Office of House Bill AnalysisH.B. 1196
By: Brimer
Licensing & Administrative Procedures


The Texas Racing Act contains a financial incentive program designed to
improve the caliber of breeding and quality of Texas-bred horses.  An
accredited Texas-bred horse is a horse that is considered qualified for
this program, which provides incentives to owners and breeders through
supplements to purses awarded in races won by accredited Texas-bred horses.
Any horse that is bred and born (foaled) in Texas qualifies as a Texas-bred
horse.  The accredited Texas-bred horse  qualification is not lost if the
mare is bred out of state and brought back for the birth of the foal and is
bred back to a stallion in Texas. However, the Texas-bred foal crop has
declined over the last four years.  A reason for the decline is the exodus
of high quality Texas mares to other states for breeding and domicile
because of the lack of stallions in Texas that match the quality of Texas
mares.  House Bill 1196 allows a Thoroughbred or Arabian horse that is bred
out of state by an accredited Texas-bred mare to qualify as a "Texas-bred
horse" without limitation as long as the foal is born in Texas and provides
for bonus awards as a purse supplement.     


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


House Bill 1196 amends the Texas Racing Act to provide that an accredited
Texas-bred Thoroughbred or Arabian horse is eligible for only one-half of
the incentives awarded under the Texas Racing Act.  The bill requires the
remaining portion to be retained by the appropriate state horse breed
registry for the general distribution at the same meeting in accordance
with the special provisions relating to horse racing deductions from the
wagering pool and allocations of shares and breakage. 

The bill requires that an accredited Texas-bred Thoroughbred horse that
finishes first, second, or third in a race other than a Texas-bred race
receive a bonus award as a purse supplement.  The bill requires the
allocation of a percentage of the Texas-bred program funds received under
provisions for the distribution of deductions from simulcast pari-mutuel
pools and special provisions relating to horse racing deductions for
wagering pools and allocations of shares and breakage, excluding expenses
for administration of the Texas-bred program, to be allocated as follows: 

_for 2002, 10 percent;

_for 2003, 12.5 percent;

_for 2004, 15 percent;

_for 2005, 17.5 percent;

_for 2006, 20 percent;

 _for 2007, 22.5 percent;

_for 2008 and subsequent years, 25 percent.

The bill amends the definition of "Texas-bred horse" to include a
Thoroughbred or Arabian horse foaled in Texas by an accredited Texas-bred
mare if the mare was bred outside Texas and returned to Texas on or before
August 15 of the calendar year of conception.  


January 1, 2002.