SENATE BILL No. 611

 

 

June 27, 2007, Introduced by Senator THOMAS and referred to the Committee on Appropriations.

 

 

 

     A bill to amend 1995 PA 279, entitled

 

"Horse racing law of 1995,"

 

by amending the title and section 20 (MCL 431.320), section 20 as

 

amended by 2006 PA 185.

 

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 provide for powers

 

and duties of the department of agriculture and the director of the

 

department of agriculture; to provide for the promulgation of

 


rules; to provide for the imposition of taxes and fees and the

 

disposition of revenues; to impose certain taxes; to create funds;

 

to make certain appropriations; to legalize and permit the pari-

 

mutuel method of wagering on the results of live and simulcast

 

races at licensed race meetings in this state; to appropriate the

 

funds derived from pari-mutuel wagering on the results of horse

 

races at licensed race meetings in this state; to prescribe

 

remedies and penalties; and to repeal acts and parts of acts.

 

     Sec. 20. (1) It is the policy of this state to encourage the

 

breeding of horses of all breeds in this state and the ownership of

 

such horses by residents of this state to provide for sufficient

 

numbers of high quality race horses of all breeds to participate in

 

licensed race meetings in this state; to promote the positive

 

growth and development of high quality horse racing and other

 

equine competitions in this state as a business and entertainment

 

activity for residents of this state; and to establish and preserve

 

the substantial agricultural and commercial benefits of the horse

 

racing and breeding industry to the state of Michigan. It is the

 

intent of the legislature to further this policy by the provisions

 

of this act and annual appropriations to administer this act and

 

adequately fund the agriculture and equine industry programs

 

established by this section.

 

     (2) Money received by the racing commissioner and the state

 

treasurer under this act shall be paid promptly into the state

 

treasury and placed in the Michigan agriculture equine industry

 

development fund created in subsection (3).

 

     (3) The Michigan agriculture equine industry development fund

 


is created in the department of treasury. The Michigan agriculture

 

equine industry development fund shall be administered by the

 

director of the department of agriculture with the assistance and

 

advice of the racing commissioner.

 

     (4) Money shall not be expended from the Michigan agriculture

 

equine industry development fund except as appropriated by the

 

legislature. Money appropriated by the legislature for the Michigan

 

agriculture equine industry development fund shall be expended by

 

the director of the department of agriculture with the advice and

 

assistance of the racing commissioner to provide funding for the

 

general fund as provided in subsection (17) and for agriculture and

 

equine industry development programs as provided in subsections (5)

 

to (11).

 

     (5) The following amounts shall be paid to standardbred and

 

fair programs:

 

     (a) A sum not to exceed 75% of the purses for standardbred

 

harness horse races offered by fairs and races at licensed pari-

 

mutuel racetracks. Purse supplements for overnight races at fairs

 

paid pursuant to this subsection shall be $1,000.00. However, if

 

the average purse offered for maiden overnight races of the same

 

breed at any licensed race meeting in this state during the

 

previous year as calculated by the department of agriculture was

 

less than $1,000.00, purse supplements for overnight races at fairs

 

paid under this subsection shall not exceed that average purse.

 

     (b) A sum to be allotted on a matching basis, but not to

 

exceed $15,000.00 each year to a single fair, for the purpose of

 

equipment rental during fairs; ground improvement; constructing,

 


maintaining, and repairing buildings; and making the racetrack more

 

suitable and safe for racing at fairs.

 

     (c) A sum to be allotted for paying special purses at fairs on

 

2-year-old and 3-year-old standardbred harness horses conceived

 

after January 1, 1992, and sired by a standardbred stallion

 

registered with the Michigan department of agriculture that was

 

leased or owned by a resident or residents of this state and that

 

did not serve a mare at a location outside of this state from

 

February 1 through July 31 of the calendar year in which the

 

conception occurred. A foal that is born on or after January 1,

 

2002 of a mare owned by a nonresident of this state and that is

 

conceived outside of this state from transported semen of a

 

stallion registered with the Michigan department of agriculture is

 

eligible for Michigan tax-supported races only if, in the year that

 

the foal is conceived, the Michigan department of agriculture's

 

agent for receiving funds as the holding agent for stakes and

 

futurities is paid a transport fee as determined by the Michigan

 

department of agriculture and administered by the Michigan harness

 

horsemen's association.

 

     (d) A sum to pay not more than 75% of an eligible cash premium

 

paid by a fair or exposition. The commission of agriculture shall

 

promulgate rules establishing which premiums are eligible for

 

payment and a dollar limit for all eligible payments.

 

     (e) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to breeders of Michigan bred standardbred

 

harness horses for each time the horse wins a race at a licensed

 

race meeting or fair in this state. As used in this subdivision,

 


"Michigan bred standardbred harness horse" means a horse from a

 

mare owned by a resident or residents of this state at the time of

 

conception, that was conceived after January 1, 1992, and sired by

 

a standardbred stallion registered with the Michigan department of

 

agriculture that was leased or owned by a resident or residents of

 

this state and that did not serve a mare at a location outside of

 

this state from February 1 through July 31 of the calendar year in

 

which the conception occurred. To be eligible, each mare shall be

 

registered with the Michigan department of agriculture. A foal that

 

is born on or after January 1, 2002 of a mare owned by a

 

nonresident of this state and that is conceived outside of this

 

state from transported semen of a stallion registered with the

 

Michigan department of agriculture is eligible for Michigan tax-

 

supported races only if, in the year that the foal is conceived,

 

the Michigan department of agriculture's agent for receiving funds

 

as the holding agent for stakes and futurities is paid a transport

 

fee as determined by the Michigan department of agriculture and

 

administered by the Michigan harness horsemen's association.

 

     (f) A sum not to exceed $4,000.00 each year to be allotted to

 

fairs to provide training and stabling facilities for standardbred

 

harness horses.

 

     (g) A sum to be allotted to pay the presiding judges and

 

clerks of the course at fairs. Presiding judges and clerks of the

 

course shall be hired by the fair's administrative body with the

 

advice and approval of the racing commissioner. The director of the

 

department of agriculture may allot funds for a photo finish system

 

and a mobile starting gate. The director of the department of

 


agriculture shall allot funds for the conducting of tests, the

 

collection and laboratory analysis of urine, saliva, blood, and

 

other samples from horses, and the taking of blood alcohol tests on

 

drivers, jockeys, and starting gate employees, for those races

 

described in this subdivision. The department may require a driver,

 

jockey, or starting gate employee to submit to a breathalyzer test,

 

urine test, or other noninvasive fluid test to detect the presence

 

of alcohol or a controlled substance. If the results of a test show

 

that a person has more than .05% of alcohol in his or her blood, or

 

has present in his or her body a controlled substance, the person

 

shall not be permitted to continue in his or her duties on that

 

race day and until he or she can produce, at his or her own

 

expense, a negative test result.

 

     (h) A sum to pay purse supplements to licensed pari-mutuel

 

harness race meetings for special 4-year-old filly and colt horse

 

races.

 

     (i) A sum not to exceed 0.25% of all money wagered on live and

 

simulcast horse races in Michigan shall be placed in a special

 

standardbred sire stakes fund each year, 100% of which shall be

 

used to provide purses for races run exclusively for 2-year-old and

 

3-year-old Michigan sired standardbred horses at licensed harness

 

race meetings in this state. As used in this subdivision, "Michigan

 

sired standardbred horses" means standardbred horses conceived

 

after January 1, 1992 and sired by a standardbred stallion

 

registered with the Michigan department of agriculture that was

 

leased or owned by a resident or residents of this state and that

 

did not serve a mare at a location outside of this state from

 


February 1 through July 31 of the calendar year in which the

 

conception occurred. A foal that is born on or after January 1,

 

2002 of a mare owned by a nonresident of this state and that is

 

conceived outside of this state from transported semen of a

 

stallion registered with the Michigan department of agriculture is

 

eligible for Michigan tax-supported races only if, in the year that

 

the foal is conceived, the Michigan department of agriculture's

 

agent for receiving funds as the holding agent for stakes and

 

futurities is paid a transport fee as determined by the Michigan

 

department of agriculture and administered by the Michigan harness

 

horsemen's association.

 

     (6) The following amounts shall be paid to thoroughbred

 

programs:

 

     (a) A sum to be allotted thoroughbred race meeting licensees

 

to supplement the purses for races to be conducted exclusively for

 

Michigan bred horses.

 

     (b) A sum to pay awards to owners of Michigan bred horses that

 

finish first, second, or third in races open to non-Michigan bred

 

horses.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred

 

thoroughbred horses for each time Michigan bred thoroughbred horses

 

win at a licensed race meeting in this state.

 

     (d) A sum to pay purse supplements to licensed thoroughbred

 

race meetings for special 4-year-old and older filly and colt horse

 

races.

 

     (e) A sum not to exceed 0.25% of all money wagered on live and

 


simulcast horse races in Michigan shall be placed in a special

 

thoroughbred sire stakes fund each year, 100% of which shall be

 

used to provide purses for races run exclusively for 2-year-old and

 

3-year-old and older Michigan sired thoroughbred horses at licensed

 

thoroughbred race meetings in this state and awards for owners of

 

Michigan sired horses or stallions. As used in this subdivision,

 

"Michigan sired thoroughbred horses" means thoroughbred horses

 

sired by a stallion registered with the department of agriculture

 

that was leased or owned exclusively by a resident or residents of

 

this state and that did not serve a mare at a location outside of

 

this state during the calendar year in which the service occurred.

 

     (f) A sum to be allotted sufficient to pay for the collection

 

and laboratory analysis of urine, saliva, blood, and other samples

 

from horses and licensed persons and for the conducting of tests

 

described in section 16(4)(b).

 

     (7) The following amounts shall be paid for quarter horse

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred quarter horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered quarter horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of a gross purse to breeders of Michigan bred quarter horses

 

for each time a Michigan bred quarter horse wins at a county fair

 

or licensed race meeting in this state.

 

     (d) A sum to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 


persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (e) As used in this subsection, "Michigan bred quarter horse"

 

means that term as defined in R 285.817.1 of the Michigan

 

administrative code. Each mare and stallion shall be registered

 

with the director of the department of agriculture.

 

     (8) The following amounts shall be paid for Appaloosa

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred Appaloosa horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered Appaloosa horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred Appaloosa

 

horses for each time Michigan bred horses win at a fair or licensed

 

race meeting in this state.

 

     (d) The department shall also allot sufficient funds from the

 

revenue received from Appaloosa horse racing to pay for the

 

collection and laboratory analysis of urine, saliva, blood, or

 

other samples from horses and licensed persons and the taking of

 

blood alcohol tests on jockeys for those races described in this

 

subsection and for the conducting of tests described in section

 

16(4)(b).

 

     (e) As used in this subsection, "Michigan bred Appaloosa

 

horse" means that term as defined in R 285.819.1 of the Michigan

 

administrative code. Each mare and stallion shall be registered

 


with the director of the department of agriculture.

 

     (9) The following amounts shall be paid for Arabian programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred Arabian horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered Arabian horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred Arabian

 

horses for each time Michigan bred horses win at a fair or licensed

 

racetrack in this state.

 

     (d) A sum allotted from the revenue received from Arabian

 

horse racing to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (e) As used in this subsection, "Michigan bred Arabian horse"

 

means a Michigan-bred horse as that term is defined in R

 

285.822.1(i) of the Michigan administrative code. Each mare and

 

stallion shall be registered with the director of the department of

 

agriculture.

 

     (10) The following sums shall be paid for American paint horse

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred American paint horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered American paint horse races offered by fairs.

 


     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred American

 

paint horses for each time a Michigan bred American paint horse

 

wins at a county fair or licensed race meeting in this state.

 

     (d) A sum to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (e) As used in this subsection, "Michigan bred American paint

 

horse" means a Michigan-bred paint horse as that term is defined in

 

R 285.823.1 of the Michigan administrative code.

 

     (11) The following amounts shall be paid for the equine

 

industry research, planning, and development grant fund program:

 

     (a) A sum to fund grants for research projects conducted by

 

persons affiliated with a university or governmental research

 

agency or institution or other private research entity approved by

 

the racing commissioner, which are beneficial to the horse racing

 

and breeding industry in this state.

 

     (b) A sum to fund the development, implementation, and

 

administration of new programs that promote the proper growth and

 

development of the horse racing and breeding industry in this state

 

and other valuable equine-related commercial and recreational

 

activities in this state.

 

     (12) As used in subsection (11), "equine industry research"

 

means the study, discovery and generation of accurate and reliable

 

information, findings, conclusions, and recommendations that are

 


useful or beneficial to the horse racing and breeding industry in

 

this state through improvement of the health of horses; prevention

 

of equine illness and disease, and performance-related accidents

 

and injuries; improvement of breeding technique and racing

 

performance; and compilation and study of valuable and reliable

 

statistical data regarding the size, organization, and economics of

 

the industry in this state; and strategic planning for the

 

effective promotion, growth, and development of the industry in

 

this state.

 

     (13) Subject to subsection (17), money appropriated and

 

allotted to the Michigan agriculture equine industry development

 

fund shall not revert to the general fund and shall be carried

 

forward from year to year until disbursed to fund grants for

 

research projects beneficial to the industry.

 

     (14) A percentage of the Michigan agriculture equine industry

 

development fund that is equal to 1/100 of 1% of the gross wagers

 

made each year in each of the racetracks licensed under this act

 

shall be deposited in the compulsive gaming prevention fund created

 

in section 3 of the compulsive gaming prevention act, 1997 PA 70,

 

MCL 432.253.

 

     (15) The director of the department of agriculture shall

 

promulgate rules pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section.

 

The rules promulgated under this subsection shall do all of the

 

following:

 

     (a) Prescribe the conditions under which the Michigan

 

agriculture equine industry development fund and related programs

 


described in subsections (1) to (13) (12) shall be funded.

 

     (b) Establish conditions and penalties regarding the programs

 

described in subsections (5) to (12).

 

     (c) Develop and maintain informational programs related to

 

this section.

 

     (16) Funds under the control of the department of agriculture

 

in this section shall be disbursed under the rules promulgated

 

pursuant to subsection (15). All funds under the control of the

 

department of agriculture approved for purse supplements and

 

breeders' awards shall be paid by the state treasurer not later

 

than 45 days from the date of the race.

 

     (17) Two million dollars shall be transferred from the

 

Michigan agriculture equine industry development fund to the

 

general fund in the fiscal year ending September 30, 2006. Money in

 

the Michigan agriculture equine industry development fund shall be

 

transferred in the fiscal year ending September 30, 2007 as

 

follows:

 

     (a) Two million dollars to the city of Detroit to be used only

 

for crime reduction programs conducted by the Detroit police

 

department.

 

     (b) One million dollars to the department of state police to

 

be used only for traffic control in relation to motorsports events

 

held at a motorsports entertainment complex that has a seating

 

capacity of 100,000 or more.