By: Cain, et al. S.B. No. 1096
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
1-25 other political subdivision of the state and includes any entity
2-1 created by a political subdivision.
2-2 (b) An association conducting the Breeders' Cup races may
2-3 apply to the reimbursement of Breeders' Cup costs amounts that
2-4 would otherwise be set aside by the association for the state under
2-5 Sections 6.091(a)(1) and 6.093 of this Act during the year in which
2-6 the association hosts the Breeders' Cup races, limited to an amount
2-7 equal to the lesser of the aggregate amount contributed to pay
2-8 Breeders' Cup costs by political subdivisions and development
2-9 organizations or $2 million. Beginning on January 1 of the year
2-10 for which the association has been officially designated to host
2-11 the Breeders' Cup races, amounts that would otherwise be set aside
2-12 by the association for the state during that year under Sections
2-13 6.091(a)(1) and 6.093 of this Act shall be set aside, in accordance
2-14 with procedures prescribed by the comptroller, for deposit into the
2-15 Breeders' Cup Developmental Account. The Breeders' Cup
2-16 Developmental Account is an account in the general revenue fund.
2-17 The commission shall administer the account. Money in the account
2-18 may be appropriated only to the commission and may be used only for
2-19 the purposes specified in this section. The account is exempt from
2-20 the application of Section 403.095, Government Code.
2-21 (c) The commission shall make disbursements from the
2-22 Breeders' Cup Developmental Account to reimburse Breeders' Cup
2-23 costs actually incurred and paid by the association, after the
2-24 association files a request for reimbursement. Disbursements from
2-25 the account may not at any time exceed the aggregate amount
2-26 actually paid for Breeders' Cup costs by political subdivisions and
3-1 development organizations, as certified by the commission to the
3-2 comptroller, or $2 million, whichever is less.
3-3 (d) Not later than January 31 of the year following the year
3-4 in which the association hosts the Breeders' Cup races, the
3-5 association shall submit to the commission a report that shows:
3-6 (1) the total amount of Breeders' Cup costs incurred
3-7 and paid by the association;
3-8 (2) the total payments made by political subdivisions
3-9 and development organizations for Breeders' Cup costs; and
3-10 (3) any other information requested by the commission.
3-11 (e) Following receipt of the report required by Subsection
3-12 (d) of this section, the commission shall take any steps it
3-13 considers appropriate to verify the report. Not later than March
3-14 31 of the year following the event, the commission shall transfer
3-15 to the credit of the general revenue fund any balance remaining in
3-16 the Breeders' Cup Developmental Account after reimbursement of any
3-17 remaining Breeders' Cup costs authorized under this section.
3-18 (f) In addition to the authority otherwise granted in this
3-19 Act, the commission and the comptroller may adopt rules for the
3-20 administration of this section as follows:
3-21 (1) the commission may adopt rules relating to:
3-22 (A) auditing or other verification of Breeders'
3-23 Cup costs and amounts paid or set aside by political subdivisions
3-24 and development organizations; and
3-25 (B) the disbursement of funds from the Breeders'
3-26 Cup Developmental Account; and
4-1 (2) the comptroller may adopt rules relating to:
4-2 (A) procedures and requirements for transmitting
4-3 or otherwise delivering to the treasury the money set aside under
4-4 this section; and
4-5 (B) depositing funds into the Breeders' Cup
4-6 Developmental Account.
4-7 (g) The commission may adopt rules to facilitate the conduct
4-8 of the Breeders' Cup races, including the adoption of rules or
4-9 waiver of existing rules relating to the overall conduct of racing
4-10 during the Breeders' Cup races in order to assure the integrity of
4-11 the races, licensing for all participants, special stabling and
4-12 training requirements for foreign horses, and commingling of
4-13 pari-mutuel pools.
4-14 (h) The provisions of this section prevail over any
4-15 conflicting provisions of this Act.
4-16 SECTION 2. This Act takes effect September 1, 2001.