HBA-CMT S.B. 1096 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1096 By: Cain Licensing & Administrative Procedures 5/2/2001 Engrossed BACKGROUND AND PURPOSE As is needed with such events as the Olympic or Pan American games, it takes significant infrastructure improvements to attract nationally recognized horse races to Texas tracks. Senate Bill 1096 provides a funding mechanism for the track that conducts the Breeders' Cup races to pay for the costs associated with attracting such a race. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Racing Commission and the comptroller of public accounts in SECTION 1 (Section 6.094, Texas Racing Act) of this bill. ANALYSIS Senate Bill 1096 amends the Texas Racing Act to authorize an association conducting the Breeders' Cup races to apply to the reimbursement of Breeders' Cup costs amounts that would otherwise be set aside by the association for the state during the year in which the association hosts the Breeders' Cup races, limited to an amount equal to the lesser of the aggregate amount contributed to pay Breeders' Cup costs by political subdivisions and development organizations or $2 million. Beginning on January 1 of the year for which the association has been officially designated to host the Breeders' Cup races, amounts that would otherwise be set aside for the state during that year by the association are required to be deposited into the Breeders' Cup Developmental Account (account), in accordance with procedures prescribed by the comptroller of public accounts (comptroller). The bill specifies that the account is an account in the general revenue fund and is administered by the Texas Racing Commission (commission). Money in the account may be appropriated only to the commission and be used only for the purposes established in this bill. The bill also exempts the account from provisions of the Government Code regarding use of dedicated revenue. The bill requires disbursements to be made from the account to reimburse Breeders' Cup costs actually incurred and paid by the association following the association's filing of a request for reimbursement. The bill sets forth provisions regarding the amount of a disbursement from the account. The bill requires the association hosting the Breeders' Cup races to submit a report to the commission not later than January 31 of the year following the year in which the association hosts the races, and specifies the contents of the report. Following receipt of the report, the commission is required to take any steps it considers appropriate to verify the report. The bill requires the commission not later than March 31 of the year following the event to transfer to the credit of the general revenue fund any balance remaining in the account after reimbursement of any remaining Breeders' Cup costs. The bill authorizes the commission and the comptroller to adopt rules relating to the administration of the bill. The commission is authorized to adopt rules relating to the auditing or other verification of Breeders' Cup costs and amounts paid or set aside by political subdivisions and development organizations and the disbursement of funds from the account. The bill authorizes the comptroller to adopt rules relating to procedures and requirements for transmitting or otherwise delivering the money set aside to the treasury and depositing funds into the account. The bill authorizes the commission to adopt rules to facilitate the conduct of the Breeders' Cup races, including the adoption of rules or waiver of existing rules relating to the overall conduct of racing during the Breeders' Cup races in order to assure the integrity of the races, licensing for all participants, special stabling and training requirements for foreign horses, and commingling of pari-mutuel pools. EFFECTIVE DATE September 1, 2001.