UNCASHED HORSE RACE WINNINGS

House Bill 4260

Sponsor:  Rep. Joe Hune

Committee:  Agriculture

Complete to 3-21-05

A SUMMARY OF HOUSE BILL 4260 AS INTRODUCED 2-10-05

Under Public Act 90 of 1951, money held as winnings by horse racing meeting licensees that has remained unclaimed for at least 60 days after the close of the race meeting is divided evenly between the licensee and the Michigan Agriculture Equine Industry Development Fund for standardbred, thoroughbred, and light horse programs provided under the Horse Racing Law of 1995. 

The bill would, instead, split the uncashed winnings between the race meeting licensee and certified horsemen's organizations, which could expend those funds for the management, protection, and promotion of live horse racing in the state.

 

MCL 431.252

FISCAL IMPACT:

As described above, money from unclaimed winner horse race tickets, or "outs," is currently divided between the licensee and the Agriculture Equine Industry Development Fund (AEIDF), for distribution to various race programs as provided under PA 90 of 1951.  The total in uncashed ticket revenue credited to the AEIDF in FY 2003-04 was $694,100.  Under provisions of the bill, the licensee would continue to retain 50% of the funds from outs, but would be required to distribute the remaining 50% to "the certified horsemen's organization with which the licensee has a contract", rather than to the AEIDF.  This would effectively reduce revenue to the AEIDF, a state-restricted fund by approximately $700,000, and redirect those funds to private organizations.

BACKGROUND INFORMATION:

The Michigan Agriculture Equine Industry Development Fund was established with the enactment of the Horse Racing Law of 1995 to provide funding for agriculture and equine industry-related programs.  In addition to uncashed winning tickets, the AEIDF also receives funding from simulcast wagering taxes, horse racing licensing fees and fines, and a portion of the Detroit casino tax.  The AEIDF is expended, upon appropriation, for a variety of horse racing programs pursuant to Section 20 of the Horse Racing Law.  Additionally, a small portion is deposited in the Compulsive Gambling Prevention Fund.

Public Act 90 of 1951 was amended by Public Act 505 of 1998 to divide any uncashed winnings between the AEIDF and race meeting licensees.  Prior to Public Act 505, any uncashed winnings were escheated by the state and eventually deposited in the General Fund.  The uncashed winnings are the only AEIDF revenue source specifically earmarked for specific programs, and essentially provide a floor funding amount for various horse racing related programs. 

                                                                                        Legislative Analyst:  Mark Wolf

                                                                                               Fiscal Analyst:  William E. Hamilton

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.