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.