Honorable Charles Perry, Chair, Senate Committee on Agriculture, Water & Rural Affairs
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1972 by Kolkhorst (Relating to the deposit and distribution by the Texas Racing Commission of certain pari-mutuel wagering funds to benefit the Texas-bred program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1972, As Introduced: an impact of $0 through the biennium ending August 31, 2019.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2018
$0
2019
$0
2020
$0
2021
$0
2022
$0
Fiscal Year
Probable Revenue Gain/(Loss) from Texas Racing Comm Acct 597
Probable Revenue Gain/(Loss) from Escrow Account - Texas Racing Commission
2018
($120,000)
$120,000
2019
($120,000)
$120,000
2020
($120,000)
$120,000
2021
($120,000)
$120,000
2022
($120,000)
$120,000
Fiscal Analysis
The bill would amend Section 6.08 of the Texas Racing Act to require the Texas Racing Commission (TRC) to deposit money paid to commission from set-asides related to a live multiple two wagering pool and a live multiple three wagering pool into an escrow account in the registry of the commission. The TRC would be required to distribute the money to the appropriate state horse breed registries for the Texas-bred program. The bill would require the TRC to adopt rules relating to the deposit of the set-aside to an escrow account.
The bill would take effect on September 1, 2017.
Methodology
The bill would require the wagering pool set-aside for the Texas Bred Incentive Program established under Section 6.08 of the Texas Racing Act to be deposited to an escrow account instead of the Texas Racing Commission Account 0597. The Comptroller's office and the TRC estimate the bill would result in a loss of $120,000 each fiscal year to Account 0597 beginning in fiscal year 2018. This amount would be deposited to an escrow account and then distributed to the appropriate breed registries out of the escrow account. Under current law, these distributions are made through an estimated appropriation from Account 0597 to TRC in Strategy A.2.1, Texas Bred Incentive Program, in the General Appropriations Act for the 2016-17 Biennium.
Based on the information provided by TRC, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within the agency's existing resources.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 476 Racing Commission