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.