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.