SB 1989

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
(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
(1)  a fee of 1.5 percent to be paid to the racetrack in
(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
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.
[(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
[(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
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
(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
(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
(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
(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
(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,
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.