2000 Legislation
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HOUSE BILL NO. 730 – Horse racing, Lottery Comm regulate

HOUSE BILL NO. 730

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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

Bill Text


 H0730
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN 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 state racing lottery commission, herein-
 21    after created 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 the Idaho racing commission 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.  RACING  COMMISSION  ADVISORY COMMITTEE CREATED -- APPOINTMENT --
 12    REMOVAL -- CLAIMS. There is hereby created in the department of  law  enforce-
 13    ment  lottery commission the Idaho state racing commission advisory committee,
 14    to consist of three (3) five (5) members, who shall  be  citizens,  residents,
 15    and qualified electors of the state of Idaho.
 16        The  members  of  said  commission the committee shall be appointed by the
 17    governor within thirty (30) days after this act takes effect, one  (1)  for  a
 18    term  to  expire on the Thursday following the second Monday in January, 1965,
 19    and one (1) for a term to expire on the Thursday following the  second  Monday
 20    in  January,  1967, and one (1) for a term to expire on the Thursday following
 21    the second Monday in January, 1969,  and upon the expiration of  the  term  of
 22    any member of said commission the 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    racing commission advisory 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 the  commission  advisory  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. The commission advisory committee
 40    shall organize by electing one (1) of its members chairman. Two (2) Three  (3)
 41    members of the commission committee shall constitute a quorum for the transac-
 42    tion of any and all business of the commission committee.
 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 from commission committee funds.
 46        The  commission  committee, subject to the approval of the commission, may
 47    incur all such costs, charges and expenses as are reasonably necessary in car-
 48    rying out the intent and purposes of this act chapter.
 49        All claims and expenditures under this act chapter shall be first  audited
 50    and passed upon by the commission committee, 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. Said The 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 rules and regulations to 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 the act chapter to comply with  this  act  chapter  and
 26    with  all  the  rules and regulations promulgated 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 commission created by this  act
 39    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 this act chapter,
 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  this  act
 10    chapter provided. Every person making application for a license to hold a race
 11    meet, under the provisions of this act chapter, 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
 20    Idaho racing commission 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 this act chapter, 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 this act chapter.
 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 this act chapter, pursuant thereto, or
 41    who fails to pay to the commission any and all sums required under the  provi-
 42    sions  of this act chapter, 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 this act  chapter
                                                                        
                                           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 this act chapter
  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  the state racing commission shall not license
 11        any breeder, trainer or kennel whose dogs have been trained or raced  with
 12        the  use  of live lures. The racing commission 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    this act chapter or any rule or order of the commission.
 19        (3)  It shall be lawful to conduct race meets on or at a race track  race-
 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 this act chapter 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 this act chapter 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 this act chapter 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 this act chapter 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 the  Idaho  racing  commission  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-two per cent percent (82%) of any win, place or show  pool  to
 47        the winner thereof, and eighteen per cent percent (18%) to the licensee;
 48        (2)  Seventy-seven  and  one-quarter  per cent percent (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 one per cent percent
 51        (.75%) to the racing commission  for  deposit  in  the  racing  commission
 52        account fund, and twenty-two per cent percent (22%) to the licensee;
 53        (3)  Seventy-five  and  one-quarter per cent percent (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 one per cent
  3        percent (75%) to the racing  commission for deposit in the racing  commis-
  4        sion account fund, and twenty-four per cent percent (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-quarter per cent percent (1.25%) of gross daily receipts,
 11        separately stated, shall be paid to the Idaho state racing commission, for
 12        deposit  in the racing commission account fund, which is hereby created in
 13        the state regulatory fund.
 14        (2)  One-half of one per cent percent (.50%) of gross daily receipts  from
 15        horse  races,  separately  stated, shall be paid to the Idaho state racing
 16        commission for deposit in the track distribution account  fund,  which  is
 17        hereby created in the pari-mutuel distribution fund, for further distribu-
 18        tion to certain Idaho horse race tracks racetracks, 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 distribution account fund 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 one per cent percent (.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  distribution  account  fund,  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  distribution  account
 38        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 distribution account fund 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
 52             per cent percent (.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 hundredths per cent percent (.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-eighth per cent percent (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 the racing commission 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-seven per cent percent (77%) of any win, place or  show  pool
 16        to  the  winner  thereof,  and  twenty-three per cent percent (23%) to the
 17        licensee;
 18        (2)  Seventy-six and one-quarter per cent percent (76.25%)  of  all  other
 19        pools to the winner thereof, three-quarters of one per cent percent (.75%)
 20        to  the  racing  commission  for  deposit in the racing account commission
 21        fund, and twenty-three per cent percent (23%) to the licensee.
 22        (D)  Each licensee conducting the pari-mutuel system for live  and  simul-
 23    cast  horse races shall retain twenty-three per cent percent (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-quarter per cent percent (1.25%) of gross daily receipts,
 27        separately stated, shall be paid to the Idaho state racing commission, for
 28        deposit in the racing commission account fund.
 29        (2)  One-half  of one per cent percent (.50%) of gross daily receipts from
 30        horse races, separately stated, shall be paid to the  Idaho  state  racing
 31        commission for deposit in the track distribution account fund, 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 distribution account fund 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 one per cent percent (.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 distribution account fund, 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  distribution  account
 51        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  distribution account fund 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-quarters  per cent percent (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-quarters per cent percent (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
  8             per  cent  percent  (.125%), and the licensee shall retain twenty and
  9             one-half per cent percent (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  hundredths per cent percent (.625%), and the licensee shall
 14             retain nineteen and one-half per cent percent (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-eighth per cent percent (1.125%), and the licen-
 18             see shall retain eighteen and one-half per cent percent (18.50%).
 19        The public schools' share and the equine education account's  share  shall
 20        be paid by the licensee to the racing commission 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 the racing commission account  fund
 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)  Sixty  per  cent  percent (60%) shall be deposited in the Idaho horse
 32        owner/breeder  award  account  fund,  which  is  hereby  created  in   the
 33        pari-mutuel distribution fund, and shall be distributed by the racing com-
 34        mission annually, but not later than December 15 of each year as follows:
 35             a.  Fifty  per  cent percent (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.  Fifty  per cent percent (50%) in equal amounts to owners of Idaho
 39             bred horse race winners.
 40             c.  All moneys in the Idaho  owner/breeder  award  account  fund  are
 41             hereby  continuously  appropriated  to  the commission for payment as
 42             required in this section.
 43        (2)  Forty per cent percent (40%) shall be deposited in  the  track  purse
 44        enhancement  account  fund, 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        after Idaho state racing commission approval of  live  race  meet  license
 49        applications  for  the forthcoming calendar year.  All moneys in the track
 50        purse enhancement account fund 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 the Idaho state racing commission for
 20        deposit in the racing commission account fund.
 21        (b)  One percent (1%) of gross daily receipts, separately stated, shall be
 22        paid to the Idaho state racing commission 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  the  Idaho state racing commission for deposit in the
 27        Idaho horse owner/breeders' and owners' award account fund  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' award account fund shall  be  distributed
 31             by  the racing commission 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' award account fund shall  be  distributed
 36             by  the racing commission 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  this  act  chapter,  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 this act  chapter.  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 / Fiscal Impact


     
     
                 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