By: Kacal, Bailes, Kuempel H.B. No. 3366
        (Senate Sponsor - Kolkhorst)
         (In the Senate - Received from the House April 16, 2019;
  April 17, 2019, read first time and referred to Committee on Water &
  Rural Affairs; May 13, 2019, reported favorably by the following
  vote:  Yeas 6, Nays 0; May 13, 2019, sent to printer.)
Click here to see the committee vote
 
 
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 2023.053, Occupations Code, is amended
  by adding Subsection (f) to read as follows:
         (f)  This section does not apply to money deposited into the
  Texas-bred incentive fund established under Section 2028.301.
         SECTION 2.  Section 2024.055, Occupations Code, is amended
  to read as follows:
         Sec. 2024.055.  DEPOSIT OF STATE'S SHARE. (a) The
  comptroller shall deposit the state's share of each pari-mutuel
  pool from horse racing and greyhound racing in the general revenue
  fund.
         (b)  This section does not apply to money deposited into the
  Texas-bred incentive fund established under Section 2028.301.
         SECTION 3.  Section 2028.103, Occupations Code, is amended
  by amending Subsections (a) and (c) and adding Subsection (a-1) to
  read as follows:
         (a)  A horse racetrack association shall set aside for the
  Texas-bred program and pay to the commission an amount equal to one
  percent of a live multiple two wagering pool and a live multiple
  three wagering pool. From the set-aside amounts:
               (1)  two percent shall be set aside for purposes of
  Subchapter F, Chapter 88, Education Code; and
               (2)  the remaining amount shall be allocated as
  follows:
                     (A)  10 percent may be used by the appropriate
  state horse breed registry for administration; and
                     (B)  the remainder shall be used for awards.
         (a-1)  The commission shall deposit money paid to the
  commission under Subsection (a) into the Texas-bred incentive fund
  established under Section 2028.301. 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 rules adopted under
  Subsection (c).
         (c)  The commission shall adopt rules relating to the
  deposit, accounting, auditing, and distribution of all amounts set
  aside for the Texas-bred program under this subchapter and for the
  use of those amounts by the state breed registries under that
  program.
         SECTION 4.  Section 2028.105, Occupations Code, is amended
  by amending Subsection (d) and adding Subsection (d-1) to read as
  follows:
         (d)  The horse racetrack association shall pay to the
  commission for deposit into the Texas-bred incentive fund
  established under Section 2028.301 and distribution to the
  appropriate state horse breed registry [shall pay] the remaining 80
  percent of the total breakage to be allocated as follows:
               (1)  40 percent to the owners of the accredited
  Texas-bred horses that finish first, second, or third;
               (2)  40 percent to the breeders of accredited
  Texas-bred horses that finish first, second, or third; and
               (3)  20 percent to the owner of the stallion standing in
  this state at the time of conception whose Texas-bred get finish
  first, second, or third.
         (d-1)  The commission shall deposit the portions of total
  breakage paid to the commission under Subsections (b) and (d) into
  the Texas-bred incentive fund established under Section 2028.301.
  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 with rules
  adopted by the commission under Section 2028.103.
         SECTION 5.  Section 2028.154(a), Occupations Code, is
  amended to read as follows:
         (a)  A greyhound racetrack association shall pay 50 percent
  of the breakage to the appropriate state greyhound breed registry.
  Of that breakage percentage:
               (1)  25 percent is to be used in stakes races; and
               (2)  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 2028.301. The commission shall
  distribute the money collected under this section and deposited
  into the fund to [use by] the state greyhound breed registry for use
  in accordance with this section and[, subject to] commission rules.
         SECTION 6.  Section 2028.202, Occupations Code, is amended
  by adding Subsection (a-1) to read as follows:
         (a-1)  A racetrack association shall pay to the commission
  for deposit into the Texas-bred incentive fund established under
  Section 2028.301 the shares to be distributed under Subsections
  (a)(3) and (a)(4) 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 7.  Chapter 2028, Occupations Code, is amended by
  adding Subchapter G to read as follows:
  SUBCHAPTER G. TEXAS-BRED INCENTIVE FUND
         Sec. 2028.301.  TEXAS-BRED INCENTIVE FUND. (a) The
  commission shall deposit money set aside for the Texas-bred program
  or set aside for use by state breed registries under this chapter
  into an escrow account in the state treasury in the registry of the
  commission to be known as the Texas-bred incentive fund.
         (b)  The commission shall distribute money from the
  Texas-bred incentive fund in accordance with this chapter and
  commission rules.
         SECTION 8.  (a)  The changes in law made by this Act 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 this Act.
         SECTION 9.  This Act takes effect September 1, 2019.
 
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