By: Kolkhorst, Buckingham S.B. No. 1971     A BILL TO BE ENTITLED   AN ACT   relating to the deposit and allocation of certain funds to the Texas   Racing Commission horse industry escrow account.          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 horse industry escrow account 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.  Section 6.091(e), Texas Racing Act (Article   179e, Vernon's Texas Civil Statutes), is amended to read as   follows:          (e)  The purse set aside under Subsection (c)(4) of this   section shall be deposited into the horse industry [an] escrow   account in the registry of the commission.  Any horse racetrack   association in this state may apply to the commission for receipt of   all or part of the funds in the [escrowed purse] account for use as   purses.  Any state horse breed registry listed in Section 6.08(i) of   this Act may apply for receipt of funds in the account for any event   that furthers the horse industry.  The commission shall determine   to which horse racetracks and to which state horse breed registries   the funds in the [escrowed purse] account shall be allocated and in   what percentages, taking into consideration purse levels, racing   opportunities, and the financial status of a [the] requesting   racetrack or requesting breed registry.  The commission shall not   allocate annually more than 70 percent of the amount deposited into   the horse industry escrow account to horse racetrack associations   for use as purses.  [The first distribution of the escrowed purse   account allocated to a racetrack under this section may not be made   before October 1, 1998.]          SECTION 4.  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 HORSE INDUSTRY ESCROW ACCOUNT.     (a)  The commission shall deposit into the horse industry escrow   account 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.          (b)  In each state fiscal biennium, the commission shall   deposit the amounts listed under Subsection (a) of this section and   the comptroller shall deposit the amounts allocated under Section   151.801(c-3), Tax Code, into the escrow account for purses   established under Section 6.091(e) of this Act, 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   purpose of purses for horse or greyhound races for that fiscal   biennium; or                (2)  $25 million.          (c)  Once the comptroller determines the greater of the   amount described by Subsection (b)(1) or (2) has been deposited   during a state fiscal biennium into the escrow account for purses   established under Section 6.091(e) of this Act, for the remainder   of that fiscal biennium:                (1)  the commission shall deposit the amounts listed   under Subsection (a) of this section into the general revenue fund;   and                (2)  the comptroller shall deposit the amounts   allocated under Section 151.801(c-3), Tax Code, into the general   revenue fund.          SECTION 5.  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 as provided by Section 6.0912 of this Act [deposit the   fee to the credit of the general revenue fund].          SECTION 6.  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 horse industry escrow account 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 7.  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 8.  Section 6.091(b), Texas Racing Act (Article   179e, Vernon's Texas Civil Statutes), is repealed.          SECTION 9.  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 10.  (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 11.  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 12.  This Act takes effect September 1, 2017.