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

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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

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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.