HBA-CMT C.S.H.B. 1923 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1923 By: Brimer Licensing & Administrative Procedures 4/17/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE As with such events as the Olympic or Pan American games, it takes significant infrastructure improvements to attract nationally recognized horse races to Texas tracks. C.S.H.B. 1923 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 C.S.H.B. 1923 amends the Texas Racing Act to authorize an association conducting the Breeders' Cup races to apply to the payment or reimbursement of Breeders' Cup costs amounts that would otherwise be set aside for the state during the year in which the association hosts the Breeders' Cup races not to exceed 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 is designated by the Breeders' Cup Limited 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 described by the comptroller of public accounts. 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 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 and give instructions for the final disbursement of any funds remaining in the account. The bill requires the commission to adopt rules relating to the administration of the provisions of this bill, including rules relating to the auditing or other verification of Breeders' Cup costs and amounts paid or set aside by political subdivisions and disbursement of funds from the account. The bill authorizes the commission to adopt rules to facilitate the conduct of the Breeders' Cup races in this state, including the adoption of rules or waivers of existing rules relating to the regulation, supervision, and 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 horses, and commingling of pari-mutuel pools. The bill authorizes the comptroller to adopt rules relating to the administration of the account including rules relating to procedures and requirements for transmitting or otherwise delivering the money set aside to the treasury and depositing funds into the account. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1923 modifies the original bill by specifying the establishment of the Breeders' Cup developmental account (account) in the general revenue fund administered by the Texas Racing Commission (commission) rather than a special account from which disbursements are required to be made to pay Breeders' Cup costs actually incurred by the association. The substitute authorizes money in the account to be used only for purposes specified in the bill. The substitute adds provisions relating to the reimbursement by the commission of costs incurred or paid for by host tracks. The substitute adds that the comptroller is authorized to adopt rules relating to the administration of the account, and the commission is authorized to adopt rules relating to the regulation and supervision of Breeders' Cup races.