2006 Legislation
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SENATE BILL NO. 1317 – Horse racing, meets, license

SENATE BILL NO. 1317

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact



                       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