By: Kolkhorst S.B. No. 1972
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 3.09, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Subsection (c)
to read as follows:
(c) This section does not apply to money deposited into the
Texas-bred incentive fund established under Section 6.095 of this
Act.
SECTION 2. Section 6.08, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subsections
(d), (g), and (j) and adding Subsections (d-1) and (j-1) to read as
follows:
(d) A horse racing association shall set aside for the
Texas-bred program as provided by Subsection (f) of this section an
amount equal to one percent of a live multiple two wagering pool and
a live multiple three wagering pool and pay that amount to the
commission.
(d-1) The commission shall deposit money paid to the
commission under Subsection (d) of this section into the Texas-bred
incentive fund established under Section 6.095 of this Act. 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 this
section and commission rules adopted under Subsection (g) of this
section.
(g) The commission shall adopt rules relating to the
deposit, accounting, audit, and distribution of all amounts set
aside for the Texas-bred program under this section and for the use
of those amounts by the state breed registries under that program.
(j) Ten percent of the total breakage from a live
pari-mutuel pool or a simulcast pari-mutuel pool is to be retained
by the association to be used in stakes races restricted to
accredited Texas-bred horses. The association shall pay to the
commission for deposit into the Texas-bred incentive fund
established under Section 6.095 of this Act and distribution to the
appropriate state horse breed registry [shall pay out] the
remaining 80 percent of the total breakage to be allocated as
follows:
(1) 40 percent [of the remaining breakage is
allocated] to the owners of the accredited Texas-bred horses that
finish first, second, or third;
(2) 40 percent [is allocated] to the breeders of the
accredited Texas-bred horses that finish first, second, or third;
and
(3) 20 percent [is allocated] to the owner of the
stallion standing in this state at the time of conception whose
Texas-bred get finish first, second, or third.
(j-1) The commission shall deposit the portions of total
breakage paid to the commission under Subsections (i) and (j) of
this section into the Texas-bred incentive fund established under
Section 6.095 of this Act. 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 commission rules adopted under Subsection (g) of
this section.
SECTION 3. Section 6.09(d), Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended to read as follows:
(d) Fifty percent of the breakage is to be paid to the
appropriate state greyhound breeding registry. Of that portion of
the breakage 25 percent of that breakage is to be used in stakes
races and 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 6.095 of this Act. The commission shall distribute the
money collected under this section and deposited into the fund to
[for the use by] the state greyhound breed registry for use in
accordance with this section, subject to rules promulgated by the
commission.
SECTION 4. Section 6.091, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Subsection
(a-1) to read as follows:
(a-1) An association shall pay to the commission for deposit
into the Texas-bred incentive fund established under Section 6.095
of this Act the shares to be distributed under Subsections (a)(3)
and (4) of this section 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 5. Article 6, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Section 6.095
to read as follows:
Sec. 6.095. TEXAS-BRED INCENTIVE FUND. The commission
shall deposit money set aside for the Texas-bred program under
Sections 6.08, 6.09, and 6.091 of this Act and money set aside for
use by state breed registries under Sections 6.08 and 6.09 of this
Act into an escrow account in the state treasury in the registry of
the commission to be known as the Texas-bred incentive fund. The
commission shall distribute money from the fund in accordance with
this article and commission rules.
SECTION 6. (a) The changes in law made by this Act to the
Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes),
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 the Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes), as amended by this
Act.
SECTION 7. This Act takes effect only if a specific
appropriation for the implementation of the Act is provided in a
general appropriations act of the 85th Legislature.
SECTION 8. This Act takes effect September 1, 2017.