SRC-TBR S.B. 1096 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1096
2001S0406/1 02/05/01By: Cain
Business & Commerce
4/1/2001
As Filed


DIGEST AND PURPOSE 

Currently, there is no funding provision for attracting a Breeders' Cup
horse race to the state.  As proposed, S.B. 1096 provides a funding
mechanism for the track that is awarded the Breeders' Cup horse race to pay
for the costs associated with attracting such a race. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly given to the Texas Racing Commission in
SECTION 1(Article 6, Texas Racing Act, Section 6.094) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 6, Texas Racing Act (Article 179e, Vernon's
Texas Civil Statutes), by adding Section 6.094 as follows: 

Sec. 6.094.  NATIONAL EVENT INCENTIVES.  (a)  Defines "breeders' cup
costs," "breeders' cup races," "development organization," and "political
subdivision." 

(b)  Authorizes 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 under Sections 6.091(a)(1) and 6.093
of this Act 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.  Provides that 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 under Sections 6.091(a)(1) and
6.093 of this Act be deposited into a special account to be administered as
provided by this section.    

(c)  Requires that disbursements be made from the special account to pay
Breeders' Cup costs actually incurred by the association as such costs are
incurred, either by direct payment of the costs or reimbursement to the
association for costs paid by it. Prohibits disbursements from the special
account from exceeding the aggregate amount actually paid for Breeders' Cup
costs by political subdivisions and development organizations. 

(d)  Requires that, by January 31 of the year following the year in which
the association hosts the Breeders' Cup races, the association submit to
the Texas Racing Commission (commission) a report including certain
requirements. 

(e)  Requires the commission, following receipt of the report required by
Subsection (d), to take any steps it considers appropriate to verify the
report and  give instructions for the final disbursement of any funds
remaining in the special account.  Requires that any balance remaining in
the account after payment or reimbursement of any remaining  Breeders' Cup
costs authorized under this section  be set aside for the state. 

(f)  Requires the commission to adopt rules relating to the administration
of this section, including rules relating to certain items. 

(g)  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. 

 (h)  Provides that the provisions of this section prevail over any
conflicting provisions of this Act. 

SECTION 2.  Effective date: September 1, 2001.