2006 Legislation
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SENATE BILL NO. 1262 – Horse racing, simulcast, license


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Bill Status

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

Bill Text

  ]]]]              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
  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
  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-
  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 / Fiscal Impact

                       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.

Name:	Eugene Baker
Agency:	Racing Commission
Phone:	884-7080