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S1262......................................................by STATE AFFAIRS
HORSE RACING - Amends existing law relating to horse racing to revise
application provisions for licenses authorizing simulcast and/or televised
races; and to revise provisions relating to advance deposit wagering.
01/17 Senate intro - 1st rdg - to printing
01/18 Rpt prt - to St Aff
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE SENATE
SENATE BILL NO. 1262
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO HORSE RACING; AMENDING SECTION 54-2512, IDAHO CODE, TO PROVIDE
3 CORRECT TERMINOLOGY, TO REVISE APPLICATION PROVISIONS FOR LICENSES AUTHO-
4 RIZING SIMULCAST AND/OR TELEVISED RACES AND TO REVISE PROVISIONS RELATING
5 TO ADVANCE DEPOSIT WAGERING; AND DECLARING AN EMERGENCY.
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 chapter may provide a place or places in
11 the race meet grounds or enclosure at which such licensee may conduct and
12 supervise the use of the pari-mutuel system by patrons on the result of the
13 races conducted by such licensee at such race meet and, upon written applica-
14 tion by a licensee and approval by the commission, on the result of simulcast
15 and/or televised races. The commission shall issue no more than one (1)
16 license to simulcast per live race meet licensee and there shall be no more
17 simulcasting 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. In addi-
32 tion, the agreement shall provide that all simulcast purse moneys that are
33 accrued as required by the horsemen's agreement be held in the simulcast
34 purse moneys fund created pursuant to the provisions of section 54-2508,
35 Idaho Code. Race days agreed upon shall be submitted to the Idaho racing
36 commission for its approval.
37 (b) In addition to the restrictions recited in paragraph (a) of this sub-
38 section, live horse race licensees that have had a total race handle from
39 both live races and simulcast races exceeding five million dollars
40 ($5,000,000) during the last calendar year in operation shall not have a
41 license authorizing simulcasting and/or televised races issued or renewed
42 if the licensee has not run in the calendar year immediately preceding the
43 year for which the application for a license is being made for at least
2
1 ninety percent (90%) of the number of live race days that were conducted
2 by that licensee in 1989.
3 (c) The commission may issue a license authorizing simulcast and/or tele-
4 vised races to a live horse race licensee only after that licensee has
5 conducted at that facility a minimum of forty (40) live horse races in
6 each of the two (2) calendar years preceding the application for such
7 license. The requirements of this paragraph are only applicable to live
8 horse race licensees who have received their initial live horse race
9 license after April 1, 1997.
10 (3) Such pari-mutuel system conducted at such race meet shall not under
11 any circumstances, if conducted under the provisions of this act chapter and
12 in conformity thereto and to the rules of the commission, be held or construed
13 to be unlawful, other statutes of this state to the contrary notwithstanding.
14 (4) The participation by a licensee in an interstate combined wagering
15 pool does not cause that licensee to be considered to be doing business in any
16 jurisdiction other than the jurisdiction in which the licensee is physically
17 located.
18 (5) Advance deposit wagering on live and/or simulcast horse racing con-
19 ducted by licensees is hereby declared to be lawful and within the scope of
20 the licensee's license. As used in this section, "advance deposit wagering"
21 means a form of wagering in which an account holder may deposit money with a
22 licensee and then use the balance to fund wagers. The bettor can then contact
23 the licensee from a location without actually being physically present at the
24 licensee's premises in order to communicate the desired use of those funds for
25 wagering purposes. However, no wager can be accepted by the licensee that
26 exceeds the amount in the account held by the licensee for the person placing
27 the wager. Any advance deposit wagering conducted by a person with a provider
28 outside of the state by telephone or other electronic means shall be illegal
29 unless that provider is licensed by the Idaho state racing commission and pro-
30 vides a source market fee of not less than ten percent (10%) of the handle
31 forwarded monthly to the commission. All moneys in the advance deposit wager-
32 ing accounts held by the commission are hereby continuously appropriated to
33 the commission for payment as required by this section. Payments to recipients
34 shall be made annually, but not later than December 31. Distribution of the
35 source market fee shall be forty percent (40%) to purses to be deposited
36 directly into the horsemen's purse account at all tracks weighted by number of
37 races ran through the year of distribution, forty thirty percent (430%) to the
38 simulcast sites in the state weighted by the annual simulcast handle, five
39 percent (5%) to the track distribution fund, five percent (5%) to the breed
40 distribution fund, five percent (5%) to the Idaho state racing commission, and
41 five percent (5%) to the public school income fund, and ten percent (10%) for
42 track operating expenses at the live tracks with distribution weighted on the
43 number of race days. All moneys in the track operating accounts are hereby
44 continuously appropriated to the commission for payment as required by this
45 section. For purposes of this section, wagering instructions concerning funds
46 held in an advance deposit account shall be deemed to be issued within the
47 licensee's enclosure. As used in this section, "source market fee" means that
48 part of a wager, made outside of the state by an Idaho resident, that is
49 returned to the state of Idaho. The commission may promulgate rules pursuant
50 to chapter 52, title 67, Idaho Code, to implement the provisions of this sub-
51 section.
52 (6) Pari-mutuel taxes or commissions may not be imposed on any amounts
53 wagered in an interstate combined wagering pool other than amounts wagered
54 within this jurisdiction.
55 (7) It shall be unlawful to conduct pool selling, bookmaking, or to cir-
3
1 culate handbooks, or to bet or wager on a race of any licensed race meet,
2 other than by the pari-mutuel system; and it shall further be unlawful know-
3 ingly to permit any minor to use the pari-mutuel system.
4 SECTION 2. An emergency existing therefor, which emergency is hereby
5 declared to exist, this act shall be in full force and effect on and after its
6 passage and approval.
STATEMENT OF PURPOSE
RS 15432
Relating to horse racing; Amending Section 54-2512, Idaho Code,
to delete obsolete language; addition of commission oversight to
simulcast purse monies; 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 commission's dedicated fund;
none to or from the General Fund.
CONTACT
Name: Eugene Baker
Agency: Racing Commission
Phone: 884-7080
STATEMENT OF PURPOSE/FISCAL NOTE S 1262