HBA-CMT C.S.H.B. 1923 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1923
By: Brimer
Licensing & Administrative Procedures
4/17/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

As with such events as the Olympic or Pan American games, it takes
significant infrastructure improvements to attract nationally recognized
horse races to Texas tracks. C.S.H.B. 1923 provides a funding mechanism for
the track that conducts the Breeders' Cup races to pay for the costs
associated with attracting such a race. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Racing Commission and the
comptroller of public accounts in SECTION 1 (Section 6.094, Texas Racing
Act) of this bill. 

ANALYSIS

C.S.H.B. 1923 amends the Texas Racing Act to authorize an association
conducting the Breeders' Cup races to apply to the payment or reimbursement
of Breeders' Cup costs amounts that would otherwise be set aside for the
state during the year in which the association hosts the Breeders' Cup
races not to exceed an amount equal to the lesser of the aggregate amount
contributed to pay Breeders' Cup costs by political subdivisions and
development organizations or $2 million.  Beginning on January 1 of the
year for which the association is designated by the Breeders' Cup Limited
to host the Breeders' Cup races, amounts that would otherwise be set aside
for the state during that year by the association are required to be
deposited into the Breeders' Cup developmental account (account), in
accordance with procedures described by the comptroller of public accounts.
The bill specifies that the account is an account in the general revenue
fund and is administered by the Texas Racing Commission (commission).
Money in the account may be appropriated only to the commission and be used
only for the purposes established in this bill.  The bill also exempts the
account from provisions of the Government Code regarding use of dedicated
revenue.  The bill requires disbursements to be made from the account to
reimburse Breeders' Cup costs incurred and paid by the association,
following the association's filing of a request for reimbursement.  The
bill sets forth provisions regarding the amount of a disbursement from the
account.  The bill requires the association hosting the Breeders' Cup races
to submit a report to the commission not later than January 31 of the year
following the year in which the association hosts the races, and specifies
the contents of the report. Following receipt of the report, the commission
is required to take any  steps it considers appropriate to verify the
report and give instructions for the final disbursement of any funds
remaining in the account.   

The bill requires the commission to adopt rules relating to the
administration of the provisions of this bill, including rules relating to
the auditing or other verification of Breeders' Cup costs and amounts paid
or set aside by political subdivisions and disbursement of funds from the
account.  The bill authorizes the commission to adopt rules to facilitate
the conduct of the Breeders' Cup races in this state, including the
adoption of rules or waivers of existing rules relating to the regulation,
supervision, and  overall conduct of racing during the Breeders' Cup races
in order to assure the integrity of the races, licensing for all
participants, special stabling and training requirements for horses, and
commingling of pari-mutuel pools. The bill authorizes the comptroller to
adopt rules relating to the administration of the account including rules
relating to procedures and requirements for transmitting or otherwise
delivering the money set aside to the  treasury and depositing funds into
the account.   
 
EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B.  1923 modifies the original bill by specifying the establishment
of the Breeders' Cup developmental account (account) in the general revenue
fund administered by the Texas Racing Commission (commission) rather than a
special account from which disbursements are required to be made to pay
Breeders' Cup costs actually incurred by the association.  The substitute
authorizes money in the account to be used only for purposes specified in
the bill.  The substitute adds provisions relating to the reimbursement by
the commission of costs incurred or paid for by host tracks.  The
substitute adds that the comptroller is authorized to adopt rules relating
to the administration of the account, and the commission is authorized to
adopt rules relating to the regulation and supervision of Breeders' Cup
races.