HB-4260, As Passed House, September 28, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4260

February 10, 2005, Introduced by Reps. Hune, Gaffney, Stewart, Emmons and Nitz and referred to the Committee on Agriculture.

 

     A bill to amend 1951 PA 90, entitled

 

"An act to regulate the conducting of racing meets in the state of

Michigan; to provide for the possession, control and disposition of

funds held by licensees for the payment of outstanding winning

tickets not claimed or demanded by the lawful owners of such funds;

and to prescribe penalties for violations of the provisions of this

act,"

 

by amending section 2 (MCL 431.252), as amended by 1998 PA 505.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. (1) For the calendar year 1998 and each year

 

thereafter, all funds All money held by any licensee for the

 

payment of outstanding winning tickets or vouchers for any race

 

meeting conducted under the horse racing law of 1995, 1995 PA 279,

 

MCL 431.301 to 431.336, which have that has not been claimed by the

 

owner of those funds the money within 60 days after the close of

 

the race meeting, shall be retained by the licensee and distributed


House Bill No. 4260 as amended September 27, 2005

as follows:

 

     (a) If the licensee is a standardbred race meeting licensee:

 

     (a) (i)  Fifty percent of the funds shall be retained by the

 

licensee.

 

     (b) (ii)  Fifty percent of the funds shall be deposited into

 

the Michigan agriculture equine fund created in section 20(3) of

 

the horse racing law of 1995, 1995 PA 279, MCL 431.320, and

 

designated for standardbred programs described in section 20(5)(a),

 

(c), (e), (h), and (i) of the horse racing law of 1995, 1995 PA

 

279, MCL 431.320. distributed to the certified horsemen's

 

organization with which the licensee has a contract. The certified

 

horsemen's organization may expend the money received under this

 

subdivision only for [the following purposes:

    (i) Purse supplements and breeders' awards for Live horse racing conducted at either of the following:

    (A) Fairs in this state.

    (B) Licensed horse racetracks where pari-mutuel wagering is conducted in this state.

     (ii) If the certified horsemen's organization contracts with licensees that conduct quarter horse races, in addition to the purposes in subparagraph (i), any] purpose related to the

management, protection, and promotion of live horse racing in this

 

state, including, but not limited to, [                    ] promotion,

 

benevolence, office and administrative expense, professional fees,

 

backside welfare, employee welfare, and insurance programs.

 

     (b) If the licensee is a thoroughbred race meeting licensee,

 

then 100% of the funds for 1998 shall be earmarked for the

 

development and capital improvement for the purpose of

 

accommodating thoroughbred racing at existing licensed racing

 

facilities that have operated within the 2 years immediately before

 

the effective date of the amendatory act that added this

 

subdivision within a city area or at a facility located outside a

 

city area upon written approval of a certified thoroughbred

horsemen's organization and approved by the racing commissioner. As

used in this subdivision, "city area" and "horsemen's organization"


House Bill No. 4260 as amended September 27, 2005

mean those terms as defined in section 2 of the horse racing law of

 

1995, 1995 PA 279, MCL 431.302. For calendar year 1999 and every

 

year thereafter:

 

     (i) Fifty percent of the funds shall be retained by the

 

licensee.

 

     (ii) Fifty percent of the funds shall be deposited in the

 

Michigan agriculture equine fund established in section 20(3) of

 

the horse racing law of 1995, 1995 PA 279, MCL 431.320, and

 

designated for thoroughbred programs described in section 20(6)(a)

 

to (e) of the horse racing law of 1995, 1995 PA 279, MCL 431.320.

 

     (c) If the licensee is a light horse race meeting licensee:

 

     (i) Fifty percent of the funds shall be retained by the

 

licensee.

 

     (ii) Fifty percent of the funds shall be deposited in the

 

Michigan agriculture equine fund established in section 20(3) of

 

the horse racing law of 1995, 1995 PA 279, MCL 431.320, and

 

designated for light horse programs described in section 20(7),

 

(8), and (9) of the horse racing law of 1995, 1995 PA 279, MCL

 

431.320.

 

     (d) Funds for uncashed tickets for calendar year 1998 held by

 

the department of treasury that were remitted by licensees shall be

 

distributed as provided in this section.

     [(2) A certified horsemen's organization that receives money under this section shall obtain an annual independent audit of the expenditure of the money. The certified horsemen's organization shall provide a copy of the audit to the racing commissioner. The first audit shall be provided to the racing commissioner on or before 1 year after the effective date of the amendatory act that added this subsection and each subsequent audit shall be provided on the same date of each following year.

     (3)] As used in this section:

 

     (a) "Certified horsemen's organization" means that term as

 

defined in section 2 of the horse racing law of 1995, 1995 PA 279,

 

MCL 431.302.

     (b) "Licensee" means a person that holds a race meeting


 

license as described in section 8 of the horse racing law of 1995,

 

1995 PA 279, MCL 431.308.