HBA-CMT S.B. 1096 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1096
By: Cain
Licensing & Administrative Procedures
5/2/2001
Engrossed



BACKGROUND AND PURPOSE 

As is needed with such events as the Olympic or Pan American games, it
takes significant infrastructure improvements to attract nationally
recognized horse races to Texas tracks.  Senate Bill 1096 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

Senate Bill 1096 amends the Texas Racing Act to authorize an association
conducting the Breeders' Cup races to apply to the reimbursement of
Breeders' Cup costs amounts that would otherwise be set aside by the
association for the state during the year in which the association hosts
the Breeders' Cup races, limited to 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 has been officially
designated 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 prescribed by the comptroller of public accounts
(comptroller).  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 actually 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.  The bill requires the
commission not later than March 31 of the year following the event to
transfer to the credit of the general revenue fund any balance remaining in
the account after reimbursement of any remaining Breeders' Cup costs.  

The bill authorizes the commission and the comptroller to adopt rules
relating to the administration of the bill.  The commission is authorized
to adopt rules relating to the auditing or other verification of Breeders'
Cup costs and amounts paid or set aside by political subdivisions and
development organizations and the disbursement of funds from the account.
The bill authorizes the comptroller to adopt rules relating to procedures
and requirements for transmitting or otherwise delivering the money set
aside to the treasury and depositing funds into the account.  The bill
authorizes the commission to adopt rules to facilitate the conduct of the
Breeders' Cup races, including the adoption of rules or waiver of existing
rules relating to  the 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 foreign
horses, and commingling of pari-mutuel pools.  
 
EFFECTIVE DATE

September 1, 2001.