88R13342 PRL-F     By: Kuempel H.B. No. 4100       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of wagering through telephone, the   Internet, or other approved electronic means on horse races and   greyhound races under the pari-mutuel system of wagering; requiring   a license to operate account wagering; requiring a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2021.003, Occupations Code, is amended   by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b)   to read as follows:                (1)  "Account wagering" means a form of pari-mutuel   wagering that allows an individual to deposit money in an account   with a racetrack association or an account wagering operator for   the individual's use in pari-mutuel wagering offered by the   racetrack association on live or simulcast horse races or greyhound   races.                (1-a)  "Account wagering operator" means an entity   licensed by the commission to provide an account for account   wagering by persons in this state.                (1-b)  "Accredited Texas-bred horse" means a   Texas-bred horse that meets the accreditation requirements of the   state horse breed registry for that breed of horse.          SECTION 2.  Subchapter F, Chapter 2025, Occupations Code, is   amended by adding Section 2025.2511 to read as follows:          Sec. 2025.2511.  ACCOUNT WAGERING LICENSE. (a) A person may   not offer account wagering, operate as an account wagering   operator, or act as an employee of a person offering account   wagering or operating as an account wagering operator unless the   person or employee, as applicable, holds a license issued by the   commission under this section.          (b)  The commission shall adopt rules and procedures for   applying for or issuing, denying, or revoking a license under this   section in a manner consistent with other licensing provisions of   this chapter.          SECTION 3.  Section 2027.001(b), Occupations Code, is   amended to read as follows:          (b)  Rules adopted under this subtitle must include rules to:                (1)  regulate wagering by a person licensed under this   subtitle;                (2)  prohibit wagering by a commission employee;                (3)  authorize account wagering by [prohibit] a   racetrack association or an account wagering operator under   conditions the commission determines appropriate to protect the   public health and safety [from accepting a wager made by   telephone]; and                (4)  prohibit a racetrack association from accepting a   wager made on credit.          SECTION 4.  Section 2027.002, Occupations Code, is amended   by amending Subsections (a) and (b) and adding Subsections (b-1)   and (c-1) to read as follows:          (a)  Wagering may be conducted only by:                (1)  a racetrack association within the racetrack   association's enclosure; or                (2)  an account wagering operator.          (b)  Except as provided by Subsection (b-1), a [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.          (b-1)  A racetrack association or an account wagering   operator may accept account wagering in person or by direct   telephone call or through other electronic means by the account   holder. An account wagering operator that is not a racetrack   association and that conducts, or any of the operator's affiliates   conducts, live racing shall contract with a racetrack association   for interstate simulcast wagering. An account wagering operator   may contract with a racetrack association to offer wagering on live   races on the account wagering operator's system only as authorized   under this subtitle.          (c-1)  For purposes of this subtitle, account wagering by a   person in this state through a racetrack association or an account   wagering operator is considered wagering by a person in the   enclosure of the racetrack association or of the racetrack   association that has contracted with the account wagering operator.          SECTION 5.  Chapter 2028, Occupations Code, is amended by   adding Subchapter B-1 to read as follows:   SUBCHAPTER B-1. GENERAL DEDUCTIONS FROM ACCOUNT WAGERING          Sec. 2028.071.  DEDUCTIONS FROM ACCOUNT WAGERING. (a) The   commission shall adopt rules setting the amount, less refunds, that   may be deducted from the gross pari-mutuel handle of the racetrack   association or account wagering operator conducting account   wagering, provided that amount is not less than six percent of the   handle.          (b)  The amount of all fees paid to the commission from   account wagering may not exceed one percent of the total gross   account wagering receipts, as determined by the computational   equipment approved by the commission for calculating wagering as   required under Section 2027.003, from wagers placed by persons in   this state with each racetrack association or account wagering   operator offering account wagering.          SECTION 6.  As soon as practicable after the effective date   of this Act, the Texas Racing Commission shall adopt the rules   necessary to implement the change in law made by this Act.          SECTION 7.  This Act takes effect September 1, 2023.