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. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1096 passed the Senate on April 19, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1096 passed the House on May 10, 2001, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor