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. It mandates the transfer of a portion of the state sales tax collected on specific supplies used in the care of race horses, such as feed and grooming materials, into this fund starting from July 1, 2025. Beginning April 1, 2026, and annually thereafter, the commission will appropriate these funds 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 create an escrow account for the funds received from the horse racing purse fund. These funds must be used to supplement the purse moneys proportionately, as specified in the designated purse structure. The bill also tasks the department of revenue with identifying retailers involved in the sale of horse-related care products and requires the commission to adopt rules for the administration of these provisions.

Statutes affected:
Introduced: 99D.7