Senate Bill No. 65

Introduced By devlin

By Request of the Department of Commerce

A Bill for an Act entitled: "An Act revising horseracing laws; changing the definition of "immediate family"; reallocating the distribution of funds derived from amounts wagered on races to purses or for other purposes; amending sections

23-4-101, 23-4-102, 23-4-105, 23-4-106, 23-4-202, 23-4-204, 23-4-302, and 23-4-304, MCA; and providing an immediate effective date."

STATEMENT OF INTENT

A statement of intent is required for this bill because it allows the board of horseracing to adopt rules implementing this bill, which allows percentages of the money withheld from amounts wagered for distribution among the licensed race meets to be added to the purses for live races in addition to the previous year's purse structure.

[Section 8] grants authority to the board of horseracing to administer the money withheld from amounts wagered and by distributing it to the race purses or to other purposes that the board determines will benefit the horseracing industry.

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 23-4-101, MCA, is amended to read:

"23-4-101.   Definitions. Unless the context requires otherwise, in this chapter, the following definitions apply:

(1)  "Board" means the board of horseracing provided for in 2-15-1881.

(2)  "Board of stewards" means a board composed of three stewards who supervise race meets.

(3)  "Department" means the department of commerce provided for in Title 2, chapter 15, part 18.

(4)  "Immediate family" means the spouse, parents, children, grandchildren, brothers, or sisters of an official or licensee regulated by this chapter who have a permanent or continuous residence in the household of the official or licensee and all other persons who have a permanent or continuous residence in the household of the official or licensee.

(5)  "Minor" means a person under 18 years of age.

(6)  "Persons" means individuals, firms, corporations, fair boards, and associations.

(7)  (a)  "Race meet" means racing of registered horses or mules at which the parimutuel system of wagering is used. The term includes horseraces, mule races, and greyhound races that are simulcast.

(b)  The term does not include live greyhound racing.

(8)  "Racing" means live racing of registered horses or mules and simulcast racing of horses, mules, and greyhounds.

(9)  "Simulcast" means a live broadcast of an actual horserace, mule race, or greyhound race at the time it is run. The term includes races of local or national prominence.

(10) "Simulcast facility" means a facility at which horseraces, mule races, or greyhound races are simulcast and wagering on the outcome is permitted under the parimutuel system.

(11) "Steward" means an official hired by the department and by persons sponsoring a race meet to regulate and control the day-to-day conduct and operation of a sanctioned meet."

Section 2.  Section 23-4-102, MCA, is amended to read:

"23-4-102.  Chairman Presiding officer -- quorum -- costs -- salary. (1) The board shall organize by electing one of its members chairman as presiding officer. Three Four members of the board shall constitute a quorum for the transaction of business by the board.

(2) The board may incur costs, charges, and expenses reasonably necessary to carry out this chapter.

(3) Each member may be paid $50 for each day in which he the member is actually and necessarily engaged in the performance of board duties and shall must be reimbursed for travel expenses, as provided for in 2-18-501 through 2-18-503, as amended, incurred in his the member's official service."

Section 3.  Section 23-4-105, MCA, is amended to read:

"23-4-105. Authority of board. The board shall, subject to 37-1-101 and 37-1-121, license and regulate racing and review race meets held in this state under this chapter. All percentages withheld from amounts wagered must be deposited in the board's agency fund account. The board shall then distribute all funds collected under 23-4-202(4)(d), 23-4-204(3), and 23-4-302(3) to live race purses or for other purposes for the good of the existing horseracing industry. If the board decides to authorize new forms of racing, including new forms of simulcast racing, not currently engaged in Montana, it shall do so after holding public hearings to determine the effects of these forms of racing on the existing saddle racing program in Montana. The board should consider both the economic and safety impacts on the existing racing and breeding industry."

Section 4.  Section 23-4-106, MCA, is amended to read:

"23-4-106. Executive secretary -- powers and duties -- staff -- prohibition on racing activities. (1) The department shall appoint an executive secretary for the board.

(2) The executive secretary, in accordance with rules adopted by the board and provisions of this chapter, shall:

(a) supervise race meets and activities of racing officials;

(b) hire all state racing officials for the department;

(c) inspect race facilities;

(d) prescribe the duties and salary of state stewards; and

(e) perform other duties as directed by the board.

(3) The executive secretary may, subject to the approval of the board, hire staff to assist him in performing his duties the performance of the executive secretary's duties.

(4) The executive secretary, a staff member of his staff, and any member of the executive secretary's or a staff member's immediate family are prohibited from owning, training, or having any interest in a racehorse or mule running on a Montana track or having any financial interest in any Montana racing association. No A racing official hired by the department or approved by the board may not wager at a race meet at which he the racing official presides."

Section 5.  Section 23-4-202, MCA, is amended to read:

"23-4-202.   Penalty for violations of law -- authority of board -- judicial review. (1) A person holding a race meet or an owner, trainer, or jockey participating in a race meet, without first being licensed under this chapter, or a person violating this chapter is guilty of a misdemeanor.

(2) The board or, upon the board's authorization, the board of stewards of a race meet at which they officiate may exclude from racecourses in this state a person whom the board considers detrimental to the best interest of racing as defined by rules of the board.

(3) As its own formal act or through an act of a board of stewards of a race meet, the board may suspend or revoke any license issued by the department to a licensee and assess a fine, not to exceed $1,000, against a licensee who violates any of the provisions of this chapter or any rule or order of the board. In addition to the suspension or revocation and fine, the board may forbid application for relicensure for a 2-year period. Fines collected under this subsection must be deposited in the general fund.

(4) The board shall promulgate rules implementing this chapter, including the right to a hearing for individuals against whom action is taken or proposed under this chapter. The rules may include provisions for the following:

(a) summary imposition of penalty by the stewards of a race meet, including a fine and license suspension, subject to review under the contested case provisions of the Montana Administrative Procedure Act;

(b) stay of a summary imposition of penalty by either the board or board of stewards;

(c) retention of purses pending final disposition of complaints, protests, or appeals of stewards' rulings;

(d) setting aside of up to 2% 3% of exotic wagering on races, including simulcast races, to be used as a bonus for owners pursuant to 23-4-304(2). Up to 30% of the amount set aside may be used to defray administrative costs in addition to the 20% already withheld under 23-4-302. deposited in the board's agency fund account. The board shall then distribute all funds collected under this subsection to live race purses or for other purposes that the board considers appropriate for the good of the existing horseracing industry.

(e) using 2% of exotic wagering on live racing to be immediately and equally distributed to all purses except stakes races;

(f) assessment of penalty and interest on the late payment of fines, which must be paid before licenses are reinstated;

(g) definition of exotic forms of wagering on races to be allowed;

(h) standards for simulcast facilities; and

(i) conduct and supervision of simulcast races and parimutuel betting or wagering on simulcast races.

(5) The district court of the first judicial district of the state has exclusive jurisdiction for judicial review of cases arising under this chapter."

Section 6.  Section 23-4-204, MCA, is amended to read:

"23-4-204.   Race exclusively for Montana-bred horses -- bonus for winner. (1) For the purpose of encouraging the breeding in this state of valuable registered horses, at least one race each day at each race meet shall must be limited to horses bred in this state unless, in the board's judgment, there is an insufficient number of Montana-bred horses for such a the race. If in the opinion of the board sufficient competition cannot be had among this class of horses, the race may be eliminated for the day and a substitute race provided instead. Races with exclusively Montana-bred horses must be run for 20% higher purses than races in comparable conditions that are not run with exclusively Montana-bred horses.

(2) The licensee conducting the race meet shall pay a A sum equal to 10% of the first money of every purse won by a horse bred in this state shall be paid by the licensee conducting the race meet to the breeder of the horse within 30 days of the end of the race meet. Only the money contributed by the licensee conducting the race meet may be considered in computing the bonus.

(3) Two Three percent of exotic wagering on a simulcast race shall must be placed in a fund to be distributed by the board, in addition to existing Montana breeders' awards, on a percentage basis of actual breeders' awards earned. deposited in the board's agency fund account. The board shall then distribute all funds collected under this subsection to live race purses or for other purposes that the board considers appropriate for the good of the existing horseracing industry.

(4) Up to 10% of the amount set aside for Montana breeders' awards may be used to defray administrative costs in addition to the 20% withheld under 23-4-302."

Section 7.  Section 23-4-302, MCA, is amended to read:

"23-4-302.   Distribution of deposits -- breakage. (1) Each licensee conducting the parimutuel system shall distribute all sums funds deposited in any pool to the winner thereof of the parimutuel pool, less an amount which that in the case of exotic wagering on races shall may not exceed 25% 26% and in all other races shall may not exceed 20% of the total deposits plus the odd cents of all redistribution to be based on each dollar deposited exceeding a sum equal to the next lowest multiple of 10, known as "breakage".

(2) Each licensee conducting the parimutuel system for a simulcast race meet shall distribute all sums funds deposited with the licensee in any pool for such the simulcast race meet, less an amount which that in the case of exotic wagering on such these races shall may not exceed 25% 26%, unless the signal originator percentage is higher, in which case the Montana simulcast licensee may adopt the same percentage withheld as the place where the signal originated, and that in all other such of these races shall may not exceed 20% of the total deposits plus the odd cents of all redistribution to be based on each dollar deposited exceeding a sum equal to the next lowest multiple of 10, known as "breakage".

(3) Each licensee conducting a parimutuel system for a simulcast race meet shall deduct 1% of its total parimutuel handle the total amount wagered on the race meet and of the simulcast facility and give it to the local fair board. The money must be used to operate or enhance the county fairgrounds facility. deposit it in the board's agency fund account. The board shall then distribute all funds collected under this subsection to live race purses or for other purposes that the board considers appropriate for the good of the existing horseracing industry."

Section 8.  Section 23-4-304, MCA, is amended to read:

"23-4-304.   Gross receipts -- department's percentage -- collection and allocation. (1) (a) The licensee shall pay to the department within 5 days following receipt by the licensee 1% of the gross receipts of each day's parimutuel betting at each race meet, which sums shall be paid to the department within 5 days after receipt by the licensee. At the end of each race meet the licensee shall prepare a report to the department showing the amount of the overpayments and underpayments. If the report shows the underpayments to be in excess of the overpayments, the balance shall must be paid to the department. Money paid to the department may be used for the expenses incurred in carrying out this chapter. The licensee shall, at the same time, pay to the department all sums funds collected under 23-4-202(4)(d) on exotic wagering on races. These funds must be deposited in the board's agency fund account. The board shall then distribute all funds collected under 23-4-202(4)(d) to live race purses or for other purposes that the board considers appropriate for the good of the existing horseracing industry.

(b) Each licensed simulcast facility shall pay to the department either 1% of the gross receipts of each day's parimutuel betting at each race meet or the actual cost to the board of regulating the simulcast race meet, whichever is higher. The money must be paid to the department within 5 days after receipt of the money by the licensee. At the end of each race meet the licensed simulcast facility shall prepare a report to the department showing the amount of the overpayments and underpayments. If the report shows the underpayments to be in excess of the overpayments, the balance must be paid to the department. Money paid to the department must be deposited in an account in the state special revenue fund and must be used for the administration of this chapter. The licensed simulcast facility shall, at the same time, pay to the department all sums funds collected under 23-4-202(4)(d) on exotic wagering on races. These funds must be deposited in the board's agency fund account. The board shall then distribute all funds collected under 23-4-202(4)(d) to live race purses or for other purposes that the board considers appropriate for the good of the existing horseracing industry.

(2) At the end of the Prior to the beginning of the live racing season, sums funds collected under 23-4-202(4)(d) must be distributed by the department, after first passing through the board's agency fund account, to the licensed owners of those Montana-bred horses or mules finishing in the money at the meet from which the sums derived. The owner's award must be calculated as follows:

(a) divide the total amount collected under 23-4-202(4)(d) by the total amount won by Montana-bred horses or mules;

(b) multiply the quotient derived under subsection (2)(a) by the total amount of money won by each owner's Montana-bred horses or mules.

(3) For purposes of the owner's award under subsection (2), "owner" means the individual, partnership, corporation, person, or other entity that owns the horse or mule at the time of entry.

(4) Licensees may not consider the sums available under 23-4-202(4)(d) when establishing purses be used for race purses that are distributed to each live race meet by the board or for other purposes that the board considers appropriate for the good of the horseracing industry."

NEW SECTION. Section 9.  Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

NEW SECTION. Section 10.  Effective date. [This act] is effective on passage and approval.

-END-