Bill Text: TX HB2550 | 2023-2024 | 88th Legislature | Introduced

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-13 - Referred to Ways & Means [HB2550 Detail]

Download: Texas-2023-HB2550-Introduced.html

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88R9329 PRL-D
By: Shaheen H.B. No. 2550

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) and (d), Tax Code, are
amended to read as follows:
(a) Except for the amounts allocated under Subsections (b),
(c), (c-2), [(c-3),] and (f), all proceeds from the collection of
the taxes imposed by this chapter shall be deposited to the credit
of the general revenue fund.
(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 7. 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 8. 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 9. This Act takes effect September 1, 2023.