By: Kolkhorst S.B. No. 1972     (Kuempel)           A BILL TO BE ENTITLED   AN ACT   relating to the deposit and distribution by the Texas Racing   Commission of certain pari-mutuel wagering funds to benefit the   Texas-bred program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 3.09, Texas Racing Act (Article 179e,   Vernon's Texas Civil Statutes), is amended by adding Subsection (c)   to read as follows:          (c)  This section does not apply to money deposited into the   Texas-bred incentive fund established under Section 6.095 of this   Act.          SECTION 2.  Section 6.08, Texas Racing Act (Article 179e,   Vernon's Texas Civil Statutes), is amended by amending Subsections   (d), (g), and (j) and adding Subsections (d-1) and (j-1) to read as   follows:          (d)  A horse racing association shall set aside for the   Texas-bred program as provided by Subsection (f) of this section an   amount equal to one percent of a live multiple two wagering pool and   a live multiple three wagering pool and pay that amount to the   commission.          (d-1)  The commission shall deposit money paid to the   commission under Subsection (d) of this section into the Texas-bred   incentive fund established under Section 6.095 of this Act. The   commission shall distribute the money collected under this section   and deposited into the fund to the appropriate state horse breed   registries for the Texas-bred program in accordance with this   section and commission rules adopted under Subsection (g) of this   section.          (g)  The commission shall adopt rules relating to the   deposit, accounting, audit, and distribution of all amounts set   aside for the Texas-bred program under this section and for the use   of those amounts by the state breed registries under that program.          (j)  Ten percent of the total breakage from a live   pari-mutuel pool or a simulcast pari-mutuel pool is to be retained   by the association to be used in stakes races restricted to   accredited Texas-bred horses.  The association shall pay to the   commission for deposit into the Texas-bred incentive fund   established under Section 6.095 of this Act and distribution to the    appropriate state horse breed registry [shall pay out] the   remaining 80 percent of the total breakage to be allocated as   follows:                (1)  40 percent [of the remaining breakage is   allocated] to the owners of the accredited Texas-bred horses that   finish first, second, or third;                (2)  40 percent [is allocated] to the breeders of the   accredited Texas-bred horses that finish first, second, or third;   and                (3)  20 percent [is allocated] to the owner of the   stallion standing in this state at the time of conception whose   Texas-bred get finish first, second, or third.          (j-1)  The commission shall deposit the portions of total   breakage paid to the commission under Subsections (i) and (j) of   this section into the Texas-bred incentive fund established under   Section 6.095 of this Act. The commission shall distribute the   money collected under this section and deposited into the fund to   the appropriate state horse breed registries in accordance with   this section and commission rules adopted under Subsection (g) of   this section.          SECTION 3.  Section 6.09(d), Texas Racing Act (Article 179e,   Vernon's Texas Civil Statutes), is amended to read as follows:          (d)  Fifty percent of the breakage is to be paid to the   appropriate state greyhound breeding registry. Of that portion of   the breakage 25 percent of that breakage is to be used in stakes   races and 25 percent of that total breakage from a live pari-mutuel   pool or a simulcast pari-mutuel pool is to be paid to the commission   for deposit into the Texas-bred incentive fund established under   Section 6.095 of this Act. The commission shall distribute the   money collected under this section and deposited into the fund to   [for the use by] the state greyhound breed registry for use in   accordance with this section, subject to rules promulgated by the   commission.          SECTION 4.  Section 6.091, Texas Racing Act (Article 179e,   Vernon's Texas Civil Statutes), is amended by adding Subsection   (a-1) to read as follows:          (a-1)  An association shall pay to the commission for deposit   into the Texas-bred incentive fund established under Section 6.095   of this Act the shares to be distributed under Subsections (a)(3)   and (4) of this section for the Texas-bred program. The commission   shall distribute the money collected under this section and   deposited into the fund to the appropriate state breed registries   for use under the Texas-bred program.          SECTION 5.  Article 6, Texas Racing Act (Article 179e,   Vernon's Texas Civil Statutes), is amended by adding Section 6.095   to read as follows:          Sec. 6.095.  TEXAS-BRED INCENTIVE FUND. The commission   shall deposit money set aside for the Texas-bred program under   Sections 6.08, 6.09, and 6.091 of this Act and money set aside for   use by state breed registries under Sections 6.08 and 6.09 of this   Act into an escrow account in the state treasury in the registry of   the commission to be known as the Texas-bred incentive fund.  The   commission shall distribute money from the fund in accordance with   this article and commission rules.          SECTION 6.  (a)  The changes in law made by this Act to the   Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes),   apply to the deductions and breakage from a wagering pool for a   horse or greyhound race conducted by a racetrack association 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 7.  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 8.  This Act takes effect September 1, 2017.