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.
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