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H0730......................................................by STATE AFFAIRS HORSE RACING - Amends existing law to charge the Idaho State Lottery Commission with governance of horse racing and wagering on horse racing in Idaho; and to create from the Idaho State Racing Commission an advisory committee on horse racing within the Lottery Commission. 03/10 House intro - 1st rdg - to printing 03/13 Rpt prt - to St Aff 03/20 Rpt out - rec d/p - to 2nd rdg 03/21 2nd rdg - to 3rd rdg 03/22 3rd rdg - PASSED - 63-5-2 AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe, Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Kellogg, Kempton, Kunz, Lake, Linford, Loertscher, Mader, Marley, Meyer, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Taylor, Trail, Wheeler, Wood, Zimmermann, Mr Speaker NAYS -- Judd, Kendell, McKague, Schaefer, Stone Absent and excused -- Montgomery, Tilman Floor Sponsor - Smylie Title apvd - to Senate 03/23 Senate intro - 1st rdg - to St Aff
H0730|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 730 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO GOVERNANCE OF HORSE RACING; AMENDING SECTION 54-2502, IDAHO CODE, 3 TO CHARGE THE IDAHO STATE LOTTERY COMMISSION WITH GOVERNANCE OF HORSE 4 RACING; AMENDING SECTION 54-2503, IDAHO CODE, TO CREATE A RACING ADVISORY 5 COMMITTEE WITHIN THE LOTTERY COMMISSION AND TO PROVIDE THE MEMBERSHIP OF 6 THE COMMITTEE; AMENDING SECTION 54-2504, IDAHO CODE, TO PROVIDE PROCEDURES 7 OF THE ADVISORY COMMITTEE; AMENDING SECTION 54-2505, IDAHO CODE, TO 8 INCLUDE THE ADVISORY COMMITTEE WITHIN REQUIREMENTS FOR ANNUAL REPORT AND 9 PUBLIC RECORDS; AMENDING SECTION 54-2506, IDAHO CODE, TO PROVIDE RULES 10 GOVERNING HORSE RACING AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 11 54-2507, IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTIONS 12 54-2508, 54-2509, 54-2512, 54-2513 AND 54-2514, IDAHO CODE, TO PROVIDE 13 CORRECTION TERMINOLOGY AND TO MAKE TECHNICAL CORRECTIONS; AND AMENDING 14 SECTION 54-2515, IDAHO CODE, TO MAKE TECHNICAL CORRECTIONS. 15 Be It Enacted by the Legislature of the State of Idaho: 16 SECTION 1. That Section 54-2502, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 54-2502. DEFINITIONS. Unless the context otherwise requires, words and 19 phrases as used herein shall mean: 20 (1) "Commission" means the Idaho stateracinglottery commission,herein-21aftercreated in chapter 74, title 67, Idaho Code. 22 (2) "Gross daily receipts" means the total of all sums deposited in all 23 pools for each race day. 24 (3) "Horsemen's group" means an organization composed of licensed owners, 25 breeders, and/or trainers duly registered with the secretary of state and rec- 26 ognized by theIdaho racingcommission as the majority of the horsemen at the 27 track. 28 (4) "Host facility" means the racetrack at which the race is run, or the 29 facility which is designated as the host facility if the race is run in a 30 jurisdiction which is not participating in the interstate combined wagering 31 pool. 32 (5) "Host jurisdiction" means the jurisdiction in which the host facility 33 is located. 34 (6) "Interstate common wagering pool" means a pari-mutuel pool estab- 35 lished in one (1) jurisdiction which is combined with comparable pari-mutuel 36 pools from one (1) or more racing jurisdictions. Such pool is established for 37 the purpose of establishing pay-off prices in the various jurisdictions. 38 (7) "Persons" means and includes individuals, firms, corporations and 39 associations. 40 (8) "Pool" means the total sum of all moneys wagered in each race for 41 each type of bet. Types of bets include win, place, show, quinella, daily dou- 42 ble, exacta, trifecta, etc., and such other types as are approved by the com- 43 mission from time to time. 2 1 (9) "Race meet" means and includes any exhibition of thoroughbred, 2 purebred, and/or registered horse racing, mule racing or dog racing, where the 3 pari-mutuel system of wagering is used. Singular includes the plural and plu- 4 ral includes the singular; and words importing one gender shall be regarded as 5 including all other genders. 6 (10) "Racing jurisdiction" or "jurisdiction" means a governmental juris- 7 diction responsible for the regulation of pari-mutuel racing in that jurisdic- 8 tion. 9 SECTION 2. That Section 54-2503, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 54-2503. RACINGCOMMISSIONADVISORY COMMITTEE CREATED -- APPOINTMENT -- 12 REMOVAL -- CLAIMS. There is hereby created in thedepartment of law enforce-13mentlottery commission the Idaho state racingcommissionadvisory committee, 14 to consist ofthree (3)five (5) members, who shall be citizens, residents, 15 and qualified electors of the state of Idaho. 16 The members ofsaid commissionthe committee shall be appointed by the 17 governorwithin thirty (30) days after this act takes effect, one (1) for a18term to expire on the Thursday following the second Monday in January, 1965,19and one (1) for a term to expire on the Thursday following the second Monday20in January, 1967, and one (1) for a term to expire on the Thursday following21the second Monday in January, 1969,and upon the expiration of the term of 22 any member ofsaid commissionthe committee, the governor shall appoint a suc- 23 cessor for a term of six (6) years. Persons serving on the Idaho racing com- 24 mission on June 30, 2000, shall serve the duration of their term on the advi- 25 sory committee and two (2) additional members shall be appointed, one (1) each 26 for terms of four (4) and six (6) years. All appointments to the Idaho state 27 racingcommissionadvisory committee shall be subject to the approval of the 28 senate. 29 Each member shall hold office until his successor is appointed and quali- 30 fied. Vacancies on thecommissionadvisory committee shall be filled by 31 appointment to be made by the governor for the unexpired term. 32 Any member may be removed from office by the governor for cause after a 33 public hearing. Notice of said hearing shall fix the time and place of hearing 34 and shall specify the charges. Copy of the notice of hearing shall be served 35 on the member by mailing the same to the member at his last known address at 36 least ten (10) days before the date fixed for said hearing. 37 SECTION 3. That Section 54-2504, Idaho Code, be, and the same is hereby 38 amended to read as follows: 39 54-2504. CHAIRMAN -- QUORUM -- COSTS. Thecommissionadvisory committee 40 shall organize by electing one (1) of its members chairman.Two (2)Three (3) 41 members of thecommissioncommittee shall constitute a quorum for the transac- 42 tion of any and all business of thecommissioncommittee. 43 Each member of the board shall be compensated as provided by section 44 59-509(h), Idaho Code. Moneys used for the compensation of members shall be 45 drawn fromcommissioncommittee funds. 46 Thecommissioncommittee, subject to the approval of the commission, may 47 incurall suchcosts, charges and expenses as are reasonably necessary in car- 48 rying out the intent and purposes of thisactchapter. 49 All claims and expenditures under thisactchapter shall be first audited 50 and passed upon by thecommissioncommittee, and, when approved, shall be paid 51 in the manner provided by law for the payment of claims against the state of 3 1 Idaho. 2 The advisory committee shall advise the commission on all matters related 3 to the implementation of this chapter. The commission shall establish, by 4 rule, procedures for such advisory role by the committee. 5 SECTION 4. That Section 54-2505, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 54-2505. COMMISSION'S ANNUAL REPORT -- PUBLIC RECORD. The commission and 8 the racing advisory committee of the commission, shall keep detailed records 9 of all meetings and of the business transacted therein, and all licenses 10 applied for and issued, reports of which shall be embodied in an annual report 11 which the commission shall prepare and submit to the governor on or before the 12 thirty-first day of December of each year.SaidThe annual report shall cover 13 the activities of the commission and the advisory committee for the preceding 14 year in addition to the aforementioned. 15 All records of the commission and the racing advisory committee shall be 16 public records, and as such, subject to public inspection. 17 SECTION 5. That Section 54-2506, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 54-2506. DUTIES OF COMMISSION AND LICENSEES -- LICENSE FEE. It shall be 20 the duty of the commission, as soon as possible after its organization,to 21 prepare and promulgate a complete set of rulesand regulationsto govern race 22 meets and the pari-mutuel system and, until amended, the rules of the Idaho 23 racing commission on June 30, 2000, shall be the rules of the lottery commis- 24 sion governing racing. It shall be the duty of each person holding a license 25 under the authority of theactchapter to comply with thisactchapter and 26 with all the rulesand regulationspromulgated and all orders issued by the 27 commission. 28 It shall be unlawful for any person, except race meet licensees coming 29 within the provisions of section 54-2508, Idaho Code, to participate, directly 30 or indirectly, in any race meet without first securing and having in full 31 force and effect, a license therefor from the commission. The license fee for 32 such license shall be set by the commission and shall be paid to the commis- 33 sion. 34 The commission shall, by rule,and regulation,determine which persons 35 participating, directly or indirectly, in race meets shall require licenses. 36 SECTION 6. That Section 54-2507, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 54-2507. AUTHORITY OF COMMISSION. (1) The commissioncreated by this act39 is hereby authorized and it shall be its duty to license, regulate, and super- 40 vise all race meets held in this state under the terms of thisactchapter, 41 and to cause the various places where race meets are held to be visited and 42 inspected at least once a year. 43 (2) Notwithstanding any other provision of this chapter, the commission 44 may authorize any licensee to participate in an interstate common wagering 45 pool with one (1) or more other racing jurisdictions. Anytime that a licensee 46 participates in an interstate pool, the licensee may adopt, with the authori- 47 zation of the commission, the take-out of the host jurisdiction or facility. 48 (3) The commission may permit a licensee to use one (1) or more of its 49 races for an interstate common wagering pool at locations outside its juris- 4 1 diction, and may allow pari-mutuel pools in other states to be combined with 2 pari-mutuel pools in its jurisdiction for the purpose of establishing an 3 interstate common wagering pool. 4 SECTION 7. That Section 54-2508, Idaho Code, be, and the same is hereby 5 amended to read as follows: 6 54-2508. LICENSE -- APPLICATION THEREFOR -- TYPE AND NUMBER OF RACES -- 7 FEE PER DAY -- REFUND -- CANCELLATION -- HEARING. It shall be unlawful for any 8 person to hold any race meet in this state without having first obtained and 9 having in force and effect a license issued by the commission as in thisact10 chapter provided. Every person making application for a license to hold a race 11 meet, under the provisions of thisactchapter, shall file an application with 12 the commission which shall set forth the time, place and number of days such 13 will continue, an agreement with a horsemen's group as the term "horsemen's 14 group" is defined in section 54-2502, Idaho Code, and such other information 15 as the commission may require. The agreement shall be reached voluntarily or 16 pursuant to binding arbitration in conformance with chapter 9, title 7, Idaho 17 Code, and shall address, but not be limited to, number of live race days and 18 percentage of the live race and simulcast handle that is dedicated to the live 19 horse race purse structure. Race days agreed upon shall be submitted to the 20Idaho racingcommission for its approval. 21 No person who has been convicted of any crime involving moral turpitude 22 shall be issued a license of any kind, nor shall any license be issued to any 23 person who has violated the terms or provisions of thisactchapter, or any of 24 the rules of the commission, or who has failed to pay any of the fees, taxes 25 or moneys required under the provisions of thisactchapter. 26 All applications to hold race meets shall be submitted to the commission 27 which shall act upon such applications within thirty (30) days. The commission 28 shall be the sole judge of whether or not the race meet shall be licensed and 29 the number of days the meet shall continue. 30 The license issued shall specify the kind and character of the race meets 31 to be held, the number of days the race meet shall continue and the number of 32 races per day, which, in the event of live races, shall not be less than six 33 (6). The licensee shall pay in advance of the scheduled race meet to the state 34 treasurer a fee of not less than twenty-five dollars ($25.00) for each day of 35 racing, which fees shall be placed in the public school income fund of the 36 state of Idaho. Provided, that if unforeseen obstacles arise, which prevent 37 the holding, or completion of any race meet, the license fee held may be 38 refunded the licensee, if the commission deems the reason for failure to hold 39 or complete the race meet sufficient. Any unexpired license held by any person 40 who violates any of the provisions of thisactchapter, pursuant thereto, or 41 who fails to pay to the commission any and all sums required under the provi- 42 sions of thisactchapter, shall be subject to cancellation and revocation by 43 the commission. Such cancellation shall be made only after a summary hearing 44 before the commission, of which three (3) days' notice in writing shall be 45 given the licensee, specifying the grounds for the proposed cancellation, and 46 at which hearing the licensee shall be given an opportunity to be heard in 47 opposition to the proposed cancellation. 48 SECTION 8. That Section 54-2509, Idaho Code, be, and the same is hereby 49 amended to read as follows: 50 54-2509. PENALTY FOR VIOLATIONS OF LAW -- POWER OF COMMISSION. (1) Any 51 person holding a race meet, and any other person required by thisactchapter 5 1 or the rules of the commission to be licensed, participating, directly or 2 indirectly, in a race meet, without first being licensed by the commission, 3 and any person violating any of the terms or provisions of thisactchapter 4 is guilty of a misdemeanor. 5 (a) There shall be an absolute prohibition of the use of live lures in 6 the state of Idaho for the training of or racing of racing dogs. Any 7 violation of the provisions of this section shall be a felony punishable 8 by a fine not exceeding twenty-five thousand dollars ($25,000), or by a 9 prison term not to exceed seven (7) years, or by both such fine and 10 imprisonment. In addition thestate racingcommission shall not license 11 any breeder, trainer or kennel whose dogs have been trained or raced with 12 the use of live lures. Theracingcommission shall adopt rules that will 13 provide for the humane treatment of the dogs involved in any aspect of 14 training for or engaging in dog racing. 15 (2) The commission shall have the power to exclude from any and all race 16 courses in this state any person who the commission deems detrimental to the 17 best interests of racing, or any person who violates any of the provisions of 18 thisactchapter or any rule or order of the commission. 19 (3) It shall be lawful to conduct race meets on or at arace trackrace- 20 track, or otherwise, at any time during the week. 21 (4) Any person maintaining a license issued by the commission, who vio- 22 lates the provisions of thisactchapter or the rules of the commission, may 23 have such license suspended or revoked. In addition to such suspension or 24 revocation the commission may levy a monetary penalty commensurate with the 25 gravity of the offense, not to exceed two thousand five hundred dollars 26 ($2,500). The commission, by rule shall provide a summary procedure for such 27 determination at the track, the penalty amount for specified violations, and 28 shall provide for an appeal of any summary decision to the commission. At-the- 29 track summary proceedings shall not be subject to the provisions of chapter 30 52, title 67, Idaho Code. Hearings and appeals before the commission as 31 allowed by thisactchapter or the rules of the commission shall be subject to 32 chapter 52, title 67, Idaho Code, except the provisions of section 67-5254(2), 33 Idaho Code, which is inconsistent with the unique requirements of racing. 34 (5) All law enforcement officers in this state shall assist in the 35 enforcement of thisactchapter and the rules of the commission. 36 SECTION 9. That Section 54-2512, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 54-2512. PARI-MUTUEL BETTING -- OTHER BETTING ILLEGAL. (1) Any licensee 39 conducting a race meet under thisactchapter may provide a place or places in 40 the race meet grounds or enclosure at which such licensee may conduct and 41 supervise the use of the pari-mutuel system by patrons on the result of the 42 races conducted by such licensee at such race meet and, upon written applica- 43 tion by a licensee and approval by the commission, on the result of simulcast 44 and/or televised races. The commission shall issue no more than one (1) 45 license to simulcast per live race meet licensee and there shall be no more 46 simulcasting sites in the state than there are licensed live race meet sites. 47 (2) (a) Licenses authorizing simulcast and/or televised races will be 48 regulated by the commission, in addition to its other responsibilities, 49 for the purpose of enhancing, promoting, and protecting the live race 50 industry in the state of Idaho. No license authorizing simulcasting and/or 51 televised races shall be issued to or renewed for persons that are not 52 also licensed to conduct live race meets in the state of Idaho. Persons 53 applying for a simulcast and/or televised race license shall have annually 6 1 conducted live race meets in the state of Idaho during the preceding two 2 (2) calendar years, and have an agreement reached voluntarily or pursuant 3 to binding arbitration in conformance with chapter 9, title 7, Idaho Code, 4 with a horsemen's group as the term "horsemen's group" is defined in sec- 5 tion 54-2502, Idaho Code. The agreement shall address, but not be limited 6 to, number of live race days and percentage of the live race and simulcast 7 handle that is dedicated to the live horse race purse structure. Race days 8 agreed upon shall be submitted to theIdaho racingcommission for its 9 approval. 10 (b) In addition to the restrictions recited in paragraph (a) of this sub- 11 section, live horse race licensees that have had an average daily live 12 race handle of more than sixty thousand dollars ($60,000) during the last 13 calendar year in operation shall not have a license authorizing 14 simulcasting and/or televised races issued or renewed if the licensee has 15 not run in the calendar year immediately preceding the year for which the 16 application for a license is being made for at least ninety percent (90%) 17 of the number of live races that were conducted by that licensee in 1989. 18 (c) The commission may issue a license authorizing simulcast and/or tele- 19 vised races to a live horse race licensee only after that licensee has 20 conducted at that facility a minimum of forty (40) live horse races in 21 each of the two (2) calendar years preceding the application for such 22 license. The requirements of this paragraph are only applicable to live 23 horse race licensees who have received their initial live horse race 24 license after April 1, 1997. 25 (3) Such pari-mutuel system conducted at such race meet shall not under 26 any circumstances, if conducted under the provisions of this act and in con- 27 formity thereto and to the rules of the commission, be held or construed to be 28 unlawful, other statutes of this state to the contrary notwithstanding. 29 (4) The participation by a licensee in an interstate combined wagering 30 pool does not cause that licensee to be considered to be doing business in any 31 jurisdiction other than the jurisdiction in which the licensee is physically 32 located. 33 (5) Pari-mutuel taxes or commissions may not be imposed on any amounts 34 wagered in an interstate combined wagering pool other than amounts wagered 35 within this jurisdiction. 36 (6) It shall be unlawful to conduct pool selling, book making, or to cir- 37 culate handbooks, or to bet or wager on a race of any licensed race meet, 38 other than by the pari-mutuel system; and it shall further be unlawful know- 39 ingly to permit any minor to use the pari-mutuel system. 40 SECTION 10. That Section 54-2513, Idaho Code, be, and the same is hereby 41 amended to read as follows: 42 54-2513. HORSE RACING -- DISTRIBUTIONS OF DEPOSITS -- BREAKAGE. (A) Each 43 licensee conducting the pari-mutuel system for live and simulcast horse races 44 having an average daily handle in excess of one hundred thousand dollars 45 ($100,000) shall distribute all sums deposited in any pool as follows: 46 (1) Eighty-twoper centpercent (82%) of any win, place or show pool to 47 the winner thereof, and eighteenper centpercent (18%) to the licensee; 48 (2) Seventy-seven and one-quarterper centpercent (77.25%) of all two 49 (2) horse exotic wagers including, but not limited to, daily doubles and 50 quinellas to the winner thereof, three-quarters of oneper centpercent 51 (.75%) to theracingcommission for deposit in theracingcommission 52accountfund, and twenty-twoper centpercent (22%) to the licensee; 53 (3) Seventy-five and one-quarterper centpercent (75.25%) of all three 7 1 (3) or more horse exotic wagers including, but not limited to, trifecta 2 and twin-trifecta to the winner thereof, three-quarters of oneper cent3 percent (75%) to theracingcommission for deposit in theracingcommis- 4 sionaccountfund, and twenty-fourper centpercent (24%) to the licensee. 5 (B) Each licensee conducting the pari-mutuel system for live and simul- 6 cast horse races having an average daily handle in excess of one hundred thou- 7 sand dollars ($100,000) shall retain the sums deposited in any pool as 8 required in subsection (A) of this section, for distribution and payment based 9 upon gross daily receipts as follows: 10 (1) One and one-quarterper centpercent (1.25%) of gross daily receipts, 11 separately stated, shall be paid to theIdaho state racingcommission, for 12 deposit in theracingcommissionaccountfund, which is hereby created in 13 the state regulatory fund. 14 (2) One-half of oneper centpercent (.50%) of gross daily receipts from 15 horse races, separately stated, shall be paid to theIdaho state racing16 commission for deposit in the track distributionaccountfund, which is 17 hereby created in the pari-mutuel distribution fund, for further distribu- 18 tion to certain Idaho horserace tracksracetracks, defined as follows: 19 a. Recipient horse racing tracks shall be those which, during the 20 race meet year of distribution, have an average daily handle of less 21 than sixty thousand dollars ($60,000); 22 b. Distributions to recipient horse racing tracks shall be weighted 23 proportionately on the number of days raced during the year of dis- 24 tribution. 25 All moneys in the track distributionaccountfund are hereby continu- 26 ously appropriated to the commission for payment as required by this sec- 27 tion. Payments to horse racing tracks shall be made annually but not later 28 than December 15. 29 (3) One-half of oneper centpercent (.50%) of gross daily receipts from 30 horse races, separately stated shall be paid by the licensee to the com- 31 mission for deposit in the breed distributionaccountfund, which is 32 hereby created in the pari-mutuel distribution fund, for payment by the 33 commission in proportion to the handle generated by each horse breed, to 34 lawfully constituted representatives of each horse breed, to benefit 35 owners and/or breeders of Idaho bred racing thoroughbreds, racing quarter 36 horses, racing Appaloosas, racing paints and racing Arabians, subject to 37 the approval of the commission. Moneys in the breed distributionaccount38 fund on December 31 of each year which have not been distributed by the 39 commission shall be paid to the public school income fund. 40 All moneys in the breed distributionaccountfund are hereby continu- 41 ously appropriated to the commission for payment as required by this sec- 42 tion. Payments to representatives shall be made quarterly. 43 (4) From the balance of gross daily receipts remaining with the licensee 44 after the distributions required in subsections (B)(1), (2),and (3) of 45 this section from horse races, the following amounts shall be paid or 46 retained: 47 a. From the first $20,000 of gross daily receipts, the licensee 48 shall retain the entire amount; 49 b. From the next $10,000 of gross daily receipts (gross daily 50 receipts between $20,000 and $30,000), the public school income fund 51 and the equine education account shall each receive one-eighth of one 52per centpercent (.125%), and the licensee shall retain the balance; 53 c. From the next $10,000 of gross daily receipts (gross daily 54 receipts between $30,000 and $40,000), the public school income fund 55 and the equine education account shall each receive sixty-two and 8 1 one-half hundredthsper centpercent (.625%), and the licensee shall 2 retain the balance; 3 d. From all amounts of over $40,000 of gross daily receipts, the 4 public school income fund and the equine education account shall each 5 receive one and one-eighthper centpercent (1.125%), and the licen- 6 see shall retain the balance. 7 The public schools' and the equine education account's share shall be 8 paid by the licensee to theracingcommission for deposit in the public 9 school income fund or the equine education account as appropriate. The 10 licensee's percentage shall be retained by the licensee. 11 (C) Each licensee conducting the pari-mutuel system for live and simul- 12 cast horse races having an average daily handle of one hundred thousand dol- 13 lars ($100,000) or less shall distribute all sums deposited in any pool as 14 follows: 15 (1) Seventy-sevenper centpercent (77%) of any win, place or show pool 16 to the winner thereof, and twenty-threeper centpercent (23%) to the 17 licensee; 18 (2) Seventy-six and one-quarterper centpercent (76.25%) of all other 19 pools to the winner thereof, three-quarters of oneper centpercent (.75%) 20 to theracingcommission for deposit in theracing accountcommission 21 fund, and twenty-threeper centpercent (23%) to the licensee. 22 (D) Each licensee conducting the pari-mutuel system for live and simul- 23 cast horse races shall retain twenty-threeper centpercent (23%) of all sums 24 deposited in any pool, for distribution and payment based upon gross daily 25 receipts as follows: 26 (1) One and one-quarterper centpercent (1.25%) of gross daily receipts, 27 separately stated, shall be paid to theIdaho state racingcommission, for 28 deposit in theracingcommissionaccountfund. 29 (2) One-half of oneper centpercent (.50%) of gross daily receipts from 30 horse races, separately stated, shall be paid to theIdaho state racing31 commission for deposit in the track distributionaccountfund, for further 32 distribution to certain Idaho horse race tracks, defined as follows: 33 a. Recipient horse racing tracks shall be those which, during the 34 race meet year of distribution, have an average daily handle of less 35 than sixty thousand dollars ($60,000); 36 b. Distributions to recipient horse racing tracks shall be weighted 37 proportionately on the number of days raced during the year of dis- 38 tribution. 39 All moneys in the track distributionaccountfund are hereby continu- 40 ously appropriated to the commission for payment as required by this sec- 41 tion. Payments to horse racing tracks shall be made annually but not later 42 than December 15. 43 (3) One-half of oneper centpercent (.50%) of gross daily receipts from 44 horse races, separately stated shall be paid by the licensee to the com- 45 mission for deposit in the breed distributionaccountfund, for payment by 46 the commission in proportion to the handle generated by each horse breed, 47 to lawfully constituted representatives of each horse breed, to benefit 48 owners and/or breeders of Idaho bred racing thoroughbreds, racing quarter 49 horses, racing Appaloosas, racing paints and racing Arabians, subject to 50 the approval of the commission. Moneys in the breed distributionaccount51 fund on December 31 of each year which have not been distributed by the 52 commission shall be paid to the public school income fund. All moneys in 53 the breed distributionaccountfund are hereby continuously appropriated 54 to the commission for payment as required by this section. Payments to 55 representatives shall be made quarterly. 9 1 (4) Twenty and three-quartersper centpercent (20.75%) of gross daily 2 receipts from horse races shall be paid or retained as follows: 3 a. From the first $20,000 of gross daily receipts, the licensee 4 shall retain twenty and three-quartersper centpercent (20.75%); 5 b. From the next $10,000 of gross daily receipts (gross daily 6 receipts between $20,000 and $30,000), the public school income fund 7 and the equine education account shall each receive one-eighth of one 8per centpercent (.125%), and the licensee shall retain twenty and 9 one-halfper centpercent (20.50%); 10 c. From the next $10,000 of gross daily receipts (gross daily 11 receipts between $30,000 and $40,000), the public school income fund 12 and the equine education account shall each receive sixty-two and 13 one-half hundredthsper centpercent (.625%), and the licensee shall 14 retain nineteen and one-halfper centpercent (19.50%); 15 d. From all amounts of over $40,000 of gross daily receipts, the 16 public school income fund and the equine education account shall each 17 receive one and one-eighthper centpercent (1.125%), and the licen- 18 see shall retain eighteen and one-halfper centpercent (18.50%). 19 The public schools' share and the equine education account's share shall 20 be paid by the licensee to theracingcommission for deposit in the public 21 school income fund or the equine education account as appropriate. The 22 licensee's percentage shall be retained by the licensee. 23 (E) Each licensee may retain the odd cents of all redistribution to be 24 based on each dollar deposited exceeding a sum equal to the next lowest multi- 25 ple of ten (10), known as breakage, and the total amount of unclaimed tickets 26 at the termination of the time allowed by rule of the commission. 27 (F) If the fiscal year-end balance in theracingcommissionaccountfund 28 exceeds $400,000, the excess shall be transferred by the office of the state 29 controller to the pari-mutuel distribution fund, which is hereby created, for 30 further distribution as follows: 31 (1) Sixtyper centpercent (60%) shall be deposited in the Idaho horse 32 owner/breeder awardaccountfund, which is hereby created in the 33 pari-mutuel distribution fund, and shall be distributed by theracingcom- 34 mission annually, but not later than December 15 of each year as follows: 35 a. Fiftyper centpercent (50%) to the breeders of Idaho bred win- 36 ners based on the number of live races by each breed for the current 37 calendar year; and 38 b. Fiftyper centpercent (50%) in equal amounts to owners of Idaho 39 bred horse race winners. 40 c. All moneys in the Idaho owner/breeder awardaccountfund are 41 hereby continuously appropriated to the commission for payment as 42 required in this section. 43 (2) Fortyper centpercent (40%) shall be deposited in the track purse 44 enhancementaccountfund, which is hereby created, and paid to all Idaho 45 licensed horse racetracks for the purpose of purse enhancement based on 46 the number of live race dates held the preceding calendar year. Track 47 purse enhancement moneys shall be disbursed no later than thirty (30) days 48 afterIdaho state racingcommission approval of live race meet license 49 applications for the forthcoming calendar year. All moneys in the track 50 purse enhancementaccountfund are hereby continuously appropriated to the 51 commission for payment as required by this section. 52 SECTION 11. That Section 54-2514, Idaho Code, be, and the same is hereby 53 amended to read as follows: 10 1 54-2514. DOG RACING -- DISTRIBUTION OF DEPOSITS -- BREAKAGE. (1) Each 2 licensee conducting the pari-mutuel system for simulcast or televised dog 3 races shall distribute all sums deposited in any pool as follows: 4 (a) Seventy-nine and one-half percent (79.5%) of any win, place or show 5 pool to the winner thereof, and twenty and one-half percent (20.5%) to the 6 licensee; 7 (b) Seventy-seven percent (77%) of all two (2) dog exotic wagers includ- 8 ing, but not limited to, daily doubles and quinellas to the winner 9 thereof, and twenty-three percent (23%) to the licensee; 10 (c) Seventy-five percent (75%) of all three (3) or more dog exotic wagers 11 including, but not limited to, trifecta, twin trifecta, pick three, pick 12 six and superfecta, to the winner thereof, and twenty-five percent (25%) 13 to the licensee. 14 (2) Each licensee conducting the pari-mutuel system for simulcast or 15 televised dog races shall retain the sums deposited in any pool as required in 16 subsection (1) of this section, for distribution and payment based upon gross 17 daily receipts as follows: 18 (a) One and one-quarter percent (1.25%) of gross daily receipts, sepa- 19 rately stated, shall be paid to theIdaho state racingcommission for 20 deposit in theracingcommissionaccountfund. 21 (b) One percent (1%) of gross daily receipts, separately stated, shall be 22 paid to theIdaho state racingcommission for payment to the county in 23 which the dog racing facility is located. The board of county commission- 24 ers shall spend such revenues only for visitor promotion. 25 (c) One-half percent (.5%) of gross daily receipts, separately stated, 26 shall be paid to theIdaho state racingcommission for deposit in the 27 Idaho horse owner/breeders' and owners'awardaccountfund in the state 28 treasury for further distribution as follows: 29 (i) Fifty percent (50%) of all moneys deposited in the Idaho horse 30 owner/breeders' and owners'awardaccountfund shall be distributed 31 by theracingcommission annually but not later than December 15, to 32 the breeders of Idaho bred winners of each approved horse race in 33 Idaho in proportion to the handle generated by each breed; and 34 (ii) Fifty percent (50%) of all moneys deposited in the Idaho horse 35 owner/breeders' and owners'awardaccountfund shall be distributed 36 by theracingcommission annually but not later than December 15, in 37 equal amounts to owners of Idaho bred horse race winners. 38 (d) From the balance of gross daily receipts remaining with the licensee 39 after the distributions required in subsections (1)(a), (b) and (c) of 40 this section from simulcast or televised dog races, the following amounts 41 shall be paid or retained: 42 (i) From the first twenty thousand dollars ($20,000) of gross daily 43 receipts, the licensee shall retain the entire amount; 44 (ii) From the next ten thousand dollars ($10,000) of gross daily 45 receipts, (gross daily receipts between twenty thousand dollars 46 ($20,000) and thirty thousand dollars ($30,000)) the public school 47 income fund shall receive one-quarter of one percent (.25%) and the 48 licensee shall retain the balance; 49 (iii) From the next ten thousand dollars ($10,000) of gross daily 50 receipts (gross daily receipts between thirty thousand dollars 51 ($30,000) and forty thousand dollars ($40,000)) the public school 52 income fund shall receive one and one-quarter percent (1.25%) and the 53 licensee shall retain the balance; 54 (iv) From all amounts of over forty thousand dollars ($40,000) of 55 gross daily receipts, the public school income fund shall receive two 11 1 and one-quarter percent (2.25%) and the licensee shall retain the 2 balance. 3 (3) Each licensee may retain the odd cents of all redistribution to be 4 based on each dollar deposited exceeding a sum equal to the next lowest multi- 5 ple of ten (10), known as breakage, and the total amount of unclaimed tickets 6 at the termination of the time allowed by rule of the commission. 7 SECTION 12. That Section 54-2515, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 54-2515. EXEMPTION FROM FEE PAYMENT -- PAYMENT OF SUMS DUE COMMISSION -- 10 PAYMENT TO PUBLIC SCHOOL INCOME FUND. Fair boards or fair districts which con- 11 duct race meets in connection with regularly scheduled annual fairs shall be 12 exempt from payment of the fees provided in section 54-2508, Idaho Code. All 13 sums due the commission from the licensee shall be paid to and retained by the 14 commission for the payment of salaries, travel, operating costs and any other 15 expenses necessary to carry out the provisions of thisactchapter, except 16 that no payment need be made for office accommodations furnished by the state: 17 provided, however, that no salary, wages, expenses or compensation of any kind 18 shall be paid by the state of Idaho for, or in connection with, the work of 19 the commission in carrying out the provisions of thisactchapter. All sums 20 due the public school income fund shall be collected by the commission, and, 21 on the next business day following the receipt thereof, shall be paid to the 22 state treasurer for deposit in the public school income fund of the state 23 treasury.
STATEMENT OF PURPOSE RS 10262C1 This proposed legislation creates the state racing advisory committee and moves the responsibilities of the current racing commission to the lottery commission. FISCAL IMPACT None Contact Name: Rep. Loertscher, Hornbeck, Kunz, Judd, and Smylie Phone: (208) 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 730