Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 8 - TEXAS RACING COMMISSION
Chapter 309 - RACETRACK LICENSES AND OPERATIONS
Subchapter A - RACETRACK LICENSES
Division 1 - GENERAL PROVISIONS
Section 309.9 - Denial, Suspension and Revocation of Licenses

Universal Citation: 16 TX Admin Code § 309.9

Current through Reg. 50, No. 13; March 28, 2025

(a) Applicability.

(1) After notice and hearing in accordance with Subchapter B, Chapter 307 of this title (relating to Contested Cases), the Commission may deny, suspend, or revoke a license issued by the Commission.

(2) If the licensee is not an individual, the grounds for denial, suspension, or revocation of a license apply if a director, officer, or partner of the licensee or an individual who owns an interest in the licensee of 5.0% or more engages in conduct for which a license may be denied, suspended, or revoked.

(b) Grounds for Denying, Suspending, and Revoking Licenses.

(1) Violations or Convictions. A license may be denied, suspended or revoked if it is determined that the licensee has:
(A) violated or caused to be violated the Act or a Rule;

(B) been convicted in a court of competent jurisdiction of violating the Act or a Rule;

(C) been convicted of a felony;

(D) been convicted of a crime of moral turpitude that is reasonably related to the licensee's fitness to hold a license in accordance with § 303.202 of this title (relating to Guidelines);

(E) aided, abetted, or conspired with another person to violate the Act or a Rule; or

(F) the licensee had a license issued by another pari-mutuel racing jurisdiction denied, revoked or is currently under suspension in another pari-mutuel racing jurisdiction.

(2) Failure to Disclose. A license may be denied, suspended or revoked if it is determined that the licensee:
(A) failed to provide information required in the license application;

(B) provided false information in the license application;

(C) failed to disclose an ownership interest in a horse or greyhound as required by the Rules; or

(D) failed to fully disclose the true owners of all interests, beneficial or otherwise, in a proposed racetrack facility.

(3) Domicile. A license may be denied, suspended or revoked if it is determined that the licensee is domiciled with an individual for whom a license issued by the Commission was denied, suspended or revoked during the preceding 12-month period.

(4) Debt or Liens.
(A) A license may be denied, suspended or revoked if it is determined that the licensee owes a fee to the state or a penalty imposed under the Act or the Rules.

(B) A license may be denied, suspended or revoked if it is determined that:
(i) the licensee has failed to timely pay any tax assessment, the payment of which is secured by any lien or encumbrance against the racetrack site; or

(ii) a notice has been posted of the public sale of any portion of the racetrack site or the holder of any lien or security interest on any part of the racetrack site has instituted foreclosure or other proceedings for the enforcement of remedies under the terms of any instrument creating such a lien or security interest.

(5) Ejection. A license may be denied, suspended or revoked if it is determined that the licensee has engaged in conduct for which the licensee may be ejected or excluded from a racetrack under the Rules.

(6) Minimum Age, or Otherwise Ineligible. A license may be denied, suspended or revoked if it is determined that the licensee:
(A) has not attained the minimum age necessary to purchase alcoholic beverages in Texas;

(B) 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;

(C) has improperly used a license certificate, credential, or identification card issued under this Act; or

(D) through a change in ownership, would be ineligible to be issued a license.

(7) Detrimental Practices. A license may be denied, suspended or revoked if it is determined that the licensee is engaged in activities or practices that are detrimental to the best interests of the public or to the racing industry.

(8) Unqualified. A license may be denied, suspended or revoked if the Commission determines that the licensee is unqualified, by experience or otherwise, to perform the duties required of a licensee under the Act or the Rules.

(9) Moral Character and Reputation. A license may be denied, suspended or revoked if the Commission determines that the licensee is not of good moral character or the licensee's reputation as a peaceable, law-abiding citizen in the community where the licensee resides is bad.

(10) Ownership. A license may be denied, suspended or revoked if it results or would result in a person owning more than a five percent interest in more than three Texas racetrack licenses.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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