89R10105 PRL-D     By: Hall S.B. No. 1989       A BILL TO BE ENTITLED   AN ACT   relating to the use of proceeds deposited to the horse industry   account for law enforcement purposes.          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)  an amount equal to [a purse of] 4.5 percent of the   pool to be deposited [escrowed] with the commission in the manner   provided by Section 2028.204.          SECTION 2.  Sections 2028.203 and 2028.204, Occupations   Code, are 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 amount set aside [escrowed 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.          Sec. 2028.204.  USE [ALLOCATION] OF MONEY IN HORSE INDUSTRY   ACCOUNT [ESCROW ACCOUNTS].  (a)  A greyhound racetrack association   shall deposit into an [escrow] account in the commission's registry   the amount [purse] set aside under Section 2028.202(b)(4).          (b)  The commission shall use [Any horse racetrack   association in this state may apply to the commission for receipt   of] money in the horse industry [escrow] account only for law   enforcement purposes [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   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 3.  Section 2028.2041, Occupations Code, is amended   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 4.  Section 2031.004(e), Occupations Code, is   amended to read as follows:          (e)  The commission may not:                (1)  use funds from the accredited Texas-bred program   under Subchapter A, Chapter 2030, or the horse industry [escrowed   purse] account under Section 2028.204 to fund the Texas Derby   escrow purse fund; or                (2)  order a state horse breed registry to fund a purse   for a Texas Derby, make contributions to the Texas Derby escrow   purse fund, or pay the expenses of a Texas Derby race.          SECTION 5.  Section 151.801(c-3), Tax Code, is amended to   read as follows:          (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.          SECTION 6.  Section 2028.205, Occupations Code, is repealed.          SECTION 7.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.