87R299 ADM-D     By: Shaheen H.B. No. 1537       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.  Section 151.801(a), Tax Code, is amended 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.          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, 2021.