Bill Text: TX SB1971 | 2017-2018 | 85th Legislature | Engrossed


Bill Title: Relating to the deposit and allocation of certain funds to the Texas Racing Commission horse industry escrow account.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2017-05-18 - Referred to Appropriations [SB1971 Detail]

Download: Texas-2017-SB1971-Engrossed.html
 
 
  By: Kolkhorst, Buckingham S.B. No. 1971
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the deposit and allocation of certain funds to the Texas
  Racing Commission horse industry escrow account.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 12.020(r), Agriculture Code, is amended
  to read as follows:
         (r)  The commissioner shall transfer money paid as a [A]
  penalty and collected under this section to the Texas Racing
  Commission for deposit in the horse industry escrow account under
  Section 6.091(e), Texas Racing Act (Article 179e, Vernon's Texas
  Civil Statutes) [shall be deposited in the state treasury to the
  credit of the General Revenue Fund].
         SECTION 2.  Section 6.091(a), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  An association shall distribute from the total amount
  deducted as provided by Sections 6.08(a) and 6.09(a) of this Act
  from each simulcast pari-mutuel pool and each simulcast
  cross-species pool the following shares:
               (1)  as the amount set aside for the Texas-bred program
  to be paid to the commission for deposit as provided by Section
  6.0912 of this Act:
                     (A)  an amount equal to one percent of each
  simulcast pool [as the amount set aside for the state];
                     (B) [(2)]  an amount equal to 1.25 percent of each
  simulcast cross-species pool [as the amount set aside for the
  state]; and
                     (C) [(3)]  if the association is a horse racing
  association, an amount equal to one percent of a multiple two
  wagering pool or multiple three wagering pool [as the amount set
  aside for the Texas-bred program to be used as provided by Section
  6.08(f) of this Act];
               (2) [(4)]  if the association is a greyhound
  association, an amount equal to one percent of a multiple two
  wagering pool or a multiple three wagering pool as the amount set
  aside for the Texas-bred program for greyhound races, to be
  distributed and used in accordance with rules of the commission
  adopted to promote greyhound breeding in this state; and
               (3) [(5)]  the remainder as the amount set aside for
  purses, expenses, the sending association, and the receiving
  location pursuant to a contract approved by the commission between
  the sending association and the receiving location.
         SECTION 3.  Section 6.091(e), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (e)  The purse set aside under Subsection (c)(4) of this
  section shall be deposited into the horse industry [an] escrow
  account in the registry of the commission.  Any horse racetrack
  association in this state may apply to the commission for receipt of
  all or part of the funds in the [escrowed purse] account for use as
  purses.  Any state horse breed registry listed in Section 6.08(i) of
  this Act may apply for receipt of funds in the account for any event
  that furthers the horse industry.  The commission shall determine
  to which horse racetracks and to which state horse breed registries
  the funds in the [escrowed purse] account shall be allocated and in
  what percentages, taking into consideration purse levels, racing
  opportunities, and the financial status of a [the] requesting
  racetrack or requesting breed registry.  The commission shall not
  allocate annually more than 70 percent of the amount deposited into
  the horse industry escrow account to horse racetrack associations
  for use as purses.  [The first distribution of the escrowed purse
  account allocated to a racetrack under this section may not be made
  before October 1, 1998.]
         SECTION 4.  Article 6, Texas Racing Act (Article 179e,
  Vernon's Texas Civil Statutes), is amended by adding Section 6.0912
  to read as follows:
         Sec. 6.0912.  DEPOSITS INTO HORSE INDUSTRY ESCROW ACCOUNT.  
  (a)  The commission shall deposit into the horse industry escrow
  account established under Section 6.091(e), the following amounts
  collected or received by the commission:
               (1)  amounts for the Texas-bred program collected or
  received under Section 6.08 or 6.091(a) of this Act;
               (2)  fees on the use of an automatic banking machine
  under Section 11.04 of this Act;
               (3)  money paid as administrative penalties under
  Section 12.020, Agriculture Code, and transferred to the commission
  under Subsection (r) of that section; and
               (4)  any amount appropriated to the commission for the
  purpose of purses for horse or greyhound races.
         (b)  In each state fiscal biennium, the commission shall
  deposit the amounts listed under Subsection (a) of this section and
  the comptroller shall deposit the amounts allocated under Section
  151.801(c-3), Tax Code, into the escrow account for purses
  established under Section 6.091(e) of this Act, 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
  purpose of purses for horse or greyhound races for that fiscal
  biennium; or
               (2)  $25 million.
         (c)  Once the comptroller determines the greater of the
  amount described by Subsection (b)(1) or (2) has been deposited
  during a state fiscal biennium into the escrow account for purses
  established under Section 6.091(e) of this Act, for the remainder
  of that fiscal biennium:
               (1)  the commission shall deposit the amounts listed
  under Subsection (a) of this section into the general revenue fund;
  and
               (2)  the comptroller shall deposit the amounts
  allocated under Section 151.801(c-3), Tax Code, into the general
  revenue fund.
         SECTION 5.  Section 11.04(e), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (e)  An association that allows a machine in an enclosure as
  provided by Subsection (c) shall collect a fee of $1 for each
  transaction under Subsection (c). The commission shall adopt rules
  providing for collection, reporting, and auditing of the
  transaction fee. The association shall forward the fee to the
  commission. The commission shall deposit the fees collected under
  this section as provided by Section 6.0912 of this Act [deposit the
  fee to the credit of the general revenue fund].
         SECTION 6.  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)  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 horse industry escrow account administered by the
  Texas Racing Commission and established under Section 6.091, Texas
  Racing Act (Article 179e, Vernon's Texas Civil Statutes).
         (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 7.  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 8.  Section 6.091(b), Texas Racing Act (Article
  179e, Vernon's Texas Civil Statutes), is repealed.
         SECTION 9.  The change in law made by this Act to Section
  12.020(r), Agriculture Code, applies to a penalty collected on or
  after the effective date of this Act, regardless of when the
  underlying conduct giving rise to the penalty occurred.
         SECTION 10.  (a)  The changes in law made by this Act to the
  Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes)
  apply to the deduction from a pari-mutuel pool for a race conducted
  by a racetrack association or a fee collected for an automatic
  banking machine transaction 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 11.  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 12.  This Act takes effect September 1, 2017.
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