H.B. No. 2575 aims to amend the Occupations Code and the Tax Code concerning the allocation and management of funds related to the horse racing industry in Texas. Key changes include the introduction of a provision that allows a greyhound racetrack association receiving an interstate cross-species simulcast signal to escrow 4.5 percent of the pari-mutuel pool for purses, as specified in Section 2028.202(b). Additionally, the bill modifies the reimbursement process for racetrack associations purchasing simulcast signals, allowing them to receive compensation from the escrowed purse account for costs exceeding five percent of the pari-mutuel pool. The bill also updates the allocation process for escrowed purses, enabling horse racetrack associations to apply for funds and removing previous restrictions on the allocation percentages.

Furthermore, the bill repeals certain provisions related to tax proceeds, specifically eliminating the allocation of funds from horse-related sales, which were previously included in the Tax Code. The comptroller's responsibilities regarding the determination of fund allocations are also revised to focus on lubricants, sporting goods, and fireworks, while removing references to horse-related expenditures. The Texas Racing Commission is tasked with revising rules to align with the new provisions, and the act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Occupations Code 2028.202, Occupations Code 2028.203, Occupations Code 2028.204, Occupations Code 2028.205, Tax Code 151.801 (Tax Code 151, Occupations Code 2028)