89R10105 PRL-D
 
  By: Hall S.B. No. 1989
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of proceeds deposited to the horse industry
  account for law enforcement purposes.
         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)  an amount equal to [a purse of] 4.5 percent of the
  pool to be deposited [escrowed] with the commission in the manner
  provided by Section 2028.204.
         SECTION 2.  Sections 2028.203 and 2028.204, Occupations
  Code, are 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 amount set aside [escrowed 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.
         Sec. 2028.204.  USE [ALLOCATION] OF MONEY IN HORSE INDUSTRY
  ACCOUNT [ESCROW ACCOUNTS].  (a)  A greyhound racetrack association
  shall deposit into an [escrow] account in the commission's registry
  the amount [purse] set aside under Section 2028.202(b)(4).
         (b)  The commission shall use [Any horse racetrack
  association in this state may apply to the commission for receipt
  of] money in the horse industry [escrow] account only for law
  enforcement purposes [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
  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 3.  Section 2028.2041, Occupations Code, is amended
  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 greater 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 greater 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.
         (c)  The balance of the [escrow] account established under
  Section 2028.204(b) shall not exceed $50 million.
         SECTION 4.  Section 2031.004(e), Occupations Code, is
  amended to read as follows:
         (e)  The commission may not:
               (1)  use funds from the accredited Texas-bred program
  under Subchapter A, Chapter 2030, or the horse industry [escrowed
  purse] account under Section 2028.204 to fund the Texas Derby
  escrow purse fund; or
               (2)  order a state horse breed registry to fund a purse
  for a Texas Derby, make contributions to the Texas Derby escrow
  purse fund, or pay the expenses of a Texas Derby race.
         SECTION 5.  Section 151.801(c-3), Tax Code, is amended to
  read as follows:
         (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, horse tack, horse
  bedding and grooming supplies, and other taxable expenditures
  directly related to horse ownership, riding, or boarding shall be
  deposited to the credit of the [escrow] account administered by the
  Texas Racing Commission and established under Section 2028.204,
  Occupations Code.
         SECTION 6.  Section 2028.205, Occupations Code, is repealed.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2025.