Texas governor signs legislation to help racing and breeding industry

A bill designed to aid the Texas racing and breeding industry was signed into law Saturday by Gov. Greg Abbott, confirmed Robert Elrod, spokesman for the Texas Racing Commission. It goes into effect Sept. 1.

The bill calls for a portion of existing taxes on specific horse products and services like feed, supplements, tack, grooming supplies, bedding and boarding, to be placed in an escrow account that will be capped at $25 million a year.

Those funds, which will start being collected Sept. 1, can eventually be applied for by racetrack associations and breed registries to be used for the betterment of the industry, including for purses, according to both the bill and a Texas House summary of HB 2463.

The requests go before the Texas Racing Commission, which will administer the account, according to the text of the bill. The commission cannot “annually allocate more than 70 percent of the amount deposited into the account to horse racetrack associations for use as purses,” according to the summary.

Also during the Texas legislative session, House Bill 1995 passed and it “ultimately lowers the license fees for tracks,” in the state, said Elrod.

The license fees for tracks had recently been increased due to a commission budget crisis. The breeding and racing industry in Texas has struggled over the last several years as surrounding states have been able to supplement purses with gaming revenues. There is no gaming or account wagering in Texas.