1-1 By: Cain, et al. S.B. No. 1096 1-2 (In the Senate - Filed March 5, 2001; March 6, 2001, read 1-3 first time and referred to Committee on Business and Commerce; 1-4 April 9, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 7, Nays 0; April 9, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1096 By: Lucio 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to economic incentives to attract horse racing events of 1-11 national significance. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Article 6, Texas Racing Act (Article 179e, 1-14 Vernon's Texas Civil Statutes), is amended by adding Section 6.094 1-15 to read as follows: 1-16 Sec. 6.094. NATIONAL EVENT INCENTIVES. (a) In this 1-17 section: 1-18 (1) "Breeders' Cup costs" means all costs for capital 1-19 improvements and extraordinary expenses reasonably incurred for the 1-20 operation of the Breeders' Cup races, including purses offered on 1-21 other days in excess of the purses that the host association is 1-22 required to pay by this Act. 1-23 (2) "Breeders' Cup races" means a series of 1-24 thoroughbred races known as the Breeders' Cup Championship races 1-25 conducted annually by Breeders' Cup Limited on a day known as 1-26 Breeders' Cup Championship day. 1-27 (3) "Development organization" means an organization 1-28 whose primary purpose is the marketing, promotion, or economic 1-29 development of a city, county, or region of the state, including 1-30 chambers of commerce, convention and visitors bureaus, and sports 1-31 commissions. 1-32 (4) "Political subdivision" means a city, county, or 1-33 other political subdivision of the state and includes any entity 1-34 created by a political subdivision. 1-35 (b) An association conducting the Breeders' Cup races may 1-36 apply to the reimbursement of Breeders' Cup costs amounts that 1-37 would otherwise be set aside by the association for the state under 1-38 Sections 6.091(a)(1) and 6.093 of this Act during the year in which 1-39 the association hosts the Breeders' Cup races, limited to an amount 1-40 equal to the lesser of the aggregate amount contributed to pay 1-41 Breeders' Cup costs by political subdivisions and development 1-42 organizations or $2 million. Beginning on January 1 of the year 1-43 for which the association has been officially designated to host 1-44 the Breeders' Cup races, amounts that would otherwise be set aside 1-45 by the association for the state during that year under Sections 1-46 6.091(a)(1) and 6.093 of this Act shall be set aside, in accordance 1-47 with procedures prescribed by the comptroller, for deposit into the 1-48 Breeders' Cup Developmental Account. The Breeders' Cup 1-49 Developmental Account is an account in the general revenue fund. 1-50 The commission shall administer the account. Money in the account 1-51 may be appropriated only to the commission and may be used only for 1-52 the purposes specified in this section. The account is exempt from 1-53 the application of Section 403.095, Government Code. 1-54 (c) The commission shall make disbursements from the 1-55 Breeders' Cup Developmental Account to reimburse Breeders' Cup 1-56 costs actually incurred and paid by the association, after the 1-57 association files a request for reimbursement. Disbursements from 1-58 the account may not at any time exceed the aggregate amount 1-59 actually paid for Breeders' Cup costs by political subdivisions and 1-60 development organizations, as certified by the commission to the 1-61 comptroller, or $2 million, whichever is less. 1-62 (d) Not later than January 31 of the year following the year 1-63 in which the association hosts the Breeders' Cup races, the 1-64 association shall submit to the commission a report that shows: 2-1 (1) the total amount of Breeders' Cup costs incurred 2-2 and paid by the association; 2-3 (2) the total payments made by political subdivisions 2-4 and development organizations for Breeders' Cup costs; and 2-5 (3) any other information requested by the commission. 2-6 (e) Following receipt of the report required by Subsection 2-7 (d) of this section, the commission shall take any steps it 2-8 considers appropriate to verify the report. Not later than March 2-9 31 of the year following the event, the commission shall transfer 2-10 to the credit of the general revenue fund any balance remaining in 2-11 the Breeders' Cup Developmental Account after reimbursement of any 2-12 remaining Breeders' Cup costs authorized under this section. 2-13 (f) In addition to the authority otherwise granted in this 2-14 Act, the commission and the comptroller may adopt rules for the 2-15 administration of this section as follows: 2-16 (1) the commission may adopt rules relating to: 2-17 (A) auditing or other verification of Breeders' 2-18 Cup costs and amounts paid or set aside by political subdivisions 2-19 and development organizations; and 2-20 (B) the disbursement of funds from the Breeders' 2-21 Cup Developmental Account; and 2-22 (2) the comptroller may adopt rules relating to: 2-23 (A) procedures and requirements for transmitting 2-24 or otherwise delivering to the treasury the money set aside under 2-25 this section; and 2-26 (B) depositing funds into the Breeders' Cup 2-27 Developmental Account. 2-28 (g) The commission may adopt rules to facilitate the conduct 2-29 of the Breeders' Cup races, including the adoption of rules or 2-30 waiver of existing rules relating to the overall conduct of racing 2-31 during the Breeders' Cup races in order to assure the integrity of 2-32 the races, licensing for all participants, special stabling and 2-33 training requirements for foreign horses, and commingling of 2-34 pari-mutuel pools. 2-35 (h) The provisions of this section prevail over any 2-36 conflicting provisions of this Act. 2-37 SECTION 2. This Act takes effect September 1, 2001. 2-38 * * * * *