Relating to the elimination of certain tax proceeds deposited to and the allocation of the horse industry escrowed purse account.

89(R) HB 2575 - Introduced version - Bill Text

By: Shaheen

H.B. No. 2575

A BILL TO BE ENTITLED

AN ACT

relating to the elimination of certain tax proceeds deposited to

and the allocation of the horse industry escrowed purse 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
ESCROWED PURSES
[
MONEY IN

ESCROW ACCOUNTS
].

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
all or part of the escrowed purse

[
money in the horse industry escrow
] 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. 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 6. Sections 151.801(a), Tax Code, is amended to

read as follows:

(a) Except for the amounts allocated under Subsections (b),

(c),
and
(c-2), [
(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.

SECTION 7. Section 151.801(d), Tax Code, as effective

September 1, 2021, is amended to read as follows:

(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 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, and according to the specific amounts provided in the

General Appropriations Act in accordance with Subsection (c-1).

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, horse

tack, horse bedding and grooming supplies, and other taxable

expenditures directly related to horse ownership, riding, or

boarding.
] 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, horse tack, horse bedding and grooming supplies,

or other taxable expenditures directly related to horse ownership,

riding, or boarding
] to report to the comptroller as necessary to

make the allocation required by Subsection (b), (c),
or
(c-2)[
, or

(c-3)
].

SECTION 8. The following provisions of law are repealed:

(1) Section 2028.2041, Occupations Code;

(2) Section 151.801(c-3), Tax Code; and

(3) Sections 151.801(e)(4) and (5), Tax Code.

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,

Title 13, Occupations Code (Texas Racing Act), as amended by this

Act.

SECTION 10. This Act takes effect September 1, 2025.