86R24015 ADM-D
 
  By: King of Uvalde H.B. No. 2463
 
  Substitute the following for H.B. No. 2463:
 
  By:  King of Uvalde C.S.H.B. No. 2463
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the deposit and allocation of certain funds to the horse
  industry escrow account.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2028.202(b), Occupations Code, is
  amended to read as follows:
         (b)  From the total amount deducted under Subsection (a), a
  greyhound racetrack association that receives an interstate
  cross-species simulcast signal shall distribute the following
  amounts from each pari-mutuel pool wagered on the signal at the
  racetrack:
               (1)  a fee of 1.5 percent to be paid to the racetrack in
  this state sending the signal;
               (2)  a purse in the amount of 0.75 percent to be paid to
  the official state horse breed registry for Thoroughbred horses for
  use as purses at racetracks in this state;
               (3)  a purse in the amount of 0.75 percent to be paid to
  the official state horse breed registry for quarter horses for use
  as purses at racetracks in this state; and
               (4)  a purse of 4.5 percent to be escrowed with the
  commission [for purses] in the manner provided by Section 2028.204.
         SECTION 2.  Section 2028.203, Occupations Code, is amended
  to read as follows:
         Sec. 2028.203.  REIMBURSEMENT FOR SIMULCAST SIGNAL
  COST.  If a racetrack association purchases an interstate
  simulcast signal and the signal cost exceeds five percent of the
  pari-mutuel pool, the commission, from the escrowed [purse] account
  under Section 2028.202(b)(4), shall reimburse the racetrack
  association an amount equal to one-half of the signal cost that
  exceeds five percent of the pari-mutuel pool.
         SECTION 3.  The heading to Section 2028.204, Occupations
  Code, is amended to read as follows:
         Sec. 2028.204.  ALLOCATION OF MONEY IN ESCROW ACCOUNTS 
  [ESCROWED PURSES].
         SECTION 4.  Section 2028.204(b), Occupations Code, is
  amended to read as follows:
         (b)  Any horse racetrack association in this state may apply
  to the commission for receipt of money in the horse industry escrow
  [all or part of the escrowed purse] account for use as purses. Any
  state horse breed registry listed in Section 2030.002(a) may apply
  for receipt of money in the account for any event that furthers the
  horse industry. The commission:
               (1)  shall determine the horse racetrack associations
  and state horse breed registries to be allocated money from the
  [escrowed purse] account and the percentages to be allocated,
  taking into consideration purse levels, racing opportunities, and
  the financial status of the requesting racetrack association or
  requesting breed registry; and
               (2)  may not annually allocate more than 70 percent of
  the amount deposited into the account to horse racetrack
  associations for use as purses.
         SECTION 5.  Subchapter E, Chapter 2028, Occupations Code, is
  amended by adding Section 2028.2041 to read as follows:
         Sec. 2028.2041.  ALLOCATION OF CERTAIN FUNDS.  (a)  In each
  state fiscal biennium, the comptroller shall deposit the amounts
  allocated under Section 151.801(c-3), Tax Code, into the escrow
  account established under Section 2028.204(b), until the
  comptroller determines the amount deposited into the account in
  that fiscal biennium equals the lesser of:
               (1)  the amount appropriated to the commission for the
  purposes of Section 2028.204 for that fiscal biennium; or
               (2)  $50 million.
         (b)  Once the comptroller determines the lesser of the amount
  described by Subsection (a)(1) or (2) has been deposited during a
  state fiscal biennium into the escrow account established under
  Section 2028.204(b), for the remainder of that fiscal biennium the
  comptroller shall deposit the amounts allocated under Section
  151.801(c-3), Tax Code, into the general revenue fund.
         SECTION 6.  Sections 2028.205(a) and (b), Occupations Code,
  are amended to read as follows:
         (a)  In addition to money allocated under Section 2028.204, a
  horse racetrack association operating a racetrack that is located
  not more than 75 miles from a greyhound racetrack that offers
  wagering on a cross-species simulcast signal and that sends the
  cross-species simulcast signal to the greyhound racetrack may apply
  to the commission for an allocation of up to 20 percent of the money
  in the escrowed [purse] account that is attributable to the
  wagering on a cross-species simulcast signal at the greyhound
  racetrack.
         (b)  If the applying horse racetrack association can prove to
  the commission's satisfaction that the racetrack association's
  handle has decreased directly due to wagering on an interstate
  cross-species simulcast signal at a greyhound racetrack located not
  more than 75 miles from the applying racetrack association, the
  commission shall allocate amounts from the escrowed [purse] account
  as the commission considers appropriate to compensate the racetrack
  association for the decrease. The amounts allocated may not exceed
  20 percent of the money in the escrowed [purse] account that is
  attributable to the wagering on the interstate cross-species
  simulcast signal at the greyhound racetrack.
         SECTION 7.  Section 151.801, Tax Code, is amended by
  amending Subsections (a) and (d) and adding Subsection (c-3) to
  read as follows:
         (a)  Except for the amounts allocated under Subsections (b),
  (c), [and] (c-2), and (c-3), all proceeds from the collection of the
  taxes imposed by this chapter shall be deposited to the credit of
  the general revenue fund.
         (c-3)  Subject to the limitation imposed under Section
  2028.2041, Occupations Code, an amount equal to the proceeds from
  the collection of the taxes imposed by this chapter on the sale,
  storage, or use of horse feed, horse supplements, and horse tack
  shall be deposited to the credit of the escrow account administered
  by the Texas Racing Commission and established under Section
  2028.204, Occupations Code.
         (d)  The comptroller shall determine the amount to be
  deposited to the highway fund under Subsection (b) according to
  available statistical data indicating the estimated average or
  actual consumption or sales of lubricants used to propel motor
  vehicles over the public roadways.  The comptroller shall
  determine the amounts to be deposited to the funds or accounts under
  Subsection (c) according to available statistical data indicating
  the estimated or actual total receipts in this state from taxable
  sales of sporting goods.  The comptroller shall determine the
  amount to be deposited to the fund under Subsection (c-2) according
  to available statistical data indicating the estimated or actual
  total receipts in this state from taxes imposed on sales at retail
  of fireworks. The comptroller shall determine the amount to be
  deposited to the account under Subsection (c-3) according to
  available statistical data indicating the estimated or actual total
  receipts in this state from taxable sales of horse feed, horse
  supplements, and horse tack. If satisfactory data are not
  available, the comptroller may require taxpayers who make taxable
  sales or uses of those lubricants, of sporting goods, [or] of
  fireworks, or of horse feed, horse supplements, or horse tack to
  report to the comptroller as necessary to make the allocation
  required by Subsection (b), (c), [or] (c-2), or (c-3).
         SECTION 8.  Section 151.801(e), Tax Code, is amended by
  adding Subdivisions (4) and (5) to read as follows:
               (4)  "Horse feed" means a product clearly packaged and
  labeled as feed for a horse.
               (5)  "Horse supplement" means a product clearly
  packaged and labeled as a supplement for a horse, including a
  vitamin, mineral, or other nutrient intended to supplement horse
  feed.
         SECTION 9.  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 Subtitle A-1,
  Occupations Code (Texas Racing Act), as amended by this Act.
         SECTION 10.  This Act takes effect September 1, 2019.