Looking forward to the 2009 session, for social conservatives, one of the most important Sunset bills could be for the Texas Racing Commission. If this bill isn’t watched closely, it could become a vehicle for expanding gambling in Texas.

Technically, the Sunset process is designed to avoid complex policy debates and focus on the structure of agencies and how they are carrying out their delegated functions.

In other words, while the sunset commission and its staff will not likely delve into the debate over expanding gambling, it’s quite possible amendments will get offered to this bill to do exactly that.

But the criteria for offering an amendment to a Sunset bill is germaneness. (That said, Senate Rule 7.16 requires discussing the topic of an amendment to a Sunset bill in a committee hearing before bringing it to the floor. And House Rule11, Sect. 6(g) requires pre-filing amendments to Sunset bills at least 12 hours in advance.)

The Sunset Commission staff report on the racing commission was released in March 2008. The staff report is the first draft, used by the 10 lawmakers and two public members on the commission itself to craft recommendations. The report’s basic premise is that horseracing is a declining industry, and the statutory structure of the commission does not reflect the challenges the commission currently faces.

Of course, many racetrack owners believe the solution to the industry’s problems is to allow electronic slot machines (which they call “video lottery terminals”) at racetracks. But the Sunset Commission does not get into that fight.

Instead, the commission staff recommends that the agency have power to revoke a license of an inactive track so that license can be given to someone else. The commission staff also questions whether the commission has sufficient authority to ensure the financial soundness of new owners of racetracks after a license has been granted.

Specifically, the commission staff is recommending that racetrack licenses no longer be issued in perpetuity but subject to renewal periodically, under criteria specified in rule. It also recommends eliminating the use of un-cashed betting tickets as a source of revenue for the commission.

The other major recommendation is that Texas residents not be allowed to place bets with unlicensed entities. Texas tracks are losing revenue, the report argues, because out-of-state websites and phone operations can accept bets from Texas residents.

The report recommends reducing the number of people licensed to just those who can affect pari-mutuel racing. Currently, all racetrack employees are licensed and undergo criminal background checks. The report also recommends increasing the frequency of background checks from every five years to every three.

The Sunset Commission will take testimony on the staff recommendations April 22 and will vote on the matter June 24-25.

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