Section 309.8 - Racetrack License Fees(a) Purpose of Fees. An association shall pay a license fee to the Commission to pay the Commission's costs to administer and enforce the Act and to regulate, oversee, and license live and simulcast racing at racetracks.(b) Annual License Fee. A licensed racing association shall pay an annual license fee by remitting to the Commission 1/12th of the fee on the first business day of each month. The annual license fee for each license type is as follows: (1) for a Class 1 racetrack, $223,530;(2) for a Class 2 racetrack, $106,176;(3) for a Class 3 or 4 racetrack, $27,941; and(4) for a Greyhound racetrack, $156,471.(c) Adjustment of Fees. (1) In the event that any racetrack license holder ceases to be licensed: (A) the fees in subsection (b) of this section, as previously adjusted under paragraphs (1) and (2) of this section if applicable, shall be increased by the amount of the annual fee of the terminated license holder multiplied by the applicable fraction calculated as follows: (i) for a Class 1 license holder, the numerator is 100; (ii) for a Class 2 license holder, the numerator is 47.5; (iii) for a Class 3 or 4 license holder, the numerator is 12.5; (iv) for a Greyhound racetrack, the numerator is 70; and (v) the denominator is the sum of all the numerators assigned to each of the remaining license holders as specified in clauses (i) through (iv) of this subparagraph; and (B) the fees in subsection (b) of this section as modified by subparagraph (A) of this paragraph shall be increased on a one-time, pro rata basis as necessary so that the Commission does not lose any racetrack license fee revenue due to the termination of the license. (2) In the event that a new racetrack license is issued, the fees in subsection (b) of this section, as previously adjusted under this paragraph and paragraph (1) of this subsection if applicable, shall be decreased by the amount of the annual fee of the new license holder multiplied by the applicable fraction calculated in accordance with paragraph (1)(A)(i) through (v) of this subsection. (3) If any of the adjustments imposed by this subsection cause the base annual license fee owed by any licensee to exceed the fee specified in subsection (b) of this section by more than 15%, the Commission shall undertake rulemaking to amend this section within 90 days after the Commission sends notice of the adjustment.(4) Annual fees are calculated using a projected base of 48 days of live horse racing per Class 1 racetrack, 8 days of live horse racing per Class 3 or 4 racetrack, and a total of 36 performances of live greyhound racing per fiscal year. If a Class 1 horse racetrack does not intend to use all of the race days allotted to it, it shall share the unused days with another Class 1 track, provided that the track receiving the unused days is not required to compensate the track sharing the days. To cover the additional regulatory cost in the event additional days or performances are requested by the associations, the executive secretary may: (A) recalculate a horse racetrack's annual fee by adding an amount not to exceed $5,345 for each live race day added beyond the base; and(B) recalculate a greyhound racetrack's annual fee by adding $750 for each live performance added beyond the base.(5) If the simulcast tax revenue collected in any quarter ending November 30, February 28 or 29, May 31, or August 31 is less than the amount specified in subparagraphs (A) through (D) of this paragraph, the fees in subsection (b) of this section shall be increased on a one-time, pro rata basis in an amount sufficient to generate revenue in the amount of the difference between the amount of simulcast tax revenue collected in the quarter and the following amount: (A) for a quarter ending November 30, $599,620; (B) for a quarter ending February 28 or 29, $630,955; (C) for a quarter ending May 31, $750,560; and (D) for a quarter ending August 31, $688,090. (6) Any fee increase owed by a racetrack license holder under paragraph (5) of this subsection, as it existed on September 1, 2020, as paragraph (2) of this subsection, for the period from September 1, 2020, through November 30, 2020, shall be due February 1, 2021. Any fee increase owed by a racetrack license holder under paragraph (5) of this subsection for the period from December 1, 2020, through February 28, 2021, shall be calculated under paragraph (5) of this subsection as it exists on January 1, 2021. (7) Any fee increase imposed by this subsection shall be effective upon 30 days notice to the racetracks.(8) If the executive secretary determines that the total revenue from the annual fees exceeds the amount needed to pay its costs, the executive secretary shall order a moratorium on all or part of the license fees remitted monthly by any or all of the associations. Before entering a moratorium order, the executive secretary shall develop a formula for imposing the moratorium in an equitable manner among the associations. In developing the formula, the executive secretary shall consider the amount of excess revenue received by the Commission, the source of the revenue, the Commission's costs associated with regulating each association, the Commission's projected receipts for the next fiscal year, and the Commission's projected expenses during the next fiscal year.16 Tex. Admin. Code § 309.8
The provisions of this §309.8 adopted to be effective January 1, 2012, 36 TexReg 8370; amended by Texas Register, Volume 39, Number 38, September 19, 2014, TexReg 7574, eff. 9/28/2014; Amended by Texas Register, Volume 40, Number 52, December 25, 2015, TexReg 9631, eff. 12/28/2015; Amended by Texas Register, Volume 41, Number 10, March 4, 2016, TexReg 1685, eff. 3/13/2016; Amended by Texas Register, Volume 43, Number 09, March 2, 2018, TexReg 1264, eff. 3/5/2018; Amended by Texas Register, Volume 43, Number 35, August 31, 2018, TexReg 5678, eff. 9/3/2018; Amended by Texas Register, Volume 44, Number 46, November 15, 2019, TexReg 7044, eff. 11/19/2019; Amended by Texas Register, Volume 45, Number 51, December 18, 2020, TexReg 9180, eff. 12/22/2020