Bill Text: MI HB5600 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Gaming; horse racing; general amendments to the horse racing law of 1995; provide for. Amends title & secs. 2, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 19a, 20, 22, 23, 27, 30 & 31 of 1995 PA 279 (MCL 431.302 et seq.) & adds sec. 19b. TIE BAR WITH: HB 5601'16
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-04-27 - Bill Electronically Reproduced 04/26/2016 [HB5600 Detail]
Download: Michigan-2015-HB5600-Introduced.html
HOUSE BILL No. 5600
April 26, 2016, Introduced by Rep. Bumstead and referred to the Committee on Agriculture.
A bill to amend 1995 PA 279, entitled
"Horse racing law of 1995,"
by amending the title and sections 2, 7, 8, 9, 10, 12, 13, 14, 15,
16, 17, 18, 19, 19a, 20, 22, 23, 27, 30, and 31 (MCL 431.302,
431.307, 431.308, 431.309, 431.310, 431.312, 431.313, 431.314,
431.315, 431.316, 431.317, 431.318, 431.319, 431.319a, 431.320,
431.322, 431.323, 431.327, 431.330, and 431.331), section 2 as
amended by 2006 PA 445, sections 7, 9, 10, and 12 as amended by
2000 PA 164, sections 14, 17, and 18 as amended and section 19a as
added by 1998 PA 408, section 16 as amended by 2005 PA 7, and
section 20 as amended by 2006 PA 185, and by adding section 19b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An
act to license and regulate the conducting of horse race
meetings
in this state, with pari-mutuel wagering on the results of
horse races and persons involved in horse racing and pari-mutuel
gaming
activities; at such race meetings; to create the office of
racing
commissioner; to prescribe provide for the powers and duties
of
the racing commissioner; to prescribe certain powers and duties
of
the department of agriculture and the director of the department
of
agriculture; certain state
governmental officers and entities;
to
provide for the promulgation of rules; to provide for the
imposition
of impose taxes and fees and the disposition dispose of
revenues;
to impose certain taxes; to create funds; to legalize and
permit the pari-mutuel method of wagering on the results of live
and simulcast races at licensed race meetings in this state; to
appropriate
the funds money derived from pari-mutuel wagering on
the results of horse races at licensed race meetings in this state;
to
prescribe provide remedies and prescribe penalties; and to
repeal acts and parts of acts.
Sec. 2. As used in this act:
(a) "Affiliate" means a person who, directly or indirectly,
controls, is controlled by, or is under common control with; is in
a partnership or joint venture relationship with; or is a co-
shareholder of a corporation, co-member of a limited liability
company, or co-partner in a limited liability partnership with a
person who holds or applies for a race meeting or track license
under this act. For purposes of this subdivision, a controlling
interest is a pecuniary interest of more than 15%.
(b) "Board" means the Michigan gaming control board created by
section 4 of the Michigan gaming control and revenue act, 1996 IL
1, MCL 432.204, to which certain powers and duties under this act
were transferred by Executive Reorganization Order No. 2009-31, MCL
324.99919.
(c)
(b) "Breaks" means the cents over any multiple
of 10
otherwise payable to a patron on a wager of $1.00.
(c)
"Certified horsemen's organization" means an organization
registered
with the office of racing commissioner in a manner and
form
required by the racing commissioner, that can demonstrate all
of
the following:
(i) The organization's capacity to supply horses.
(ii) The organization's ability to assist a race
meeting
licensee
in conducting the licensee's racing program.
(iii) The organization's ability to monitor and improve
physical
conditions and controls for individuals and horses
participating
at licensed race meetings.
(iv) The organization's ability to protect the
financial
interests
of the individuals participating at licensed race
meetings.
(d)
"City area" means a city with a population of 750,000 or
more
and every county located wholly or partly within 30 miles of
the
city limits of the city.
(d) "Commissioner" or "racing commissioner" means the
executive director.
(e) "Controlled substance" means that term as defined in
section 7104 of the public health code, 1978 PA 368, MCL 333.7104.
(f) "Day of operation" means a period of 24 hours beginning at
12 noon and ending at 11:59 a.m. the following day.
(g) "Drug" means any of the following:
(i) A substance intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in humans or other
animals.
(ii) A substance, other than food, intended to affect the
structure , or condition , or any a function of the body of
humans
or other animals.
(iii) A substance intended for use as a component of a
substance specified in subparagraph (i) or (ii).
(h) "Eligible to race" means a racehorse that has a valid
current charted line or work.
(i) "Entered" means has been drawn into a specific race.
(j) "Executive director" means the executive director of the
Michigan gaming control board appointed under section 4 of the
Michigan gaming control and revenue act, 1996 IL 1, MCL 432.204, to
whom duties of the racing commissioner were transferred under
Executive Reorganization Order No. 2009-31, MCL 324.99919.
(k) (h)
"Fair" means any a county,
district, or community fair
and
any or a state fair.
(l) (i)
"Foreign substance" means
a substance, or its
metabolites, that does not exist naturally in an untreated horse
or, if natural to an untreated horse, exists at an unnaturally high
physiological concentration as a result of having been administered
to the horse.
(m) (j)
"Full card simulcast"
means an entire simulcast racing
program of 1 or more race meeting licensees located in this state,
or an entire simulcast racing program of 1 or more races
simulcasted from 1 or more racetracks located outside of this
state.
(n) "Intended to be entered" means has had its name put into
the draw for a specific race.
(o) "Licensed horsemen's organization" means a horsemen's
organization licensed by the executive director in a manner and
form required by this act, the rules promulgated under this act,
and the executive director.
(p) (k)
"Member of the immediate
family" means the spouse,
child, parent, or sibling.
(q) "Net commission" means the amount determined under section
17(3), after first deducting from the licensee's statutory
commission the applicable state tax on wagering due and payable
under section 22 and the actual verified fee paid by the licensee
to the sending host track to receive the simulcast signal.
(r) "Office of the racing commissioner" means the board.
(s) "Pari-mutuel" and "pari-mutuel wagering" mean a system by
which wagers are placed with, or in, a wagering pool conducted by
an operator licensed under the law of this state and in which the
participants do not wager against the operator. Pari-mutuel and
pari-mutuel wagering may include races run in the past or the
future. Pari-mutuel and pari-mutuel wagering do not include
wagering on a banked game in which the race meeting licensee is a
participant or otherwise holds a stake in the outcome of the game,
or in which the race meeting licensee establishes a bank against
which the participants play. However, pari-mutuel and pari-mutuel
wagering include a system in which a race meeting licensee may make
a nonrefundable contribution to the pool to serve as a seed or
guarantee. Pari-mutuel and pari-mutuel wagering do not include a
video lottery that must be authorized under the McCauley-Traxler-
Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47,
or any other law of this state.
(t) (l) "Person"
means an individual, firm, partnership,
corporation, association, or other legal entity.
(u) (m)
"Purse pool" means an
amount of money allocated or
apportioned to pay prizes for horse races and from which payments
may
be made to certified licensed
horsemen's organizations pursuant
to
under this act.
(v) "Simulcast purse account" means an account maintained with
a financial institution and managed by the designated escrow agent,
as described in section 19, to receive and distribute money as
provided in this act. The simulcast purse account contains, as
subaccounts, the site-specific horsemen's simulcast purse accounts
described in section 19.
(w) (n)
"Veterinarian" means a
person an individual licensed
or otherwise authorized to engage in the practice of veterinary
medicine under part 188 of the public health code, 1978 PA 368, MCL
333.16101
333.18801 to 333.18838, or under a state or federal law
applicable
to that person.individual.
Sec.
7. (1) The racing commissioner executive
director may
promulgate rules pursuant to the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328, for conducting horse
racing, pari-mutuel wagering on horse racing results, and
simulcasting.
The rules promulgated under this section shall must
be designed to accomplish all of the following:
(a) The governing, restricting, approving, or regulating of
horse racing, pari-mutuel wagering on the results of horse races,
and simulcasting conducted at licensed race meetings within this
state.
(b) The promoting of the safety, security, growth, and
integrity of all horse racing, pari-mutuel wagering on the results
of horse races, pari-mutuel wagering and technology, and
simulcasting conducted at licensed race meetings within this state.
(c) The licensing and regulating of each person participating
in, or having to do with, pari-mutuel horse racing and wagering,
and simulcasting at licensed race meetings within this state.
(2) Each race meeting licensee shall provide security at all
times so as to reasonably ensure the safety of all persons and
horses on the grounds, and to protect and preserve the integrity of
horse racing, pari-mutuel wagering, and simulcasting at licensed
race
meetings. If the racing commissioner executive director
determines that additional security is necessary to ensure the
safety
and integrity of racing, the racing commissioner executive
director shall provide supplemental security at each race meeting
in areas where occupational licenses are required for admittance.
(3)
The racing commissioner executive
director may issue
sanctions including, but not limited to, revocation or suspension
of a license, exclusion from racetrack grounds, or a fine of not
more than $25,000.00 for each violation of this act or a rule
promulgated under this act committed by a licensee or other person
under this act. A sanction issued under this section may be
appealed
to the racing commissioner. executive
director. The appeal
shall
must be heard pursuant to the contested case provisions
of
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328.
(4) All proposed extensions, additions, modifications, or
improvements to the racecourse, roadways, parking lots, buildings,
stables, lighting and electrical service, plumbing, public
utilities, drainage, totalisator system and equipment, hardware and
software for all approved methods of conducting pari-mutuel
wagering, and security on the grounds of a licensed racetrack owned
or leased by a person licensed under this act are subject to the
approval
of the racing commissioner.executive
director.
(5)
The racing commissioner executive
director may compel the
production of books, records, memoranda, electronically retrievable
data, or documents that relate to horse racing, simulcasting, and
pari-mutuel wagering conducted at a licensed race meeting.
(6)
The racing commissioner executive
director at any time may
require for cause the removal of any employee or official involved
in or having to do with horse racing, simulcasting, or pari-mutuel
wagering conducted at a licensed race meeting.
(7)
The racing commissioner executive
director may visit,
investigate,
and place auditors and other persons as the racing
commissioner
executive director considers necessary in the offices,
racetracks, or places of business of a licensee under this act to
ensure compliance with this act and the rules promulgated under
this act.
(8)
The racing commissioner executive
director may summon
witnesses and administer oaths or affirmations to exercise and
discharge his or her powers and duties under this act. A person
failing
who fails to appear before the racing commissioner
executive director at the time and place specified in a summons
from
the racing commissioner executive
director or refusing who
refuses to testify, without just cause, in answer to a summons from
the
racing commissioner executive
director is guilty of a
misdemeanor punishable by a fine of not more than $1,000.00, or
imprisonment for not more than 6 months, or both, and may also be
sanctioned
by the racing commissioner. executive
director. A person
testifying
who testifies falsely to the racing commissioner
executive director or his or her authorized representative while
under oath is guilty of a felony punishable by a fine of not more
than $10,000.00 or imprisonment for not more than 4 years, or both,
and
may also be sanctioned by the racing commissioner.executive
director.
Sec.
8. (1) The racing commissioner executive
director may
issue the following general classes of licenses:
(a) Occupational licenses issued to individuals participating
in, involved in, or otherwise having to do with horse racing, pari-
mutuel wagering, or simulcasting at a licensed race meeting in this
state.
(b) Race meeting licenses issued annually for the succeeding
year
to a person persons to conduct live horse racing,
simulcasting, and pari-mutuel wagering on the results of live and
simulcast horse races at a licensed race meeting in this state
pursuant
to and in accordance with the provisions of under this
act.
(c)
Track licenses issued to a person persons to maintain or
operate a racetrack at which 1 or more race meeting licensees may
conduct licensed race meetings in this state.
(d) Horsemen's organization licenses issued annually for the
succeeding year to horsemen's organizations.
(2)
The racing commissioner executive
director shall not issue
a race meeting license to a person if the person is licensed to
conduct a licensed race meeting at another licensed racetrack
within
a city area this state and the person has a controlling
interest
in or co-ownership of the other licensed racetrack. within
the
city area.
Sec.
9. (1) The racing commissioner executive
director shall
issue, without further application, a track license to any person
holding
a valid track license under former 1980 PA 327, this act,
and
maintaining or operating a licensed horse racetrack as of that
hosted live horse racing with pari-mutuel wagering in the year
before
the effective date of this act at
which wagering by pari-
mutuel
methods on the results of horse racing has been conducted by
a
race meeting licensee.the
2016 amendatory act that amended this
section.
(2) A track license, once issued, is valid only as long as the
annual license fee is paid, or until the track license is
voluntarily surrendered or is revoked as provided in this act or
the rules promulgated under this act.
(3) An applicant for a track license shall submit an
application
that is in writing, that demonstrates to the racing
commissioner
executive director that the applicant has satisfactory
financial responsibility, that shows the location of the racetrack
or of the proposed racetrack, and that is accompanied by
substantially detailed plans and specifications for the racecourse,
paddock, grandstand, stable barns, racetrack buildings, fences,
electrical service and lighting, plumbing, parking, and other
facilities
and improvements. The application shall must include the
name
and address of the applicant, and, if the applicant is a
corporation, the place of its incorporation, and any other
information
required by the rules promulgated under this act. by
the
racing commissioner. Upon On the applicant's filing of the
application
and the payment of the license fee, the racing
commissioner
executive director shall investigate the applicant and
the
racetrack or proposed racetrack as the racing commissioner
executive
director considers necessary. If the racing
commissioner
executive director determines that the applicant and the racetrack
satisfy the requirements of this act and the rules promulgated
under
this act, the racing commissioner executive director shall
grant a license for the racetrack, designating in the license the
county
or other municipality in which the licensed racetrack shall
will
be or is located. If the racing
commissioner executive
director determines that the applicant or the racetrack, or both,
do not comply with this act and the rules promulgated under this
act,
the racing commissioner executive
director shall deny the
license.
The action of the racing commissioner executive director
in denying a track license may be reviewed by the circuit court
pursuant
to under section 631 of the revised judicature act of
1961, 1961 PA 236, MCL 600.631.
(4) A track license may be transferred to a new owner of a
racetrack
with the consent of the racing commissioner.executive
director.
(5) After a track license is issued under this section, the
racing
commissioner executive
director may impose a fine or suspend
or revoke the license if the holder of the license, after
reasonable
notice from the racing commissioner, executive director,
does not make necessary improvements, additions, or corrections to
the licensed premises, fixtures, or equipment as determined and
required
by the racing commissioner; executive
director; if the
holder of the license violates or is no longer in compliance with
the requirements of this act or the rules promulgated under this
act;
or if the licensed premises are not utilized used to
conduct a
licensed race meeting for 2 consecutive years. In addition to the
suspension
or revocation of the license, the racing commissioner
executive director may impose a fine or bring an action in circuit
court seeking an order of the court requiring the licensee to make
reasonable and necessary racetrack improvements or additions as
determined
by the commissioner executive
director if the licensee
fails to make improvements or corrections that comply with the
applicable
construction code or local ordinances. The action of the
racing
commissioner in In suspending or revoking a track license,
the executive director shall comply with the administrative
procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328. , and
shall
be The action of the executive
director is subject to appeal.
(6)
In a city area, not more than 3 racetracks shall be
licensed,
except that in a city with a population of 900,000 or
more
the racing commissioner may issue 1 additional license.
(6) (7)
A The executive director
shall not issue a person
shall
not be issued more than 1 track
license. Controlling
ownership and interlocking directorates among the holders of track
licenses are prohibited.
(7) (8)
A track license The executive
director shall not be
issued
issue a track license under this section if the new license
would result in harmful competition among existing racetracks.
Sec.
10. (1) A person desiring that
desires to conduct a
thoroughbred, standardbred, quarter horse, Appaloosa, American
paint horse, or Arabian race meeting, or a combination of these
race meetings, with pari-mutuel wagering on the results of live and
simulcast
horse races pursuant to under
this act shall apply each
year to the racing commissioner for a race meeting license in the
manner
and form required by the racing commissioner. executive
director.
The application shall must be
filed with the racing
commissioner
executive director before September 1 of the preceding
year. except
that applications for 1999 racing dates may be filed
at
any time. The executive director shall make an application,
after
being it is filed, shall be made available for public
inspection
during regular business hours. The application shall
must
be in writing and shall give the
name and address of the
applicant, and, if the applicant is a corporation or partnership,
shall
state the place of the applicant's
incorporation or
partnership and the names and addresses of all corporate directors,
officers,
shareholders, and partners. The application shall must
also do all of the following:
(a) Specify the licensed racetrack at which the proposed race
meeting will be held.
(b) Specify whether the applicant requests or will request to
conduct simulcasting at the proposed race meeting and, if so,
demonstrate the applicant's ability to conduct simulcasting in
accordance with this act.
(c) Specify the horse breed for which the applicant desires to
conduct live racing at the proposed race meeting, and the days on
which the applicant proposes to conduct live horse racing at the
race meeting.
(d) Specify the time period during which the applicant
requests to be licensed during the calendar year immediately
following the date of application.
(e)
Demonstrate to the racing commissioner executive director
that the applicant and all persons associated with the applicant
who hold any beneficial or ownership interest in the business
activities of the applicant or who have power or ability to
influence or control the business decisions or actions of the
applicant satisfy all of the following requirements:
(i) Are persons of good character, honesty, and integrity.
(ii) Possess sufficient financial resources and business
ability and experience to conduct the proposed race meeting.
(iii) Do not pose a threat to the public interest of the
this
state or to the security and integrity of horse racing or pari-
mutuel
wagering on the results of horse races in the this state.
(f) Provide any other information required by the rules
promulgated
under this act or by the racing commissioner.executive
director.
(2) Upon the filing of the application for a race meeting
license,
the racing commissioner executive
director shall conduct
an investigation of the applicant and the application to determine
whether the applicant, application, and proposed race meeting
comply with the licensing requirements for a race meeting license
under
this act and the rules promulgated under this act. Unless a
different
agreement is reached by all the race meeting licensees in
a
city area, a race meeting licensee shall not conduct a live
thoroughbred
horse race after 6:45 p.m. on any day except Sunday.
Unless
a different agreement is reached by all the race meeting
licensees
in a city area, a race meeting licensee shall not conduct
a
live standardbred horse race before 6:45 p.m. on any day except
Sunday.
Notwithstanding the 6:45 p.m. time restrictions, the
commissioner,
upon request by a race meeting licensee, may grant to
the
race meeting licensee a race meeting license authorizing any of
the
following:
(a)
The licensee to conduct live horse racing programs that
would
otherwise be prevented by the 6:45 p.m. time restriction, if
no
other race meeting in a city area is licensed or authorized to
conduct
live horse racing at the same time the licensee proposes to
conduct
the requested live horse racing programs.
(b)
Waiver of the 6:45 p.m. time restriction pursuant to the
written
agreement of all race meeting licensees in the city area.
(c)
The licensee to conduct live horse racing programs after
6:45
p.m., if the licensee is not in a city area and is 75 miles or
more
from the nearest race meeting licensee authorized to conduct
live
horse racing.
Sec.
12. (1) Each An applicant for a license to conduct a
thoroughbred,
quarter horse, Appaloosa, American paint horse, or
Arabian
license in a county located outside of a city area race
meeting shall apply to conduct live horse racing with pari-mutuel
wagering for a number of live race days as agreed to by the
applicant and the licensed horsemen's organization with which the
applicant has a contract. The applicant shall apply to conduct at
least
45 15 days of live thoroughbred, quarter horse,
Appaloosa,
American
paint horse, or Arabian horse
racing during its proposed
race
meeting. Except during the opening and closing week of a race
meeting,
the applicant shall apply to conduct live racing at least
3
days per week, including Saturdays and Sundays, with not less
than
9 live horse races programmed, and A
race meeting licensee
shall
conduct live racing programs on such the days allocated by
the
racing commissioner.executive
director. The executive director
shall allocate not fewer than 10 days of live horse racing to a
race meeting licensee with not fewer than 6 programmed live races
per allocated day.
(2)
Each applicant for a thoroughbred, quarter horse,
Appaloosa,
American paint horse, or Arabian race meeting license in
a
city area shall apply to conduct at least 160 days of live
thoroughbred,
quarter horse, Appaloosa, American paint horse, or
Arabian
horse racing during its proposed race meeting. Except
during
the opening and closing week of a race meeting, the
applicant
shall apply to conduct live racing at least 5 days per
week,
including Saturdays and Sundays, with not less than 9 live
horse
races programmed, and shall conduct live racing programs on
such
days allocated by the racing commissioner.
(3)
Each applicant for a standardbred race meeting license in
a
county having a population of less than 250,000 and that is not
part
of a city area shall apply to conduct at least 75 days of live
standardbred
harness horse racing during its proposed race meeting.
Except
during the opening and closing week of a race meeting, the
applicant
shall apply to conduct live horse racing at least 4 days
per
week, including Saturdays, with not less than 9 live horse
races
programmed, and shall conduct live racing programs on such
days
awarded.
(4)
Each applicant for a standardbred race meeting license in
a
county having a population greater than 250,000 but less than
750,000
and that is not part of a city area shall apply to conduct
at
least 100 days of live standardbred harness horse racing during
its
proposed race meeting. Except during the opening and closing
week
of a race meeting, the applicant shall apply to conduct live
racing
at least 4 days per week, including Saturdays, with not less
than
9 live horse races programmed, and shall conduct live racing
programs
on such days awarded.
(5)
Each applicant for a standardbred race meeting license in
a
city area shall apply to conduct during its race meeting no less
than
the following number of live racing days:
(a)
The race meeting applicant with the highest pari-mutuel
handle
in the previous calendar year shall apply for no less than
140
days of live racing and the applicant shall apply to conduct
live
racing at least 5 days per week, including Saturdays, with not
less
than 9 live horse races programmed and shall conduct live
racing
programs on the days awarded.
(b)
All other applicants shall apply for not less than an
aggregate
total of at least 120 days of live racing and the
applicants
shall apply to conduct live racing at least 5 days per
week,
including Saturdays, with not less than 9 live horse races
programmed
and shall conduct live racing programs on the days
awarded.
(2) To be eligible for licensure, an applicant for a race
meeting license must submit with the application a copy of its
written and fully executed contract with a licensed horsemen's
organization that represents the applied-for breeds. The term of
the contract must include the term of the applied-for license. If
the applicant has applied for racing of multiple breeds, the
contract or contracts submitted must cover all applied-for breeds.
(3) (6)
If a race meeting licensee is
unable to program and
conduct
9 8 live horse races on any a racing
date that the
commissioner
allocates awarded to the licensee because there are
less
than 5 entries in any race, for
any reason, the licensee shall
not conduct any simulcasting on that day without the written
consent
of the certified licensed horsemen's organization with
which
it the licensee has a contract representing the horse breed
scheduled to be raced on that day. If the race meeting licensee and
the licensed horsemen's organization cannot agree, the licensee
shall not conduct any simulcasting without the written consent of
the executive director.
(4) (7)
If a race meeting licensee is
unable to conduct racing
on
any a live racing dates allocated date awarded to the licensee
by
the racing commissioner or less fewer than
9 8 live horse races
on
any allocated an awarded live racing dates date because
of a
labor dispute, fire, adverse weather conditions, or other causes
beyond
the race meeting licensee's control, then the race meeting
licensee is considered to have conducted those races or that race
days
date for purposes of this act and is not precluded from
conducting any simulcasts because of the licensee's inability to
conduct
those live races or that race dates.date.
(5) (8)
Intertrack simulcast races that a
race meeting
licensee contracts to receive from other racetracks that are
canceled
for any of the reasons described in subsection (7) shall
be
(4) are considered to be offered to the public for purposes
of
this act.
(6) (9)
If an entire race meeting or the
balance of a race
meeting
and racing dates allocated awarded
to a licensee cannot be
raced
due to because of an act of God or significant physical
damage to the licensed racetrack at which the race meeting was
licensed to be conducted caused by fire or some other catastrophe,
the
racing commissioner executive
director may transfer those dates
to another race meeting licensee upon application of the substitute
licensee if the substitute licensee satisfies the requirements for
licensure under this act and demonstrates that it has or will have
a legal or contractual right to the use of a different licensed
racetrack facility on the racing dates in question, and all race
meeting
licensees that will be conducting live racing on such those
dates within 50 miles of the substitute racetrack consent to the
transfer.
Sec. 13. (1) A licensed horsemen's organization and a race
meeting
licensee shall have a current must
enter into a written
contract
with a certified horsemen's organization before it the
race meeting licensee may conduct live or simulcast horse races
with
pari-mutuel wagering on the results of the races pursuant to
its
under the race meeting license.
(2)
The racing commissioner shall register and certify all
certified
horsemen's organizations that had contracts with race
meeting
licensees in this state in 1995 or 1994 for the conduct of
pari-mutuel
racing at race meetings in this state during 1994 or
1995,
and their successors or assigns as certified horsemen's
organizations
for purposes of this act. The racing commissioner
shall
also accept any current contracts that these certified
horsemen's
organizations have with race meeting licensees as
complying
with the requirements of subsection (1) for the term of
the
contract.
(2) An applicant for a horsemen's organization license shall
submit a written application to the executive director on a form
and in the manner prescribed by the executive director. An
applicant for a horsemen's organization license shall pay a
nonrefundable annual license fee of $100.00. An application must be
filed with the executive director before September 1 of the year
before the year for which the license will be issued. A horsemen's
organization license may be issued for not more than 1 year and
must expire not later than the last day of the calendar year.
(3) The executive director shall consider the following when
deciding whether to grant an application for a horsemen's
organization license:
(a) The financial responsibility of the applicant.
(b) Detailed information about the horse breed represented and
supply of horses to race meeting licensees by the applicant and the
applicant's membership roster.
(c) Each written and fully executed contract between the
applicant and a race meeting licensee within the preceding 5 years.
(d) The honesty and integrity of the applicant.
(e) The veracity and accuracy of the information supplied by
the applicant, or by any individual or officer or agent of the
applicant on behalf of the applicant.
(f) Any pending lawsuits or bankruptcy proceedings of the
applicant.
(g) Any other information considered necessary by the
executive director.
(4) To be eligible to be licensed, a horsemen's organization
must agree to obey the rules of the board and the law of this
state. The horsemen's organization must agree to be subject to the
subpoena powers of the board or to obey a written request issued
instead of a subpoena and to provide the board with any information
or documents the board requests as authorized under this act and
the rules promulgated under this act. The horsemen's organization
must agree to fully cooperate with regulatory investigations of the
board and law enforcement investigations related to horse racing.
(5) The executive director shall grant or deny an application
for a horsemen's organization license before November 1 of the year
before the year for which the application is made.
Sec.
14. (1) Except as provided in subsection (8), before
Before November 1 of the year preceding the year for which
applications
are made, the racing commissioner executive director
shall grant or deny each application for a race meeting license,
allocate
or deny the dates , for
which application has been made ,
on
which pari-mutuel wagering on live races may be conducted, at
each
licensed race meeting in this state, and
shall also determine
whether the applicant may simulcast under section 18 during the
calendar
year for which the license is issued. The racing
commissioner
executive director may grant a race meeting license
for
any time period up to not
more than 1 year during which the
licensee may conduct live and simulcast horse races with pari-
mutuel
wagering on the results of such the
races.
(2)
Subject to section 12(7), 12(4),
all simulcasting
authorized
by the racing commissioner shall executive director must
be
conditioned upon on the holder of the license conducting at
least
9 not fewer than 8 live horse races on each live racing date
allocated in the holder's race meeting license, unless this
requirement
is waived in writing by both the racing commissioner
executive
director and the certified licensed horsemen's
organization with which the licensee has contracted.
(3)
The racing commissioner executive
director shall not issue
a race meeting license to an organization organized for a
charitable purpose or organized for the purpose of distributing its
profits or income to charitable organizations.
(4)
Except as provided in section 12(7), (8), and (9), 12(4)
to (6), if, after the issuance of a race meeting license, the
racing
commissioner executive
director determines upon on further
investigation that the holder of a race meeting license has not
met, or will be unable to meet, the requirements of the license,
the
racing commissioner executive
director may impose a fine or
suspend or revoke the race meeting license, or both, for all or
part
of the remainder of the time period for which the license was
granted. Before making the required determination to impose a fine
or suspend or revoke a race meeting license under this subsection,
the
racing commissioner executive
director shall consider whether
the race meeting licensee's inability or failure to meet the
requirements
of its license is due to because
of a cause beyond the
control of the race meeting licensee.
(5)
Any action taken by the racing commissioner executive
director
under subsection (4) shall become is effective
10 days
after the holder of the race meeting license has received written
notice
unless the commissioner finds executive
director determines
that the public health, safety, or welfare requires emergency
action
and immediate effect of the commissioner's order.
(6) A denial of a race meeting license under subsection (3)
may be appealed to the circuit court for judicial review pursuant
to section 631 of the revised judicature act of 1961, 1961 PA 236,
MCL 600.631. A suspension or revocation of a race meeting license
may be appealed pursuant to the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328.
(7) Each applicant issued a race meeting license shall
maintain an interest bearing account used exclusively for deposit
of
all funds money due horsemen's purse pools under this act. All
funds
money due to this account shall must be
deposited within a
reasonable time after receipt by the race meeting licensee. The
name of the depository and the identification number of the account
shall
must be designated in each race meeting license
application
and
all interest earned by the account shall must be credited to
the purse pool and deposited in the account.
(8)
The November 1 deadline provided in subsection (1) does
not
apply to 1999 thoroughbred race meeting dates. The racing
commissioner
may issue 1999 thoroughbred race meeting dates at any
time.
Sec.
15. (1) Before March 31 of each year, each holder of a
race
meeting licensee or track license licensee shall
file with the
racing
commissioner executive
director a certified statement of
receipts from all sources during the previous calendar year and of
all expenses and disbursements, itemized in a manner and on a
standardized form as directed by the state treasurer, showing the
net
revenue from all sources derived by the holder of the license.
licensee.
These certified financial statements shall
be considered
are public records and must be made available for public inspection
during regular business hours. The certified financial statements
submitted
shall must be prepared by a certified public accountant
in accordance with generally accepted accounting and auditing
standards
as promulgated by the American institute of certified
public
accountants. Institute of
Certified Public Accountants. The
working papers and other records pertaining to preparation of the
financial statements may be reviewed by the state treasurer and the
racing
commissioner executive
director and the licensees shall be
promptly
provided provide the
papers and records to them by the
holders
of the race meeting license upon their the state treasurer
and the executive director on request.
(2) On the first day other than Sunday after each day of
operation,
each holder of a race meeting license licensee shall
remit
the money due to the this state or other entities persons
under this act at the close of the day of operation with a detailed
statement
of that the money as required by this act and the rules
promulgated under this act.
(3)
A person shall not hold or conduct, or assist, aid, or
abet
in holding or conducting a race meeting within the state where
live
or simulcast horse races with pari-mutuel wagering on the
results
of horse racing for a stake, purse, prize, share, or reward
is
conducted, unless the person and the racetrack at which the
gaming
activity is conducted are licensed by the racing
commissioner.
Sec.
16. (1) Each A person participating in or having to do
with pari-mutuel horse racing or pari-mutuel wagering on the
results of horse races at a licensed race meeting, including, but
not limited to, all racing officials, veterinarians, pari-mutuel
clerks or tellers, totalisator company employees, security guards,
timers, horse owners, jockeys, drivers, apprentices, exercise
riders, authorized agents, trainers, grooms, valets, owners of
stables operating under an assumed name, jockey agents, pony
riders, hot walkers, blacksmiths, starting gate employees, owners
and operators of off-track training centers, farms or stables where
racehorses are kept, and vendors operating within the barn area of
a licensed racetrack or off-track training center, farm, or stable
where
racehorses are kept may be licensed by the racing
commissioner
pursuant to executive
director under rules promulgated
by
the racing commissioner under this
act. The racing commissioner
executive director shall not issue an occupational license to a
person who, within the 6 years immediately preceding the date of
the person's application for the occupational license, was
convicted of a felony involving theft, dishonesty,
misrepresentation, fraud, corruption, drug possession, delivery, or
use, or other criminal misconduct that is related to the person's
ability to and the likelihood that the person will perform the
functions and duties of the racing related occupation for which the
person seeks to be licensed and participate in pari-mutuel horse
racing in that licensed occupation in a fair, honest, open, and
lawful
manner. The racing commissioner executive
director shall not
issue a pari-mutuel occupational license to a person who, within 2
years immediately preceding the date of the person's application
for the occupational license, was convicted of a misdemeanor
involving theft, dishonesty, misrepresentation, fraud, corruption,
drug possession, delivery, or use, or other criminal misconduct
that is related to the person's ability to and the likelihood that
the person will perform the functions and duties of the racing
related occupation for which the person seeks to be licensed and
participate in pari-mutuel horse racing in that licensed occupation
in a fair, honest, open, and lawful manner.
(2) The executive director may issue a temporary license to a
person that applies for an occupational license under this section
less than 7 days before a race day. A temporary license issued
under this subsection is valid until a background investigation can
be completed, but not for more than 14 days. If a temporary license
is issued to an owner, trainer, assistant trainer, jockey, or
driver, purses for a race involving a horse under the care and
control of the temporary licensee must be held and distributed
after the occupational license application has been approved or
denied. If the application is denied, the purse money must be
distributed as if the horse under the care or control of the
temporary licensee did not participate in the race.
(3) (2)
A veterinarian is not required to
be licensed under
this act to provide necessary and appropriate emergency veterinary
care
or treatment to any a horse that is intended to be entered, is
entered, or participates in a race with wagering by pari-mutuel
methods or a nonbetting race or workout conducted at a licensed
race
meeting in this state. For purposes of this section,
"emergency
veterinary care or treatment" means care or treatment
necessary
and appropriate to save the life of a horse or prevent
permanent
physical injury or damage to a horse in a situation
requiring
immediate veterinary action. Only
veterinarians licensed
under this act may provide nonemergency veterinary care or
treatment to a horse in this state that is intended to be entered,
is entered, or participates in races at licensed race meetings in
this state. Only persons licensed under this act or otherwise
authorized
by the racing commissioner executive
director may enter
the restricted grounds of a licensed race meeting where horses are
kept
that are eligible to race at the race meeting. For the
purposes
of this section and sections 30 and 31, a horse that is
intended
to be entered is a horse that has its name put into the
draw
for a specific race, and a horse that is entered in a race is
a
horse that has been drawn into a specific race.As used in this
subsection, "emergency veterinary care or treatment" means care or
treatment necessary and appropriate to save the life of the horse
or prevent permanent physical injury or damage to the horse in a
situation requiring immediate veterinary action.
(4) (3)
As conditions precedent to being
issued and holding a
valid
pari-mutuel an occupational license under this section, a
license applicant shall disclose, in writing, any ownership
interest that the applicant has in a racehorse and provide any
other
information the racing commissioner executive director
considers necessary and proper and proof of compliance with the
worker's disability compensation act of 1969, 1969 PA 317, MCL
418.101 to 418.941, except that the proof of compliance requirement
does not apply to horse owners and trainers not covered under
section 115 of the worker's disability compensation act of 1969,
1969 PA 317, MCL 418.115.
(5) (4)
In addition to the requirements of
subsection (3),
(4),
an applicant for a pari-mutuel an occupational
license under
this
section shall consent, upon at the time of the application and
for the duration of the occupational license, if issued, to all of
the following:
(a) Personal inspections, inspections of the applicant's
personal property, and inspections of premises and property related
to his or her participation in a race meeting by persons authorized
by
the racing commissioner.executive
director.
(b) If the applicant is applying for a racing official,
jockey, driver, trainer, or groom license, or for any other license
for an occupation that involves contact with or access to the
racehorses or the barn areas or stables where racehorses are kept,
a breathalyzer test, urine test, or other noninvasive fluid test to
detect the presence of alcohol or a controlled substance, if
directed
to do so by the racing commissioner executive director or
his or her representative. If the results of a test show that an
occupational licensee has more than .05% of alcohol in his or her
blood, or has present in his or her body a controlled substance,
the
person shall individual
must not be permitted to continue in
his or her duties or participate in horse racing until he or she
can produce, at his or her own expense, a negative test result. The
licensee
may be penalized by the racing commissioner for his or her
executive director because of the positive test results, which
punishment may include any disciplinary action authorized by this
act or rules promulgated under this act. This subsection does not
apply to a controlled substance obtained directly from, or pursuant
to a valid prescription from, a licensed health care provider,
except
that the racing commissioner executive
director may consider
the person's medical need for prescribed controlled substances in
determining the person's fitness to be licensed to participate in
pari-mutuel
horse racing. The racing commissioner executive
director
shall suspend for not less than 1 year
the license of a
person
an individual who for the third time in a period of not more
than 6 consecutive years is relieved of his or her duties because
of
this subsection.subdivision.
(c) The disclosure of any arrests for or pending criminal
charges.
(6) (5)
When applying for an occupational
license, an
applicant
shall provide the racing commissioner executive director
with 1 or more sets of his or her fingerprints and the appropriate
fees
as requested by the racing commissioner. executive director.
The
racing commissioner executive
director shall send the
applicant's fingerprints and the appropriate fees to either the
department of state police or the federal bureau of investigation
in a manner acceptable to the federal bureau of investigation. If
the fingerprints and fees are sent to the department of state
police, the department of state police shall forward the
fingerprints and the fees to the federal bureau of investigation
for a criminal history check. Information obtained under this
subsection shall only be used to determine the character and
fitness of the applicant for licensing purposes.
(7) (6)
A person who is issued a
pari-mutuel an occupational
license as a trainer is responsible for and absolute insurer of the
condition, fitness, eligibility, and qualification of the horses
entered to race for the person by whom the trainer is employed,
except
as prescribed by the rules promulgated by the racing
commissioner
under this act. This subsection shall
must not be
construed or interpreted to determine civil tort liability of any
racehorse
owner or trainer but shall be and
is for purposes of
enforcement of this act only. A trainer shall not start a horse
that has in its body a drug or foreign substance unless permitted
pursuant
to under section 30 and the rules promulgated under that
section. A trainer is strictly liable and subject to disciplinary
action if a horse under the trainer's actual or apparent care and
control
as trainer has a drug or foreign substance in its body , in
violation of section 30 and the rules promulgated under that
section.
(8) (7)
Upon On the filing of a written complaint, under oath,
in
the office of the racing commissioner, with the board, or upon
on
the written motion of the racing
commissioner executive
director
regarding
the actions or omissions of a person issued a pari-mutuel
an
occupational license under this section, the racing commissioner
executive director may summarily suspend the occupational license
of
the person for a period of not
more than 90 days pending a
hearing
and final determination by the racing commissioner
executive director regarding the acts or omissions complained of in
the
written complaint or motion, if the commissioner executive
director determines from the complaint or motion that the public
health,
safety, or welfare requires emergency action. The racing
commissioner
executive director shall schedule the complaint or
motion to be heard within 14 business days after the occupational
license is summarily suspended and notify the holder of the
occupational license of the date, time, and place of the hearing
not less than 5 days before the date of the hearing. The hearing
shall
must be conducted in accordance with the contested case
provisions of the administrative procedures act of 1969, 1969 PA
306,
MCL 24.201 to 24.328. The action of the racing commissioner
executive
director in revoking or suspending a
pari-mutuel an
occupational license issued under this section may be appealed to
the
circuit court pursuant to under
the administrative procedures
act
of 1969, 1969 PA 306, MCL 24.201 to 24.328. If the racing
commissioner's
order is predicated upon on a
series of acts, the
review by the circuit court may be in the county in which any of
the alleged acts or failures to act took place.
(9) (8)
A decision by the racing
commissioner executive
director or a deputy commissioner or state steward of racing to
deny an application for an occupational license may be appealed to
the
circuit court and reviewed pursuant to under section 631 of the
revised judicature act of 1961, 1961 PA 236, MCL 600.631. A
suspension or revocation of an occupational license may be appealed
and
reviewed pursuant to under
the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328.
(10) (9)
Each pari-mutuel An occupational licensee shall pay a
license fee of not less than $10.00 or more than $100.00 as
determined
by the racing commissioner.executive
director.
Sec.
17. (1) The pari-mutuel system of wagering upon on the
results of horse races as permitted by this act shall not be held
or construed to be unlawful. All forms of pari-mutuel wagering
conducted
at a licensed race meeting shall must be preapproved by
the
racing commissioner executive
director pursuant to rule or
written
order of the commissioner.executive
director.
(2) A holder of a race meeting license may provide a place in
the
race meeting grounds or enclosure at which he or she may
conduct and supervise the pari-mutuel system of wagering on the
results of horse races as permitted by this act. If the pari-mutuel
system of wagering is used at a race meeting, a totalisator or
other device that is equal in accuracy and clearness to a
totalisator
and approved by the racing commissioner shall executive
director must be used. The odds display of the totalisator or other
device
shall must be placed in full view of the patrons.
(3)
Subject to section 18(3), each The
holder of a race
meeting license shall retain as his or her commission on all forms
of
straight wagering 17% not
more than 30% of all money wagered
involving
straight wagers on the results of
live and simulcast
horse
races conducted at the licensee's race meetings. Subject to
section
18(3), each holder of a race meeting license shall retain
as
his or her commission on all forms of multiple wagering, without
the
written permission of the racing commissioner not more than 28%
and
with the written permission of the racing commissioner not more
than
35% of all money wagered involving any form of multiple wager
on
the results of live and simulcast horse races conducted at the
licensee's
race meeting. Except as otherwise
provided by contract,
the race meeting licensee shall pay 50% of all commissions from
wagering on the results of live racing at the racetrack where the
live
racing was conducted shall be paid to the horsemen's purse
pool
at the racetrack where the live racing was conducted. As used
in
this subsection:
(a)
"Straight wagering" means a wager made on the finishing
position
of a single specified horse in a single specified race.
(b)
"Multiple wagering" means a wager made on the finishing
positions
of more than 1 horse in a specified race or the finishing
positions
of 1 or more horses in more than 1 specified race.
(4)
All A race meeting
licensee shall retain all breaks shall
be
retained by the race meeting licensee and
paid pay them directly
to the city or township in which the racetrack is located as a fee
for
services provided pursuant to under
section 21.
(5)
Payoff prices of tickets of a higher denomination shall
must be calculated as even multiples of the payoff price for a
$1.00 wager. Each holder of a race meeting license shall distribute
to the persons holding winning tickets, as a minimum, a sum not
less than $1.10 calculated on the basis of each $1.00 deposited in
a pool, except that each race meeting licensee may distribute a sum
of not less than $1.05 to persons holding winning tickets for each
$1.00 deposited in a minus pool. As used in this subsection, "minus
pool" means any win, place, or show pool in which the payout would
exceed the total value of the pool.
(6) A holder of a race meeting license shall not knowingly
permit a person less than 18 years of age to be a patron of the
pari-mutuel wagering conducted or supervised by the holder.
(7)
Any An act or transaction relative to pari-mutuel wagering
on
the results of live or simulcast horse races shall only occur or
be
permitted to occur within the enclosure of a licensed race
meeting.
A person shall not participate or be a party to any act or
transaction
relative to placing a wager or carrying a wager for
placement
outside of a race meeting ground. A person shall not
provide
messenger service for the placing of a bet for another
person
who is not a patron. However, this subsection does not
prevent
simulcasting or intertrack or interstate common pool
wagering
inside or outside this state as permitted by this act or
the
rules promulgated under this act.must
be conducted only by a
race meeting licensee licensed under this act. The race meeting
licensee must not charge or pay a fee that exceeds 5% of the total
amount wagered on an interstate simulcast race unless the executive
director or the executive director's designee approves a larger fee
on the basis that the fee reasonably reflects the value of the
simulcast racing program and that charging or paying the fee does
not result in harmful competition among race meeting licensees. As
used in this subsection, "act or transaction relative to pari-
mutuel wagering on the results of live or simulcast horse races"
means the acceptance and processing of a wager under this act.
Sec. 18. (1) Simulcasting by race meeting licensees may be
authorized
by the racing commissioner executive
director subject to
the
limitations of this section. As used in this section,
"simulcast"
means the live transmission of video and audio signals
conveying
a horse race held either inside or outside this state to
a
licensed race meeting in this state. A simulcast from 1 racetrack
in
this state to another racetrack in this state shall be called an
"intertrack
simulcast". A simulcast from a racetrack outside this
state
to a racetrack inside this state shall be called an
"interstate
simulcast".
(2) The holder of a race meeting license may apply to the
racing
commissioner, executive
director, in the manner and form
required
by the commissioner, executive
director, for a permit to
televise
simulcasts of horse races to viewing areas within the
enclosure
of at the licensed racetrack at which the applicant is
licensed
to conduct its race meeting. The commissioner executive
director may issue a permit for individual race and full card
simulcasts televised during, between, before, or after programmed
live horse races on any day that live racing is conducted by the
applicant, and also on other days during the term of the
applicant's license when the applicant does not conduct live horse
racing, subject to the following conditions:
(a)
The applicant shall must have a current contract with a
certified
licensed horsemen's organization.
(b)
The applicant shall must have applied for and been
allocated
the minimum number of live racing
dates required by
section
12(1). to (5), subject to the availability of adequate
horse
supply as determined by the racing commissioner.
(c)
The applicant shall must make a continuing good faith
good-faith effort throughout the duration of its race meeting to
program
and conduct not less than 9 live horse races on each live
racing date allocated to the applicant.
(d)
The certified licensed horsemen's organization with which
the
applicant has contracted shall must
have consented to the
requested
simulcasts on any live racing day. when the applicant is
unable
to program and conduct not less than 9 live horse races, if
required
by section 12(6).
(e) If the requested simulcasts are interstate, the applicant
shall
must waive in writing any right that the applicant may
have
under
the interstate horse racing act of 1978, Public Law 95-515,
15
U.S.C. USC 3001 to 3007, to restrict interstate simulcasts by
other race meeting licensees in this state.
(f)
If the applicant conducts its race meeting in a city area,
the
The applicant shall must make
the video and audio signals of
its live horse races available for intertrack simulcasting to all
licensed race meetings in this state located more than 12 miles
from
the applicant's race meeting. The applicant shall must charge
each race meeting licensee the same fee to receive its live signals
for
intertrack simulcasting. The fee shall must not exceed 3% of
the total amount wagered on the intertrack simulcast at each race
meeting that receives the simulcast.
(g)
Except as otherwise agreed by the race meeting licensees
in
a city area and the respective certified horsemen's
organizations
with which they contract, a licensee in a city area
shall
receive all available intertrack simulcasts from licensed
race
meetings in the city area located more than 12 miles from the
licensee's
race meeting.
(g) (h)
A licensed race meeting outside a city area shall The
applicant must not conduct interstate simulcasts unless it also
receives
all intertrack simulcasts from licensed race meetings in a
city
area that are available.
(i)
All applicants conducting licensed race meetings in a city
area
shall authorize all other race meeting licensees in the state
to
conduct simulcasts of the breed for which the applicant is
licensed
to conduct live horse racing. An applicant may not conduct
interstate
simulcasts unless authorization to do so is given by the
applicant,
in accordance with subdivision (j), permitting all other
race
meeting licensees to receive interstate simulcasts of a
different
breed than they are licensed to race live.
(j)
A race meeting licensee shall not conduct an interstate
simulcast
of a different breed than it is licensed to race live at
its
race meeting, unless the licensee has the written permission of
all
race meeting licensees in a city area that are licensed to race
that
breed live at their race meetings.
(h) (k)
All authorized simulcasts shall must be
conducted in
compliance with the written permit and related orders issued by the
racing
commissioner executive
director and all other requirements
and
conditions of this act and the rules of the racing commissioner
executive director promulgated under this act.
(i) (l) All
authorized interstate simulcasts shall must also
comply
with the interstate horse racing act of 1978, Public Law 95-
15,
15 U.S.C. USC 3001
to 3007.
(3) All forms of wagering by pari-mutuel methods provided for
under
this act for live racing shall be is allowed on simulcast
horse races authorized under this section. All money wagered on
simulcast
horse races at a licensed race meeting shall must be
included in computing the total amount of all money wagered at the
licensed
race meeting for purposes of section 17. When the
simulcast
is an interstate simulcast, the money wagered on that
simulcast
shall form a separate pari-mutuel pool at the receiving
track
unless 2 or more licensees receive the same interstate
simulcast
signals or the racing commissioner permits the receiving
track
to combine its interstate simulcast pool with the pool
created
at the out-of-state sending track on the same race. If 2 or
more
licensees receive the same interstate simulcast signals, the
money
wagered on the simulcasts shall be combined in a common pool
and
the licensees shall jointly agree and designate at which race
meeting
the common pool will be located. However,
if the law of the
jurisdiction in which the sending racetrack is located permits
interstate
common pools at the sending racetrack, the racing
commissioner
executive director may permit pari-mutuel pools on
interstate simulcast races in this state to be combined with pari-
mutuel pools on the same races created at the out-of-state sending
racetrack. If the pari-mutuel pools on the interstate simulcast
races in this state are combined in a common pool at the out-of-
state
sending track, then the commissions described in section 17
on
the pool created in this state shall must be adjusted to equal
the commissions in effect at the sending track under the laws of
its jurisdiction. If the simulcast is an intertrack simulcast, the
money
wagered on that the simulcast at the receiving racetrack
shall
must be added to the pari-mutuel pool at the sending
racetrack.
(4)
Each race meeting licensee that
receives an interstate
simulcast
shall pay to the horsemen's simulcast purse pool
established
under section 19 a sum equal to 40% of the licensee's
net
commission from all money wagered on the interstate simulcast,
as
determined by section 17(3) after first deducting from the
licensee's
statutory commission the applicable state tax on
wagering
due and payable under section 22 and the actual verified
fee
paid by the licensee to the sending host track to receive the
interstate
simulcast signal. The licensee shall retain the
remaining
balance of its net commission and shall be responsible
for
paying all other capital and operational expenses related to
receiving
interstate simulcasts at its race meeting. Any subsequent
rebate
of a fee paid by a licensee to receive interstate simulcast
signals
shall be shared equally by the licensee and the horsemen's
simulcast
purse pool established under section 19.
(4) (5)
A race meeting licensee licensed to
conduct pari-
mutuel
horse racing in a city area shall provide the necessary
equipment to send intertrack simulcasts of the live horse races
conducted at its race meeting to all other race meeting licensees
in this state, and shall send its intertrack simulcast signals to
those
licensees upon on request for an agreed fee, which shall must
not exceed 3% of the total amount wagered on the race at the
receiving
track. Race meeting licensees that send or receive
intertrack
simulcasts shall make the following payments to the
horsemen's
purse pools:
(a)
Each race meeting licensee that sends an intertrack
simulcast
shall pay 50% of the simulcast fee that it receives for
sending
the simulcast signal to the horsemen's purse pool at the
sending
track.
(b)
Each race meeting licensee that receives an intertrack
simulcast
shall pay to the horsemen's simulcast purse pool
established
pursuant to section 19 a sum equal to 40% of the
receiving
track's net commission from wagering on the intertrack
simulcast
under section 17(3) after first deducting from the
licensee's
statutory commission the applicable state tax on
wagering
due and owing under section 22 and the actual verified fee
paid
by the receiving track to the sending host track to receive
the
intertrack simulcast signal.
(5) (6)
The racing commissioner executive director may
authorize a race meeting licensee to transmit simulcasts of live
horse races conducted at its racetrack to locations outside of this
state in accordance with the interstate horse racing act of 1978,
Public
Law 95-515, 15 U.S.C. USC 3001
to 3007, or any other
applicable laws, and may permit pari-mutuel pools on such simulcast
races created under the laws of the jurisdiction in which the
receiving track is located to be combined in a common pool with
pari-mutuel pools on the same races created in this state. A race
meeting licensee that transmits simulcasts of its races to
locations outside this state shall pay 50% of the fee that it
receives for sending the simulcast signal to the horsemen's purse
pool at the sending track after first deducting the actual verified
cost of sending the signal out of state.
(6) A race meeting licensee shall pay to the horsemen's
simulcast purse account an amount equal to 25% of net commission
revenue, after deducting taxes and expenses directly associated
with receiving the simulcast, generated at the licensee's race
meeting for purses for the live horse races at the race meeting. If
the race meeting licensee has a contract with more than 1 licensed
horsemen's organization, money paid under this subsection must be
divided equally between the licensed horsemen's organizations. The
amount of net commission revenue paid under this subsection and the
division between licensed horsemen's organizations may be modified
in the contract between the race meeting licensee and the licensed
horsemen's organization.
(7) A person that offers the signal of an interstate simulcast
to a race meeting licensee in this state shall offer the signal for
pari-mutuel wagering to all race meeting licensees in this state at
an equal rate.
(8) (7)
Simulcasting of events other than
horse races for
purposes of pari-mutuel wagering is prohibited.
(9) As used in this section:
(a) "Interstate simulcast" means a simulcast from a racetrack
in 1 state to a racetrack in another state.
(b) "Intertrack simulcast" means a simulcast from 1 racetrack
in this state to another racetrack in this state.
(c) "Simulcast" means the transmission of video and audio
signals conveying a horse race held either inside or outside of
this state for the purpose of pari-mutuel wagering to a licensed
race meeting in this state.
Sec. 19. (1) All money designated by this act to be paid into
the
horsemen's simulcast purse pool, shall account must be
deposited
in a depository designated by all participating certified
licensed horsemen's organizations and distributed by their
designated escrow agent as follows:
(a)
50% of the funds generated from thoroughbred simulcasts
for
horsemen's purses and 35% of the funds generated from
standardbred
simulcasts for horsemen's purses shall be divided
between
all thoroughbred purse pools. The division shall be on a
pro
rata basis between all thoroughbred race meeting licensees
based
upon the percentage of total thoroughbred handle, from all
sources,
for the previous calendar year.
(b)
50% of the funds generated from thoroughbred simulcasts
for
horsemen's purses and 65% of the funds generated from
standardbred
simulcasts for horsemen's purses shall be divided
between
all standardbred purse pools. The division shall be on a
pro
rata basis between all standardbred race meeting licensees
based
upon the percentage of total standardbred handle, from all
sources,
for the previous calendar year.
(a) The money generated at a specific racetrack must be
distributed to the licensed horsemen's organization or
organizations with a valid contract with a race meeting licensee
that conducts its race meetings at the track according to terms of
the contract.
(b) Each year, all licensed horsemen's organizations that
participated in a live race meeting during the year may receive an
amount approved by order of the executive director from the site-
specific horsemen's simulcast purse account to use for general
expenses. Beginning January 1 and ending December 31 of each year,
a licensed horsemen's organization that participated in a live race
meeting during the year is entitled to not more than 3% of the
site-specific horsemen's simulcast purse account by order of the
executive director.
(c) An amount equal to 0.5% of the total horsemen's simulcast
purse account may be deducted and placed in a separate account to
be known as the simulcast management fee account. The simulcast
management fee account is to be used by the designated escrow agent
to pay expenses connected to the administration of the horsemen's
simulcast purse account.
(2)
The certified licensed horsemen's organizations and race
meeting
licensees shall must have audit rights of the funds set
forth
accounts described in this section.
Sec.
19a. If a thoroughbred track race
meeting license is
surrendered,
revoked, or escrowed, or after January 1, 1998, a
licensed
thoroughbred track is closed, if
a race meeting licensee
fails to conduct a race meeting, or if a race meeting licensee
fails to renew the licensee's contract with a licensed horsemen's
organization,
the racing commissioner shall executive director may
order the deposit or distribution of the horsemen's purse pool
money from the relevant race meeting. The money may be deposited
and
distributed pursuant to under
section 19 to a depository
designated
by a race meeting licensee upon on
written direction of
the
affected certified licensed
horsemen's organization regardless
of whether there was racing at the race meeting licensee's location
during the previous year.
Sec. 19b. Money that was to be distributed to a certified
horsemen's organization but that was placed and remains in escrow
under an escrow order of the executive director before the
effective date of the amendatory act that added this section must
be used by December 31, 2018 for a race meeting conducted by the
race meeting licensee that was the subject of the order in
accordance with a contractual agreement between the race meeting
licensee and the certified horsemen's organization that was the
subject of the order. If a contractual agreement is not reached
under this section before September 1, 2017, the executive director
may order distribution of the escrowed money in the best interests
of horse racing.
Sec. 20. (1) It is the policy of this state to encourage the
breeding of horses of all breeds in this state and the ownership of
such horses by residents of this state to provide for sufficient
numbers of high quality race horses of all breeds to participate in
licensed race meetings in this state; to promote the positive
growth and development of high quality horse racing and other
equine competitions in this state as a business and entertainment
activity for residents of this state; and to establish and preserve
the substantial agricultural and commercial benefits of the horse
racing
and breeding industry to the this
state. of Michigan. It is
the intent of the legislature to further this policy by the
provisions of this act and annual appropriations to administer this
act and adequately fund the agriculture and equine industry
programs established by this section.
(2)
Money received by the racing commissioner executive
director and the state treasurer under this act shall be paid
promptly into the state treasury and placed in the Michigan
agriculture equine industry development fund created in subsection
(3).
(3) The Michigan agriculture equine industry development fund
is created in the department of treasury. The Michigan agriculture
equine industry development fund shall be administered by the
director of the department of agriculture and rural development
with
the assistance and advice of the racing commissioner.executive
director.
(4) Money shall not be expended from the Michigan agriculture
equine industry development fund except as appropriated by the
legislature. Money appropriated by the legislature for the Michigan
agriculture equine industry development fund shall be expended by
the director of the department of agriculture and rural development
with
the advice and assistance of the racing commissioner executive
director
to provide funding for the general
fund as provided in
subsection
(17) and agriculture and equine
industry development
programs as provided in subsections (5) to (11).
(5) The following amounts shall be paid to standardbred and
fair programs:
(a) A sum not to exceed 75% of the purses for standardbred
harness horse races offered by fairs and races at licensed pari-
mutuel racetracks. Purse supplements for overnight races at fairs
paid
pursuant to this subsection subdivision
shall be $1,000.00.
However, if the average purse offered for maiden overnight races of
the same breed at any licensed race meeting in this state during
the previous year as calculated by the department of agriculture
and rural development was less than $1,000.00, purse supplements
for
overnight races at fairs paid under this subsection subdivision
shall not exceed that average purse.
(b) A sum to be allotted on a matching basis, but not to
exceed $15,000.00 each year to a single fair, for the purpose of
equipment rental during fairs; ground improvement; constructing,
maintaining, and repairing buildings; and making the racetrack more
suitable and safe for racing at fairs.
(c) A sum to be allotted for paying special purses at fairs on
2-year-old and 3-year-old standardbred harness horses conceived
after
January 1, 1992, and that
is Michigan bred, as described in
subdivision (d), or that is sired by a standardbred stallion
registered
with the Michigan department of agriculture and rural
development that was leased or owned by a resident or residents of
this state and that did not serve a mare at a location outside of
this state from February 1 through July 31 of the calendar year in
which the conception occurred. A foal that is born on or after
January 1, 2002 of a mare owned by a nonresident of this state and
that is conceived outside of this state from transported semen of a
stallion
registered with the Michigan department of agriculture and
rural development is eligible for Michigan tax-supported races only
if,
in the year that the foal is conceived, the Michigan department
of
agriculture's agriculture
and rural development's agent for
receiving funds as the holding agent for stakes and futurities is
paid
a transport fee as determined by the Michigan department of
agriculture and rural development and administered by the Michigan
harness horsemen's association.
(d) A sum to pay not more than 75% of an eligible cash premium
paid by a fair or exposition. The commission of agriculture and
rural development shall promulgate rules establishing which
premiums are eligible for payment and a dollar limit for all
eligible payments.
(e) A sum to pay breeders' awards in an amount not to exceed
10%
20% of the gross purse to breeders of Michigan bred
standardbred harness horses for each time the horse wins a race at
a licensed race meeting or fair in this state. As used in this
subdivision, "Michigan bred standardbred harness horse" means a
horse from a mare owned by a resident or residents of this state at
the time of conception, that was conceived after January 1, 1992,
and
sired by a standardbred stallion registered with the Michigan
department of agriculture and rural development that was leased or
owned by a resident or residents of this state and that did not
serve a mare at a location outside of this state from February 1
through July 31 of the calendar year in which the conception
occurred.
To be eligible, each mare shall must
be registered with
the
Michigan department of agriculture and rural development. A
foal that is born on or after January 1, 2002 of a mare owned by a
nonresident of this state and that is conceived outside of this
state from transported semen of a stallion registered with the
Michigan
department of agriculture and rural development is
eligible for Michigan tax-supported races only if, in the year that
the
foal is conceived, the Michigan department of agriculture's
agriculture and rural development's agent for receiving funds as
the holding agent for stakes and futurities is paid a transport fee
as
determined by the Michigan department of agriculture and rural
development and administered by the Michigan harness horsemen's
association.
(f) A sum not to exceed $4,000.00 each year to be allotted to
fairs to provide training and stabling facilities for standardbred
harness horses.
(g) A sum to be allotted to pay the presiding judges and
clerks of the course at fairs. Presiding judges and clerks of the
course shall be hired by the fair's administrative body with the
advice
and approval of the racing commissioner. executive director.
The director of the department of agriculture and rural development
may allot funds for a photo finish system and a mobile starting
gate. The director of the department of agriculture and rural
development shall allot funds for the conducting of tests, the
collection and laboratory analysis of urine, saliva, blood, and
other samples from horses, and the taking of blood alcohol tests on
drivers, jockeys, and starting gate employees, for those races
described in this subdivision. The department may require a driver,
jockey, or starting gate employee to submit to a breathalyzer test,
urine test, or other noninvasive fluid test to detect the presence
of alcohol or a controlled substance. If the results of a test show
that a person has more than .05% of alcohol in his or her blood, or
has present in his or her body a controlled substance, the person
shall not be permitted to continue in his or her duties on that
race day and until he or she can produce, at his or her own
expense, a negative test result.
(h) A sum to pay purse supplements to licensed pari-mutuel
harness race meetings for special 4-year-old filly and colt horse
races.
(i) A sum not to exceed 0.25% of all money wagered on live and
simulcast
horse races in Michigan this
state shall be placed in a
special standardbred sire stakes fund each year, 100% of which
shall be used to provide purses for races run exclusively for 2-
year-old and 3-year-old Michigan sired standardbred horses at
licensed harness race meetings in this state. As used in this
subdivision, "Michigan sired standardbred horses" means
standardbred horses conceived after January 1, 1992 and sired by a
standardbred
stallion registered with the Michigan department of
agriculture and rural development that was leased or owned by a
resident or residents of this state and that did not serve a mare
at a location outside of this state from February 1 through July 31
of the calendar year in which the conception occurred. A foal that
is born on or after January 1, 2002 of a mare owned by a
nonresident of this state and that is conceived outside of this
state from transported semen of a stallion registered with the
Michigan
department of agriculture and rural development is
eligible for Michigan tax-supported races only if, in the year that
the
foal is conceived, the Michigan department of agriculture's
agriculture and rural development's agent for receiving funds as
the holding agent for stakes and futurities is paid a transport fee
as
determined by the Michigan department of agriculture and rural
development and administered by the Michigan harness horsemen's
association.
(6) The following amounts shall be paid to thoroughbred
programs:
(a) A sum to be allotted thoroughbred race meeting licensees
to supplement the purses for races to be conducted exclusively for
Michigan bred horses.
(b) A sum to pay awards to owners of Michigan bred horses that
finish first, second, or third in races open to non-Michigan bred
horses.
(c) A sum to pay breeders' awards in an amount not to exceed
10%
20% of the gross purse to the breeders of Michigan bred
thoroughbred horses for each time Michigan bred thoroughbred horses
win at a licensed race meeting in this state.
(d) A sum to pay purse supplements to licensed thoroughbred
race meetings for special 4-year-old and older filly and colt horse
races.
(e) A sum not to exceed 0.25% of all money wagered on live and
simulcast horse races in Michigan shall be placed in a special
thoroughbred sire stakes fund each year, 100% of which shall be
used to provide purses for races run exclusively for 2-year-old and
3-year-old and older Michigan sired thoroughbred horses at licensed
thoroughbred race meetings in this state and awards for owners of
Michigan sired horses or stallions. As used in this subdivision,
"Michigan sired thoroughbred horses" means thoroughbred horses
sired by a stallion registered with the department of agriculture
and rural development that was leased or owned exclusively by a
resident or residents of this state and that did not serve a mare
at a location outside of this state during the calendar year in
which the service occurred.
(f)
A sum to be allotted sufficient to pay for the collection
and
laboratory analysis of urine, saliva, blood, and other samples
from
horses and licensed persons and for the conducting of tests
described
in section 16(4)(b).
(7) The following amounts shall be paid for quarter horse
programs:
(a) A sum to supplement the purses for races to be conducted
exclusively for Michigan bred quarter horses.
(b) A sum to pay not more than 75% of the purses for
registered quarter horse races offered by fairs.
(c) A sum to pay breeders' awards in an amount not to exceed
10%
20% of a gross purse to breeders of Michigan bred
quarter
horses for each time a Michigan bred quarter horse wins at a county
fair or licensed race meeting in this state.
(d)
A sum to pay for the collection and laboratory analysis of
urine,
saliva, blood, and other samples from horses and licensed
persons
and the taking of blood alcohol tests on jockeys for those
races
described in this subsection and for the conducting of tests
described
in section 16(4)(b).
(d) (e)
As used in this subsection,
"Michigan bred quarter
horse" means that term as defined in R 285.817.1 of the Michigan
administrative
code. Administrative Code. Each mare and stallion
shall be registered with the director of the department of
agriculture and rural development.
(8) The following amounts shall be paid for Appaloosa
programs:
(a) A sum to supplement the purses for races to be conducted
exclusively for Michigan bred Appaloosa horses.
(b) A sum to pay not more than 75% of the purses for
registered Appaloosa horse races offered by fairs.
(c) A sum to pay breeders' awards in an amount not to exceed
10%
20% of the gross purse to the breeders of Michigan bred
Appaloosa horses for each time Michigan bred horses win at a fair
or licensed race meeting in this state.
(d)
The department shall also allot sufficient funds from the
revenue
received from Appaloosa horse racing to pay for the
collection
and laboratory analysis of urine, saliva, blood, or
other
samples from horses and licensed persons and the taking of
blood
alcohol tests on jockeys for those races described in this
subsection
and for the conducting of tests described in section
16(4)(b).
(d) (e)
As used in this subsection, "Michigan
bred Appaloosa
horse" means that term as defined in R 285.819.1 of the Michigan
administrative
code. Administrative Code. Each mare and stallion
shall be registered with the director of the department of
agriculture and rural development.
(9) The following amounts shall be paid for Arabian programs:
(a) A sum to supplement the purses for races to be conducted
exclusively for Michigan bred Arabian horses.
(b) A sum to pay not more than 75% of the purses for
registered Arabian horse races offered by fairs.
(c) A sum to pay breeders' awards in an amount not to exceed
10%
20% of the gross purse to the breeders of Michigan bred
Arabian
horses for each time Michigan bred horses win at a fair or licensed
racetrack in this state.
(d)
A sum allotted from the revenue received from Arabian
horse
racing to pay for the collection and laboratory analysis of
urine,
saliva, blood, and other samples from horses and licensed
persons
and the taking of blood alcohol tests on jockeys for those
races
described in this subsection and for the conducting of tests
described
in section 16(4)(b).
(d) (e)
As used in this subsection,
"Michigan bred Arabian
horse" means a Michigan-bred horse as that term is defined in R
285.822.1(i)
of the Michigan administrative code. Administrative
Code. Each mare and stallion shall be registered with the director
of the department of agriculture and rural development.
(10) The following sums shall be paid for American paint horse
programs:
(a) A sum to supplement the purses for races to be conducted
exclusively for Michigan bred American paint horses.
(b) A sum to pay not more than 75% of the purses for
registered American paint horse races offered by fairs.
(c) A sum to pay breeders' awards in an amount not to exceed
10%
20% of the gross purse to the breeders of Michigan bred
American paint horses for each time a Michigan bred American paint
horse wins at a county fair or licensed race meeting in this state.
(d)
A sum to pay for the collection and laboratory analysis of
urine,
saliva, blood, and other samples from horses and licensed
persons
and the taking of blood alcohol tests on jockeys for those
races
described in this subsection and for the conducting of tests
described
in section 16(4)(b).
(d) (e)
As used in this subsection,
"Michigan bred American
paint horse" means a Michigan-bred paint horse as that term is
defined
in R 285.823.1 of the Michigan administrative
code.Administrative Code.
(11) The following amounts shall be paid for the equine
industry research, planning, and development grant fund program:
(a) A sum to fund grants for research projects conducted by
persons affiliated with a university or governmental research
agency or institution or other private research entity approved by
the
racing commissioner, executive
director, which are beneficial
to the horse racing and breeding industry in this state.
(b) A sum to fund the development, implementation, and
administration of new programs that promote the proper growth and
development of the horse racing and breeding industry in this state
and other valuable equine-related commercial and recreational
activities in this state.
(12) As used in subsection (11), "equine industry research"
means the study, discovery and generation of accurate and reliable
information, findings, conclusions, and recommendations that are
useful or beneficial to the horse racing and breeding industry in
this state through improvement of the health of horses; prevention
of equine illness and disease, and performance-related accidents
and injuries; improvement of breeding technique and racing
performance; and compilation and study of valuable and reliable
statistical data regarding the size, organization, and economics of
the industry in this state; and strategic planning for the
effective promotion, growth, and development of the industry in
this state.
(13) An amount shall be allotted annually to the executive
director that is sufficient to pay for the collection and
laboratory analysis of urine, saliva, blood, and other samples from
horses and licensed persons involved in horse racing on which pari-
mutuel wagers are made and for the conducting of tests described in
section 16(5).
(14) (13)
Subject to subsection (17), money Money
appropriated
and allotted to the Michigan agriculture equine industry
development fund shall not revert to the general fund and shall be
carried forward from year to year until disbursed to fund grants
for research projects beneficial to the industry.
(15) (14)
A percentage of the Michigan
agriculture equine
industry development fund that is equal to 1/100 of 1% of the gross
wagers made each year in each of the racetracks licensed under this
act shall be deposited in the compulsive gaming prevention fund
created in section 3 of the compulsive gaming prevention act, 1997
PA 70, MCL 432.253.
(16) (15)
The director of the department of
agriculture and
rural development shall promulgate rules pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, to implement this section. The rules promulgated under this
subsection shall do all of the following:
(a) Prescribe the conditions under which the Michigan
agriculture equine industry development fund and related programs
described
in subsections (1) to (13) (14)
shall be funded.
(b) Establish conditions and penalties regarding the programs
described in subsections (5) to (12).
(c) Develop and maintain informational programs related to
this section.
(17) (16)
Funds under the control of the
department of
agriculture and rural development in this section shall be
disbursed
under the rules promulgated pursuant to subsection (15).
(16). All funds under the control of the department of agriculture
and rural development approved for purse supplements and breeders'
awards shall be paid by the state treasurer not later than 45 days
from the date of the race.
(17)
Two million dollars shall be transferred from the
Michigan
agriculture equine industry development fund to the
general
fund in the fiscal year ending September 30, 2006.
(18) With respect to money paid under this section for races
at licensed racetracks, preferences for drawing into all overnight
events may be given in accordance with an agreement between the
race meeting licensee and the applicable licensed horsemen's
organization. The licensed horsemen's organization must agree that
its system of preferences will not be designed to discourage a
competitive racing and wagering product at the race meeting.
Preferences may be given under this subsection in the following
order:
(a) First, to Michigan sired or bred horses, as defined by the
department of agriculture and rural development.
(b) Second, to horses that are owned exclusively by residents
of this state.
(c) Third, to horses that are trained by trainers who reside
in this state, with residency being established by the trainer
holding a driver license issued by this state.
(d) If a preference is not given under subdivisions (a) to
(c), by giving preferences according to the horse's last previous
purse race within the past 60 days or the horse's last successful
qualifying race, whichever is more recent.
Sec.
22. (1) Each A licensed racetrack located in a city area
shall
pay a license fee to the racing commissioner executive
director
of $1,000.00 annually. ,
and any other licensed racetrack
shall
pay a license fee of $200.00 annually.
(2)
During calendar year 1996, each The
holder of a race
meeting license shall pay to the state treasurer, from the holder's
commission,
a tax in the amount of 2.5% 3.5%
of all money wagered
on interstate and intertrack simulcast races conducted at the
holder's
licensed race meetings in 1996 in
a manner and time as the
racing
commissioner executive
director requires. For calendar year
1997
and each year thereafter, the tax rate shall increase to 3.5%
of
all money wagered on interstate and intertrack simulcast races
conducted
at the holder's licensed race meetings each calendar
year.
Not later than 4 years after the effective date of this act,
the
racing commissioner shall report to the chairpersons of the
senate
and house committees responsible for legislation concerning
horse
racing as to the effect on the horse racing industry of the
reduction
in the tax pursuant to subsection (2).
(3) By eliminating the pari-mutuel wagering tax on live racing
programs, it is not the intent of the legislature to diminish the
funding and appropriations for the Michigan agriculture equine
industry fund and related programs described in section 20. The
pari-mutuel tax reduction effected by this section is intended to
generally allow for the improvement of the pari-mutuel horse racing
and breeding industry in this state by increasing purses at
licensed race meetings and making additional pari-mutuel revenues
available for capital improvements at licensed racetracks in this
state.
(4) A person that conducts pari-mutuel wagering on the results
of horse races that are not live or simulcast races shall pay the
following amounts in a manner and time as required by the executive
director:
(a) To the state treasurer, a tax in the amount of 0.15% of
all money wagered on the pari-mutuel wagering.
(b) To the purse pools at the racetrack where the pari-mutuel
wagering is conducted, a purse contribution in the amount of 1.35%
of all money wagered on the pari-mutuel wagering.
Sec. 23. (1) The auditing of pari-mutuel operations at each
race
meeting shall must be performed by a private auditing firm
appointed
by the state treasurer and approved by the racing
commissioner.
The executive director. This
state shall pay the
expense
of pari-mutuel audits shall be paid by the state under this
section as a part of the state treasurer's budget. Daily audit
reports
on each day of pari-mutuel racing shall must be forwarded
to
the racing commissioner executive
director and the holder of the
race meeting license not later than 2 business days after the day
for which the report is made. Within 60 days following each race
meeting,
at least 3 copies of the pari-mutuel audit report for the
entire
race meeting shall must be forwarded to the racing
commissioner
executive director and additional copies shall must be
supplied to the state treasurer and the holder of the race meeting
license.
The scope of the pari-mutuel audits shall under this
section must be established in specifications prepared by the state
treasurer
and approved by the racing commissioner.executive
director.
(2)
The A race meeting
licensee shall give the auditors
representing
the this state shall have free and full access to the
space
or enclosure where the payoff prices are calculated, to the
rooms
and enclosures where the totalisator equipment is operated,
and
to the money rooms and cashier terminals. , and The auditors
shall
be responsible for verifying verify
the accuracy of the
calculations on which are based the payoff prices to the public and
amount of racetrack commission, state tax and breakage, and for the
amounts withheld by the holder of the race meeting license for
payment of uncashed tickets. The race meeting licensee shall give
the
auditors at all times shall have full
and free access to all
pari-mutuel records and all aspects, areas, and functions of the
totalisator system, including but not limited to, all hardware,
software, input and output data, documents, and files. The auditors
may audit internally and externally any or all parts and elements
of the totalisator system whether on or off the site of the race
meeting grounds. If the records are maintained in a machine-
readable
form, such as computer tapes or disks, copies shall must
be made available to the auditors on request. The auditors, in
addition to their regular reports, shall make prompt report to the
racing
commissioner, executive
director, the state treasurer, and
the holder of the race meeting license of any irregularities or
discrepancies
which that they may encounter during their auditing.
(3)
In addition to auditing the pari-mutuel operations, the
auditors
shall include in their final reports the daily attendance
figures
as supplied by the holder of the race meeting license.
Sec. 27. (1) A person shall not participate in racing
involving wagering of any kind except as permitted under this act.
(2) A person shall not hold or conduct, or assist, aid, or
abet in holding or conducting, a race meeting in this state at
which live or simulcast horse races with pari-mutuel wagering on
the results of the horse races for a stake, purse, prize, share, or
reward is conducted, unless the person and the racetrack at which
the pari-mutuel wagering is conducted are licensed by the executive
director.
Sec.
30. (1) A drug or painkiller that is a stimulant to a
horse
or depressant to a horse shall foreign
substance must not be
administered
to a horse or be present in a horse that is intended
to
be entered , or
is entered, or be present in a horse that
participates, in a
race with pari-mutuel wagering by pari-mutuel
methods
or any nonbetting race or workout
that is conducted at a
licensed
race meeting in this state. Any A
banned drug, a
nontherapeutic drug, or a foreign substance designated by the
executive director as not permitted must not be present in a horse
eligible to race that is stabled in this state on the grounds of a
race meeting licensee, off-track training center, farm, or stable.
(2)
A drug or foreign substance ,
other than a stimulant or
depressant,
may be administered to a horse or
present in a horse
that
is intended to be entered , or
is entered, or be present in a
horse
that participates, in a
race with pari-mutuel wagering by
pari-mutuel
methods or any nonbetting race or
workout that is
conducted at a licensed race meeting in this state only if
authorized
by the racing commissioner executive
director by rule or
written order for use in the care or treatment of the horse. A
veterinarian is not prohibited by this section from administering
to a horse any drug or foreign substance that is necessary and
appropriate for the emergency veterinary care and treatment of the
horse under accepted standards of veterinary practice in this
state. The treating veterinarian and the horse's trainer shall
report
immediately to the racing commissioner, executive director,
the
state veterinarian, or the state steward any unauthorized or
emergency administration of an unauthorized drug or foreign
substance to a horse that is intended to be entered, is entered, or
participates in a race or workout at a licensed race meeting in
this state, before the running of the race or workout, in the
manner
and form prescribed by the racing commissioner executive
director and the stewards shall scratch the horse from the race.
(3) A veterinarian who administers a drug or foreign substance
to any horse that is intended to be entered, is entered, or
participates in a race or workout that is to be conducted at a
licensed race meeting in this state shall keep and maintain a true
and complete written record of the veterinarian's examination,
examination findings, diagnosis and treatment of the horse, and all
drugs or foreign substances administered to the horse by the
veterinarian,
in the manner and form prescribed by the racing
commissioner,
executive director, and shall provide the record to
the
commissioner executive
director for review upon on request.
(4) (2)
The racing commissioner executive director or his or
her designee shall conduct random testing to detect the presence of
a drug or foreign substance in all winning horses and in any other
horse
in each pari-mutuel horse race and may conduct individual
testing for the presence of a drug or foreign substance in any
specific
horse eligible to race within the grounds
of a racetrack
or off-track training center, farm, or stable.
(5) (3)
The racing commissioner executive director shall issue
written orders or promulgate rules pursuant to the administrative
procedures
act of 1969, Act No. 306 of the Public Acts of 1969,
being
sections 1969 PA 306, MCL 24.201 to 24.328, of the Michigan
Compiled
Laws, that specify the condition of
the horse that must
exist in order to permit authorization of the use and possession of
a foreign substance or a permissible drug for the intended care or
treatment of a horse and that specify the procedures that must be
followed in administering the authorized drugs. Any written order
issued
by the racing commissioner pursuant to executive director
under
this section shall must be
available for review in the office
of
racing commissioner executive
director at each licensed race
meeting in this state.
(6) (4)
Except as authorized by the racing
commissioner
executive director or as provided in this section, a person who
administers or conspires to administer a drug or foreign substance,
that could affect the racing condition or performance of a horse,
internally, externally, by hypodermic method, or by any other
method, to a horse that is intended to be entered, is entered, or
participates in a race or workout at a licensed race meeting in
this state, or who knowingly starts a horse in any race or workout
at a licensed race meeting in this state knowing that the horse was
administered a drug or foreign substance, by any method, after the
horse was entered or intended to be entered in the race or workout
is guilty of a felony punishable by a fine of not more than
$10,000.00 or by imprisonment for not more than 5 years, or both.
(7) (5)
A postmortem examination shall must be
performed on
every
horse that dies at a racetrack. A The postmortem examination
shall
must be a complete autopsy unless the racing
commissioner
executive director, on the advice of the veterinarian, is satisfied
as to the cause of death without the complete autopsy being
performed.
A complete autopsy shall must
be ordered and performed
if the presence of a drug or foreign substance in the horse is
suspected.
Sec.
31. (1) Except as provided in subsection (3), (4), a
person who does any of the following, or who aids or abets another
in doing any of the following, is guilty of a misdemeanor
punishable by a fine of not more than $10,000.00 or by imprisonment
for not more than 1 year, or both:
(a) Introduces an object or foreign substance into the
nostrils or windpipe of a horse that is entered or intended to be
entered in a race or workout at a licensed race meeting in this
state for the purpose of affecting the racing condition or
performance of the horse in a race or workout, without
authorization
of the racing commissioner.executive
director.
(b) Has in his or her possession within the confines of a
racetrack, stable, shed, building, or grounds of a licensed race
meeting, or within the confines of an off-track stable, shed,
building,
or grounds where horses are kept which that are eligible
to race over the racetrack of the holder of a race meeting license,
any
drug not authorized by the racing commissioner executive
director for use at those locations, or a battery or buzzer,
electrical or mechanical, or syringe, hypodermic needle, or other
appliance
device, other than the ordinary whip, which that may
or
can be used for the purpose of affecting a horse's racing condition
or performance in a race or workout at a licensed race meeting in
this state.
(c) Has in his or her possession within the confines of a
racetrack, stable, shed, building, or grounds of a licensed race
meeting or within the confines of an off-track stable, shed,
building, or grounds where horses are kept that are eligible to
race over the racetrack of the holder of a race meeting license a
controlled
substance as defined in section 7104 of the public
health
code, Act No. 368 of the Public Acts of 1978, being section
333.7104
of the Michigan Compiled Laws, or a
hypodermic needle or
other instrument that can be used to administer a controlled
substance, unless the controlled substance was obtained directly
from
or pursuant to a prescription from
, a licensed physician ,
and
the person notifies the racing commissioner executive director
or
racing commissioner's the
executive director's designee that the
person possesses the controlled substance or instrument.
(2) In addition to the penalties prescribed in subsection (1),
the executive director shall suspend the license of a person who is
a licensee under this act and who does any of the acts described in
subsection
(1) shall have his or her license suspended by the
racing
commission for a period of not less
than 5 years after being
the person is convicted.
(3) A person that is not authorized to conduct wagering under
this act and that solicits or accepts a wager from another person
that an authorized person would be able to solicit or accept is
guilty of a felony punishable by imprisonment for not more than 3
years or a fine of not more than $100,000.00, or both. Each act of
solicitation or wager that is accepted in violation of this
subsection is a separate offense.
(4) (3)
Subsections (1) and (2) do not
prohibit the possession
and use of drugs, foreign substances, controlled substances,
hypodermic needles and syringes, nasogastric tubes, endotracheal
tubes, endoscopes, or other instruments or equipment by a
veterinarian within the confines of a racetrack, stable, shed,
building, or grounds of a licensed race meeting or within the
confines of an off-track stable, shed, building, or grounds where
horses are kept that are eligible to race over the racetrack of the
holder of a race meeting license, if the drugs and equipment are
recognized and accepted in veterinary medicine for use in the care
and treatment of horses and are possessed and used by the
veterinarian in accordance with accepted standards of veterinary
practice in this state and applicable state and federal laws and
not in violation of other provisions of this act.
Enacting section 1. (1) Except as provided in subsection (2),
this amendatory act takes effect 90 days after the date it is
enacted into law.
(2) Section 18 of the horse racing law of 1995, 1995 PA 279,
MCL 431.318, as amended by this amendatory act, takes effect
January 1, 2017.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. 5601 (request no.
03880'15 a) of the 98th Legislature is enacted into law.
