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.     * * * * *