September 24, 2015, Introduced by Senators ROBERTSON, JONES, HERTEL, GREGORY, HOOD, CASPERSON, ANANICH, STAMAS and EMMONS and referred to the Committee on Agriculture.
A bill to amend 1995 PA 279, entitled
"Horse racing law of 1995,"
by amending sections 2, 7, 10, 12, 14, 17, 18, 19, 19a, and 22 (MCL
431.302, 431.307, 431.310, 431.312, 431.314, 431.317, 431.318,
431.319, 431.319a, and 431.322), section 2 as amended by 2006 PA
445, sections 7, 10, and 12 as amended by 2000 PA 164, and sections
14, 17, and 18 as amended and section 19a as added by 1998 PA 408.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Affiliate" means a person who, directly or indirectly,
controls, is controlled by, or is under common control with; is in
a partnership or joint venture relationship with; or is a co-
shareholder of a corporation, co-member of a limited liability
company, or co-partner in a limited liability partnership with a
person who holds or applies for a race meeting or track license
under this act. For purposes of this subdivision, a controlling
interest is a pecuniary interest of more than 15%.
(b) "Breaks" means the cents over any multiple of 10 otherwise
payable to a patron on a wager of $1.00.
(c) "Certified horsemen's organization" means an organization
that is registered with the office of racing commissioner in a
manner
and form required by the racing commissioner , and that
can
demonstrate all of the following:
(i) The organization's capacity to supply horses.
(ii) The organization's ability to assist a race meeting
licensee in conducting the licensee's racing program.
(iii) The organization's ability to monitor and improve
physical conditions and controls for individuals and horses
participating at licensed race meetings.
(iv) The organization's ability to protect the financial
interests of the individuals participating at licensed race
meetings.
(d) "City area" means a city with a population of 750,000 or
more and every county located wholly or partly within 30 miles of
the city limits of the city.
(e) "Commissioner" or "racing commissioner" means the
executive director of the Michigan gaming control board appointed
under section 4 of the Michigan gaming control and revenue act,
1996 IL 1, MCL 432.204, who is ordered under Executive
Reorganization Order No. 2009-31, MCL 324.99919, to perform all the
functions and exercise the powers performed and exercised by the
racing commissioner before that position was abolished.
(f) (e)
"Controlled substance"
means that term as defined in
section 7104 of the public health code, 1978 PA 368, MCL 333.7104.
(g) (f)
"Day of operation" means
a period of 24 hours
beginning at 12 noon and ending at 11:59 a.m. the following day.
(h) (g)
"Drug" means any of the
following:
(i) A substance intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in humans or other
animals.
(ii) A substance, other than food, intended to affect the
structure , or condition , or any function of the body of humans or
other animals.
(iii) A substance intended for use as a component of a
substance specified in subparagraph (i) or (ii).
(i) (h)
"Fair" means any a county,
district, or community fair
and
any or a state fair.
(j) (i)
"Foreign substance" means
a substance, or its
metabolites, that does not exist naturally in an untreated horse
or, if natural to an untreated horse, exists at an unnaturally high
physiological concentration as a result of having been administered
to the horse.
(k) (j)
"Full card simulcast"
means an entire simulcast racing
program of 1 or more race meeting licensees located in this state,
or an entire simulcast racing program of 1 or more races
simulcasted from 1 or more racetracks located outside of this
state.
(l) (k)
"Member of the immediate
family" means the spouse,
child, parent, or sibling.
(m) "Office of the racing commissioner" means the horse racing
section of the horse racing, audit, and gaming technology division
of the Michigan gaming control board created by section 4 of the
Michigan gaming control and revenue act, 1996 IL 1, MCL 432.204,
which operates under the direction of the executive director of the
Michigan gaming control board, to which Executive Reorganization
Order No. 2009-31, MCL 324.99919, transferred all of the authority,
powers, duties, functions, records, personnel, property, unexpended
balances of appropriations, allocations, or other funds of the
office of racing commissioner that previously existed under this
act and that was abolished by that executive reorganization order.
(n) "Pari-mutuel" and "pari-mutuel wagering" mean the form or
system of gambling in which the winner or winners divide the total
amount of money bet, after deducting all commissions, fees, and
taxes.
(o) (l) "Person"
means an individual, firm, partnership,
corporation, association, or other legal entity.
(p) (m)
"Purse pool" means an
amount of money allocated or
apportioned to pay prizes for horse races and from which payments
may
be made to certified horsemen's organizations pursuant to as
provided in this act.
(q) (n)
"Veterinarian" means a
person an individual licensed
to practice veterinary medicine under part 188 of the public health
code,
1978 PA 368, MCL 333.16101 333.18801
to 333.18838, or under a
state
or federal law applicable to that person.the individual.
Sec. 7. (1) The racing commissioner may promulgate rules
pursuant
to under the administrative procedures act of 1969, 1969
PA 306, MCL 24.201 to 24.328, for conducting horse racing, pari-
mutuel wagering on horse racing results, and simulcasting. The
rules
promulgated under this section shall must be designed to
accomplish all of the following:
(a) The governing, restricting, approving, or regulating of
horse racing, pari-mutuel wagering on the results of horse races,
and simulcasting conducted at licensed race meetings within this
state.
(b) The promoting of the safety, security, growth, and
integrity of all horse racing, pari-mutuel wagering on the results
of horse races, pari-mutuel wagering and technology, and
simulcasting conducted at licensed race meetings within this state.
(c) The licensing and regulating of each person participating
in, or having to do with, pari-mutuel horse racing and wagering,
and simulcasting at licensed race meetings within this state.
(2) Each race meeting licensee shall provide security at all
times so as to reasonably ensure the safety of all persons and
horses on the grounds, and to protect and preserve the integrity of
horse racing, pari-mutuel wagering, and simulcasting at licensed
race meetings. If the racing commissioner determines that
additional security is necessary to ensure the safety and integrity
of racing, the racing commissioner shall provide supplemental
security at each race meeting in areas where occupational licenses
are required for admittance.
(3) The racing commissioner may issue sanctions including, but
not limited to, revocation or suspension of a license, exclusion
from racetrack grounds, or a fine of not more than $25,000.00 for
each violation of this act or a rule promulgated under this act
committed by a licensee or other person under this act. A sanction
issued under this section may be appealed to the racing
commissioner.
The appeal shall be heard pursuant to under the
contested case provisions of the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328.
(4) All proposed extensions, additions, modifications, or
improvements to the racecourse, roadways, parking lots, buildings,
stables, lighting and electrical service, plumbing, public
utilities, drainage, totalisator system and equipment, hardware and
software for all approved methods of conducting pari-mutuel
wagering, and security on the grounds of a licensed racetrack owned
or leased by a person licensed under this act are subject to the
approval of the racing commissioner.
(5) The racing commissioner may compel the production of
books, records, memoranda, electronically retrievable data, or
documents that relate to horse racing, simulcasting, and pari-
mutuel wagering conducted at a licensed race meeting.
(6) The racing commissioner at any time may require for cause
the removal of any employee or official involved in or having to do
with horse racing, simulcasting, or pari-mutuel wagering conducted
at a licensed race meeting.
(7) The racing commissioner may visit, investigate, and place
auditors and other persons as the racing commissioner considers
necessary in the offices, racetracks, or places of business of a
licensee under this act to ensure compliance with this act and the
rules promulgated under this act.
(8) The racing commissioner may summon witnesses and
administer oaths or affirmations to exercise and discharge his or
her
powers and duties under this act. A person failing who fails to
appear before the racing commissioner at the time and place
specified
in a summons from the racing commissioner or refusing who
refuses to testify, without just cause, in answer to a summons from
the racing commissioner is guilty of a misdemeanor punishable by a
fine of not more than $1,000.00, or imprisonment for not more than
6 months, or both, and may also be sanctioned by the racing
commissioner.
A person testifying who
testifies falsely to the
racing commissioner or his or her authorized representative while
under oath is guilty of a felony punishable by a fine of not more
than $10,000.00 or imprisonment for not more than 4 years, or both,
and may also be sanctioned by the racing commissioner.
Sec.
10. (1) A person desiring that
desires to conduct a
thoroughbred , or standardbred ,
quarter horse, Appaloosa, American
paint
horse, or Arabian race meeting, or
a combination of these
race meetings, with pari-mutuel wagering on the results of live and
simulcast
horse races pursuant to under
this act shall apply each
year to the racing commissioner for a race meeting license in the
manner and form required by the racing commissioner. The
application
shall must be filed with the racing commissioner before
September
1 of the preceding year. except that applications for
1999
racing dates may be filed at any time. The racing commissioner
shall
make an application, after being it is filed,
shall be made
available for public inspection during regular business hours. The
application
shall must be in writing and shall give the name and
address of the applicant, and, if the applicant is a corporation or
partnership,
shall state the place of the applicant's incorporation
or partnership and the names and addresses of all corporate
directors, officers, shareholders, and partners. The application
shall
must also do all of the following:
(a) Specify the licensed racetrack at which the proposed race
meeting will be held. The racetrack specified must have hosted live
horse racing with pari-mutuel wagering in the year before the year
in which the amendatory act that added this sentence takes effect.
(b) Specify whether the applicant requests or will request to
conduct simulcasting at the proposed race meeting and, if so,
demonstrate the applicant's ability to conduct simulcasting in
accordance with this act.
(c) Specify the horse breed for which the applicant desires to
conduct live racing at the proposed race meeting, and the days on
which the applicant proposes to conduct live horse racing at the
race meeting.
(d) Specify the time period during which the applicant
requests to be licensed during the calendar year immediately
following the date of application.
(e) Demonstrate to the racing commissioner that the applicant
and all persons associated with the applicant who hold any
beneficial or ownership interest in the business activities of the
applicant or who have power or ability to influence or control the
business decisions or actions of the applicant satisfy all of the
following requirements:
(i) Are persons of good character, honesty, and integrity.
(ii) Possess sufficient financial resources and business
ability and experience to conduct the proposed race meeting.
(iii) Do not pose a threat to the public interest of the
this
state or to the security and integrity of horse racing or pari-
mutuel
wagering on the results of horse races in the this state.
(f) Provide any other information required by the rules
promulgated under this act or by the racing commissioner.
(2) Upon the filing of the application for a race meeting
license, the racing commissioner shall conduct an investigation of
the applicant and the application to determine whether the
applicant, application, and proposed race meeting comply with the
licensing requirements for a race meeting license under this act
and
the rules promulgated under this act. Unless a different
agreement
is reached by all the race meeting licensees in a city
area,
a race meeting licensee shall not conduct a live thoroughbred
horse
race after 6:45 p.m. on any day except Sunday. Unless a
different agreement is reached by all the race meeting licensees in
a city area, a race meeting licensee shall not conduct a live
standardbred horse race before 6:45 p.m. on any day except Sunday.
Notwithstanding
the 6:45 p.m. time restrictions, the commissioner,
upon
request by a race meeting licensee, may grant to the race
meeting
licensee a race meeting license authorizing any of the
following:
(a)
The licensee to conduct live horse racing programs that
would
otherwise be prevented by the 6:45 p.m. time restriction, if
no
other race meeting in a city area is licensed or authorized to
conduct
live horse racing at the same time the licensee proposes to
conduct
the requested live horse racing programs.
(b)
Waiver of the 6:45 p.m. time restriction pursuant to the
written
agreement of all race meeting licensees in the city area.
(c)
The licensee to conduct live horse racing programs after
6:45
p.m., if the licensee is not in a city area and is 75 miles or
more
from the nearest race meeting licensee authorized to conduct
live
horse racing.
Sec.
12. (1) Each An applicant for a license to conduct a
thoroughbred ,
quarter horse, Appaloosa, American paint horse, or
Arabian
license race meeting in a county located outside of a city
area
shall apply to conduct at least 45 days of live thoroughbred ,
quarter
horse, Appaloosa, American paint horse, or Arabian horse
racing during its proposed race meeting. Except during the opening
and closing week of a race meeting, the applicant shall apply to
conduct live racing at least 3 days per week, including Saturdays
and
Sundays, with not less than 9 at
least 8 live horse races
programmed,
and shall conduct live racing programs on such the days
allocated by the racing commissioner.
(2)
Each An applicant for a license to conduct a
thoroughbred
,
quarter horse, Appaloosa, American paint horse, or Arabian race
meeting
license in a city area shall apply to conduct at least 160
days
of live thoroughbred , quarter horse, Appaloosa, American
paint
horse, or Arabian horse racing
during its proposed race
meeting. Except during the opening and closing week of a race
meeting, the applicant shall apply to conduct live racing at least
5
days per week, including Saturdays and Sundays, with not less
than
9 at least 8 live horse races programmed, and shall conduct
live
racing programs on such the
days allocated by the racing
commissioner.
(3)
Each An applicant for a license to conduct a
standardbred
race
meeting license in a county having with a population of less
than 250,000 and that is not part of a city area shall apply to
conduct at least 75 days of live standardbred harness horse racing
during its proposed race meeting. Except during the opening and
closing week of a race meeting, the applicant shall apply to
conduct live horse racing at least 4 days per week, including
Saturdays,
with not less than 9 at
least 8 live horse races
programmed,
and shall conduct live racing programs on such the days
awarded.
(4)
Each An applicant for a license to conduct a
standardbred
race
meeting license in a county having with a population greater
than 250,000 but less than 750,000 and that is not part of a city
area shall apply to conduct at least 100 days of live standardbred
harness horse racing during its proposed race meeting. Except
during the opening and closing week of a race meeting, the
applicant shall apply to conduct live racing at least 4 days per
week,
including Saturdays, with not less than 9 at least 8 live
horse races programmed, and shall conduct live racing programs on
such
the days awarded.
(5)
Each An applicant for a license to conduct a
standardbred
race
meeting license in a city area shall apply to conduct during
its
race meeting no less than at
least the following number of live
racing days:
(a) The race meeting applicant with the highest pari-mutuel
handle
in the previous calendar year shall apply for no less than
at least 140 days of live racing and the applicant shall apply to
conduct live racing at least 5 days per week, including Saturdays,
with
not less than 9 at least 8
live horse races programmed and
shall conduct live racing programs on the days awarded.
(b)
All other applicants shall apply for not less than an
aggregate total of at least 120 days of live racing and the
applicants shall apply to conduct live racing at least 5 days per
week,
including Saturdays, with not less than 9 at least 8 live
horse races programmed and shall conduct live racing programs on
the days awarded.
(6) If a race meeting licensee is unable to program and
conduct
9 8 live horse races on any a racing
date that the
commissioner
allocates awarded to the licensee because there are
less
fewer than 5 entries in any a race,
the licensee shall not
conduct any simulcasting on that day without the written consent of
the certified horsemen's organization with which it has a contract.
(7) If a race meeting licensee is unable to conduct racing on
any
a live racing dates allocated date awarded to the licensee by
the
racing commissioner or less fewer than
9 8 live horse races on
any
allocated an awarded live racing dates date because
of a labor
dispute, fire, adverse weather conditions, or other causes beyond
the
race meeting licensee's control, then the race meeting licensee
is
considered to have conducted those races or that race days date
for purposes of this act and is not precluded from conducting any
simulcasts because of the licensee's inability to conduct those
live
races or that race dates.date.
(8) Intertrack simulcast races that a race meeting licensee
contracts to receive from other racetracks that are canceled for
any
of the reasons described in subsection (7) shall be considered
to
be are offered to the public for purposes of this act.
(9) If an entire race meeting or the balance of a race meeting
and
racing dates allocated awarded
to a licensee cannot be raced
due
to because of an act of God or significant physical damage to
the licensed racetrack at which the race meeting was licensed to be
conducted caused by fire or some other catastrophe, the racing
commissioner may transfer those dates to another race meeting
licensee upon application of the substitute licensee if the
substitute licensee satisfies the requirements for licensure under
this act and demonstrates that it has or will have a legal or
contractual right to the use of a different licensed racetrack
facility on the racing dates in question, and all race meeting
licensees
that will be conducting live racing on such those dates
within 50 miles of the substitute racetrack consent to the
transfer.
(10) Notwithstanding anything in this act to the contrary, if
the racing commissioner determines that 1 or more of the conditions
listed in subsection (11) apply, the racing commissioner may amend
an existing race meeting license and simulcast permit to allow the
licensee to continue simulcasting during the remaining period of
the race meeting license. An amended license under this section may
be issued by the racing commissioner at any time, including at the
time of the initial issuance of the race meeting license for the
upcoming year during which it is valid.
(11) The racing commissioner may issue an order amending a
race meeting license under subsection (10) if he or she determines
that the licensee is capable of conducting simulcast horse racing
in accordance with this act and that 1 or more of the following
conditions exist:
(a) There is inadequate horse supply for the licensee to
conduct a live race meeting of at least 10 days with 8 races per
day.
(b) There is inadequate funding of live racing purses to
support the licensee's conducting of a live race meeting of at
least 10 days with 8 races per day.
(c) There is no certified horsemen's organization operating in
this state.
(12) In order to obtain an amended license issued under
subsection (10) and satisfy the live racing requirements of this
act, the licensee must have a written contract with a certified
horsemen's organization to pay a percentage of its net commission
from simulcasting to the live racing purse pool at another
racetrack licensed under this act during the period when the
amended license issued under subsection (10) is in effect. Unless
otherwise provided in the written contract between the licensee and
the certified horsemen's organization, the payment must be not less
than 25% of net commission from simulcasting if only 1 certified
horsemen's organization has a contract for live race days in this
state for the calendar year. If both certified horsemen's
organizations have a contract for live race dates in this state for
the calendar year, the payment must be not more than 40% of the net
commission from simulcasting. If there is no racetrack in this
state conducting live horse racing under this act, the licensee
shall satisfy the live racing requirements of this act by paying
the additional simulcast tax under section 22 instead of having the
written contract required under this subsection.
(13) Subsections (10) to (12) apply only to amendments to a
race meeting license for the purpose of allowing simulcast-only
operations and are not limitations on or requirements for other
race meeting license amendments the racing commissioner may approve
or deny.
(14) Notwithstanding anything in this act to the contrary, if
a race meeting licensee and the certified horsemen's organization
with which the licensee has a contract jointly request that the
licensee be allowed to conduct a live race meeting with fewer than
8 races per day, the racing commissioner shall approve the request
and issue an order amending the license accordingly.
(15) As used in this section, "net commission" means the
amount determined under section 17(3), after first deducting from
the licensee's statutory commission the applicable state tax on
wagering due and payable under section 22, the actual verified fee
paid by the licensee to the sending host track to receive the
simulcast signal.
Sec.
14. (1) Except as provided in subsection (8), before
Before November 1 of the year preceding the year for which
applications are made, the racing commissioner shall grant or deny
each application for a race meeting license, allocate or deny the
dates, for which application has been made, on which pari-mutuel
wagering on live races may be conducted at each licensed race
meeting in this state, and shall also determine whether the
applicant may simulcast under section 18 during the calendar year
for which the license is issued. The racing commissioner may grant
a race meeting license for any time period up to 1 year during
which the licensee may conduct live and simulcast horse races with
pari-mutuel
wagering on the results of such the
races.
(2) Subject to section 12(7), all simulcasting authorized by
the
racing commissioner shall must
be conditioned upon on the
holder
of the license conducting at least 9 8 live horse races on
each live racing date allocated in the holder's race meeting
license, unless this requirement is waived in writing by both the
racing commissioner and the certified horsemen's organization with
which the licensee has contracted.
(3) The racing commissioner shall not issue a race meeting
license to an organization organized for a charitable purpose or
organized for the purpose of distributing its profits or income to
charitable organizations.
(4) Except as provided in section 12(7), (8), and (9), if
after
the issuance of a race meeting license
, the racing
commissioner
determines upon on further investigation that the
holder of a race meeting license has not met, or will be unable to
meet, the requirements of the license, the racing commissioner may
impose a fine or suspend or revoke the race meeting license, or
both, for all or part of the remainder of the time period for which
the license was granted. Before making the required determination
to impose a fine or suspend or revoke a race meeting license under
this subsection, the racing commissioner shall consider whether the
race meeting licensee's inability or failure to meet the
requirements of its license is due to a cause beyond the control of
the race meeting licensee.
(5) Any action taken by the racing commissioner under
subsection
(4) shall become becomes effective 10 days after the
holder
of the race meeting license has received receives written
notice unless the commissioner finds that the public health,
safety, or welfare requires emergency action and immediate effect
of the commissioner's order.
(6) A denial of a race meeting license under subsection (3)
may
be appealed to the circuit court for judicial review pursuant
to
under section 631 of the revised judicature act of 1961,
1961 PA
236, MCL 600.631. A suspension or revocation of a race meeting
license
may be appealed pursuant to under
the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(7) Each applicant issued a race meeting license shall
maintain
an interest bearing account used exclusively for to
deposit
of all funds money due to
horsemen's purse pools under this
act.
All funds money due to this account shall must be
deposited
within a reasonable time after receipt by the race meeting
licensee. The name of the depository and the identification number
of
the account shall must be designated in each race meeting
license
application and all interest earned by the account shall
must be credited to the purse pool and deposited in the account.
(8)
The November 1 deadline provided in subsection (1) does
not
apply to 1999 thoroughbred race meeting dates. The racing
commissioner
may issue 1999 thoroughbred race meeting dates at any
time.
Sec. 17. (1) The pari-mutuel system of wagering upon the
results of horse races as permitted by this act shall not be held
or construed to be unlawful. All forms of pari-mutuel wagering
conducted at a licensed race meeting shall be preapproved by the
racing
commissioner pursuant to under
rule or written order of the
commissioner.
(2) A holder of a race meeting license may provide a place in
the race meeting grounds or enclosure at which he or she may
conduct
and supervise the pari-mutuel system of wagering on the
results
of horse races as permitted by this act. If the pari-mutuel
system
of wagering is used at a race
meeting, a totalisator or
other device that is equal in accuracy and clearness to a
totalisator
and approved by the racing commissioner shall must be
used.
The odds display of the totalisator or other device shall
must be placed in full view of the patrons.
(3) Subject to section 18(3), each holder of a race meeting
license shall retain as his or her commission on all forms of
straight wagering 17% of all money wagered involving straight
wagers on the results of live and simulcast horse races conducted
at the licensee's race meetings. Subject to section 18(3), each
holder of a race meeting license shall retain as his or her
commission on all forms of multiple wagering, without the written
permission of the racing commissioner not more than 28% and with
the written permission of the racing commissioner not more than 35%
of all money wagered involving any form of multiple wager on the
results of live and simulcast horse races conducted at the
licensee's race meeting. Except as otherwise provided by contract,
50% of all commissions from wagering on the results of live racing
at the racetrack where the live racing was conducted shall be paid
to the horsemen's purse pool at the racetrack where the live racing
was conducted. As used in this subsection:
(a) "Straight wagering" means a wager made on the finishing
position of a single specified horse in a single specified race.
(b) "Multiple wagering" means a wager made on the finishing
positions of more than 1 horse in a specified race or the finishing
positions of 1 or more horses in more than 1 specified race.
(4) All breaks shall be retained by the race meeting licensee
and paid directly to the city or township in which the racetrack is
located
as a fee for services provided pursuant to under section
21.
(5)
Payoff prices of tickets of a higher denomination shall
must be calculated as even multiples of the payoff price for a
$1.00 wager. Each holder of a race meeting license shall distribute
to the persons holding winning tickets, as a minimum, a sum not
less than $1.10 calculated on the basis of each $1.00 deposited in
a pool, except that each race meeting licensee may distribute a sum
of not less than $1.05 to persons holding winning tickets for each
$1.00 deposited in a minus pool. As used in this subsection, "minus
pool" means any win, place, or show pool in which the payout would
exceed the total value of the pool.
(6) A holder of a race meeting license shall not knowingly
permit a person less than 18 years of age to be a patron of the
pari-mutuel wagering conducted or supervised by the holder.
(7) Any act or transaction relative to pari-mutuel wagering on
the
results of live or simulcast horse races shall only occur or be
permitted
to occur within the enclosure of a licensed race meeting.
A
person shall not participate or be a party to any act or
transaction
relative to placing a wager or carrying a wager for
placement
outside of a race meeting ground. may
be conducted by a
race meeting licensee under this act for the race meeting licensee
to comply with the auditing requirements of section 23. A person
shall not provide messenger service for the placing of a bet for
another person who is not a patron. However, this subsection does
not prevent simulcasting or intertrack or interstate common pool
wagering inside or outside this state as permitted by this act or
the rules promulgated under this act.
(8) A person that does not hold a race meeting license that
solicits or accepts wagers on the results of live or simulcast
horse races from individuals in this state is guilty of a felony
punishable by imprisonment for not more than 5 years or a fine of
not more than $10,000.00, or both. Each act of solicitation or
wager that is accepted in violation of this section is a separate
offense.
(9) As used in this section, "act or transaction relative to
pari-mutuel wagering on the results of live or simulcast horse
races" means those steps taken by a race meeting licensee to accept
a wager and process it within the ordinary course of its business
and in accordance with this act.
Sec. 18. (1) Simulcasting by race meeting licensees may be
authorized by the racing commissioner subject to the limitations of
this
section. As used in this section, "simulcast" means the live
transmission
of video and audio signals conveying a horse race held
either
inside or outside this state to a licensed race meeting in
this
state. A simulcast from 1 racetrack in this state to another
racetrack
in this state shall be called an "intertrack simulcast".
A
simulcast from a racetrack outside this state to a racetrack
inside
this state shall be called an "interstate simulcast".For
simulcast wagering to occur at any licensed track in this state, a
minimum of 50 live thoroughbred racing days must occur in that
calendar year unless otherwise approved by the thoroughbred
certified horsemen's organization.
(2) The holder of a race meeting license may apply to the
racing commissioner, in the manner and form required by the
commissioner, for a permit to televise simulcasts of horse races to
viewing areas within the enclosure of the licensed racetrack at
which the applicant is licensed to conduct its race meeting. The
commissioner may issue a permit for individual race and full card
simulcasts televised during, between, before, or after programmed
live horse races on any day that live racing is conducted by the
applicant, and also on other days during the term of the
applicant's license when the applicant does not conduct live horse
racing, subject to the following conditions:
(a)
The applicant shall must have a current contract with a
certified horsemen's organization.
(b)
The applicant shall must have applied for and been
allocated
the minimum number of live racing
dates required by
section 12(1) to (5), subject to the availability of adequate horse
supply as determined by the racing commissioner.
(c)
The applicant shall must make a continuing good faith
effort throughout the duration of its race meeting to program and
conduct
not less than 9 at least 8
live horse races on each live
racing date allocated to the applicant.
(d) The certified horsemen's organization with which the
applicant
has contracted shall must have consented to the requested
simulcasts on any live racing day when the applicant is unable to
program
and conduct not less than 9 at
least 8 live horse races, if
required by section 12(6).
(e) If the requested simulcasts are interstate, the applicant
shall
must waive in writing any right that the applicant may
have
under
the interstate horse racing act of 1978, Public Law 95-515,
15
U.S.C. USC 3001 to 3007, to restrict interstate simulcasts by
other race meeting licensees in this state.
(f) If the applicant conducts its race meeting in a city area,
the
applicant shall must make the video and audio signals of its
live horse races available for intertrack simulcasting to all
licensed race meetings in this state located more than 12 miles
from
the applicant's race meeting. The applicant shall must charge
each race meeting licensee the same fee to receive its live signals
for
intertrack simulcasting. The fee shall not exceed 3% of the
total
amount wagered on the intertrack simulcast at each race
meeting
that receives the simulcast.
(g) The applicant must not charge or pay a fee that exceeds 5%
of the total amount wagered on an intertrack simulcast unless the
racing commissioner approves the fee on the basis that the fee
reasonably reflects the value of the simulcast racing program and
that charging or paying the fee does not result in harmful
competition among race meeting licensees.
(h) (g)
Except as otherwise agreed by the
race meeting
licensees in a city area and the respective certified horsemen's
organizations
with which they contract, a licensee if the applicant
conducts
its race meetings in a city area, shall
the applicant must
receive all available intertrack simulcasts from licensed race
meetings in the city area located more than 12 miles from the
licensee's
applicant's race meeting.
(i) (h)
A licensed If the applicant
conducts its race meeting
meetings
outside a city area, shall
the applicant must not conduct
interstate simulcasts unless it also receives all intertrack
simulcasts from licensed race meetings in a city area that are
available.
(j) (i)
All applicants conducting licensed
race meetings in a
city
area shall must authorize all other race meeting licensees in
the
this state to conduct simulcasts of the breed for which
the
applicant is licensed to conduct live horse racing. An applicant
may not conduct interstate simulcasts unless authorization to do so
is
given by the applicant, in accordance with subdivision (j), (k),
permitting all other race meeting licensees to receive interstate
simulcasts of a different breed than they are licensed to race
live.
(k) (j)
A race meeting licensee shall not
conduct an
interstate simulcast of a different breed than it is licensed to
race live at its race meeting, unless the licensee has the written
permission of all race meeting licensees in a city area that are
licensed to race that breed live at their race meetings.
(l) (k)
All authorized simulcasts shall must be
conducted in
compliance with the written permit and related orders issued by the
racing commissioner and all other requirements and conditions of
this act and the rules of the racing commissioner promulgated under
this act.
(m) (l) All
authorized interstate simulcasts shall must also
comply
with the interstate horse racing act of 1978, Public Law 95-
15,
15 U.S.C. USC 3001
to 3007.
(3) All forms of wagering by pari-mutuel methods provided for
under this act for live racing shall be allowed on simulcast horse
races authorized under this section. All money wagered on simulcast
horse
races at a licensed race meeting shall must be included in
computing the total amount of all money wagered at the licensed
race
meeting for purposes of section 17. When If the simulcast is
an
interstate simulcast, the money wagered on that the simulcast
shall
must form a separate pari-mutuel pool at the receiving
track
unless 2 or more licensees receive the same interstate simulcast
signals or the racing commissioner permits the receiving track to
combine its interstate simulcast pool with the pool created at the
out-of-state sending track on the same race. If 2 or more licensees
receive the same interstate simulcast signals, the money wagered on
the
simulcasts shall must be combined in a common pool and the
licensees shall jointly agree and designate at which race meeting
the common pool will be located. However, if the law of the
jurisdiction in which the sending racetrack is located permits
interstate common pools at the sending racetrack, the racing
commissioner may permit pari-mutuel pools on interstate simulcast
races in this state to be combined with pari-mutuel pools on the
same races created at the out-of-state sending racetrack. If the
pari-mutuel pools on the interstate simulcast races in this state
are combined in a common pool at the out-of-state sending track,
then the commissions described in section 17 on the pool created in
this
state shall must be adjusted to equal the commissions in
effect at the sending track under the laws of its jurisdiction. If
the
simulcast is an intertrack simulcast, the money wagered on that
the
simulcast at the receiving racetrack shall
must be added to the
pari-mutuel pool at the sending racetrack.
(4) Each race meeting licensee that receives an interstate
simulcast
shall pay to the horsemen's simulcast purse pool account
established under section 19 a sum equal to 40% of the licensee's
net commission from all money wagered on the interstate simulcast,
as
determined by under section 17(3) after first deducting from the
licensee's statutory commission the applicable state tax on
wagering
due and payable under section 22, and the actual verified
fee paid by the licensee to the sending host track to receive the
interstate simulcast signal. The licensee shall retain the
remaining
balance of its net commission and shall be responsible
for
paying pay all other capital and operational expenses related
to receiving interstate simulcasts at its race meeting. Any
subsequent rebate of a fee paid by a licensee to receive interstate
simulcast signals shall be shared equally by the licensee and the
horsemen's
simulcast purse pool account
established under section
19.
(5) A race meeting licensee licensed to conduct pari-mutuel
horse racing in a city area shall provide the necessary equipment
to send intertrack simulcasts of the live horse races conducted at
its race meeting to all other race meeting licensees in this state,
and shall send its intertrack simulcast signals to those licensees
upon request for an agreed fee, which shall not exceed 3% of the
total amount wagered on the race at the receiving track. Race
meeting licensees that send or receive intertrack simulcasts shall
make the following payments to the horsemen's purse pools:
(a) Each race meeting licensee that sends an intertrack
simulcast shall pay 50% of the simulcast fee that it receives for
sending the simulcast signal to the horsemen's purse pool at the
sending track.
(b) Each race meeting licensee that receives an intertrack
simulcast
shall pay to the horsemen's simulcast purse pool account
established
pursuant to under section 19 a sum equal to 40% of the
receiving
track's licensee's net commission from wagering all money
wagered on the intertrack simulcast as determined under section
17(3), after first deducting from the licensee's statutory
commission
the applicable state tax on wagering due and owing
payable
under section 22, and
the actual verified fee paid by the
receiving
track licensee to the sending host track to receive the
intertrack simulcast signal.
(6) The racing commissioner may authorize a race meeting
licensee to transmit simulcasts of live horse races conducted at
its racetrack to locations outside of this state in accordance with
the
interstate horse racing act of 1978, Public Law 95-515, 15
U.S.C.
USC 3001 to 3007, or any other applicable laws, and may
permit pari-mutuel pools on such simulcast races created under the
laws of the jurisdiction in which the receiving track is located to
be combined in a common pool with pari-mutuel pools on the same
races created in this state. A race meeting licensee that transmits
simulcasts of its races to locations outside this state shall pay
50% of the fee that it receives for sending the simulcast signal to
the horsemen's purse pool at the sending track after first
deducting the actual verified cost of sending the signal out of
state.
(7) Simulcasting of events other than horse races for purposes
of pari-mutuel wagering is prohibited.
(8) As used in this section:
(a) "Interstate simulcast" means a simulcast from a racetrack
outside of this state to a racetrack inside this state.
(b) "Intertrack simulcast" means a simulcast from 1 racetrack
in this state to another racetrack in this state.
(c) "Simulcast" means the transmission of video and audio
signals conveying a horse race held either inside or outside of
this state to a licensed race meeting in this state.
Sec.
19. (1) All money designated by this act to be paid into
the
horsemen's simulcast purse pool, account shall be deposited
in
a
depository designated by all participating certified horsemen's
organizations
and distributed by their the
certified horsemen's
organization's designated escrow agent as follows:
(a)
50% 100% of the funds money generated from thoroughbred
simulcasts
for horsemen's purses and 35% of the funds generated
from
standardbred simulcasts for horsemen's purses shall be divided
between
all thoroughbred purse pools. The division shall be on a
pro
rata basis between all thoroughbred race meeting licensees
based
upon the percentage of total thoroughbred handle, from all
sources,
for the previous calendar year.deposited
in a depository
designated by the thoroughbred certified horsemen's organization.
(b)
50% 100% of the funds money generated from thoroughbred
simulcasts
for horsemen's purses and 65% of the funds generated
from
standardbred simulcasts for
horsemen's purses shall be divided
between
all standardbred purse pools. The division shall be on a
pro
rata basis between all standardbred race meeting licensees
based
upon the percentage of total standardbred handle, from all
sources,
for the previous calendar year.deposited
in a depository
designated by the standardbred certified horsemen's organization.
(2)
The certified horsemen's organizations and race meeting
licensees
shall have audit rights of the funds set forth in this
section.
Sec.
19a. If a thoroughbred track license is surrendered,
revoked,
or escrowed, or after January 1, 1998, a licensed
thoroughbred
track is closed, the racing
commissioner shall order
the
deposit of horsemen's purse pool money deposited and
distributed
pursuant to section 19 from
the track be transferred to
a
depository designated by a race meeting licensee upon on written
direction of the affected certified horsemen's organization
regardless of whether there was racing at the race meeting
licensee's location during the previous year. The money shall be
transferred to the horsemen's purse pool at any licensed racetrack
in this state where the affected certified horsemen's organization
subsequently obtains a written contract for live horse racing with
pari-mutuel wagering. If the affected certified horsemen's
organization does not enter into a written contract for live horse
racing with pari-mutuel wagering at a track in this state within 9
months after the date when the horsemen's purse pool money can be
transferred under this section, the money must be equally divided
between the horsemen's purse pools at the licensed tracks in this
state conducting pari-mutuel wagering on the results of horse
races. The racing commissioner may rescind or modify any existing
escrow orders to carry out this section.
Sec. 22. (1) Each licensed racetrack located in a city area
shall pay a license fee to the racing commissioner of $1,000.00
annually, and any other licensed racetrack shall pay a license fee
of $200.00 annually.
(2)
During calendar year 1996, each Each
holder of a race
meeting license shall pay to the state treasurer, from the holder's
commission,
a tax in the amount of 2.5% 3.5%
of all money wagered
on interstate and intertrack simulcast races conducted at the
holder's
licensed race meetings. in 1996 in a manner and time as
the
racing commissioner requires. For calendar year 1997 and each
year
thereafter, the tax rate shall increase to 3.5% of all money
wagered
on interstate and intertrack simulcast races conducted at
the
holder's licensed race meetings each calendar year. Not later
than
4 years after the effective date of this act, the racing
commissioner
shall report to the chairpersons of the senate and
house
committees responsible for legislation concerning horse
racing
as to the effect on the horse racing industry of the
reduction
in the tax pursuant to subsection (2).
(3) By eliminating the pari-mutuel wagering tax on live racing
programs and altering the calculation of the tax on simulcast horse
racing, it is not the intent of the legislature to diminish the
funding and appropriations for the Michigan agriculture equine
industry fund and related programs described in section 20. The
pari-mutuel
tax reduction alteration effected by this section is
intended to generally allow for the improvement of the pari-mutuel
horse racing and breeding industry in this state by increasing
purses at licensed race meetings and making additional pari-mutuel
revenues available for capital improvements at licensed racetracks
in this state.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.