1-1     By:  Brimer (Senate Sponsor - Cain)                   H.B. No. 1196
 1-2           (In the Senate - Received from the House April 11, 2001;
 1-3     April 17, 2001, read first time and referred to Committee on State
 1-4     Affairs; May 8, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 8, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to incentives under the Texas Racing Act for the
 1-9     Thoroughbred or Arabian horse breeding industry in this state.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 1.03(21), Texas Racing Act (Article 179e,
1-12     Vernon's Texas Civil Statutes), is amended to read as follows:
1-13                 (21)  "Texas-bred horse" means a horse qualified under
1-14     the rules of the commission that is:
1-15                       (A)  sired by a stallion standing in Texas at the
1-16     time of conception and foaled by a mare in Texas;
1-17                       (B)  foaled by a mare [, except that a mare may
1-18     be] bred outside Texas and brought into Texas to foal at any time
1-19     [and all foals sired and foaled under those conditions] in the
1-20     mare's lifetime [shall be considered "Texas-bred"] if the mare is
1-21     bred back to a stallion standing in Texas; or
1-22                       (C)  a Thoroughbred or Arabian horse foaled in
1-23     Texas by an accredited Texas-bred mare if the mare was bred outside
1-24     Texas and returned to Texas on or before August 15 of the calendar
1-25     year of conception.  [In all instances any foal must qualify under
1-26     the rules of the commission.]
1-27           SECTION 2.  Section 6.08, Texas Racing Act (Article 179e,
1-28     Vernon's Texas Civil Statutes), is amended by adding Subsection (n)
1-29     to read as follows:
1-30           (n)  An accredited Texas-bred Thoroughbred or Arabian horse
1-31     described by Section 1.03(21)(C) of this Act is eligible for only
1-32     one-half of the incentives awarded under Subsections (f) and (j)(2)
1-33     of this section.  The remaining portion shall be retained by the
1-34     appropriate state horse breed registry for general distribution at
1-35     the same meeting in accordance with Subsections (f) and (j) of this
1-36     section.
1-37           SECTION 3.  Section 9.03, Texas Racing Act (Article 179e,
1-38     Vernon's Texas Civil Statutes), is amended to read as follows:
1-39           Sec. 9.03.  TEXAS-BRED RACE. (a)  An association shall
1-40     provide for the running of races limited to accredited Texas-bred
1-41     horses, each to be known as a Texas-bred race.  Unless otherwise
1-42     provided by this section, on every racing day, an association shall
1-43     provide for the running of at least two races limited to accredited
1-44     Texas-bred horses, one of which shall be restricted to maidens.
1-45     Before January 1, 1994, if on any day not enough horses are entered
1-46     in an accredited Texas-bred race to provide sufficient competition,
1-47     an association shall provide for the running of two races in which
1-48     accredited Texas-bred horses are preferred.  An association may
1-49     defer, in accordance with commission rule, the running of one or
1-50     both of the two races required by this section for each racing day,
1-51     but the association must provide that the total number of
1-52     accredited Texas-bred races in a race meeting is equal to twice the
1-53     total number of race dates in the race meeting.
1-54           (b)  To encourage the breeding of horses in this state, any
1-55     accredited Texas-bred horse finishing first, second, or third in
1-56     any race in this state except a restricted stakes race shall
1-57     receive a purse supplement.  The appropriate state breed registry
1-58     shall act in an advisory capacity to the association and the
1-59     commission for the purpose of administering the provisions of this
1-60     section.
1-61           (c)  An accredited Texas-bred Thoroughbred horse that
1-62     finishes first, second, or third in a race other than a Texas-bred
1-63     race shall receive an owner's bonus award as a purse supplement.  A
1-64     percentage of the Texas-bred program funds received under Sections
 2-1     6.08 and 6.091, excluding expenses for administration of the
 2-2     Texas-bred program, shall be allocated to fund the bonus awards as
 2-3     follows:
 2-4                 (1)  for 2002, 10 percent;
 2-5                 (2)  for 2003, 12.5 percent;
 2-6                 (3)  for 2004, 15 percent;
 2-7                 (4)  for 2005, 17.5 percent;
 2-8                 (5)  for 2006, 20 percent;
 2-9                 (6)  for 2007, 22.5 percent; and
2-10                 (7)  for 2008 and subsequent years, 25 percent.
2-11           SECTION 4.  This Act takes effect January 1, 2002.
2-12                                  * * * * *