| (5) All surety bonds posted must be executed and issued by a surety company authorized to do business in the State of Texas on a form approved by the comptroller. The surety bond must be signed by an attorney-in-fact appointed by the surety, and a notarized copy of the appointment shall be attached. (6) A bond or other security must be in effect at all times while an association is conducting pari-mutuel wagering. The comptroller shall release the bond or other security upon determination that: (A) there is no payment, penalty, or interest due and payable to the State of Texas; (B) the association has ceased to conduct pari-mutuel wagering; and (C) its license has been revoked or relinquished and will not be renewed. (d) Association responsibilities and totalisator system requirements. (1) Each association shall conduct pari-mutuel wagering in accordance with the Texas Racing Act, the Texas Racing Commission Rules and the Comptroller of Public Accounts Rule. (2) Each association licensed for pari-mutuel wagering shall use totalisator equipment and software that satisfies the recordkeeping and reporting requirements of the comptroller and commission. (3) A totalisator company is subject to inspection and regulation by the comptroller to insure the integrity of the information obtained by use of its software and equipment. The comptroller may test or have tested the totalisator equipment or software and communications facilities. (4) The totalisator system must restrict access to cash/sell terminals through assigned user passwords to facilitate cashier accountability. (5) Cancelled tickets or refunded tickets must be preserved and furnished to the comptroller upon request. (6) The totalisator system must be able to produce reports identifying all reader and keyboard cancelled or refunded tickets, upon request of the comptroller. The reports must contain the number of the ticket issuing machine where it was cancelled or refunded, the ticket identification number, performance date, performance number, and the ticket amount that was cancelled or refunded. If these tickets are not provided, the association will be responsible for reimbursing the state for any money the state would have received had the ticket not been cashed. (e) Audit; appeal of audit findings. (1) The comptroller may act at the comptroller's sole discretion to verify information reported by the association using any commonly accepted auditing method, including, but not limited to, any auditing method used by the comptroller to verify information and reports filed pursuant to the Tax Code. (2) All computer tapes, computer programs, and books and records used to record, display, calculate or report the state's share shall be maintained by the association or the totalisator company. (3) The computer tapes, computer programs, books, and records used to record, display, calculate, or report the state's share shall be retained at least four years unless the comptroller gives written authority for earlier disposal. Any record relating to a comptroller audit that is still open or which has been challenged by the association shall be kept until the audit is final and all disputed issues are finally resolved. (4) An association may dispute any audit findings of the comptroller through the same procedures available to dispute audit findings under Tax Code, Title 2. (f) Sanctions. (1) The comptroller will certify to the commission as soon as practicable the violation by the association or its agents of a rule promulgated by the comptroller; the failure or refusal of an association to pay all or any part of funds due the state or to file reports when due; the failure or refusal of an association to allow inspection of reports and records; the failure or refusal of an association to allow testing of the totalisator system or the communications facilities; the failure or refusal of an association to post bond in the amount required; or the failure or refusal of an association to keep and retain the records required by the comptroller. (2) If any payment to the state is due, the comptroller shall notify the association and its sureties by a written demand for payment. If payment is demanded and is not made by the date specified in the demand notice, the comptroller will forfeit as much of the bond or security then in effect as may be necessary to pay the proper amount due. (3) The comptroller may take collection or enforcement actions authorized by the Tax Code and the Texas Racing Act. (4) An association may pursue administrative appeals as authorized by the Texas Racing Act. |
