By: Kolkhorst, Buckingham	S.B. No. 1971
	(In the Senate - Filed March 10, 2017; March 27, 2017, read
	first time and referred to Committee on Agriculture, Water & Rural
	Affairs; April 27, 2017, reported adversely, with favorable
	Committee Substitute by the following vote:  Yeas 5, Nays 0;
	April 27, 2017, sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR S.B. No. 1971	By:  Rodríguez

	A BILL TO BE ENTITLED
	AN ACT
	relating to the deposit and allocation of certain funds to the Texas
	Racing Commission escrow account for purses.
	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 escrow account for purses 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.  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 ESCROW ACCOUNT FOR PURSES. The
	commission shall deposit into the escrow account for purses
	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.
	SECTION 4.  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 in accordance with Section 6.0912 of this Act [deposit
	the fee to the credit of the general revenue fund].
	SECTION 5.  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 escrow account for purses 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 6.  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 7.  Section 6.091(b), Texas Racing Act (Article
	179e, Vernon's Texas Civil Statutes), is repealed.
	SECTION 8.  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 9.  (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 10.  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 11.  This Act takes effect September 1, 2017.
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