bill sending horse industry money to law enforcement

The text as introduced · 861 words

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.