Section 309.51 - Designation of Active and Inactive Racetrack Licenses(a) Initial Designation. The Commission shall designate a racetrack license as either active or inactive as those terms are defined in subsection (b) of this section. The Commission shall make the initial designation for each racetrack license not later than September 1, 2012.(b) Definitions. (1) "Active-Operating" means the license holder conducted live racing events at the racetrack during the previous State Fiscal Year and has been granted future live race dates.(2) "Active-Other" means the license holder has applied for and received pending live race dates under § RSA 303.41 of this title (relating to Allocation of Race Dates), and taken the following actions to demonstrate good faith efforts to conduct live racing: (A) is presently conducting pre-opening simulcasting;(B) has demonstrated that the conduct of simulcast or live racing is imminent. Factors the Commission may consider include, but are not limited to, the license holder's: (i) securing sufficient financial commitments to fund construction of the racetrack facility;(ii) securing the real property of the designated racetrack location for which the racetrack license was granted, either by purchase or through a long-term lease of 20 years or more;(iii) entering into contracts for the construction of the simulcasting and racetrack facilities;(iv) securing Commission approval of the racing facility's construction plans;(v) securing permits and utilities necessary for the construction of the racing facilities;(vi) beginning and sustaining construction of the simulcasting or live racing facilities; and(vii) providing to the Commission a construction and operations management schedule demonstrating that simulcasting is imminent and that the facilities will be ready to conduct live racing by the beginning of the approved live race dates; or(C) voluntarily providing a bond under subsection (e) of this section to ensure that the license holder conducts pre-opening simulcasting and completes the pending allocated live race dates.(3) "Inactive" means the license holder does not meet the requirements for the racetrack license to be designated as Active-Operating or Active-Other.(c) Subsequent Designation. After the initial racetrack designation is made under subsection (a) of this section, the Commission may change the designation of the racetrack license at any time if the facts that supported the current designation change.(d) Racetrack Reviews. (1) Racetracks designated "Active-Operating" or "Active-Other" will undergo an ownership and management review every five years pursuant to §2025.106 of the Act.(2) Racetracks designated "Inactive" will undergo an annual review described by § RSA 309.52 of this chapter (relating to Review and Renewal of Inactive Racetrack Licenses).(e) Bonds. (1) To be designated as Active-Other under subsection (b)(2)(C) of this section, a license holder shall submit a bond by September 1 of the State Fiscal Year for which it is offered.(2) The amount of the bond for the State Fiscal Year beginning September 1, 2012, and each year thereafter is $400,000.(3) Return or Forfeiture of Bond. (A) If the racetrack conducts pre-opening simulcasting during the first fiscal year of the bond, the bond shall be retained for an additional fiscal year or until the racetrack completes its live race dates. Upon successful completion of all of the racetrack's live race dates allocated for the first two fiscal years of the bond, the Commission shall return the bond to the license holder.(B) If the racetrack does not conduct pre-opening simulcasting during the initial fiscal year of the bonding period, the bond shall be forfeited on August 31 of the same fiscal year.(C) If the racetrack conducts pre-opening simulcasting during the first fiscal year but fails to conduct all of its allocated live race dates during the first two fiscal years of the bond, the bond shall be forfeited on August 31 of the second fiscal year.(D) A bond is automatically forfeited on the date provided in this subsection unless the Commission takes action in an open meeting to return the bond or extend the date of automatic forfeiture.(E) For purposes of this paragraph, live race dates do not include those race dates that have been excused by the executive secretary under §RSA 303.41<subdiv>(h)</subdiv> of this title.(4) The bond of a horse racetrack that is forfeited under this section shall accrue to the Horse Industry Escrow Account under §§2028.204-.205 of the Act and shall be distributed in accordance with those sections. The bond of a greyhound racetrack that is forfeited under this section shall accrue to the state greyhound breed registry and be distributed through the Accredited Texas Bred Program.(5) If an Active-Other racetrack forfeits a bond under this section, the Commission shall review and may change the license's designation at a regularly scheduled meeting to be held within the following four months of the bond forfeiture.(f) Failure to Conduct Granted Live Race Dates. Except as excused by the executive secretary under §RSA 303.41<subdiv>(h)</subdiv> of this title, if an Active-Operating or an Active-Other racetrack fails to conduct any live race dates granted to it by the Commission, the Commission shall review and may change the license's designation at a regularly scheduled meeting to be held within the following four months. This subsection does not apply to an Active-Other racetrack that has provided a bond under subsection (e) of this section.16 Tex. Admin. Code § 309.51
The provisions of this §309.51 adopted to be effective August 9, 2012, 37 TexReg 5739; Amended by Texas Register, Volume 44, Number 46, November 15, 2019, TexReg 7045, eff. 11/20/2019