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 provisions for the distribution of escrowed purse amounts from greyhound racetrack associations that receive interstate cross-species simulcast signals. Specifically, the bill stipulates that a portion of the purse, now referred to as the "escrowed purse account," will be allocated for use as purses at racetracks, and the Texas Racing Commission will have the authority to determine the allocation percentages based on various factors such as purse levels and financial status of racetrack associations. Additionally, the bill allows racetrack associations to apply for reimbursement from the escrowed purse account if they can demonstrate a decrease in handle due to competition from greyhound racetracks.

The bill also includes the repeal of certain provisions related to tax proceeds, specifically removing references to the allocation of funds from sales of horse-related products. It modifies the existing tax code to streamline the allocation of proceeds from various taxes, ensuring that funds are directed to the general revenue fund while maintaining specific allocations for the highway fund and other designated accounts. 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 (Occupations Code 2028, Tax Code 151)