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S1317......................................................by STATE AFFAIRS
HORSE RACING - Amends existing law relating to horse racing to revise
license application requirements for race meets; to revise license
specification provisions; to provide for the Simulcast Purse Moneys Fund;
to revise application provisions for licenses authorizing simulcast and/or
televised races; and to revise provisions relating to advance deposit
wagering.
01/27 Senate intro - 1st rdg - to printing
01/30 Rpt prt - to St Aff
02/03 Rpt out - rec d/p - to 2nd rdg
02/06 2nd rdg - to 3rd rdg
02/10 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- McKenzie
Floor Sponsor - Little
Title apvd - to House
02/13 House intro - 1st rdg - to St Aff
03/01 Rpt out - rec d/p - to 2nd rdg
03/02 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 60-0-10
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
Cannon, Chadderdon, Collins, Deal, Denney, Edmunson, Eskridge,
Field(18), Field(23), Garrett, Hart, Henderson, Jaquet, Kemp, Lake,
LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller,
Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
Ringo, Roberts, Rusche, Rydalch, Sali, Shepherd(2), Shepherd(8),
Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
Trail, Wood
NAYS -- None
Absent and excused -- Clark, Crow, Ellsworth, Harwood, Henbest, Ring,
Sayler, Schaefer, Wills, Mr. Speaker
Floor Sponsor - Deal
Title apvd - to Senate
03/16 To enrol
03/17 Rpt enrol - Pres signed - Sp signed
03/20 To Governor
03/22 Governor signed
Session Law Chapter 159
Effective: 03/22/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1317
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO HORSE RACING; AMENDING SECTION 54-2508, IDAHO CODE, TO PROVIDE
3 CORRECT TERMINOLOGY, TO REVISE LICENSE APPLICATION REQUIREMENTS FOR RACE
4 MEETS, TO REVISE LICENSE SPECIFICATION PROVISIONS, TO PROVIDE FOR THE SIM-
5 ULCAST PURSE MONEYS FUND, TO PROVIDE RULEMAKING AUTHORITY AND TO MAKE
6 TECHNICAL CORRECTIONS; AMENDING SECTION 54-2512, IDAHO CODE, TO PROVIDE
7 CORRECT TERMINOLOGY, TO REVISE APPLICATION PROVISIONS FOR LICENSES AUTHO-
8 RIZING SIMULCAST AND/OR TELEVISED RACES AND TO REVISE PROVISIONS RELATING
9 TO ADVANCE DEPOSIT WAGERING; AND DECLARING AN EMERGENCY.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 54-2508, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 54-2508. LICENSE -- APPLICATION THEREFOR -- TYPE AND NUMBER OF RACES --
14 FEE PER DAY -- REFUND -- CANCELLATION -- HEARING -- SIMULCAST PURSE MONEYS
15 FUND. It shall be unlawful for any person to hold any race meet in this state
16 without having first obtained and having in force and effect a license issued
17 by the commission as in this act chapter provided. Every person making appli-
18 cation for a license to hold a race meet, under the provisions of this act
19 chapter, shall file an application with the commission which shall set forth
20 the time, place and number of days such will continue, an agreement with a
21 horsemen's group as the term "horsemen's group" is defined in section 54-2502,
22 Idaho Code, and such other information as the commission may require. The
23 agreement shall be reached voluntarily or pursuant to binding arbitration in
24 conformance with chapter 9, title 7, Idaho Code, and shall address, but not be
25 limited to, number of live race days and percentage of the live race and sim-
26 ulcast handle that is dedicated to the live horse race purse structure. In
27 addition, the agreement shall provide that all simulcast purse moneys that are
28 accrued as required by the horsemen's agreement be held in the simulcast purse
29 moneys fund created pursuant to the provisions of this section. Race days
30 agreed upon shall be submitted to the Idaho racing commission for its
31 approval.
32 No person who has been convicted of any crime involving moral turpitude
33 shall be issued a license of any kind, nor shall any license be issued to any
34 person who has violated the terms or provisions of this act chapter, or any of
35 the rules of the commission, or who has failed to pay any of the fees, taxes
36 or moneys required under the provisions of this act chapter.
37 All applications to hold race meets shall be submitted to the commission
38 which shall act upon such applications within thirty (30) days. The commission
39 shall be the sole judge of whether or not the race meet shall be licensed and
40 the number of days the meet shall continue.
41 The license issued shall specify the kind and character of the race meets
42 to be held, the number of days the race meet shall continue and the number of
43 races per day. For those licensees or facilities that have had a total race
2
1 handle from both live races and simulcast races exceeding five million dollars
2 ($5,000,000) during the last calendar year in operation, the number of races
3 per day shall not be less than eight (8) and the number of days of racing
4 shall not be less than forty-six (46). For those licensees or facilities that
5 have had a total race handle from both live races and simulcast races of five
6 million dollars ($5,000,000) or less during the last calendar year in opera-
7 tion, the number of races per day shall not be less than six (6) and the num-
8 ber of days of racing shall not be less than two (2). The licensee shall pay
9 in advance of the scheduled race meet to the state treasurer a fee of not less
10 than twenty-five dollars ($25.00) for each day of racing, which fees shall be
11 placed in the public school income fund of the state of Idaho. Provided, that
12 if unforeseen obstacles arise, which prevent the holding, or completion of any
13 race meet, the license fee held may be refunded the licensee, if the commis-
14 sion deems the reason for failure to hold or complete the race meet suffi-
15 cient. Any unexpired license held by any person who violates any of the provi-
16 sions of this act chapter, pursuant thereto, or who fails to pay to the com-
17 mission any and all sums required under the provisions of this act chapter,
18 shall be subject to cancellation and revocation by the commission. Such can-
19 cellation shall be made only after a summary hearing before the commission, of
20 which three (3) days' notice in writing shall be given the licensee, specify-
21 ing the grounds for the proposed cancellation, and at which hearing the licen-
22 see shall be given an opportunity to be heard in opposition to the proposed
23 cancellation.
24 The simulcast purse moneys fund is hereby created in the state treasury.
25 Moneys in the fund shall consist of all simulcast purse moneys that are
26 accrued as required by horsemen's agreements. Moneys in the fund are hereby
27 perpetually appropriated to the Idaho state racing commission for distribution
28 pursuant to the provisions of horsemen's agreements and rules of the commis-
29 sion. The commission is authorized to promulgate rules providing for the
30 receipt, deposit, withdrawal and distribution of such moneys. The state trea-
31 surer shall invest idle moneys in the fund and any interest received on those
32 investments shall be returned to the fund.
33 SECTION 2. That Section 54-2512, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 54-2512. PARI-MUTUEL BETTING -- OTHER BETTING ILLEGAL. (1) Any licensee
36 conducting a race meet under this act chapter may provide a place or places in
37 the race meet grounds or enclosure at which such licensee may conduct and
38 supervise the use of the pari-mutuel system by patrons on the result of the
39 races conducted by such licensee at such race meet and, upon written applica-
40 tion by a licensee and approval by the commission, on the result of simulcast
41 and/or televised races. The commission shall issue no more than one (1)
42 license to simulcast per live race meet licensee and there shall be no more
43 simulcasting sites in the state than there are licensed live race meet sites.
44 (2) (a) Licenses authorizing simulcast and/or televised races will be
45 regulated by the commission, in addition to its other responsibilities,
46 for the purpose of enhancing, promoting, and protecting the live race
47 industry in the state of Idaho. No license authorizing simulcasting and/or
48 televised races shall be issued to or renewed for persons that are not
49 also licensed to conduct live race meets in the state of Idaho. Persons
50 applying for a simulcast and/or televised race license shall have annually
51 conducted live race meets in the state of Idaho during the preceding two
52 (2) calendar years, and have an agreement reached voluntarily or pursuant
53 to binding arbitration in conformance with chapter 9, title 7, Idaho Code,
3
1 with a horsemen's group as the term "horsemen's group" is defined in sec-
2 tion 54-2502, Idaho Code. The agreement shall address, but not be limited
3 to, number of live race days and percentage of the live race and simulcast
4 handle that is dedicated to the live horse race purse structure. In addi-
5 tion, the agreement shall provide that all simulcast purse moneys that
6 are accrued as required by the horsemen's agreement be held in the simul-
7 cast purse moneys fund created pursuant to the provisions of section
8 54-2508, Idaho Code. Race days agreed upon shall be submitted to the Idaho
9 racing commission for its approval.
10 (b) In addition to the restrictions recited in paragraph (a) of this sub-
11 section, live horse race licensees that have had a total race handle from
12 both live races and simulcast races exceeding five million dollars
13 ($5,000,000) during the last calendar year in operation shall not have a
14 license authorizing simulcasting and/or televised races issued or renewed
15 if the licensee has not run in the calendar year immediately preceding the
16 year for which the application for a license is being made for at least
17 ninety percent (90%) of the number of live race days that were conducted
18 by that licensee in 1989.
19 (c) The commission may issue a license authorizing simulcast and/or tele-
20 vised races to a live horse race licensee only after that licensee has
21 conducted at that facility a minimum of forty (40) live horse races in
22 each of the two (2) calendar years preceding the application for such
23 license. The requirements of this paragraph are only applicable to live
24 horse race licensees who have received their initial live horse race
25 license after April 1, 1997.
26 (3) Such pari-mutuel system conducted at such race meet shall not under
27 any circumstances, if conducted under the provisions of this act chapter and
28 in conformity thereto and to the rules of the commission, be held or construed
29 to be unlawful, other statutes of this state to the contrary notwithstanding.
30 (4) The participation by a licensee in an interstate combined wagering
31 pool does not cause that licensee to be considered to be doing business in any
32 jurisdiction other than the jurisdiction in which the licensee is physically
33 located.
34 (5) Advance deposit wagering on live and/or simulcast horse racing con-
35 ducted by licensees is hereby declared to be lawful and within the scope of
36 the licensee's license. As used in this section, "advance deposit wagering"
37 means a form of wagering in which an account holder may deposit money with a
38 licensee and then use the balance to fund wagers. The bettor can then contact
39 the licensee from a location without actually being physically present at the
40 licensee's premises in order to communicate the desired use of those funds for
41 wagering purposes. However, no wager can be accepted by the licensee that
42 exceeds the amount in the account held by the licensee for the person placing
43 the wager. Any advance deposit wagering conducted by a person with a provider
44 outside of the state by telephone or other electronic means shall be illegal
45 unless that provider is licensed by the Idaho state racing commission and pro-
46 vides a source market fee of not less than ten percent (10%) of the handle
47 forwarded monthly to the commission. All moneys in the advance deposit wager-
48 ing accounts held by the commission are hereby continuously appropriated to
49 the commission for payment as required by this section. Payments to recipients
50 shall be made annually, but not later than December 31. Distribution of the
51 source market fee shall be forty percent (40%) to purses to be deposited
52 directly into the horsemen's purse account at all tracks weighted by number of
53 races ran through the year of distribution, forty thirty percent (430%) to the
54 simulcast sites in the state weighted by the annual simulcast handle, five
55 percent (5%) to the track distribution fund, five percent (5%) to the breed
4
1 distribution fund, five percent (5%) to the Idaho state racing commission, and
2 five percent (5%) to the public school income fund, and ten percent (10%) for
3 track operating expenses at the live tracks with distribution weighted on the
4 number of race days. All moneys in the track operating accounts are hereby
5 continuously appropriated to the commission for payment as required by this
6 section. For purposes of this section, wagering instructions concerning funds
7 held in an advance deposit account shall be deemed to be issued within the
8 licensee's enclosure. As used in this section, "source market fee" means that
9 part of a wager, made outside of the state by an Idaho resident, that is
10 returned to the state of Idaho. The commission may promulgate rules pursuant
11 to chapter 52, title 67, Idaho Code, to implement the provisions of this sub-
12 section.
13 (6) Pari-mutuel taxes or commissions may not be imposed on any amounts
14 wagered in an interstate combined wagering pool other than amounts wagered
15 within this jurisdiction.
16 (7) It shall be unlawful to conduct pool selling, bookmaking, or to cir-
17 culate handbooks, or to bet or wager on a race of any licensed race meet,
18 other than by the pari-mutuel system; and it shall further be unlawful know-
19 ingly to permit any minor to use the pari-mutuel system.
20 SECTION 3. An emergency existing therefor, which emergency is hereby
21 declared to exist, this act shall be in full force and effect on and after its
22 passage and approval.
STATEMENT OF PURPOSE
RS 15779
Relating to horse racing; Amending Section 54-2508 and 54-2512,
Idaho Code, to provide commission oversight of the simulcast purse
monies to be held in a fund account and distributed by the
Commission; to define the number of race days; to delete obsolete
language; change the formulas of distribution for advance deposit
wagering to include operating expenses for live race tracks.
FISCAL NOTE
No fiscal impact from the Racing Commissions's dedicated fund; none
to or from the General Fund.
Contact
Name: Eugene Baker, Idaho Racing Commission
Phone: 884-7080, 884-7082
Jacqueline Libengood
STATEMENT OF PURPOSE/FISCAL NOTE S 1317