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.