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S1363......................................................by STATE AFFAIRS RACE TRACKS - Amends existing law to revise the classification of race tracks to govern which tracks are eligible for licensure to conduct simulcast racing; and to provide the distribution of proceeds based upon the revised classification. 02/03 Senate intro - 1st rdg - to printing 02/04 Rpt prt - to St Aff 02/10 Rpt out - rec d/p - to 2nd rdg 02/11 2nd rdg - to 3rd rdg 02/15 3rd rdg - PASSED - 21-10-4 AYES--Andreason, Boatright, Cameron, Crow, Danielson, Darrington, Deide, Dunklin, Ingram, King-Barrutia, McLaughlin, Noh, Richardson, Riggs, Risch, Sandy, Schroeder, Stegner, Wheeler, Whitworth, Williams NAYS--Bunderson, Burtenshaw, Davis, Frasure, Geddes, Hawkins, Keough, Lee, Parry, Thorne Absent and excused--Branch, Ipsen, Sorensen, Stennett Floor Sponsor - Sandy Title apvd - to House 02/16 House intro - 1st rdg - to St Aff 03/20 Rpt out - rec d/p - to 2nd rdg 03/21 2nd rdg - to 3rd rdg 03/30 3rd rdg - PASSED - 59-2-9 AYES -- Alltus, Barraclough, Barrett, Black, Boe, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones(Jones), Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Tilman, Trail, Wood, Zimmermann NAYS -- Judd, Stone Absent and excused -- Bell, Bieter, Bruneel, Geddes, Gould, Reynolds, Taylor, Wheeler, Mr Speaker Floor Sponsor - Ellsworth Title apvd - to Senate 03/31 To enrol 04/03 Rpt enrol - Pres signed - Sp signed 04/04 To Governor 04/12 Governor signed Session Law Chapter 245 Effective: 07/01/00
S1363|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000IN THE SENATE SENATE BILL NO. 1363 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO HORSE RACING; AMENDING SECTION 54-2512, IDAHO CODE, TO REVISE LIM- 3 ITATIONS GOVERNING WHEN SIMULCAST RACING IS PERMITTED; AND AMENDING SEC- 4 TION 54-2513, IDAHO CODE, TO REVISE THE CLASSIFICATION APPLIED TO DISTRI- 5 BUTION OF DEPOSITS AND TO MAKE TECHNICAL CORRECTIONS. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 54-2512, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 54-2512. PARI-MUTUEL BETTING -- OTHER BETTING ILLEGAL. (1) Any licensee 10 conducting a race meet under this act may provide a place or places in the 11 race meet grounds or enclosure at which such licensee may conduct and super- 12 vise the use of the pari-mutuel system by patrons on the result of the races 13 conducted by such licensee at such race meet and, upon written application by 14 a licensee and approval by the commission, on the result of simulcast and/or 15 televised races. The commission shall issue no more than one (1) license to 16 simulcast per live race meet licensee and there shall be no more simulcasting 17 sites in the state than there are licensed live race meet sites. 18 (2) (a) Licenses authorizing simulcast and/or televised races will be 19 regulated by the commission, in addition to its other responsibilities, 20 for the purpose of enhancing, promoting, and protecting the live race 21 industry in the state of Idaho. No license authorizing simulcasting and/or 22 televised races shall be issued to or renewed for persons that are not 23 also licensed to conduct live race meets in the state of Idaho. Persons 24 applying for a simulcast and/or televised race license shall have annually 25 conducted live race meets in the state of Idaho during the preceding two 26 (2) calendar years, and have an agreement reached voluntarily or pursuant 27 to binding arbitration in conformance with chapter 9, title 7, Idaho Code, 28 with a horsemen's group as the term "horsemen's group" is defined in sec- 29 tion 54-2502, Idaho Code. The agreement shall address, but not be limited 30 to, number of live race days and percentage of the live race and simulcast 31 handle that is dedicated to the live horse race purse structure. Race days 32 agreed upon shall be submitted to the Idaho racing commission for its 33 approval. 34 (b) In addition to the restrictions recited in paragraph (a) of this sub- 35 section, live horse race licensees that have hadan average daily live36race handle of more than sixty thousand dollars ($60,000)a total race 37 handle from both live races and simulcast races exceeding five million 38 dollars ($5,000,000) during the last calendar year in operation shall not 39 have a license authorizing simulcasting and/or televised races issued or 40 renewed if the licensee has not run in the calendar year immediately pre- 41 ceding the year for which the application for a license is being made for 42 at least ninety percent (90%) of the number of live races that were con- 43 ducted by that licensee in 1989. 2 1 (c) The commission may issue a license authorizing simulcast and/or tele- 2 vised races to a live horse race licensee only after that licensee has 3 conducted at that facility a minimum of forty (40) live horse races in 4 each of the two (2) calendar years preceding the application for such 5 license. The requirements of this paragraph are only applicable to live 6 horse race licensees who have received their initial live horse race 7 license after April 1, 1997. 8 (3) Such pari-mutuel system conducted at such race meet shall not under 9 any circumstances, if conducted under the provisions of this act and in con- 10 formity thereto and to the rules of the commission, be held or construed to be 11 unlawful, other statutes of this state to the contrary notwithstanding. 12 (4) The participation by a licensee in an interstate combined wagering 13 pool does not cause that licensee to be considered to be doing business in any 14 jurisdiction other than the jurisdiction in which the licensee is physically 15 located. 16 (5) Pari-mutuel taxes or commissions may not be imposed on any amounts 17 wagered in an interstate combined wagering pool other than amounts wagered 18 within this jurisdiction. 19 (6) It shall be unlawful to conduct pool selling, book making, or to cir- 20 culate handbooks, or to bet or wager on a race of any licensed race meet, 21 other than by the pari-mutuel system; and it shall further be unlawful know- 22 ingly to permit any minor to use the pari-mutuel system. 23 SECTION 2. That Section 54-2513, Idaho Code, be, and the same is hereby 24 amended to read as follows: 25 54-2513. HORSE RACING -- DISTRIBUTIONS OF DEPOSITS -- BREAKAGE. (A) Each 26 licensee conducting the pari-mutuel system for live and simulcast horse races 27 having an average daily handle in excess of one hundred thousand dollars 28 ($100,000) shall distribute all sums deposited in any pool as follows: 29 (1) Eighty-twoper centpercent (82%) of any win, place or show pool to 30 the winner thereof, and eighteenper centpercent (18%) to the licensee; 31 (2) Seventy-seven and one-quarterper centpercent (77.25%) of all two 32 (2) horse exotic wagers including, but not limited to, daily doubles and 33 quinellas to the winner thereof, three-quarters of oneper centpercent 34 (.75%) to the racing commission for deposit in the racing commission 35 account, and twenty-twoper centpercent (22%) to the licensee; 36 (3) Seventy-five and one-quarterper centpercent (75.25%) of all three 37 (3) or more horse exotic wagers including, but not limited to, trifecta 38 and twin-trifecta to the winner thereof, three-quarters of oneper cent39 percent (.75%) to the racing commission for deposit in the racing commis- 40 sion account, and twenty-fourper centpercent (24%) to the licensee. 41 (B) Each licensee conducting the pari-mutuel system for live and simul- 42 cast horse races having an average daily handle in excess of one hundred thou- 43 sand dollars ($100,000) shall retain the sums deposited in any pool as 44 required in subsection (A) of this section, for distribution and payment based 45 upon gross daily receipts as follows: 46 (1) One and one-quarterper centpercent (1.25%) of gross daily receipts, 47 separately stated, shall be paid to the Idaho state racing commission, for 48 deposit in the racing commission account, which is hereby created in the 49 state regulatory fund. 50 (2) One-half of oneper centpercent (.50%) of gross daily receipts from 51 horse races, separately stated, shall be paid to the Idaho state racing 52 commission for deposit in the track distribution account, which is hereby 53 created in the pari-mutuel distribution fund, for further distribution to 3 1 certain Idaho horse race tracks, defined as follows: 2 a. Recipient horse racing tracks shall be those which, during the 3 race meet year of distribution, havean average daily handle of less4than sixty thousand dollars ($60,000)a total race handle from both 5 live races and simulcast races of less than five million dollars 6 ($5,000,000); 7 b. Distributions to recipient horse racing tracks shall be weighted 8 proportionately on the number of days raced during the year of dis- 9 tribution. 10 All moneys in the track distribution account are hereby continuously 11 appropriated to the commission for payment as required by this section. 12 Payments to horse racing tracks shall be made annually but not later than 13 December 15. 14 (3) One-half of oneper centpercent (.50%) of gross daily receipts from 15 horse races, separately stated shall be paid by the licensee to the com- 16 mission for deposit in the breed distribution account, which is hereby 17 created in the pari-mutuel distribution fund, for payment by the commis- 18 sion in proportion to the handle generated by each horse breed, to law- 19 fully constituted representatives of each horse breed, to benefit owners 20 and/or breeders of Idaho bred racing thoroughbreds, racing quarter horses, 21 racing Appaloosas, racing paints and racing Arabians, subject to the 22 approval of the commission. Moneys in the breed distribution account on 23 December 31 of each year which have not been distributed by the commission 24 shall be paid to the public school income fund. 25 All moneys in the breed distribution account are hereby continuously 26 appropriated to the commission for payment as required by this section. 27 Payments to representatives shall be made quarterly. 28 (4) From the balance of gross daily receipts remaining with the licensee 29 after the distributions required in subsection (B)(1), (2),and (3) of 30 this section from horse races, the following amounts shall be paid or 31 retained: 32 a. From the first $20,000 of gross daily receipts, the licensee 33 shall retain the entire amount; 34 b. From the next $10,000 of gross daily receipts (gross daily 35 receipts between $20,000 and $30,000), the public school income fund 36 and the equine education account shall each receive one-eighth of one 37per centpercent (.125%), and the licensee shall retain the balance; 38 c. From the next $10,000 of gross daily receipts (gross daily 39 receipts between $30,000 and $40,000), the public school income fund 40 and the equine education account shall each receive sixty-two and 41 one-half hundredthsper centpercent (.625%), and the licensee shall 42 retain the balance; 43 d. From all amounts of over $40,000 of gross daily receipts, the 44 public school income fund and the equine education account shall each 45 receive one and one-eighthper centpercent (1.125%), and the licen- 46 see shall retain the balance. 47 The public schools' and the equine education account's share shall be 48 paid by the licensee to the racing commission for deposit in the public 49 school income fund or the equine education account as appropriate. The 50 licensee's percentage shall be retained by the licensee. 51 (C) Each licensee conducting the pari-mutuel system for live and simul- 52 cast horse races having an average daily handle of one hundred thousand dol- 53 lars ($100,000) or less shall distribute all sums deposited in any pool as 54 follows: 55 (1) Seventy-sevenper centpercent (77%) of any win, place or show pool 4 1 to the winner thereof, and twenty-threeper centpercent (23%) to the 2 licensee; 3 (2) Seventy-six and one-quarterper centpercent (76.25%) of all other 4 pools to the winner thereof, three-quarters of oneper centpercent (.75%) 5 to the racing commission for deposit in the racing account, and 6 twenty-threeper centpercent (23%) to the licensee. 7 (D) Each licensee conducting the pari-mutuel system for live and simul- 8 cast horse races shall retain twenty-threeper centpercent (23%) of all sums 9 deposited in any pool, for distribution and payment based upon gross daily 10 receipts as follows: 11 (1) One and one-quarterper centpercent (1.25%) of gross daily receipts, 12 separately stated, shall be paid to the Idaho state racing commission, for 13 deposit in the racing commission account. 14 (2) One-half of oneper centpercent (.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, for further dis- 17 tribution to certain Idaho horse race tracks, defined as follows: 18 a. Recipient horse racing tracks shall be those which, during the 19 race meet year of distribution, havean average daily handle of less20than sixty thousand dollars ($60,000)a total race handle from both 21 live races and simulcast races of less than five million dollars 22 ($5,000,000); 23 b. Distributions to recipient horse racing tracks shall be weighted 24 proportionately on the number of days raced during the year of dis- 25 tribution. 26 All moneys in the track distribution account are hereby continuously 27 appropriated to the commission for payment as required by this section. 28 Payments to horse racing tracks shall be made annually but not later than 29 December 15. 30 (3) One-half of oneper centpercent (.50%) of gross daily receipts from 31 horse races, separately stated shall be paid by the licensee to the com- 32 mission for deposit in the breed distribution account, 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 on December 31 of each year which have not been distributed by the commis- 39 sion shall be paid to the public school income fund. All moneys in the 40 breed distribution account are hereby continuously appropriated to the 41 commission for payment as required by this section. Payments to represen- 42 tatives shall be made quarterly. 43 (4) Twenty and three-quartersper centpercent (20.75%) of gross daily 44 receipts from horse races shall be paid or retained as follows: 45 a. From the first $20,000 of gross daily receipts, the licensee 46 shall retain twenty and three-quartersper centpercent (20.75%); 47 b. From the next $10,000 of gross daily receipts (gross daily 48 receipts between $20,000 and $30,000), the public school income fund 49 and the equine education account shall each receive one-eighth of one 50per centpercent (.125%), and the licensee shall retain twenty and 51 one-halfper centpercent (20.50%); 52 c. From the next $10,000 of gross daily receipts (gross daily 53 receipts between $30,000 and $40,000), the public school income fund 54 and the equine education account shall each receive sixty-two and 55 one-half hundredthsper centpercent (.625%), and the licensee shall 5 1 retain nineteen and one-halfper centpercent (19.50%); 2 d. From all amounts of over $40,000 of gross daily receipts, the 3 public school income fund and the equine education account shall each 4 receive one and one-eighthper centpercent (1.125%), and the licen- 5 see shall retain eighteen and one-halfper centpercent (18.50%). 6 The public schools' share and the equine education account's share shall 7 be paid by the licensee to the racing commission for deposit in the public 8 school income fund or the equine education account as appropriate. The 9 licensee's percentage shall be retained by the licensee. 10 (E) Each licensee may retain the odd cents of all redistribution to be 11 based on each dollar deposited exceeding a sum equal to the next lowest multi- 12 ple of ten (10), known as breakage, and the total amount of unclaimed tickets 13 at the termination of the time allowed by rule of the commission. 14 (F) If the fiscal year-end balance in the racing commission account 15 exceeds $400,000, the excess shall be transferred by the office of the state 16 controller to the pari-mutuel distribution fund, which is hereby created, for 17 further distribution as follows: 18 (1) Sixtyper centpercent (60%) shall be deposited in the Idaho horse 19 owner/breeder award account, which is hereby created in the pari-mutuel 20 distribution fund, and shall be distributed by the racing commission annu- 21 ally, but not later than December 15 of each year as follows: 22 a. Fiftyper centpercent (50%) to the breeders of Idaho bred win- 23 ners based on the number of live races by each breed for the current 24 calendar year; and 25 b. Fiftyper centpercent (50%) in equal amounts to owners of Idaho 26 bred horse race winners. 27 c. All moneys in the Idaho owner/breeder award account are hereby 28 continuously appropriated to the commission for payment as required 29 in this section. 30 (2) Fortyper centpercent (40%) shall be deposited in the track purse 31 enhancement account, which is hereby created, and paid to all Idaho 32 licensed horse racetracks for the purpose of purse enhancement based on 33 the number of live race dates held the preceding calendar year. Track 34 purse enhancement moneys shall be disbursed no later than thirty (30) days 35 after Idaho state racing commission approval of live race meet license 36 applications for the forthcoming calendar year. All moneys in the track 37 purse enhancement account are hereby continuously appropriated to the com- 38 mission for payment as required by this section.
STATEMENT OF PURPOSE RS 09767 The purpose of this proposed legislation is to change the amount of handle (monies wagered) a live race track licensee must have had wagered at their facility, in any one year, in order to participate in the small track fund. The proposed legislation also uses this new handle definition as the benchmark for tracks with a handle exceeding five million dollars annually to also be required to run at least 90% of the number of live races that were conducted by that licensee in 1989. FISCAL IMPACT No fiscal impact. Contact: Idaho Horse Racing Alliance Tim Elison, Chairman 365-1520 Stan Boyd 344-2271 STATEMENT OF PURPOSE/FISCAL NOTE S 1363