SENATE BILL NO. 478 March 24, 1999, Introduced by Senator KOIVISTO and referred to the Committee on Gaming and Casino Oversight. A bill to amend 1995 PA 279, entitled "Horse racing law of 1995," by amending sections 7, 9, 17, and 20 (MCL 431.307, 431.309, 431.317, and 431.320), section 17 as amended by 1998 PA 408 and section 20 as amended by 1997 PA 73. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 7. (1) The racing commissioner may promulgate rules 2 pursuant to the administrative procedures act of 1969,Act3No. 306 of the Public Acts of 1969, being sections 24.201 to424.328 of the Michigan Compiled Laws1969 PA 306, MCL 24.201 TO 5 24.328, for conducting horse racing, pari-mutuel wagering on 6 horse racing results, and simulcasting. The rules promulgated 7 under this section shall be designed to accomplish all of the 8 following: 02455'99 b TLG 2 1 (a) The governing, restricting, approving, or regulating of 2 horse racing, pari-mutuel wagering on the results of horse races, 3 and simulcasting conducted at licensed race meetings within this 4 state. 5 (b) The promoting of the safety, security, growth, and 6 integrity of all horse racing, pari-mutuel wagering on the 7 results of horse races, and simulcasting conducted at licensed 8 race meetings within this state. 9 (c) The licensing and regulating of each person participat- 10 ing in, or having to do with, pari-mutuel horse racing and wager- 11 ing, and simulcasting at licensed race meetings within this 12 state. 13 (2) Each race meeting licensee shall provide security at all 14 times so as to reasonably ensure the safety of all persons and 15 horses on the grounds, and to protect and preserve the integrity 16 of horse racing, pari-mutuel wagering, and simulcasting at 17 licensed race meetings. If the racing commissioner determines 18 that additional security is necessary to ensure the safety and 19 integrity of racing, the racing commissioner shall provide sup- 20 plemental security at each race meeting in areas where occupa- 21 tional licenses are required for admittance. 22 (3) The racing commissioner may issue sanctions including, 23 but not limited to, revocation or suspension of a license, exclu- 24 sion from racetrack grounds, or a fine of not more than 25 $25,000.00 for each violation of this act or a rule promulgated 26 under this act committed by a licensee or other person under this 27 act. A sanction issued under this section may be appealed to the 02455'99 b 3 1 racing commissioner. The appeal shall be heard pursuant to the 2 contested case provisions ofAct No. 306 of the Public Acts of31969THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 4 24.201 TO 24.328, OR, IN THE CASE OF A LICENSEE HOLDING A VIDEO 5 GAMING LICENSE, FOR A VIOLATION OF THE MICHIGAN VIDEO GAMING ACT 6 OR RULES PROMULGATED UNDER THAT ACT. 7 (4) All proposed extensions, additions, modifications, or 8 improvements to the racecourse, roadways, parking lots, build- 9 ings, stables, lighting and electrical service, plumbing, public 10 utilities, drainage, totalisator system and equipment, hardware 11 and software for all approved methods of conducting pari-mutuel 12 wagering, and security on the grounds of a licensed racetrack 13 owned or leased by a person licensed under this act are subject 14 to the approval of the racing commissioner. 15 (5) The racing commissioner may compel the production of 16 books, records, memoranda, electronically retrievable data, or 17 documents that relate to horse racing, simulcasting, and 18 pari-mutuel wagering conducted at a licensed race meeting. 19 (6) The racing commissioner at any time may require for 20 cause the removal of any employee or official involved in or 21 having to do with horse racing, simulcasting, or pari-mutuel 22 wagering conducted at a licensed race meeting. 23 (7) The racing commissioner may visit, investigate, and 24 place auditors and other persons as the racing commissioner con- 25 siders necessary in the offices, racetracks, or places of busi- 26 ness of a licensee under this act to ensure compliance with this 27 act and the rules promulgated under this act. 02455'99 b 4 1 (8) The racing commissioner may summon witnesses and 2 administer oaths or affirmations to exercise and discharge his or 3 her powers and duties under this act. A person failing to appear 4 before the racing commissioner at the time and place specified in 5 a summons from the racing commissioner or refusing to testify, 6 without just cause, in answer to a summons from the racing com- 7 missioner is guilty of a misdemeanor punishable by a fine of not 8 more than $1,000.00, or imprisonment for not more than 6 months, 9 or both, and may also be sanctioned by the racing commissioner. 10 A person testifying falsely to the racing commissioner or his or 11 her authorized representative while under oath is guilty of a 12 felony punishable by a fine of not more than $10,000.00 or 13 imprisonment for not more than 4 years, or both, and may also be 14 sanctioned by the racing commissioner. 15 Sec. 9. (1) The racing commissioner shall issue, without 16 further application, a track license to any person holding a 17 valid track license under formerAct No. 327 of the Public Acts18of 19801980 PA 327, and maintaining or operating a licensed 19 horse racetrack as of the effective date of this act at which 20 wagering by pari-mutuel methods on the results of horse racing 21 has been conducted by a race meeting licensee. 22 (2) A track license, once issued, is valid only as long as 23 the annual license fee is paid, or until the track license is 24 voluntarily surrendered or is revoked as provided in this act or 25 the rules promulgated under this act. 26 (3) An applicant for a track license shall submit an 27 application that is in writing, that demonstrates to the racing 02455'99 b 5 1 commissioner that the applicant has satisfactory financial 2 responsibility, that shows the location of the racetrack or of 3 the proposed racetrack, and that is accompanied by substantially 4 detailed plans and specifications for the racecourse, paddock, 5 grandstand, stable barns, racetrack buildings, fences, electrical 6 service and lighting, plumbing, parking, and other facilities and 7 improvements. The application shall include the name and address 8 of the applicant, and, if a corporation, the place of its incor- 9 poration, and any other information required by the rules promul- 10 gated under this act by the racing commissioner. Upon the 11 applicant's filing of the application and the payment of the 12 license fee, the racing commissioner shall investigate the appli- 13 cant and the racetrack or proposed racetrack as the racing com- 14 missioner considers necessary. If the racing commissioner deter- 15 mines that the applicant and the racetrack satisfy the require- 16 ments of this act and the rules promulgated under this act, the 17 racing commissioner shall grant a license for the racetrack, des- 18 ignating in the license the county or other municipality in which 19 the licensed racetrack shall be or is located. If the racing 20 commissioner determines that the applicant or the racetrack, or 21 both, do not comply with this act and the rules promulgated under 22 this act, the racing commissioner shall deny the license. The 23 action of the racing commissioner in denying a track license may 24 be reviewed by the circuit court pursuant to section 631 of the 25 revised judicature act of 1961,Act No. 236 of the Public Acts26of 1961, being section 600.631 of the Michigan Compiled Laws27 1961 PA 236, MCL 600.631. 02455'99 b 6 1 (4) A track license may be transferred to a new owner of a 2 racetrack with the consent of the racing commissioner. 3 (5) After a track license is issued under this section, the 4 racing commissioner may impose a fine or suspend or revoke the 5 license if the holder of the license, after reasonable notice 6 from the racing commissioner, does not make necessary improve- 7 ments, additions, or corrections to the licensed premises, fix- 8 tures, or equipment as determined and required by the racing com- 9 missioner; if the holder of the license violates or is no longer 10 in compliance with the requirements of this act or the rules 11 promulgated under this act; IN THE CASE OF A LICENSEE HOLDING A 12 VIDEO GAMING LICENSE, IF THE LICENSEE WILLFULLY VIOLATES THE 13 MICHIGAN VIDEO GAMING ACT OR RULES PROMULGATED UNDER THAT ACT; or 14 if the licensed premises are not utilized to conduct a licensed 15 race meeting for 2 consecutive years. In addition to the suspen- 16 sion or revocation of the license, the racing commissioner may 17 impose a fine or bring an action in circuit court seeking an 18 order of the court requiring the licensee to make reasonable and 19 necessary racetrack improvements or additions as determined by 20 the commissioner if the licensee fails to make improvements or 21 corrections that comply with the applicable construction code or 22 local ordinances. The action of the racing commissioner in sus- 23 pending or revoking a track license shall comply with the admin- 24 istrative procedures act of 1969,Act No. 306 of the Public Acts25of 1969, being sections 24.201 to 24.328 of the Michigan Compiled26Laws1969 PA 306, MCL 24.201 TO 24.328, and shall be subject to 27 appeal. 02455'99 b 7 1 (6) In a city area, not more than 3 racetracks shall be 2 licensed, except that in a city with a population of 900,000 or 3 more the racing commissioner may issue 1 additional license. 4 (7) A person shall not be issued more than 1 track license. 5 Controlling ownership and interlocking directorates among the 6 holders of track licenses are prohibited. 7 (8) A track license shall not be issued under this section 8 if the new license would result in harmful competition among 9 existing racetracks. 10 Sec. 17. (1) The pari-mutuel system of wagering upon the 11 results of horse races as permitted by this act shall not be held 12 or construed to be unlawful. All forms of pari-mutuel wagering 13 conducted at a licensed race meeting shall be preapproved by the 14 racing commissioner pursuant to rule or written order of the 15 commissioner. 16 (2) A holder of a race meeting license may provide a place 17 in the race meeting grounds or enclosure at which he or she may 18 conduct and supervise the pari-mutuel system of wagering on the 19 results of horse races as permitted by this act AND VIDEO GAMING 20 AS PERMITTED BY THE MICHIGAN VIDEO GAMING ACT. If the 21 pari-mutuel system of wagering is used at a race meeting, a 22 totalisator or other device that is equal in accuracy and clear- 23 ness to a totalisator and approved by the racing commissioner 24 shall be used. The odds display of the totalisator or other 25 device shall be placed in full view of the patrons. VIDEO GAMING 26 SHALL COMPLY WITH THE STANDARDS PRESCRIBED IN THE MICHIGAN VIDEO 27 GAMING ACT AND THE RULES PROMULGATED UNDER THAT ACT. 02455'99 b 8 1 (3) Subject to section 18(3), each holder of a race meeting 2 license shall retain as his or her commission on all forms of 3 straight wagering 17% of all money wagered involving straight 4 wagers on the results of live and simulcast horse races conducted 5 at the licensee's race meetings. Subject to section 18(3), each 6 holder of a race meeting license shall retain as his or her com- 7 mission on all forms of multiple wagering, without the written 8 permission of the racing commissioner not more than 28% and with 9 the written permission of the racing commissioner not more than 10 35% of all money wagered involving any form of multiple wager on 11 the results of live and simulcast horse races conducted at the 12 licensee's race meeting. Except as otherwise provided by con- 13 tract, 50% of all commissions from wagering on the results of 14 live racing at the racetrack where the live racing was conducted 15 shall be paid to the horsemen's purse pool at the racetrack where 16 the live racing was conducted. As used in this subsection: 17 (a) "Straight wagering" means a wager made on the finishing 18 position of a single specified horse in a single specified race. 19 (b) "Multiple wagering" means a wager made on the finishing 20 positions of more than 1 horse in a specified race or the finish- 21 ing positions of 1 or more horses in more than 1 specified race. 22 (4) All breaks shall be retained by the race meeting 23 licensee and paid directly to the city or township in which the 24 racetrack is located as a fee for services providedpursuant to25 UNDER section 21. 26 (5) Payoff prices of tickets of a higher denomination shall 27 be calculated as even multiples of the payoff price for a $1.00 02455'99 b 9 1 wager. Each holder of a race meeting license shall distribute to 2 the persons holding winning tickets, as a minimum, a sum not less 3 than $1.10 calculated on the basis of each $1.00 deposited in a 4 pool, except that each race meeting licensee may distribute a sum 5 of not less than $1.05 to persons holding winning tickets for 6 each $1.00 deposited in a minus pool. As used in this subsec- 7 tion, "minus pool" means any win, place, or show pool in which 8 the payout would exceed the total value of the pool. 9 (6) REVENUE GENERATED BY A LICENSEE THROUGH THE CONDUCT OF 10 VIDEO GAMING IS SUBJECT TO THE ALLOCATION FORMULA PROVIDED IN THE 11 MICHIGAN VIDEO GAMING ACT. 12 (7)(6)A holder of a race meeting license shall not know- 13 ingly permit a person less than 18 years of age to be a patron of 14 the pari-mutuel wagering conducted or supervised by the holder OR 15 VIDEO GAMING CONDUCTED BY THE HOLDER. 16 (8)(7)Any act or transaction relative to pari-mutuel 17 wagering on the results of live or simulcast horse races shall 18 only occur or be permitted to occur within the enclosure of a 19 licensed race meeting OR OTHER LICENSED LOCATION WITHIN OR ADJA- 20 CENT TO THE ENCLOSURE. A person shall not participate or be a 21 party to any act or transaction relative to placing a wager or 22 carrying a wager for placement outside of a race meeting ground. 23 A person shall not provide messenger service for the placing of a 24 bet for another person who is not a patron. However, this sub- 25 section does not prevent simulcasting or intertrack or interstate 26 common pool wagering inside or outside this state as permitted by 27 this act or the rules promulgated under this act. 02455'99 b 10 1 Sec. 20. (1) It is the policy of this state to encourage 2 the breeding of horses of all breeds in this state and the owner- 3 ship of such horses by residents of this state to provide for 4 sufficient numbers of high quality race horses of all breeds to 5 participate in licensed race meetings in this state; to promote 6 the positive growth and development of high quality horse racing 7 and other equine competitions in this state as a beneficial busi- 8 ness and entertainment activity for residents of this state; and 9 to establish and preserve the substantial agricultural and com- 10 mercial benefits of the horse racing and breeding industry to the 11 state of Michigan. It is the intent and purpose of the legisla- 12 ture to further this policy by the provisions of the act and 13 annual appropriations to administer this act and adequately fund 14 the agriculture and equine industry programs established by this 15 section. 16 (2) Money received by the racing commissioner and the state 17 treasurer under this act shall be paid promptly into the state 18 treasury and placed in the Michigan agriculture equine industry 19 development fund created in subsection (3). 20 (3) The Michigan agriculture equine industry development 21 fund is created in the department of treasury. The Michigan 22 agriculture equine industry development fund shall be adminis- 23 tered by the director of the department of agriculture with the 24 assistance and advice of the racing commissioner. 25 (4) Money shall not be expended from the Michigan agricul- 26 ture equine industry development fund except as appropriated by 27 the legislature. Money appropriated by the legislature for the 02455'99 b 11 1 Michigan agriculture equine industry development fund shall be 2 expended by the director of the department of agriculture with 3 the advice and assistance of the racing commissioner to provide 4 funding for agriculture and equine industry development programs 5 as provided in subsections (5) to (11). 6 (5) The following amounts shall be paid to standardbred and 7 fair programs: 8 (a) A sum not to exceed 75% of the purses for standardbred 9 harness horse races offered by fairs and races at licensed 10 pari-mutuel racetracks. Purse supplements for overnight races at 11 fairs paidpursuant toUNDER this subsectionmaySHALL not 12 exceed the lowest purse offered for overnight races of the same 13 breed at any licensed race meeting in this state during the pre- 14 vious year. 15 (b) A sum to be allotted on a matching basis, but not to 16 exceed $15,000.00 each year to a single fair, for the purpose of 17 equipment rental during fairs; ground improvement; constructing, 18 maintaining, and repairing buildings; and making the racetrack 19 more suitable and safe for racing at fairs. 20 (c) A sum to be allotted for paying special purses at fairs 21 on 2-year-old and 3-year-old standardbred harness horses con- 22 ceived after January 1, 1992, and sired by a standardbred stal- 23 lion registered with the Michigan department of agriculture that 24 was leased or owned by a resident or residents of this state and 25whichTHAT did not serve a mare at a location outside of this 26 state from February 1 through July 31 of the calendar year in 27 which the conception occurred. Transportation of semen from a 02455'99 b 12 1 standardbred stallion registered with the Michigan department of 2 agriculture to a location outside the state of Michigan does not 3 create eligibility for Michigan tax supported races, and does not 4 affect the eligibility of Michigan conceived foals for the purses 5 provided for by this section. A foal conceived outside the state 6 of Michigan by means of semen from a standardbred stallion regis- 7 tered with the Michigan department of agriculture is not eligible 8 for Michigan tax-supported races. 9 (d) A sum to pay not more than 75% of an eligible cash pre- 10 mium paid by a fair or exposition. The commission of agriculture 11 shall promulgate rules establishing which premiums are eligible 12 for payment and a dollar limit for all eligible payments. 13 (e) A sum to pay breeders' awards in an amount not to exceed 14 10% of the gross purse to breeders of Michigan bred standardbred 15 harness horses for each time the horse wins a race at a licensed 16 race meeting or fair in this state. As used in this subdivision, 17 "Michigan bred standardbred harness horse" means a horse from a 18 mare owned by a resident or residents of this state at the time 19 of conception, that was conceived after January 1, 1992, and 20 sired by a standardbred stallion registered with the Michigan 21 department of agriculture that was leased or owned by a resident 22 or residents of this state and that did not serve a mare at a 23 location outside of this state from February 1 through July 31 of 24 the calendar year in which the conception occurred. To be eligi- 25 ble, each mare shall be registered with the Michigan department 26 of agriculture. Transportation of semen from a standardbred 27 stallion registered with the Michigan department of agriculture 02455'99 b 13 1 to a location outside the state of Michigan does not create 2 eligibility for Michigan tax-supported races, and does not affect 3 the eligibility of Michigan conceived foals for the purses pro- 4 vided for by this section. A foal conceived outside the state of 5 Michigan by means of semen from a standardbred stallion regis- 6 tered with the Michigan department of agriculture is not eligible 7 for Michigan tax-supported races. 8 (f) A sum not to exceed $4,000.00 each year to be allotted 9 to fairs to provide training and stabling facilities for stan- 10 dardbred harness horses. 11 (g) A sum to be allotted to pay the presiding judges and 12 clerks of the course at fairs. Presiding judges and clerks of 13 the course shall be hired by the fair's administrative body with 14 the advice and approval of the racing commissioner. The director 15 of the department of agriculture may allot funds for a photo 16 finish system and a mobile starting gate. The director of the 17 department of agriculture shall allot funds for the conducting of 18 tests, the collection and laboratory analysis of urine, saliva, 19 blood, and other samples from horses, and the taking of blood 20 alcohol tests on drivers, jockeys, and starting gate employees, 21 for those races described in this subdivision. The department 22 may require a driver, jockey, or starting gate employee to submit 23 to a breathalyzer test, urine test, or othernonevasive24 NONINVASIVE fluid test to detect the presence of alcohol or a 25 controlled substance as defined in section 7104 of the public 26 health code, 1978 PA 368, MCL 333.7104. If the results of a test 27 show that a person has more than .05% of alcohol in his or her 02455'99 b 14 1 blood, or has present in his or her body a controlled substance, 2 the person shall not be permitted to continue in his or her 3 duties on that race day and until he or she can produce, at his 4 or her own expense, a negative test result. 5 (h) A sum to pay purse supplements to licensed pari-mutuel 6 harness race meetings for special 4-year-old filly and colt horse 7 races. 8 (i) A sum not to exceed 0.25% of all money wagered on live 9 and simulcast horse races in Michigan shall be placed in a spe- 10 cial standardbred sire stakes fund each year, 100% of which shall 11 be used to provide purses for races run exclusively for 12 2-year-old and 3-year-old Michigan sired standardbred horses at 13 licensed harness race meetings in this state. As used in this 14 subdivision, "Michigan sired standardbred horses" means standard- 15 bred horses conceived after January 1, 1992 and sired by a stan- 16 dardbred stallion registered with the Michigan department of 17 agriculture that was leased or owned by a resident or residents 18 of this state andwhichTHAT did not serve a mare at a location 19 outside of this state from February 1 through July 31 of the cal- 20 endar year in which the conception occurred. Transportation of 21 semen from a standardbred stallion registered with the Michigan 22 department of agriculture to a location outside the state of 23 Michigan does not create eligibility for Michigan tax-supported 24 races, and does not affect the eligibility of Michigan conceived 25 foals for the purses provided for by this section. A foal con- 26 ceived outside the state of Michigan by means of semen from a 02455'99 b 15 1 standardbred stallion registered with the Michigan department of 2 agriculture is not eligible for Michigan tax-supported races. 3 (6) The following amounts shall be paid to thoroughbred 4 programs: 5 (a) A sum to be allotted thoroughbred race meeting licensees 6 to supplement the purses for races to be conducted exclusively 7 for Michigan bred horses. 8 (b) A sum to pay awards to owners of Michigan bred horses 9 that finish first, second, or third in races open to non-Michigan 10 bred horses. 11 (c) A sum to pay breeders' awards in an amount not to exceed 12 10% of the gross purse to the breeders of Michigan bred thorough- 13 bred horses for each time Michigan bred thoroughbred horses win 14 at a licensed race meeting in this state. 15 (d) A sum to pay purse supplements to licensed thoroughbred 16 race meetings for special 4-year-old and older filly and colt 17 horse races. 18 (e) A sum not to exceed 0.25% of all money wagered on live 19 and simulcast horse races in Michigan shall be placed in a spe- 20 cial thoroughbred sire stakes fund each year, 100% of which shall 21 be used to provide purses for races run exclusively for 22 2-year-old and 3-year-old and older Michigan sired thoroughbred 23 horses at licensed thoroughbred race meetings in this state and 24 awards for owners of Michigan sired horses or stallions. As used 25 in this subdivision, "Michigan sired thoroughbred horses" means 26 thoroughbred horses sired by a stallion registered with the 27 department of agriculture that was leased or owned exclusively by 02455'99 b 16 1 a resident or residents of this state and that did not serve a 2 mare at a location outside of this state during the calendar year 3 in which the service occurred. 4 (f) A sum to be allotted sufficient to pay for the collec- 5 tion and laboratory analysis of urine, saliva, blood, and other 6 samples from horses and licensed persons and for the conducting 7 of tests described in section 16(3)(b). 8 (7) The following amounts shall be paid for quarter horse 9 programs: 10 (a) A sum to supplement the purses for races to be conducted 11 exclusively for Michigan bred quarter horses. 12 (b) A sum to pay not more than 75% of the purses for regis- 13 tered quarter horse races offered by fairs. 14 (c) A sum to pay breeders' awards in an amount not to exceed 15 10% of a gross purse to breeders of Michigan bred quarter horses 16 for each time a Michigan bred quarter horse wins at a county fair 17 or licensed race meeting in this state. 18 (d) A sum to pay for the collection and laboratory analysis 19 of urine, saliva, blood, and other samples from horses and 20 licensed persons and the taking of blood alcohol tests on jockeys 21 for those races described in this subsection and for the conduct- 22 ing of tests described in section16(3)(b)16(4)(B). 23 (e) As used in this subsection, "Michigan bred quarter 24 horse" means a horse from a mare owned by a resident of this 25 state at the time of breeding, sired by a registered stallion 26 owned exclusively by a resident of this state, andwhichTHAT 27 did not serve a mare at a location outside of this state during 02455'99 b 17 1 the calendar year in which the service occurred. Each mare and 2 stallion shall be registered with the director of the department 3 of agriculture. 4 (8) The following amounts shall be paid for Appaloosa 5 programs: 6 (a) A sum to supplement the purses for races to be conducted 7 exclusively for Michigan bred Appaloosa horses. 8 (b) A sum to pay not more than 75% of the purses for regis- 9 tered Appaloosa horse races offered by fairs. 10 (c) A sum to pay breeders' awards in an amount not to exceed 11 10% of the gross purse to the breeders of Michigan bred Appaloosa 12 horses for each time Michigan bred horses win at a fair or 13 licensed race meeting in this state. 14 (d) The department shall also allot sufficient funds from 15 the revenue received from Appaloosa horse racing to pay for the 16 collection and laboratory analysis of urine, saliva, blood, or 17 other samples from horses and licensed persons and the taking of 18 blood alcohol tests on jockeys for those races described in this 19 subsection and for the conducting of tests described in section 2016(3)(b)16(4)(B). 21 (e) As used in this subsection, "Michigan bred Appaloosa" 22 means a horse from a mare owned by a resident of this state at 23 the time of breeding, sired by a registered stallion owned exclu- 24 sively by a resident of this state, andwhichTHAT did not 25 serve a mare at a location outside of this state during the cal- 26 endar year in which the service occurred. Each mare and stallion 02455'99 b 18 1 shall be registered with the director of the department of 2 agriculture. 3 (9) The following amounts shall be paid for Arabian 4 programs: 5 (a) A sum to supplement the purses for races to be conducted 6 exclusively for Michigan bred Arabian horses. 7 (b) A sum to pay not more than 75% of the purses for regis- 8 tered Arabian horse races offered by fairs. 9 (c) A sum to pay breeders' awards in an amount not to exceed 10 10% of the gross purse to the breeders of Michigan bred Arabian 11 horses for each time Michigan bred horses win at a fair or 12 licensed racetrack in this state. 13 (d) A sum allotted from the revenue received from Arabian 14 horse racing to pay for the collection and laboratory analysis of 15 urine, saliva, blood, and other samples from horses and licensed 16 persons and the taking of blood alcohol tests on jockeys for 17 those races described in this subsection and for the conducting 18 of tests described in section16(3)(b)16(4)(B). 19 (e) As used in this subsection, "Michigan bred Arabian" 20 means a horse from a mare owned by a resident of this state at 21 the time of breeding, sired by a registered stallion owned exclu- 22 sively by a resident of this state, and which did not serve a 23 mare at a location outside of this state during the calendar year 24 in which the service occurred. Each mare and stallion shall be 25 registered with the director of the department of agriculture. 26 (10) The following amounts shall be paid for the equine 27 industry research, planning, and development grant fund program: 02455'99 b 19 1 (a) A sum to fund grants for research projects conducted by 2 persons affiliated with a university or governmental research 3 agency or institution or other private research entity approved 4 by the racing commissioner, which are beneficial to the horse 5 racing and breeding industry in this state. 6 (b) Money appropriated and allotted to this fund shall not 7 revert to the general fund and shall be carried forward from year 8 to year until disbursed to fund grants for research projects ben- 9 eficial to the industry. 10 (c) As used in this subsection, "equine research" means the 11 study, discovery and generation of accurate and reliable informa- 12 tion, findings, conclusions, and recommendations that are useful 13 or beneficial to the horse racing and breeding industry in this 14 state through improvement of the health of horses; prevention of 15 equine illness and disease, and performance-related accidents and 16 injuries; improvement of breeding technique and racing per- 17 formance; and compilation and study of valuable and reliable sta- 18 tistical data regarding the size, organization, and economics of 19 the industry in this state; and strategic planning for the effec- 20 tive promotion, growth, and development of the industry in this 21 state. 22 (11) A sum to fund the development, implementation, and 23 administration of new programs that promote the proper growth and 24 development of the horse racing and breeding industry in this 25 state and other valuable equine related commercial and recrea- 26 tional activities in this state. 02455'99 b 20 1 (12) A percentage of the Michigan agriculture equine 2 industry development fund that is equal to 1/10 of 1% of the 3 gross wagers made each year in each of the racetracks licensed 4 under this act shall be deposited in the compulsive gaming pre- 5 vention fund created in the compulsive gaming prevention act. 6 (13) The director of the department of agriculture shall 7 promulgate rules pursuant to the administrative procedures act of 8 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this 9 section. The rules promulgated under this subsection shall do 10 all of the following: 11 (a) Prescribe the conditions under which the Michigan agri- 12 culture equine industry development fund and related programs 13 described in subsections (1) to (11) shall be funded. 14 (b) Establish conditions and penalties regarding the pro- 15 grams described in subsections (5) to (11). 16 (c) Develop and maintain informational programs related to 17 this section. 18 (14) Funds under the control of the department of agricul- 19 ture in this section shall be disbursed under the rules promul- 20 gated pursuant to subsection (13). All funds under the control 21 of the department of agriculture approved for purse supplements 22 and breeders' awards shall be paid by the state treasurer not 23 later than 45 days from the date of the race. 24 (15) THE MONEY GENERATED BY A LICENSEE THROUGH THE CONDUCT 25 OF VIDEO GAMING IS SUBJECT TO THE ALLOCATION FORMULA PROVIDED IN 26 THE MICHIGAN VIDEO GAMING ACT. 02455'99 b 21 1 Enacting section 1. This amendatory act does not take 2 effect unless all of the following bills of the 90th Legislature 3 are enacted into law: 4 (a) Senate Bill No. 480. 5 6 (b) Senate Bill No. 477. 7 02455'99 b Final page. TLG