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H0374aaS..................................................by WAYS AND MEANS
HORSE RACING - ADVANCE DEPOSIT WAGERING - Amends existing law to clarify
that advance deposit wagering on horse racing conducted by licensees is
lawful; to provide procedures and limits; to provide for a source market
fee for out of state wagers; to define terms; to provide for distribution
of funds; and to authorize rules.
03/17 House intro - 1st rdg - to printing
Rpt prt - to St Aff
03/19 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
03/26 3rd rdg - PASSED - 40-29-1
AYES -- Andersen, Barrett, Bauer, Bedke, Bieter(Bieter), Black,
Block, Bolz, Clark, Cuddy, Deal, Douglas, Edmunson, Eskridge,
Field(18), Gagner, Garrett, Henbest(Bray), Jaquet, Jones, Kellogg,
Langhorst, Martinez, Meyer, Miller, Mitchell, Naccarato, Nielsen,
Ridinger, Ringo, Robison, Sayler, Shepherd, Skippen, Smith(30),
Snodgrass, Stevenson, Tilman, Wills, Mr. Speaker
NAYS -- Barraclough, Bell, Boe, Bradford, Cannon, Collins, Crow,
Denney, Eberle, Ellsworth, Field(23), Harwood, Kulczyk, Lake,
Langford, McGeachin, McKague, Moyle, Raybould, Ring, Roberts,
Rydalch, Sali, Schaefer, Shirley, Smith(24), Smylie, Trail, Wood
Absent and excused -- Campbell
Floor Sponsor - Miller
Title apvd - to Senate
03/27 Senate intro - 1st rdg - to St Aff
04/03 Rpt out - to 14th Ord
04/07 Rpt out amen - to 1st rdg as amen
04/08 1st rdg - to 2nd rdg as amen
04/09 2nd rdg - to 3rd rdg as amen
04/10 3rd rdg as amen - PASSED - 21-13-1
AYES -- Andreason, Bailey, Brandt, Calabretta, Cameron, Compton,
Darrington, Gannon, Goedde, Ingram, Kennedy, Keough, Little, Lodge,
Malepeai(Kumm), McWilliams, Noble, Sorensen, Stegner, Stennett,
Williams
NAYS -- Bunderson, Burtenshaw, Davis, Geddes, Hill, Marley, McKenzie,
Noh, Pearce, Richardson, Schroeder, Sweet, Werk
Absent and excused -- Burkett
Floor Sponsor - Little
Title apvd - to House
04/14 House concurred in Senate amens - to engros
04/15 Rpt engros - 1st rdg - to 2nd rdg as amen
04/16 2nd rdg - to 3rd rdg as amen
04/17 3rd rdg as amen - PASSED - 37-30-3
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Black,
Bolz, Cuddy, Deal, Douglas, Edmunson, Eskridge, Field(18), Gagner,
Garrett, Henbest, Jaquet, Jones, Kellogg, Langhorst, Martinez, Meyer,
Miller, Mitchell, Nielsen, Ridinger, Ringo, Sayler, Shepherd,
Skippen, Smith(30), Snodgrass, Stevenson, Tilman, Wills, Mr. Speaker
NAYS -- Bieter, Block, Boe, Bradford(Larsen), Cannon, Collins, Crow,
Denney, Eberle, Ellsworth, Field(23), Harwood, Kulczyk, Lake,
Langford, McGeachin, McKague, Moyle, Raybould, Ring(Roberge),
Roberts, Robison, Rydalch, Sali, Schaefer, Shirley, Smith(24)(Frost),
Smylie, Trail(Young), Wood
Absent and excused -- Campbell, Clark, Naccarato
Floor Sponsor - Miller
Title apvd - to enrol
04/18 Rpt enrol - Sp signed - Pres signed
04/21 To Governor
04/23 Governor signed
Session Law Chapter 312
Effective: 04/23/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 374
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO HORSE RACING; AMENDING SECTION 54-2512, IDAHO CODE, TO CLARIFY
3 THAT ADVANCE DEPOSIT WAGERING ON HORSE RACING CONDUCTED BY LICENSEES IS
4 DECLARED TO BE LAWFUL, TO PROVIDE PROCEDURES, TO PROVIDE LIMITS, TO PRO-
5 VIDE FOR A SOURCE MARKET FEE FOR OUT OF STATE WAGERS, TO DEFINE TERMS, TO
6 PROVIDE FOR DISTRIBUTION OF FUNDS, TO LIMIT DISBURSEMENT AND TO PROVIDE
7 FOR RULES BY THE RACING COMMISSION; AND DECLARING AN EMERGENCY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 54-2512, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 54-2512. PARI-MUTUEL BETTING -- OTHER BETTING ILLEGAL. (1) Any licensee
12 conducting a race meet under this act may provide a place or places in the
13 race meet grounds or enclosure at which such licensee may conduct and super-
14 vise the use of the pari-mutuel system by patrons on the result of the races
15 conducted by such licensee at such race meet and, upon written application by
16 a licensee and approval by the commission, on the result of simulcast and/or
17 televised races. The commission shall issue no more than one (1) license to
18 simulcast per live race meet licensee and there shall be no more simulcasting
19 sites in the state than there are licensed live race meet sites.
20 (2) (a) Licenses authorizing simulcast and/or televised races will be
21 regulated by the commission, in addition to its other responsibilities,
22 for the purpose of enhancing, promoting, and protecting the live race
23 industry in the state of Idaho. No license authorizing simulcasting and/or
24 televised races shall be issued to or renewed for persons that are not
25 also licensed to conduct live race meets in the state of Idaho. Persons
26 applying for a simulcast and/or televised race license shall have annually
27 conducted live race meets in the state of Idaho during the preceding two
28 (2) calendar years, and have an agreement reached voluntarily or pursuant
29 to binding arbitration in conformance with chapter 9, title 7, Idaho Code,
30 with a horsemen's group as the term "horsemen's group" is defined in sec-
31 tion 54-2502, Idaho Code. The agreement shall address, but not be limited
32 to, number of live race days and percentage of the live race and simulcast
33 handle that is dedicated to the live horse race purse structure. Race days
34 agreed upon shall be submitted to the Idaho racing commission for its
35 approval.
36 (b) In addition to the restrictions recited in paragraph (a) of this sub-
37 section, live horse race licensees that have had a total race handle from
38 both live races and simulcast races exceeding five million dollars
39 ($5,000,000) during the last calendar year in operation shall not have a
40 license authorizing simulcasting and/or televised races issued or renewed
41 if the licensee has not run in the calendar year immediately preceding the
42 year for which the application for a license is being made for at least
43 ninety percent (90%) of the number of live race days that were conducted
2
1 by that licensee in 1989.
2 (c) The commission may issue a license authorizing simulcast and/or tele-
3 vised races to a live horse race licensee only after that licensee has
4 conducted at that facility a minimum of forty (40) live horse races in
5 each of the two (2) calendar years preceding the application for such
6 license. The requirements of this paragraph are only applicable to live
7 horse race licensees who have received their initial live horse race
8 license after April 1, 1997.
9 (3) Such pari-mutuel system conducted at such race meet shall not under
10 any circumstances, if conducted under the provisions of this act and in con-
11 formity thereto and to the rules of the commission, be held or construed to be
12 unlawful, other statutes of this state to the contrary notwithstanding.
13 (4) The participation by a licensee in an interstate combined wagering
14 pool does not cause that licensee to be considered to be doing business in any
15 jurisdiction other than the jurisdiction in which the licensee is physically
16 located.
17 (5) Advance deposit wagering on live and/or simulcast horse racing con-
18 ducted by licensees is hereby declared to be lawful and within the scope of
19 the licensee's license. As used in this section, "advance deposit wagering"
20 means a form of wagering in which an account holder may deposit money with a
21 licensee and then use the balance to fund wagers. The bettor can then contact
22 the licensee from a location without actually being physically present at the
23 licensee's premises in order to communicate the desired use of those funds for
24 wagering purposes. However, no wager can be accepted by the licensee that
25 exceeds the amount in the account held by the licensee for the person placing
26 the wager. Any advance deposit wagering conducted by a person with a provider
27 outside of the state by telephone or other electronic means shall be illegal
28 unless that provider is licensed by the Idaho state racing commission and pro-
29 vides a source market fee of not less than ten percent (10%) of the handle
30 forwarded monthly to the commission. All moneys in the advance deposit wager-
31 ing accounts held by the commission are hereby continuously appropriated to
32 the commission for payment as required by this section. Payments to recipients
33 shall be made annually, but not later than December 31. Distribution of the
34 source market fee shall be forty percent (40%) to purses at all tracks
35 weighted by number of races ran through the year of distribution, forty per-
36 cent (40%) to the simulcast sites in the state weighted by the annual simul-
37 cast handle, five percent (5%) to the track distribution fund, five percent
38 (5%) to the breed distribution fund, five percent (5%) to the Idaho state
39 racing commission and five percent (5%) to the public school income fund.
40 Those simulcast facilities that do not offer live horse racing must engage in
41 advance deposit wagering in order to share in this disbursement. For purposes
42 of this section, wagering instructions concerning funds held in an advance
43 deposit account shall be deemed to be issued within the licensee's enclosure.
44 As used in this section, "source market fee" means that part of a wager, made
45 outside of the state by an Idaho resident, that is returned to the state of
46 Idaho. The commission may promulgate rules pursuant to chapter 52, title 67,
47 Idaho Code, to implement the provisions of this subsection.
48 (6) Pari-mutuel taxes or commissions may not be imposed on any amounts
49 wagered in an interstate combined wagering pool other than amounts wagered
50 within this jurisdiction.
51 (67) It shall be unlawful to conduct pool selling, bookmaking, or to cir-
52 culate handbooks, or to bet or wager on a race of any licensed race meet,
53 other than by the pari-mutuel system; and it shall further be unlawful know-
54 ingly to permit any minor to use the pari-mutuel system.
3
1 SECTION 2. An emergency existing therefor, which emergency is hereby
2 declared to exist, this act shall be in full force and effect on and after its
3 passage and approval.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
Moved by Little
Seconded by Sorensen
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 374
1 AMENDMENT TO SECTION 1
2 On page 2 of the printed bill, delete lines 40 and 41 and insert: "For
3 purposes".
4 CORRECTION TO TITLE
5 On page 1, in line 6, delete ", TO LIMIT DISBURSEMENT".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 374, As Amended in the Senate
BY WAYS AND MEANS COMMITTEE
1 AN ACT
2 RELATING TO HORSE RACING; AMENDING SECTION 54-2512, IDAHO CODE, TO CLARIFY
3 THAT ADVANCE DEPOSIT WAGERING ON HORSE RACING CONDUCTED BY LICENSEES IS
4 DECLARED TO BE LAWFUL, TO PROVIDE PROCEDURES, TO PROVIDE LIMITS, TO PRO-
5 VIDE FOR A SOURCE MARKET FEE FOR OUT OF STATE WAGERS, TO DEFINE TERMS, TO
6 PROVIDE FOR DISTRIBUTION OF FUNDS AND TO PROVIDE FOR RULES BY THE RACING
7 COMMISSION; AND DECLARING AN EMERGENCY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 54-2512, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 54-2512. PARI-MUTUEL BETTING -- OTHER BETTING ILLEGAL. (1) Any licensee
12 conducting a race meet under this act may provide a place or places in the
13 race meet grounds or enclosure at which such licensee may conduct and super-
14 vise the use of the pari-mutuel system by patrons on the result of the races
15 conducted by such licensee at such race meet and, upon written application by
16 a licensee and approval by the commission, on the result of simulcast and/or
17 televised races. The commission shall issue no more than one (1) license to
18 simulcast per live race meet licensee and there shall be no more simulcasting
19 sites in the state than there are licensed live race meet sites.
20 (2) (a) Licenses authorizing simulcast and/or televised races will be
21 regulated by the commission, in addition to its other responsibilities,
22 for the purpose of enhancing, promoting, and protecting the live race
23 industry in the state of Idaho. No license authorizing simulcasting and/or
24 televised races shall be issued to or renewed for persons that are not
25 also licensed to conduct live race meets in the state of Idaho. Persons
26 applying for a simulcast and/or televised race license shall have annually
27 conducted live race meets in the state of Idaho during the preceding two
28 (2) calendar years, and have an agreement reached voluntarily or pursuant
29 to binding arbitration in conformance with chapter 9, title 7, Idaho Code,
30 with a horsemen's group as the term "horsemen's group" is defined in sec-
31 tion 54-2502, Idaho Code. The agreement shall address, but not be limited
32 to, number of live race days and percentage of the live race and simulcast
33 handle that is dedicated to the live horse race purse structure. Race days
34 agreed upon shall be submitted to the Idaho racing commission for its
35 approval.
36 (b) In addition to the restrictions recited in paragraph (a) of this sub-
37 section, live horse race licensees that have had a total race handle from
38 both live races and simulcast races exceeding five million dollars
39 ($5,000,000) during the last calendar year in operation shall not have a
40 license authorizing simulcasting and/or televised races issued or renewed
41 if the licensee has not run in the calendar year immediately preceding the
42 year for which the application for a license is being made for at least
43 ninety percent (90%) of the number of live race days that were conducted
2
1 by that licensee in 1989.
2 (c) The commission may issue a license authorizing simulcast and/or tele-
3 vised races to a live horse race licensee only after that licensee has
4 conducted at that facility a minimum of forty (40) live horse races in
5 each of the two (2) calendar years preceding the application for such
6 license. The requirements of this paragraph are only applicable to live
7 horse race licensees who have received their initial live horse race
8 license after April 1, 1997.
9 (3) Such pari-mutuel system conducted at such race meet shall not under
10 any circumstances, if conducted under the provisions of this act and in con-
11 formity thereto and to the rules of the commission, be held or construed to be
12 unlawful, other statutes of this state to the contrary notwithstanding.
13 (4) The participation by a licensee in an interstate combined wagering
14 pool does not cause that licensee to be considered to be doing business in any
15 jurisdiction other than the jurisdiction in which the licensee is physically
16 located.
17 (5) Advance deposit wagering on live and/or simulcast horse racing con-
18 ducted by licensees is hereby declared to be lawful and within the scope of
19 the licensee's license. As used in this section, "advance deposit wagering"
20 means a form of wagering in which an account holder may deposit money with a
21 licensee and then use the balance to fund wagers. The bettor can then contact
22 the licensee from a location without actually being physically present at the
23 licensee's premises in order to communicate the desired use of those funds for
24 wagering purposes. However, no wager can be accepted by the licensee that
25 exceeds the amount in the account held by the licensee for the person placing
26 the wager. Any advance deposit wagering conducted by a person with a provider
27 outside of the state by telephone or other electronic means shall be illegal
28 unless that provider is licensed by the Idaho state racing commission and pro-
29 vides a source market fee of not less than ten percent (10%) of the handle
30 forwarded monthly to the commission. All moneys in the advance deposit wager-
31 ing accounts held by the commission are hereby continuously appropriated to
32 the commission for payment as required by this section. Payments to recipients
33 shall be made annually, but not later than December 31. Distribution of the
34 source market fee shall be forty percent (40%) to purses at all tracks
35 weighted by number of races ran through the year of distribution, forty per-
36 cent (40%) to the simulcast sites in the state weighted by the annual simul-
37 cast handle, five percent (5%) to the track distribution fund, five percent
38 (5%) to the breed distribution fund, five percent (5%) to the Idaho state
39 racing commission and five percent (5%) to the public school income fund. For
40 purposes of this section, wagering instructions concerning funds held in an
41 advance deposit account shall be deemed to be issued within the licensee's
42 enclosure. As used in this section, "source market fee" means that part of a
43 wager, made outside of the state by an Idaho resident, that is returned to the
44 state of Idaho. The commission may promulgate rules pursuant to chapter 52,
45 title 67, Idaho Code, to implement the provisions of this subsection.
46 (6) Pari-mutuel taxes or commissions may not be imposed on any amounts
47 wagered in an interstate combined wagering pool other than amounts wagered
48 within this jurisdiction.
49 (67) It shall be unlawful to conduct pool selling, bookmaking, or to cir-
50 culate handbooks, or to bet or wager on a race of any licensed race meet,
51 other than by the pari-mutuel system; and it shall further be unlawful know-
52 ingly to permit any minor to use the pari-mutuel system.
53 SECTION 2. An emergency existing therefor, which emergency is hereby
54 declared to exist, this act shall be in full force and effect on and after its
3
1 passage and approval.
STATEMENT OF PURPOSE
RS 13198
The purpose of this legislation is to declare that advance
deposit wagering conducted by licensees is hereby declared to be
lawful in the State of Idaho and within the scope of the
licensee's license. The proposed legislation would allow
licensees to offer advance deposit wagering to their customers as
well as allow providers from out-of-state to offer these
services. The out-of-state provider would be required to submit
a fee of not less than ten percent (10%) of the handle be
returned to the Idaho State Racing Commission for disbursal to
live horse race purses (40%), Idaho simulcast sites (40%), Track
Distribution Fund (5%), Breed Distribution Fund (5%), Idaho State
Racing Commission (5%), and the Public School Income Fund (5%).
The proposed legislation provides for the Idaho State Racing
Commission to promulgate rules pursuant to Chapter 52, Title 67,
Idaho Code, to implement this program.
FISCAL IMPACT
No fiscal impact to the General Fund.
Contact
Name: Rep. Janet Miller
(208) 332-1000
Stan Boyd, Les Bois Park
(208) 344-2271
STATEMENT OF PURPOSE/FISCAL NOTE H 374