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