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S1506......................................................by STATE AFFAIRS HORSE RACING - SIMULCAST - Amends existing law relating to horse racing to provide for pari-mutuel betting by patrons on the result of simulcast and/or televised races in a facility not located on the grounds of a live horse race meet facility, to require approval of the board of county commissioners, to impose a limit of one such facility per county, to provide for leasing of licenses, to provide for written applications, to provide restrictions, to provide for payments of moneys for deposit into the Live Horse Race Distribution Fund, to create the Live Horse Race Distribution Fund, to provide for payments from the fund and to provide for a payment to the Idaho Horse Board. 02/19 Senate intro - 1st rdg - to printing 02/20 Rpt prt - to St Aff
S1506|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1506 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO HORSE RACING; AMENDING SECTION 54-2512, IDAHO CODE, TO PROVIDE FOR 3 PARI-MUTUEL BETTING BY PATRONS ON THE RESULT OF SIMULCAST AND/OR TELEVISED 4 RACES IN A FACILITY NOT LOCATED ON THE GROUNDS OF A LIVE HORSE RACE MEET 5 FACILITY, TO REQUIRE APPROVAL OF THE BOARD OF COUNTY COMMISSIONERS, TO 6 IMPOSE A LIMIT OF ONE SUCH FACILITY PER COUNTY, TO PROVIDE FOR LEASING OF 7 LICENSES, TO PROVIDE FOR WRITTEN APPLICATIONS, TO PROVIDE RESTRICTIONS, TO 8 PROVIDE FOR PAYMENTS OF MONEYS FOR DEPOSIT INTO THE LIVE HORSE RACE DIS- 9 TRIBUTION FUND, TO CREATE THE LIVE HORSE RACE DISTRIBUTION FUND, TO PRO- 10 VIDE FOR PAYMENTS FROM THE FUND AND TO PROVIDE FOR A PAYMENT TO THE IDAHO 11 HORSE BOARD. 12 Be It Enacted by the Legislature of the State of Idaho: 13 SECTION 1. That Section 54-2512, Idaho Code, be, and the same is hereby 14 amended to read as follows: 15 54-2512. PARI-MUTUEL BETTING -- OTHER BETTING ILLEGAL. (1) Any licensee 16 conducting a race meet under this act may provide a place or places in the 17 race meet grounds or enclosure at which such licensee may conduct and super- 18 vise the use of the pari-mutuel system by patrons on the result of the races 19 conducted by such licensee at such race meet and, upon written application by 20 a licensee and approval by the commission, on the result of simulcast and/or 21 televised races. The commission shall issue no more than one (1) license to 22 simulcast per live race meet licensee and there shall be no more simulcasting 23 sites in the state than there are licensed live race meet sites. 24 (2) (a) Licenses authorizing simulcast and/or televised races will be 25 regulated by the commission, in addition to its other responsibilities, 26 for the purpose of enhancing, promoting, and protecting the live race 27 industry in the state of Idaho. No license authorizing simulcasting and/or 28 televised races shall be issued to or renewed for persons that are not 29 also licensed to conduct live race meets in the state of Idaho. Persons 30 applying for a simulcast and/or televised race license shall have annually 31 conducted live race meets in the state of Idaho during the preceding two 32 (2) calendar years, and have an agreement reached voluntarily or pursuant 33 to binding arbitration in conformance with chapter 9, title 7, Idaho Code, 34 with a horsemen's group as the term "horsemen's group" is defined in sec- 35 tion 54-2502, Idaho Code. The agreement shall address, but not be limited 36 to, number of live race days and percentage of the live race and simulcast 37 handle that is dedicated to the live horse race purse structure. Race days 38 agreed upon shall be submitted to the Idaho racing commission for its 39 approval. 40 (b) In addition to the restrictions recited in paragraph (a) of this sub- 41 section, live horse race licensees that have had an average daily live 42 race handle of more than sixty thousand dollars ($60,000) during the last 43 calendar year in operation shall not have a license authorizing 2 1 simulcasting and/or televised races issued or renewed if the licensee has 2 not run in the calendar year immediately preceding the year for which the 3 application for a license is being made for at least ninety percent (90%) 4 of the number of live races that were conducted by that licensee in 1989. 5 (c) The commission may issue a license authorizing simulcast and/or tele- 6 vised races to a live horse race licensee only after that licensee has 7 conducted at that facility a minimum of forty (40) live horse races in 8 each of the two (2) calendar years preceding the application for such 9 license. The requirements of this paragraph are only applicable to live 10 horse race licensees who have received their initial live horse race 11 license after April 1, 1997. 12 (3) Upon written application by a live horse race licensee and 13 approval by the commission, a license may be issued to conduct and supervise 14 the use of the pari-mutuel system by patrons on the result of simulcast and/or 15 televised races in a facility not located on the grounds of a live horse race 16 meet facility, but within the county that the live horse race meet facility is 17 located, subject to the following restrictions: 18 (a) Approval must be obtained from the board of county commissioners of 19 the county in which the simulcast and/or televised race facility is to be 20 located; and 21 (b) No more than one (1) such facility per county shall be allowed; and 22 (c) A license to conduct and supervise the use of the pari-mutuel system 23 by patrons on the result of simulcast and/or televised races issued under 24 this section may be leased to another person or entity but only with the 25 approval of the Idaho racing commission. A lessee of such license shall be 26 held by the commission to the same standards as the original licensee. 27 (4) Upon written application by a live horse race licensee and approval 28 by the commission, a license may be issued to conduct and supervise the use of 29 the pari-mutuel system by patrons on the result of simulcast and/or televised 30 races in a facility located in another county within the state other than the 31 county where the licensee's live race track facility is located subject to the 32 following restrictions: 33 (a) In addition to the distribution and payment of the handle as 34 described in section 54-2513, Idaho Code, a licensee operating under a 35 license described in this subsection shall pay to the commission for 36 deposit in the live horse race purse distribution fund, a minimum of one- 37 half of one percent (.5%) of the gross daily receipts from simulcast 38 and/or televised races. The commission shall distribute the moneys from 39 the live horse race purse distribution fund to those live horse race 40 licensees that had an average daily live race handle of less than sixty 41 thousand dollars ($60,000) during the preceding calendar year. The distri- 42 bution shall be made by dividing the total number of live race days of all 43 of the qualified live horse race tracks combined into the moneys collected 44 by the fund in any one (1) calendar year and by multiplying the result by 45 the number of days run by each of the respective live horse race tracks 46 individually. No race track licensee, however, shall be entitled to use a 47 multiplier greater than fifteen (15) days for the distribution of the 48 first sixty thousand dollars ($60,000) in the fund. Any moneys in the fund 49 in excess of the first sixty thousand dollars ($60,000) shall be distrib- 50 uted based on the actual number of race days run by the qualified live 51 horse race licensees. These moneys shall be used by the live horse race 52 track licensee solely for live horse race meet purses; and 53 (b) Additionally, the licensee shall pay to the commission for deposit in 54 the live horse race purse distribution fund a minimum of one-half of one 55 percent (.5%) of the gross daily receipts from simulcast and/or televised 3 1 races conducted pursuant to the license. The commission shall distribute 2 the moneys from the live horse race purse distribution fund to the licen- 3 see whose license is being utilized to conduct simulcast and/or televised 4 races pursuant to this subsection. These moneys shall be used by the 5 licensee solely for live horse race meet purses; and 6 (c) Approval must be obtained from the county commissioners of the county 7 in which the facility is to be located; and 8 (d) No more than one (1) such facility per county shall be allowed; and 9 (e) A license to conduct and supervise the use of the pari-mutuel system 10 by patrons on the result of simulcast and/or televised races issued under 11 this section may be leased to another person or entity but only with the 12 approval of the Idaho racing commission. A lessee of such license shall be 13 held by the commission to the same standards as the original licensee. 14 (5) There is hereby created the live horse race distribution fund, to 15 which shall be deposited moneys received by the commission for the purposes 16 described in this section. All moneys in the live horse race purse distribu- 17 tion fund are hereby perpetually appropriated to the commission for payment as 18 required in this section. Payments by the commission from the live horse race 19 purse distribution fund to the recipient live horse race tracks shall be made 20 no later than thirty (30) days after Idaho state racing commission approval of 21 live race meet license application for the forthcoming calendar year. 22 (6) Once a total handle exceeding fourteen million dollars ($14,000,000) 23 is realized from simulcasting and/or televised races conducted pursuant to 24 subsections (3) and (4) of this section, the Idaho racing commission shall 25 submit to the Idaho horse board a sum of twenty-five thousand dollars 26 ($25,000) to be used by the Idaho horse board for youth programs. The commis- 27 sion shall obtain these funds from the excess free fund cash balance as 28 described in section 54-2513(F). 29 (7) Such pari-mutuel system conducted at such race meet 30 shall not under any circumstances, if conducted under the provisions of this 31 act and in conformity thereto and to the rules of the commission, be held or 32 construed to be unlawful, other statutes of this state to the contrary not- 33 withstanding. 34 (48 ) The participation by a licensee in an 35 interstate combined wagering pool does not cause that licensee to be consid- 36 ered to be doing business in any jurisdiction other than the jurisdiction in 37 which the licensee is physically located. 38 (59 ) Pari-mutuel taxes or commissions may not 39 be imposed on any amounts wagered in an interstate combined wagering pool 40 other than amounts wagered within this jurisdiction. 41 (610 ) It shall be unlawful to conduct pool sell- 42 ing, book making, or to circulate handbooks, or to bet or wager on a race of 43 any licensed race meet, other than by the pari-mutuel system; and it shall 44 further be unlawful knowingly to permit any minor to use the pari-mutuel sys- 45 tem. 46 (11) The license to conduct and supervise the use of the pari-mutuel 47 system by patrons on the result of simulcast and/or televised races shall 48 expire at 12:00 midnight, December 31, of the year issued.
STATEMENT OF PURPOSE
RS07862C1
The purpose of this proposed legislation is to allow the simulcast licenses associated with
Idaho's nine live horse race tracks to leave the track, thus allowing a simulcast facility to be
operated at a site other than the live horse race track. If the simulcast license associated with a
particular live horse race track is operated in a county other than the county where the live horse
race track is located, a one percent "surcharge" is implemented with these proceeds dedicated to
Idaho's live horse race purse structure. The movement off-track of these simulcast licenses are
restricted in that (1 ) approval must be obtained from the county commissioners of the county in
which the simulcast facility is to be located; (2) no more than one (1) such facility per county
shall be allowed; and (3) if the
simulcast license is leased by the live horse race license to another individual or entity, the
Idaho Racing Commission must first give its approval. Once a total handle of fourteen million
dollars ($14,000,000) is realized from these licenses, a sum of $25,000 shall be transferred
from the Idaho Racing Commission's free fund balance to the Idaho Horse Board to be used for
youth development programs.
FISCAL IMPACT
No fiscal impact.
CONTACT
Name: Stan Boyd
Idaho Horse Racing Alliance
Phone: 344-2271 S 1506