The bill establishes a new horse racing purse fund in the state treasury, managed by the state racing and gaming commission, to supplement horse racing purses. Starting April 1, 2026, funds will be appropriated annually from this purse fund, which will consist of sales tax revenues collected from the sale of specific horse care supplies, such as feed and grooming materials. The bill mandates that the director of the department of revenue transfer a portion of these sales tax receipts to the horse racing purse fund, ensuring that the funds are used to enhance the purse moneys in accordance with the designated purse structure outlined in existing law.

Additionally, the bill requires any licensee receiving purse supplement payments to establish an escrow account for the funds received from the horse racing purse fund. These funds must be utilized to supplement the horse racing purses in line with the designated purse structure. The commission is tasked with adopting rules for the administration of this new fund and will collaborate with the department of revenue to identify relevant retailers involved in the sale of horse care products.

Statutes affected:
Introduced: 99D.7