HBA-DMH H.B. 2484 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2484 By: Wilson Licensing & Administrative Procedures 8/7/2001 Enrolled BACKGROUND AND PURPOSE The Texas Racing Commission (TRC) is responsible for ensuring fair wagering and safe racing and for helping the racing industry grow as an asset to the state's economy. TRC was continued by the legislature under recommendation from the Sunset Advisory Commission on September 1, 1997. House Bill 2484 modifies language relating to breed registry, new racetrack locations, and tax collection to clarify changes made in 1997. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Racing Commission in SECTION 5 (Section 6.0915, Article 179e, V.T.C.S.) of this bill. ANALYSIS House Bill 2484 amends the Texas Racing Act to require the Texas Racing Commission (TRC) to regulate all pari-mutuel events offered at a racetrack to racetrack patrons. The bill specifies which agency or organization has exclusive administrative jurisdiction over services or devices offered at racetracks to racetrack patrons pursuant to the State Lottery Act, the Bingo Enabling Act, or the Texas Racing Act (Sec. 3.021, Art. 179e, V.T.C.S.). The bill requires medication or drug testing performed on a race animal to 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 TRC after consultation with the Texas Veterinary Medical Diagnostic Laboratory, rather than by a laboratory selected by TRC on a yearly basis by competitive bidding. The bill requires TRC to determine if the laboratory drug testing charges are reasonable, in relation to industry standards, by periodically surveying the testing charges of comparable laboratories in the United States (Sec. 3.07, Art.179e, V.T.C.S.). The bill specifies that any racetrack that conducts a seasonal live race meeting in which there is a period of at least six weeks between live meets must, at the completion of the live meet: _terminate the seasonal workforce within 10 days of the end of the live meet; _collect seasonal workforce licensee certificates or credentials issued by TRC; and _provide TRC with a list of all terminated licensees within five days of termination (Sec 5.06, Art. 179e, V.T.C.S.). The bill authorizes a racetrack to offer a cross-species simulcast only pursuant to an agreement, approved by TRC, between the horsemen's organization, the state greyhound breed registry, and all racetracks desiring to offer cross-species simulcasting. The bill requires the agreement to contain certain revenue provisions and authorizes TRC to adopt rules specifying other matters to be addressed in the agreement. The rules may require the payment of any purse allocation to TRC or to one or more official breed registries for distribution among the various Texas racetracks. If the parties to the agreement cannot reach an agreement by September 1, 2002, the bill authorizes any party to the agreement to request TRC to take jurisdiction over the matter and negotiate an agreement between the parties to provide for cross-species simulcasting at all racetracks desiring to offer cross-species simulcasting. The bill requires the agreement to provide for an amount set by the official state greyhound breed registry, but not to exceed 15 percent of the amount set aside for greyhound purses from each cross-species simulcast pool, to be paid to the registry. The bill requires the agreement to provide for 0.37 percent of each cross-species simulcast pool to be paid to the state quarter horse breed registry for distribution as quarter horse purses at Texas horse racetracks. The bill also requires the agreement to provide for 0.37 percent of each cross-species simulcast pool to be paid to the state Thoroughbred breed registry for distribution as Thoroughbred purses at Texas horse racetracks. The bill requires TRC to adopt rules relating to the oversight, collection, and distribution of the amounts allocated in cross-species simulcasting. These provisions take effect January 1, 2002 (Sec. 6.0915, Art 179e, V.T.C.S.). The bill provides that the racetrack where the wager is made is responsible for reporting and remitting the state's share of the pari-mutuel pool (Sec. 11.011, Art. 179e, V.T.C.S.). The bill deletes the provision authorizing TRC to refuse, revoke, or suspend a racetrack license if the applicant has not been a United States citizen residing in this state for the period of 10 consecutive years immediately preceding the filing of the application (Sec. 6.06, Art. 179e, V.T.C.S.). The bill authorizes a horse breed registry by rule to restrict the eligibility of its horses for accredited Texas-bred awards or purse supplements when the horse runs in mixed racing (Sec. 6.08, Art. 179e, V.T.C.S.). The bill prohibits TRC from allowing wagering on a simulcast horse or greyhound race at more than one location licensed within a specified area (Sec. 11.11, Art 179e, V.T.C.S.). The bill repeals law relating to the employment of former commission members and employees, racetrack license requirements for residency and operation, and racetrack ownership. The bill also repeals law relating to racetrack simulcast agreements (Secs. 6.091, 6.16, and 11.011, Art. 179e, V.T.C.S.). EFFECTIVE DATE Vetoed.