Bill Text: TX HB2463 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the deposit and allocation of certain funds to the horse industry escrow account and to the maximum balance of that account.

Spectrum: Bipartisan Bill

Status: (Passed) 2019-06-15 - Effective on 9/1/19 [HB2463 Detail]

Download: Texas-2019-HB2463-Enrolled.html

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H.B. No. 2463

AN ACT
relating
to the deposit and allocation of certain funds to the horse
industry escrow account and to the maximum balance of that 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 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 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, 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.
(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, horse tack, horse bedding and grooming supplies, and
other taxable expenditures directly related to horse ownership,
riding, or boarding. 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, horse tack, horse bedding and grooming
supplies, or other taxable expenditures directly related to horse
ownership, riding, or boarding 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,
Title 13, Occupations Code (Texas Racing Act), as amended by this
Act.
SECTION 10. The comptroller of public accounts is required
to implement a provision of this Act only if the legislature
appropriates money specifically for that purpose. If the
legislature does not appropriate money specifically for that
purpose, the comptroller may, but is not required to, implement a
provision of this Act using other appropriations available for that
purpose.
SECTION 11. The Texas Racing Commission is required to
implement a provision of this Act only if the legislature
appropriates money specifically for that purpose. If the
legislature does not appropriate money specifically for that
purpose, the commission may, but is not required to, implement a
provision of this Act using other appropriations available for that
purpose.
SECTION 12. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2463 was passed by the House on May
10, 2019, by the following vote: Yeas 91, Nays 38, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2463 on May 24, 2019, by the following vote: Yeas 99, Nays 42,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2463 was passed by the Senate, with
amendments, on May 21, 2019, by the following vote: Yeas 22, Nays
9.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor