By Brimer H.B. No. 1923
2001S0406/1
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to economic incentives to attract horse racing events of
1-3 national significance.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 6, Texas Racing Act (Article 179e,
1-6 Vernon's Texas Civil Statutes), is amended by adding Section 6.094
1-7 to read as follows:
1-8 Sec. 6.094. NATIONAL EVENT INCENTIVES. (a) In this
1-9 section:
1-10 (1) "Breeders' Cup costs" means all costs for capital
1-11 improvements and extraordinary expenses reasonably incurred for the
1-12 operation of the Breeders' Cup races, including purses offered on
1-13 other days in excess of the purses that the host association is
1-14 required to pay by this Act.
1-15 (2) "Breeders' Cup races" means a series of
1-16 thoroughbred races known as the Breeders' Cup Championship races
1-17 conducted annually by Breeders' Cup Limited on a day known as
1-18 Breeders' Cup Championship day.
1-19 (3) "Development organization" means an organization
1-20 whose primary purpose is the marketing, promotion, or economic
1-21 development of a city, county, or region of the state, including
1-22 chambers of commerce, convention and visitors bureaus, and sports
1-23 commissions.
1-24 (4) "Political subdivision" means a city, county, or
2-1 other political subdivision in the state and includes any entity
2-2 created by a political subdivision.
2-3 (b) An association conducting the Breeders' Cup races may
2-4 apply to the payment or reimbursement of Breeders' Cup costs
2-5 amounts that would otherwise be set aside for the state under
2-6 Sections 6.091(a)(1) and 6.093 of this Act during the year in which
2-7 the association hosts the Breeders' Cup races, limited to an amount
2-8 equal to the lesser of the aggregate amount contributed to pay
2-9 Breeders' Cup costs by political subdivisions and development
2-10 organizations or $2 million. Beginning on January 1 of the year
2-11 for which the association has been officially designated to host
2-12 the Breeders' Cup races, amounts that would otherwise be set aside
2-13 for the state during that year under Sections 6.091(a)(1) and 6.093
2-14 of this Act shall be deposited into a special account to be
2-15 administered as provided by this section.
2-16 (c) Disbursements shall be made from the special account to
2-17 pay Breeders' Cup costs actually incurred by the association as
2-18 such costs are incurred, either by direct payment of the costs or
2-19 reimbursement to the association for costs paid by it.
2-20 Disbursements from the special account may not at any time exceed
2-21 the aggregate amount actually paid for Breeders' Cup costs by
2-22 political subdivisions and development organizations.
2-23 (d) By January 31 of the year following the year in which
2-24 the association hosts the Breeders' Cup races, the association
2-25 shall submit to the commission a report including:
2-26 (1) the total amount of Breeders' Cup costs incurred
3-1 by the association;
3-2 (2) the total payments made by political subdivisions
3-3 and development organizations for Breeders' Cup costs;
3-4 (3) the total disbursements from the special account
3-5 for the payment or reimbursement of Breeders' Cup costs;
3-6 (4) the balance remaining in the special account; and
3-7 (5) any other information requested by the commission.
3-8 (e) Following receipt of the report required by Subsection
3-9 (d), the commission shall take any steps it considers appropriate
3-10 to verify the report and shall give instructions for the final
3-11 disbursement of any funds remaining in the special account. Any
3-12 balance remaining in the account after payment or reimbursement of
3-13 any remaining Breeders' Cup costs authorized under this section
3-14 shall be set aside for the state.
3-15 (f) The commission shall adopt rules relating to the
3-16 administration of this section, including rules relating to:
3-17 (1) the auditing or other verification of Breeders'
3-18 Cup costs and amounts paid or set aside by political subdivisions
3-19 and development organizations;
3-20 (2) the establishment of the special account; and
3-21 (3) the deposit, investment, and disbursement of funds
3-22 in or from the special account.
3-23 (g) The commission may adopt rules to facilitate the conduct
3-24 of the Breeders' Cup races, including the adoption of rules or
3-25 waiver of existing rules relating to the overall conduct of racing
3-26 during the Breeders' Cup races in order to assure the integrity of
4-1 the races, licensing for all participants, special stabling and
4-2 training requirements for foreign horses, and commingling of
4-3 pari-mutuel pools.
4-4 (h) The provisions of this section prevail over any
4-5 conflicting provisions of this Act.
4-6 SECTION 2. This Act takes effect September 1, 2001.