By: Cain, et al. S.B. No. 1096 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 1-25 other political subdivision in 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 payment or reimbursement of Breeders' Cup costs 2-4 amounts that would otherwise be set aside 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 for the state during that year under Sections 6.091(a)(1) and 6.093 2-13 of this Act shall be deposited into a special account to be 2-14 administered as provided by this section. 2-15 (c) Disbursements shall be made from the special account to 2-16 pay Breeders' Cup costs actually incurred by the association as 2-17 such costs are incurred, either by direct payment of the costs or 2-18 reimbursement to the association for costs paid by it. 2-19 Disbursements from the special account may not at any time exceed 2-20 the aggregate amount actually paid for Breeders' Cup costs by 2-21 political subdivisions and development organizations. 2-22 (d) By January 31 of the year following the year in which 2-23 the association hosts the Breeders' Cup races, the association 2-24 shall submit to the commission a report including: 2-25 (1) the total amount of Breeders' Cup costs incurred 2-26 by the association; 3-1 (2) the total payments made by political subdivisions 3-2 and development organizations for Breeders' Cup costs; 3-3 (3) the total disbursements from the special account 3-4 for the payment or reimbursement of Breeders' Cup costs; 3-5 (4) the balance remaining in the special account; and 3-6 (5) any other information requested by the commission. 3-7 (e) Following receipt of the report required by Subsection 3-8 (d), the commission shall take any steps it considers appropriate 3-9 to verify the report and shall give instructions for the final 3-10 disbursement of any funds remaining in the special account. Any 3-11 balance remaining in the account after payment or reimbursement of 3-12 any remaining Breeders' Cup costs authorized under this section 3-13 shall be set aside for the state. 3-14 (f) The commission shall adopt rules relating to the 3-15 administration of this section, including rules relating to: 3-16 (1) the auditing or other verification of Breeders' 3-17 Cup costs and amounts paid or set aside by political subdivisions 3-18 and development organizations; 3-19 (2) the establishment of the special account; and 3-20 (3) the deposit, investment, and disbursement of funds 3-21 in or from the special account. 3-22 (g) The commission may adopt rules to facilitate the conduct 3-23 of the Breeders' Cup races, including the adoption of rules or 3-24 waiver of existing rules relating to the overall conduct of racing 3-25 during the Breeders' Cup races in order to assure the integrity of 3-26 the races, licensing for all participants, special stabling and 4-1 training requirements for foreign horses, and commingling of 4-2 pari-mutuel pools. 4-3 (h) The provisions of this section prevail over any 4-4 conflicting provisions of this Act. 4-5 SECTION 2. This Act takes effect September 1, 2001.