By Brimer                                             H.B. No. 1196
         77R2485 YDB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to incentives under the Texas Racing Act for the
 1-3     Thoroughbred horse breeding industry in this state.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 1.03(21), Texas Racing Act (Article 179e,
 1-6     Vernon's Texas Civil Statutes), is amended to read as follows:
 1-7                 (21)  "Texas-bred horse" means a horse qualified under
 1-8     the rules of the commission that is:
 1-9                       (A)  sired by a stallion standing in Texas at the
1-10     time of conception and foaled by a mare in Texas;
1-11                       (B)  foaled by a mare [, except that a mare may
1-12     be] bred outside Texas and brought into Texas to foal at any time
1-13     [and all foals sired and foaled under those conditions] in the
1-14     mare's lifetime [shall be considered "Texas-bred"] if the mare is
1-15     bred back to a stallion standing in Texas; or
1-16                       (C)  a Thoroughbred horse foaled in Texas by an
1-17     accredited Texas-bred mare if the mare was bred outside Texas and
1-18     returned to Texas on or before August 15 of the calendar year of
1-19     conception.  [In all instances any foal must qualify under the
1-20     rules of the commission.]
1-21           SECTION 2.  Section 6.08, Texas Racing Act (Article 179e,
1-22     Vernon's Texas Civil Statutes), is amended by adding Subsection (n)
1-23     to read as follows:
1-24           (n)  An accredited Texas-bred Thoroughbred horse described by
 2-1     Section 1.03(21)(C) of this Act is eligible for only one-half of
 2-2     the breakage awarded under Subsection (j)(2) of this section.  The
 2-3     remaining portion of the breakage shall be retained by the
 2-4     association to be used in stake races restricted to accredited
 2-5     Texas-bred horses.
 2-6           SECTION 3.  Section 9.03, Texas Racing Act (Article 179e,
 2-7     Vernon's Texas Civil Statutes), is amended to read as follows:
 2-8           Sec. 9.03.  TEXAS-BRED RACE.  (a)  An association shall
 2-9     provide for the running of races limited to accredited Texas-bred
2-10     horses, each to be known as a Texas-bred race.  Unless otherwise
2-11     provided by this section, on every racing day, an association shall
2-12     provide for the running of at least two races limited to accredited
2-13     Texas-bred horses, one of which shall be restricted to maidens.
2-14     Before January 1, 1994, if on any day not enough horses are entered
2-15     in an accredited Texas-bred race to provide sufficient competition,
2-16     an association shall provide for the running of two races in which
2-17     accredited Texas-bred horses are preferred.  An association may
2-18     defer, in accordance with commission rule, the running of one or
2-19     both of the two races required by this section for each racing day,
2-20     but the association must provide that the total number of
2-21     accredited Texas-bred races in a race meeting is equal to twice the
2-22     total number of race dates in the race meeting.
2-23           (b)  To encourage the breeding of horses in this state, any
2-24     accredited Texas-bred horse finishing first, second, or third in
2-25     any race in this state except a stakes race shall receive a purse
2-26     supplement.  The appropriate state breed registry shall act in an
2-27     advisory capacity to the association and the commission for the
 3-1     purpose of administering the provisions of this section.
 3-2           (c)  An accredited Texas-bred Thoroughbred horse that
 3-3     finishes first, second, or third in a race other than a Texas-bred
 3-4     race shall receive a bonus award as a purse supplement.
 3-5     Twenty-five percent of the Texas-bred program funds received by the
 3-6     state horse breed registry for Thoroughbred horses, excluding
 3-7     expenses for administration of the Texas-bred program, shall be
 3-8     allocated to fund the bonus awards.
 3-9           (d)  This subsection expires January 1, 2008.
3-10     Notwithstanding Subsection (c), the percentage of the Texas-bred
3-11     program funds received by the state horse breed registry for
3-12     Thoroughbred horses, excluding administrative expenses, that must
3-13     be used to fund bonus awards under Subsection (c) of this section
3-14     is the percentage provided by this subsection for each of the
3-15     following years:
3-16                 (1)  for 2002, 10 percent;
3-17                 (2)  for 2003, 12.5 percent;
3-18                 (3)  for 2004, 15 percent;
3-19                 (4)  for 2005, 17.5 percent;
3-20                 (5)  for 2006, 20 percent; and
3-21                 (6)  for 2007, 22.5 percent.
3-22           SECTION 4.  (a)  This Act takes effect immediately if it
3-23     receives a vote of two-thirds of all the members elected to each
3-24     house, as provided by Section 39, Article III, Texas Constitution.
3-25     If this Act does not receive the vote necessary for immediate
3-26     effect, this Act takes effect September 1, 2001.
3-27           (b)  Notwithstanding Subsection (a) of this section, Section
 4-1     3 of this Act takes effect January 1, 2002.