By: Kolkhorst S.B. No. 1972
 
  (Kuempel)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the deposit and distribution by the Texas Racing
  Commission of certain pari-mutuel wagering funds to benefit the
  Texas-bred program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 3.09, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended by adding Subsection (c)
  to read as follows:
         (c)  This section does not apply to money deposited into the
  Texas-bred incentive fund established under Section 6.095 of this
  Act.
         SECTION 2.  Section 6.08, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended by amending Subsections
  (d), (g), and (j) and adding Subsections (d-1) and (j-1) to read as
  follows:
         (d)  A horse racing association shall set aside for the
  Texas-bred program as provided by Subsection (f) of this section an
  amount equal to one percent of a live multiple two wagering pool and
  a live multiple three wagering pool and pay that amount to the
  commission.
         (d-1)  The commission shall deposit money paid to the
  commission under Subsection (d) of this section into the Texas-bred
  incentive fund established under Section 6.095 of this Act. The
  commission shall distribute the money collected under this section
  and deposited into the fund to the appropriate state horse breed
  registries for the Texas-bred program in accordance with this
  section and commission rules adopted under Subsection (g) of this
  section.
         (g)  The commission shall adopt rules relating to the
  deposit, accounting, audit, and distribution of all amounts set
  aside for the Texas-bred program under this section and for the use
  of those amounts by the state breed registries under that program.
         (j)  Ten percent of the total breakage from a live
  pari-mutuel pool or a simulcast pari-mutuel pool is to be retained
  by the association to be used in stakes races restricted to
  accredited Texas-bred horses.  The association shall pay to the
  commission for deposit into the Texas-bred incentive fund
  established under Section 6.095 of this Act and distribution to the 
  appropriate state horse breed registry [shall pay out] the
  remaining 80 percent of the total breakage to be allocated as
  follows:
               (1)  40 percent [of the remaining breakage is
  allocated] to the owners of the accredited Texas-bred horses that
  finish first, second, or third;
               (2)  40 percent [is allocated] to the breeders of the
  accredited Texas-bred horses that finish first, second, or third;
  and
               (3)  20 percent [is allocated] to the owner of the
  stallion standing in this state at the time of conception whose
  Texas-bred get finish first, second, or third.
         (j-1)  The commission shall deposit the portions of total
  breakage paid to the commission under Subsections (i) and (j) of
  this section into the Texas-bred incentive fund established under
  Section 6.095 of this Act. The commission shall distribute the
  money collected under this section and deposited into the fund to
  the appropriate state horse breed registries in accordance with
  this section and commission rules adopted under Subsection (g) of
  this section.
         SECTION 3.  Section 6.09(d), Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (d)  Fifty percent of the breakage is to be paid to the
  appropriate state greyhound breeding registry. Of that portion of
  the breakage 25 percent of that breakage is to be used in stakes
  races and 25 percent of that total breakage from a live pari-mutuel
  pool or a simulcast pari-mutuel pool is to be paid to the commission
  for deposit into the Texas-bred incentive fund established under
  Section 6.095 of this Act. The commission shall distribute the
  money collected under this section and deposited into the fund to
  [for the use by] the state greyhound breed registry for use in
  accordance with this section, subject to rules promulgated by the
  commission.
         SECTION 4.  Section 6.091, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended by adding Subsection
  (a-1) to read as follows:
         (a-1)  An association shall pay to the commission for deposit
  into the Texas-bred incentive fund established under Section 6.095
  of this Act the shares to be distributed under Subsections (a)(3)
  and (4) of this section for the Texas-bred program. The commission
  shall distribute the money collected under this section and
  deposited into the fund to the appropriate state breed registries
  for use under the Texas-bred program.
         SECTION 5.  Article 6, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended by adding Section 6.095
  to read as follows:
         Sec. 6.095.  TEXAS-BRED INCENTIVE FUND. The commission
  shall deposit money set aside for the Texas-bred program under
  Sections 6.08, 6.09, and 6.091 of this Act and money set aside for
  use by state breed registries under Sections 6.08 and 6.09 of this
  Act into an escrow account in the state treasury in the registry of
  the commission to be known as the Texas-bred incentive fund.  The
  commission shall distribute money from the fund in accordance with
  this article and commission rules.
         SECTION 6.  (a)  The changes in law made by this Act to the
  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes),
  apply to the deductions and breakage from a wagering pool for a
  horse or greyhound race conducted by a racetrack association on or
  after the effective date of this Act.
         (b)  As soon as practicable after the effective date of this
  Act, the Texas Racing Commission shall revise existing rules or
  adopt new rules as necessary to comply with the Texas Racing Act
  (Article 179e, Vernon's Texas Civil Statutes), as amended by this
  Act.
         SECTION 7.  This Act takes effect only if a specific
  appropriation for the implementation of the Act is provided in a
  general appropriations act of the 85th Legislature.
         SECTION 8.  This Act takes effect September 1, 2017.