racing] in this state that involves wagering; and
(2)  rules for administering this subtitle in a manner
SECTION 14.  Section 2023.056(a), Occupations Code, is
(1)  cooperate with a district attorney, a criminal
district attorney, a county attorney, the Department of Public
Safety, the attorney general, or a peace officer in enforcing this
(2)  investigate, or assist a local law enforcement
agency in the investigation of, an unlawful dog race conducted in
SECTION 15.  Section 2023.061(b), Occupations Code, is
(b)  The report must cover the operations of the commission
and the condition of horse breeding and racing [and greyhound
breeding and racing] during the previous year.
SECTION 16.  Section 2023.101, Occupations Code, is amended
Sec. 2023.101.  EMPLOYMENT OF STEWARDS [AND JUDGES].  (a)  A
horse race meeting must be supervised by three stewards[, and a
greyhound race meeting must be supervised by three judges].
(b)  The commission shall employ each steward [and judge] for
the supervision of a horse race [or greyhound race] meeting.
(c)  The commission shall designate one steward [or judge, as
appropriate,] as the presiding steward [or judge] for each race
(d)  Following the completion of a race meeting, a racetrack
association may submit to the commission for the commission's
review written comments regarding the job performance of the
stewards [and judges].  A racetrack association's comments
submitted under this section are not binding, in any way, on the
SECTION 17.  Section 2024.055(a), Occupations Code, is
(a)  The comptroller shall deposit the state's share of each
pari-mutuel pool from horse racing [and greyhound racing] in the
SECTION 18.  Section 2025.051, Occupations Code, is amended
Sec. 2025.051.  RACETRACK LICENSE REQUIRED; CRIMINAL
PENALTY.  A person may not conduct wagering on a horse [or
greyhound] race meeting without first obtaining a racetrack license
issued by the commission.  A person who violates this section
SECTION 19.  Section 2025.053(b), Occupations Code, is
(b)  The commission shall set application fees in amounts
reasonable and necessary to cover the costs of administering this
subtitle.  The commission by rule shall establish a schedule of
application fees for the various [types and] classifications of
racetracks using minimum application fees.  The minimum application
[(1)  for a horse racetrack] is:
(1) [(A)]  $15,000 for a class 1 racetrack;
(2) [(B)]  $7,500 for a class 2 racetrack;
(3) [(C)]  $2,500 for a class 3 racetrack; and
(4) [(D)]  $1,500 for a class 4 racetrack[; and
[(2)  for a greyhound racetrack is $20,000].
SECTION 20.  Section 2025.101(c), Occupations Code, is
(c)  The commission may not issue a license to operate a
class 1 or class 2 racetrack [or a greyhound racetrack] to a
(1)  the corporation is incorporated under the laws of
(2)  a majority of any of its corporate stock is owned
at all times by individuals who meet the residency qualifications
prescribed by Section 2025.201 for individual applicants.
SECTION 21.  Section 2025.102(b), Occupations Code, is
(b)  In determining whether to grant or deny an application
for any class of racetrack license, the commission may consider:
(1)  the applicant's financial stability;
(2)  the applicant's resources for supplementing the
purses for races for various breeds;
(3)  the location of the proposed racetrack;
(4)  the effect of the proposed racetrack on traffic
(5)  facilities for patrons and occupational license
(6)  facilities for race animals;
(7)  availability to the racetrack of support services
(8)  the experience of the applicant's employees;
(9)  the potential for conflict with other licensed
(10)  the anticipated effect of the race meeting on the
horse [or greyhound] breeding industry in this state; and
(11)  the anticipated effect of the race meeting on the
state and local economy from tourism, increased employment, and
SECTION 22.  Sections 2025.201(a) and (c), Occupations Code,
are amended to read as follows:
(a)  The commission may refuse to issue a racetrack license
or may revoke or suspend a license if, after notice and hearing, the
commission finds that the applicant or license holder, as
(1)  has been convicted of a violation of this subtitle
or a commission rule, or has aided, abetted, or conspired to commit
a violation of this subtitle or a commission rule;
(2)  has been convicted of a felony or a crime involving
moral turpitude, including a conviction for which the punishment
received was a suspended sentence, probation, or a nonadjudicated
conviction, that is reasonably related to the person's present
fitness to hold a license under this subtitle;
(3)  has violated or has caused to be violated this
subtitle or a commission rule in a manner that involves moral
turpitude, as distinguished from a technical violation of this
(4)  is unqualified, by experience or otherwise, to
perform the duties required of a license holder under this
(5)  failed to answer or falsely or incorrectly
answered a question in an application;
(6)  fails to disclose the true ownership or interest
in a horse [or greyhound] as required by commission rules;
(7)  is indebted to this state for any fee or for the
payment of a penalty imposed by this subtitle or a commission rule;
(8)  is not of good moral character or the person's
reputation as a peaceable, law-abiding citizen in the community
where the person resides is bad;
(9)  is not at least the minimum age necessary to
purchase alcoholic beverages in this state;
(10)  is in the habit of using alcoholic beverages to an
excess or uses a controlled substance as defined by Chapter 481,
Health and Safety Code, or a dangerous drug as defined in Chapter
483, Health and Safety Code, or is mentally incapacitated;
(11)  may be excluded from an enclosure under this
(12)  has not been a United States citizen residing in
this state for the 10 consecutive years preceding the filing of the
(13)  has improperly used a credential, including a
license certificate or identification card, issued under this
(14)  resides with a person whose license was revoked
for cause during the 12 months preceding the date of the present
(15)  has failed or refused to furnish a true copy of
the application to the commission's district office in the district
in which the premises for which the license is sought are located;
(16)  is engaged or has engaged in activities or
practices the commission determines are detrimental to the best
interests of the public and the sport of horse racing [or greyhound
(17)  fails to fully disclose the true owners of all
interests, beneficial or otherwise, in a proposed racetrack.
(c)  The commission may refuse to issue a license or may
suspend or revoke a license of a license holder under this
subchapter who knowingly or intentionally allows access to an
enclosure where horse races [or greyhound races] are conducted to a
(1)  who has engaged in bookmaking, touting, or illegal
(2)  whose income is from illegal activities or
(3)  who has been convicted of a violation of this
SECTION 23.  Section 2025.262, Occupations Code, is amended
Sec. 2025.262.  GROUNDS FOR DENIAL, REVOCATION, AND
SUSPENSION OF OCCUPATIONAL LICENSE.  The commission may refuse to
issue any original or renewal license under this subchapter or may
revoke or suspend the license if, after notice and hearing, the
commission finds that the applicant or license holder, as
(1)  has been convicted of a violation of this subtitle
or a commission rule or has aided, abetted, or conspired to commit a
violation of this subtitle or a commission rule;
(2)  has been convicted of a felony or a crime involving
moral turpitude that is reasonably related to the person's present
fitness to hold a license under this subtitle;
(3)  has violated or has caused to be violated this
subtitle or a commission rule in a manner that involves moral
turpitude, as distinguished from a technical violation of this
(4)  is unqualified, by experience or otherwise, to
perform the duties required of a license holder under this
(5)  failed to answer or has falsely or incorrectly
answered a question in an original or renewal application;
(6)  fails to disclose the true ownership or interest
in a horse [or greyhound] as required by commission rules;
(7)  is indebted to this state for any fee or for the
payment of a penalty imposed by this subtitle or a commission rule;
(8)  is not of good moral character or the person's
reputation as a peaceable, law-abiding citizen in the community
where the person resides is bad;
(9)  is in the habit of using alcoholic beverages to an
excess or uses a controlled substance as defined in Chapter 481,
Health and Safety Code, or a dangerous drug as defined in Chapter
483, Health and Safety Code, or is mentally incapacitated;
(10)  may be excluded from an enclosure under this
(11)  has improperly used a temporary pass, license
certificate, credential, or identification card issued under this
(12)  resides with a person whose license was revoked
for cause during the 12 months preceding the date of the present
(13)  has failed or refused to furnish a true copy of
the application to the commission's district office in the district
in which the premises for which the license is sought are located;
(14)  is engaged or has engaged in activities or
practices that are detrimental to the best interests of the public
and the sport of horse racing [or greyhound racing].
SECTION 24.  Section 2026.003(a), Occupations Code, is
(a)  The commission by rule shall require that each racetrack
association that holds a license for a class 1 racetrack or[,] class
2 racetrack[, or greyhound racetrack] annually file with the
commission a detailed financial statement that:
(1)  contains the names and addresses of all
stockholders, members, and owners of any interest in the racetrack;
(2)  indicates compliance during the filing period with
(3)  includes any other information required by the
SECTION 25.  Section 2026.004(a), Occupations Code, is
(a)  Except as provided by this section, Section 2026.005, or
Section 2025.103, a racetrack association may not conduct horse
racing [or greyhound racing] at any place other than the place
SECTION 26.  Sections 2026.011 and 2026.051, Occupations
Code, are amended to read as follows:
Sec. 2026.011.  AUTOMOBILE RACING FACILITY PROHIBITED NEAR
RACETRACK IN CERTAIN COUNTIES.  An automobile racing facility may
not be located within 10,000 feet of a horse [or greyhound]
racetrack that is located in a county with a population of 2.1
Sec. 2026.051.  COMMISSION RULES REGARDING EXCLUSION OR
EJECTION.  The commission shall adopt rules providing for the
exclusion or ejection from an enclosure where horse [or greyhound]
races are conducted, or from specified portions of an enclosure, of
(1)  who has engaged in bookmaking, touting, or illegal
(2)  whose income is from illegal activities or
(3)  who has been convicted of a violation of this
(4)  who has been convicted of theft;
(5)  who has been convicted under the penal law of
another jurisdiction for committing an act that would have
constituted a violation of any rule described in this section;
(6)  who has committed a corrupt or fraudulent act in
connection with horse [or greyhound] racing or pari-mutuel wagering
or who has committed any act tending or intended to corrupt horse
[or greyhound] racing or pari-mutuel wagering;
(7)  who is under suspension or has been excluded or
ejected from a racetrack by the commission or a steward in this
state or by a corresponding authority in another state because of
corrupt or fraudulent practices or other acts detrimental to
(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
(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
(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 27.  Section 2027.001(a), Occupations Code, is
(a)  The commission shall adopt rules to regulate wagering on
horse races [and greyhound races] under the system known as
SECTION 28.  Sections 2027.002(b) and (d), Occupations Code,
are amended to read as follows:
(b)  A person may not accept, in person, by telephone, or
over the Internet, a wager for a horse [or greyhound] race conducted
inside or outside this state from a person in this state unless the
wager is authorized under this subtitle.
(d)  Except as provided by Subsection (c), a person may not
place, in person, by telephone, or over the Internet, a wager for a
horse [or greyhound] race conducted inside or outside this state.
SECTION 29.  Section 2027.006(a), Occupations Code, is
(a)  A person who claims to be entitled to any part of a
distribution from a pari-mutuel pool may, not later than the first
anniversary of the day the ticket was purchased, file with the
appropriate racetrack association a claim for the money accompanied
by a substantial portion of the pari-mutuel ticket sufficient to
identify the racetrack association, race, horse [or greyhound]
involved, amount wagered, and type of ticket.
SECTION 30.  Sections 2027.102(a) and (b), Occupations Code,
are amended to read as follows:
(a)  A person may not wager on the result of a horse [or
greyhound] race in this state except as authorized by this
(b)  A person other than a racetrack association may not
accept from a Texas resident while the resident is in this state a
wager on the result of a horse [or greyhound] race conducted inside
SECTION 31.  Section 2028.051, Occupations Code, is amended
Sec. 2028.051.  SET-ASIDE FROM LIVE PARI-MUTUEL POOL.  A
horse [or greyhound] racetrack association shall set aside for this
state from each live pari-mutuel pool at the racetrack an amount
(1)  one percent of each live pari-mutuel pool from the
total amount of all of the racetrack association's live pari-mutuel
pools in a calendar year in excess of $100 million but less than
(2)  two percent of each live pari-mutuel pool from the
total amount of all of the racetrack association's live pari-mutuel
pools in a calendar year in excess of $200 million but less than
(3)  three percent of each live pari-mutuel pool from
the total amount of all of the racetrack association's live
pari-mutuel pools in a calendar year in excess of $300 million but
(4)  four percent of each live pari-mutuel pool from
the total amount of all of the racetrack association's live
pari-mutuel pools in a calendar year in excess of $400 million but
(5)  five percent of each live pari-mutuel pool from
the total amount of all of the racetrack association's live
pari-mutuel pools in a calendar year in excess of $500 million.
SECTION 32.  Sections 2028.202(a) and (a-1), Occupations
Code, are amended to read as follows:
(a)  A racetrack association shall distribute from the total
amount deducted as provided by Section [Sections] 2028.101 [and
2028.152] from each simulcast pari-mutuel pool [and each simulcast
cross-species pari-mutuel pool] the following shares:
(1)  an amount equal to one percent of each simulcast
pari-mutuel pool to the commission for the administration of this
(2)  [an amount equal to 1.25 percent of each simulcast
cross-species pari-mutuel pool to the commission for the
administration of this subtitle;
[(3)  for a horse racetrack association,] an amount
equal to one percent of a multiple two wagering pool or multiple
three wagering pool as the amount set aside for the Texas-bred
program to be used as provided by Section 2028.103;
[(4)  for a greyhound racetrack association, an amount
equal to one percent of a multiple two wagering pool or a multiple
three wagering pool as the amount set aside for the Texas-bred
program for greyhound races, to be distributed and used in
accordance with commission rules adopted to promote greyhound
(3) [(5)]  the remainder as the amount set aside for
purses, expenses, the sending track, and the receiving location
under a contract approved by the commission between the sending
track and the receiving location.
(a-1)  A racetrack association shall pay to the commission
for deposit into the Texas-bred incentive fund established under
Section 2028.301 the shares to be distributed under Subsection
(a)(2) [Subsections (a)(3) and (a)(4)] for the Texas-bred program.
The commission shall distribute the money collected under this
section and deposited into the fund to the appropriate state breed
registries for use under the Texas-bred program.
SECTION 33.  The heading to Chapter 2030, Occupations Code,
CHAPTER 2030. TEXAS-BRED HORSES [AND GREYHOUNDS]
SECTION 34.  Section 2033.002, Occupations Code, is amended
Sec. 2033.002.  UNLAWFUL RACING.  A person commits an
(1)  the person participates in, permits, or conducts a
horse [or greyhound] race at a racetrack;
(2)  the person wagers on the partial or final outcome
of the horse [or greyhound] race or knows or reasonably should know
that another person is betting on the partial or final outcome of
(3)  the race is not part of a performance or race
meeting conducted under this subtitle or commission rule.
SECTION 35.  Section 2033.003(a), Occupations Code, is
(a)  A person commits an offense if, without a license, the
person in any capacity participates or is otherwise involved in
horse racing [or greyhound racing] with pari-mutuel wagering.
SECTION 36.  Section 2033.004(a), Occupations Code, is
(a)  A person commits an offense if the person:
(1)  conducts a horse [or greyhound] race without a
(2)  knows or reasonably should know that another
person is betting on the final or partial outcome of the race.
SECTION 37.  Section 2033.008(a), Occupations Code, is
(a)  A person commits an offense if the person knowingly
wagers on the result of a horse [or greyhound] race conducted in
(1)  is held on an American Indian reservation or on
American Indian trust land located in this state; and
(2)  is not held under the supervision of the
commission under rules adopted under this subtitle.
SECTION 38.  Section 2033.013(a), Occupations Code, is
(a)  A person commits an offense if, with an intent to
deceive and an intent to obtain a benefit, the person knowingly:
(1)  makes a false statement about a horse [or
greyhound] race to another person; or
(2)  offers, agrees to convey, or conveys false
information about a horse [or greyhound] race to another person.
SECTION 39.  Sections 2033.014(a) and (b), Occupations Code,
are amended to read as follows:
(a)  A person commits an offense if, with the intent to
influence or affect the outcome of a race in a manner contrary to
this subtitle or a commission rule, the person offers, confers, or
agrees to confer on another person, or solicits, accepts, or agrees
to accept from another person, any benefit as consideration for the
actions of a person who receives the benefit relating to the
conduct, decision, opinion, recommendation, vote, or exercise of
discretion as a license holder or other person associated with or
interested in any stable, [kennel,] horse, [greyhound,] or horse
(b)  An offense under this section is a state jail felony
unless the recipient of the benefit is a steward, judge, or other
racetrack official exercising authority over a horse [or greyhound]
race that the person providing or offering the benefit intended to
influence, in which event the offense is a felony of the third
SECTION 40.  Sections 2033.015(b) and (c), Occupations Code,
are amended to read as follows:
(b)  A person commits an offense if, with the intent to
influence or affect a horse [or greyhound] race in a manner contrary
to this subtitle or a commission rule, the person uses or offers to
(c)  An offense under Subsection (a) is a Class A misdemeanor
unless the actor possessed the prohibited device or prohibited
substance with the intent to influence or affect the outcome of a
horse [or greyhound] race in a manner contrary to this subtitle or a
commission rule, in which event the offense is a state jail felony.
SECTION 41.  Section 2033.016, Occupations Code, is amended
Sec. 2033.016.  CRIMINAL CONFLICT OF INTEREST.  A person who
is a commission member commits an offense if the person:
(1)  accepts, directly or indirectly, employment or
remuneration from a racetrack, racetrack association, or other
license holder, including a racetrack, racetrack association, or
license holder located or residing in another state;
(2)  wagers or causes a wager to be placed on the
outcome of a horse [or greyhound] race conducted in this state; or
(3)  accepts or is entitled to any part of a purse to be
paid to an animal in a race conducted in this state.
SECTION 42.  Section 2035.001(a), Occupations Code, is
(a)  The commission may not issue a racetrack license or
accept a license application for a racetrack to be located in a
county until the commissioners court has certified to the secretary
of state that the qualified voters of the county have approved the
legalization of pari-mutuel wagering on horse races [or greyhound
races] in the county at an election held under this chapter.
SECTION 43.  Section 2035.002, Occupations Code, is amended
Sec. 2035.002.  INITIATION OF LEGALIZATION ELECTION.  The
(1)  may, on its own motion by a majority vote of its
members, order an election to approve the legalization of
pari-mutuel wagering on horse races [or greyhound races]; and
(2)  shall order an election on presentation of a
petition meeting the requirements of this chapter.
SECTION 44.  Section 2035.003, Occupations Code, is amended
Sec. 2035.003.  ELECTION TO APPROVE WAGERING ON SIMULCAST
RACES.  The commissioners court of a county in which a racetrack is
conducting live racing may, on its own motion by a majority vote of
its members, order an election to approve pari-mutuel wagering on
simulcast horse races [or greyhound races].
SECTION 45.  Section 2035.005, Occupations Code, is amended
Sec. 2035.005.  CONTENTS OF PETITION APPLICATION.  To be
valid, the petition application must contain:
(1)  a heading, as follows: "Application for a Petition
for a Local Option Election to Approve the Legalization of
Pari-mutuel Wagering on Horse Races" [or "Application for a
Petition for a Local Option Election to Approve the Legalization of
Pari-mutuel Wagering on Greyhound Races," as appropriate];
(2)  a statement of the issue to be voted on, as
follows: "Legalizing pari-mutuel wagering on horse races in
__________ County" [or "Legalizing pari-mutuel wagering on
greyhound races in __________ County," as appropriate];
(3)  a statement immediately above the signatures of
the applicants, as follows: "It is the hope, purpose, and intent of
the applicants whose signatures appear below that pari-mutuel
wagering on horse races be legalized in __________ County" [or "It
is the hope, purpose, and intent of the applicants whose signatures
appear below that pari-mutuel wagering on greyhound races be
legalized in __________ County," as appropriate]; and
(4)  the printed name, signature, residence address,
and voter registration certificate number of each applicant.
SECTION 46.  Section 2035.006, Occupations Code, is amended
Sec. 2035.006.  CONTENTS OF PETITION.  To be valid, the
(1)  a heading, as follows: "Petition for a Local
Option Election to Approve the Legalization of Pari-mutuel Wagering
on Horse Races" [or "Petition for a Local Option Election to Approve
the Legalization of Pari-mutuel Wagering on Greyhound Races," as
(2)  a statement of the issue to be voted on, in the
same words used in the application;
(3)  a statement immediately above the signatures of
the petitioners, as follows: "It is the hope, purpose, and intent of
the petitioners whose signatures appear below that pari-mutuel
wagering on horse races be legalized in __________ County" [or "It
is the hope, purpose, and intent of the petitioners whose
signatures appear below that pari-mutuel wagering on greyhound
races be legalized in __________ County," as appropriate];
(4)  lines and spaces for the names, signatures,
addresses, and voter registration certificate numbers of the
(5)  the date of issuance, the serial number, and the
seal of the county clerk on each page.
SECTION 47.  Section 2035.015, Occupations Code, is amended
Sec. 2035.015.  BALLOT PROPOSITION.  The ballots for an
election under this subchapter shall be printed to permit voting
for or against the proposition: "Legalizing pari-mutuel wagering on
horse races in __________ County," ["Legalizing pari-mutuel
wagering on greyhound races in __________ County,"] or "Authorizing
pari-mutuel wagering on simulcast races in _____ County," as
SECTION 48.  Section 2035.016, Occupations Code, is amended
Sec. 2035.016.  CERTIFICATION OF ELECTION RESULTS.  If a
majority of the votes cast in the election favor the legalization of
pari-mutuel wagering on horse races [or greyhound races] in the
county, or the authorization of pari-mutuel wagering on simulcast
races in the county, as appropriate, the commissioners court shall
certify that fact to the secretary of state not later than the 10th
day after the date of the canvass of the returns.
SECTION 49.  Section 2035.105, Occupations Code, is amended
Sec. 2035.105.  BALLOT PROPOSITION.  The ballots for an
election under this subchapter shall be printed to permit voting
for or against the proposition: "Rescinding the legalization of
pari-mutuel wagering on horse races in __________ County" [or
"Rescinding the legalization of pari-mutuel wagering on greyhound
races in __________ County," as appropriate].
SECTION 50.  Section 11.23(h), Tax Code, is amended to read
(h)  County Fair Associations. A county fair association
organized to hold agricultural fairs and encourage agricultural
pursuits is entitled to an exemption from taxation of the land and
buildings that it owns and uses to hold agricultural fairs.  An
association that holds a license issued after January 1, 2001,
under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act),
to conduct a horse race meeting [or a greyhound race meeting] with
pari-mutuel wagering is not entitled to an exemption under this
subsection.  Land or a building used to conduct a horse race meeting
[or a greyhound race meeting] with pari-mutuel wagering under a
license issued after January 1, 2001, under that subtitle may not be
exempted under this subsection.  To qualify for an exemption under
this subsection, a county fair association must:
(1)  be a nonprofit corporation governed by Chapter 22,
(2)  be exempt from federal income taxes as an
organization described by Section 501(c)(3), (4), or (5), Internal
(3)  qualify for an exemption from the franchise tax
(4)  meet the requirements of a charitable organization
provided by Sections 11.18(e) and (f), for which purpose the
functions for which the association is organized are considered to
SECTION 51.  The following provisions of the Occupations
(1)  Sections 2021.003(12), (15), (16), (17), (22), and
(3)  Subchapter D, Chapter 2025;
(6)  Sections 2027.054(a) and (b);
(9)  Subchapter D, Chapter 2028;
(10)  Sections 2028.202(b), (c), (d), and (e);
(12)  Subchapter B, Chapter 2029; and
(13)  Subchapter B, Chapter 2030.
SECTION 52.  As soon as practicable after the effective date
of this Act, the Texas Racing Commission shall adopt the rules
necessary to comply with Subtitle A-1, Title 13, Occupations Code
(Texas Racing Act), as amended by this Act.
SECTION 53.  (a)  Not later than September 1, 2030, a
greyhound racetrack association may submit an application to the
Texas Racing Commission to convert the association's greyhound
racetrack license to a class 2 or class 3 racetrack license, as
classified under Subchapter C, Chapter 2026, Occupations Code, for
(b)  The Texas Racing Commission shall approve an
application submitted under Subsection (a) of this section if:
(1)  the applicant is in good standing with the
(2)  information related to the applicant on file with
the commission is current, complete, and accurate.
SECTION 54.  (a)  The changes in law made by this Act apply
only to conduct that occurs on or after the effective date of this
Act.  Conduct that occurs before the effective date of this Act is
governed by the law in effect on the date the conduct occurred, and
the former law is continued in effect for that purpose.
(b)  The changes in law made by this Act apply only to an
offense committed on or after the effective date of this Act.  An
offense committed before the effective date of this Act is governed
by the law in effect on the date the offense was committed, and the
former law is continued in effect for that purpose.  For purposes of
this section, an offense was committed before the effective date of
this Act if any element of the offense occurred before that date.
SECTION 55.  This Act takes effect September 1, 2025.