June 3, 2008, Introduced by Rep. Cushingberry and referred to the Committee on Regulatory Reform.
A bill to amend 1995 PA 279, entitled
"Horse racing law of 1995,"
by amending the title and sections 2, 7, 15, and 18 (MCL 431.302,
431.307, 431.315, and 431.318), section 2 as amended by 2006 PA
445, section 7 as amended by 2000 PA 164, and section 18 as amended
by 1998 PA 408.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An
act to license and regulate the conducting of horse race
meetings
in this state, with pari-mutuel wagering on the results of
horse races, and persons involved in horse racing and pari-mutuel
gaming
activities at such race meetings; to create the office of
racing
commissioner; to prescribe provide
for the powers and duties
of
the racing commissioner ; to prescribe certain powers and duties
of
the department of agriculture and the director of the department
of
agriculture and of certain
other state and local governmental
officers and entities; to provide for the promulgation of rules; to
provide for the imposition of taxes and fees and the disposition of
revenues
revenue; to impose certain taxes; to create funds;
to
legalize and permit the pari-mutuel method of wagering on the
results of live and simulcast races at licensed race meetings and
casinos
in this state; to appropriate the
funds money derived from
pari-mutuel wagering on the results of horse races at licensed race
meetings and casinos in this state; to impose requirements with
respect to the negotiating of gaming compacts with Indian tribes in
this state; to prescribe remedies and penalties; and to repeal acts
and parts of acts.
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) "Casino" means a building in which gambling is conducted
by a casino licensee or an Indian tribe.
(d) "Casino licensee" means the holder of a license issued
under section 6 of the Michigan gaming control and revenue act,
1996 IL 1, MCL 432.206.
(e) (c)
"Certified horsemen's
organization" means an
organization registered with the office of racing commissioner, in
a manner and form required by the racing commissioner, 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.
(f) (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.
(g) (e)
"Controlled substance"
means that term as defined in
section 7104 of the public health code, 1978 PA 368, MCL 333.7104.
(h) (f)
"Day of operation" means
a period of 24 hours
beginning at 12 noon and ending at 11:59 a.m. the following day.
(i) (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, 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).
(j) (h)
"Fair" means any county,
district, or community fair
and any state fair.
(k) (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.
(l) (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.
(m) "Indian tribe" means that term as defined in section 4 of
the Indian gaming regulatory act, 25 USC 2703.
(n) "Interstate simulcast" means a simulcast from a racetrack
outside this state to a racetrack inside this state.
(o) "Intertrack simulcast" means a simulcast from 1 racetrack
in this state to another racetrack in this state or to a casino in
this state.
(p) (k)
"Member of the immediate
family" means the spouse,
child, parent, or sibling.
(q) (l) "Person"
means an individual, firm, partnership,
corporation, association, or other legal entity.
(r) (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 this
act.
(s) "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 or a casino in this state.
(t) (n)
"Veterinarian" means a
person 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.
Sec. 7. (1) The racing commissioner may promulgate rules
pursuant to 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 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 and casinos
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, and simulcasting conducted at licensed race
meetings and casinos 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 and casinos within this
state.
(d) The handling fee that a casino licensee or Indian tribe is
entitled to receive from a race meeting licensee for simulcasting
and accepting wagers on horse races under this act.
(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 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 or casino.
(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 or casino.
(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 or at a casino in which horse races are
simulcast and wagers are accepted on horse races 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 to appear
before the racing commissioner at the time and place specified in a
summons from the racing commissioner or refusing 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 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. 15. (1) Before March 31 of each year, each holder of a
race meeting or track license shall file with the racing
commissioner a certified statement of receipts from all sources
during the previous calendar year and of all expenses and
disbursements, itemized in a manner and on a standardized form as
directed by the state treasurer, showing the net revenue from all
sources derived by the holder of the license. These certified
financial statements shall be considered public records and made
available for public inspection during regular business hours. The
certified financial statements submitted shall be prepared by a
certified public accountant in accordance with generally accepted
accounting and auditing standards as promulgated by the American
institute of certified public accountants. The working papers and
other records pertaining to preparation of the financial statements
may be reviewed by the state treasurer and the racing commissioner
and shall be promptly provided to them by the holders of the race
meeting license upon their request.
(2) On the first day other than Sunday after each day of
operation, each holder of a race meeting license shall remit the
money due to the state or other entities under this act at the
close of the day of operation with a detailed statement of that
money as required by this act and the rules promulgated under this
act.
(3) A person shall not hold or conduct, or assist, aid, or
abet in holding or conducting, a race meeting within the state
where live or simulcast horse races with pari-mutuel wagering on
the results of horse racing for a stake, purse, prize, share, or
reward
is are conducted, unless the person and the racetrack at
which the gaming activity is conducted are licensed by the racing
commissioner or unless the person is a casino licensee or an Indian
tribe conducting simulcasting and accepting wagers on horse races
as allowed under 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".
(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 have a current contract with a
certified horsemen's organization.
(b) The applicant shall 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 make a continuing good faith effort
throughout the duration of its race meeting to program and conduct
not less than 9 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 have consented to the requested
simulcasts on any live racing day when the applicant is unable to
program and conduct not less than 9 live horse races, if required
by section 12(6).
(e) If the requested simulcasts are interstate, the applicant
shall 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 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.
(g) The applicant shall 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.
(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 in a city area
shall receive all available intertrack simulcasts from licensed
race meetings in the city area located more than 12 miles from the
licensee's race meeting.
(i) (h)
A licensed race meeting outside a
city area shall 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 authorize all other race meeting licensees in the
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 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 also comply
with
the interstate horse racing act of 1978, Public Law 95-15, 15
U.S.C.
USC 3001 to 3007.
(n) The applicant shall make the video and audio of its live
horse races available for intertrack simulcasting to casinos under
subsections (8) and (9) and shall pay to a casino licensee or
Indian tribe that operates a casino where the applicant's horse
races are simulcast and wagered upon the handling fee prescribed by
the racing commissioner in rules adopted under section 7.
(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 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 simulcast shall
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 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 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 simulcast at the
receiving racetrack or casino shall 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
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 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 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 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
established pursuant to section 19 a sum equal to 40% of the
receiving track's net commission from wagering on the intertrack
simulcast under section 17(3) after first deducting from the
licensee's statutory commission the applicable state tax on
wagering due and owing under section 22 and the actual verified fee
paid by the receiving track 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) A casino licensee may televise and allow wagering on
simulcast horse races conducted by race meeting licensees in this
state as provided in the Michigan gaming control and revenue act,
1996 IL 1, MCL 432.201 to 432.226.
(9) If, after the effective date of the amendatory act that
added this subsection, the governor negotiates or renegotiates a
compact or an amendment or addendum to a compact with an Indian
tribe relating to gaming in this state under the Indian gaming
regulatory act, Public Law 100-497, 102 Stat. 2467, the governor
shall include in the negotiations a requirement that the Indian
tribe shall, at its casino, simulcast and accept wagers on horse
races conducted by race meeting licensees in this state and submit
to the control of the racing commissioner with respect to the
simulcasting and wagering. An Indian tribe that agrees to include
these provisions in or add these provisions to its compact with
this state may televise and allow wagering on simulcast horse races
conducted by race meeting licensees in this state.
(10) A casino licensee or Indian tribe that simulcasts and
conducts wagering on horse races under subsection (8) or (9) shall
comply with all applicable provisions of this act, rules
promulgated under this act, and any order issued by the racing
commissioner. Simulcasting and wagering under subsections (8) and
(9) are under the primary control of the racing commissioner. If
the racing commissioner determines that the casino licensee or
Indian tribe has failed to comply with a law, rule, or order as
required by this subsection, the racing commissioner may order,
temporarily or permanently, that the licensee or tribe not
simulcast or accept wagers on horse races under this act.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6196(request no.
07330'08 a) of the 94th Legislature is enacted into law.