SB-0504, As Passed House, June 7, 2016

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 504

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1995 PA 279, entitled

 

"Horse racing law of 1995,"

 

by amending sections 2, 8, 9, 10, 12, 14, 17, 18, 19, 19a, 20, 22,

 

30, and 31 (MCL 431.302, 431.308, 431.309, 431.310, 431.312,

 

431.314, 431.317, 431.318, 431.319, 431.319a, 431.320, 431.322,

 

431.330, and 431.331), section 2 as amended by 2006 PA 445,

 

sections 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, and

 

section 20 as amended by 2006 PA 185, and by adding sections 6a and

 

19b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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) "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

 

that is registered with the office of racing commissioner in a

 

manner and form required by the racing commissioner , and 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 of the Michigan gaming control board appointed

 

under section 4 of the Michigan gaming control and revenue act,


1996 IL 1, MCL 432.204, who is ordered under Executive

 

Reorganization Order No. 2009-31, MCL 324.99919, to perform all the

 

functions and exercise the powers performed and exercised by the

 

racing commissioner before that position was abolished.

 

     (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 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) "Fair" means any a county, district, or community fair and

 

any or a state fair.

 

     (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.

 

     (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.

 

     (k) "Horsemen's simulcast purse account" means an account

 

maintained with a financial institution and managed by a designated

 

agent as described in section 19 to receive and distribute money as

 

provided in this act.

 

     (l) (k) "Member of the immediate family" means the spouse,

 

child, parent, or sibling.

 

     (m) "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.

 

     (n) "Office of the racing commissioner" means the horse racing

 

section of the horse racing, audit, and gaming technology division

 

of the Michigan gaming control board created by section 4 of the

 

Michigan gaming control and revenue act, 1996 IL 1, MCL 432.204,

 

which operates under the direction of the executive director of the

 

Michigan gaming control board, to which Executive Reorganization

 

Order No. 2009-31, MCL 324.99919, transferred all of the authority,

 

powers, duties, functions, records, personnel, property, unexpended

 

balances of appropriations, allocations, or other funds of the

 

office of racing commissioner that previously existed under this

 

act and that was abolished by that executive reorganization order.

 

     (o) "Pari-mutuel" and "pari-mutuel wagering" mean the form or

 

system of gambling in which the winner or winners divide the total

 

amount of money bet, after deducting the net commission.

 

     (p) (l) "Person" means an individual, firm, partnership,


corporation, association, or other legal entity.

 

     (q) (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 horsemen's organizations pursuant to as

 

provided in this act.

 

     (r) "Standardbred" means a horse registered with the United

 

States Trotting Association that races on designated gaits of pace

 

or trot.

 

     (s) "Thoroughbred" means a thoroughbred, quarter, paint,

 

Arabian, or other breed horse. Thoroughbred does not include a

 

standardbred.

 

     (t) (n) "Veterinarian" means a person an individual licensed

 

to practice 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.the individual.

 

     Sec. 6a. (1) The horse racing advisory commission is created

 

within the department of agriculture and rural development.

 

     (2) The advisory commission consists of the following members,

 

appointed by the governor:

 

     (a) An individual who has knowledge about and expertise in

 

horse racing in this state, who shall serve as chairperson of the

 

advisory commission.

 

     (b) The director of the department of agriculture and rural

 

development or his or her designee.

 

     (c) A veterinarian.

 

     (d) Two individuals from 2 different statewide horse racing

 

associations.


     (e) Two individuals who are owners or operators, or designees

 

of owners or operators, of 2 different horse racetracks in this

 

state.

 

     (3) The governor shall appoint the members first appointed to

 

the advisory commission within 90 days after the effective date of

 

this section.

 

     (4) Members of the advisory commission under subsection

 

(2)(c), (d), and (e) shall serve for terms of 4 years or until a

 

successor is appointed, whichever is later.

 

     (5) If a vacancy occurs on the advisory commission, the

 

governor shall make an appointment for the unexpired term in the

 

same manner as the original appointment.

 

     (6) The governor may remove a member of the advisory

 

commission for incompetence, dereliction of duty, malfeasance,

 

misfeasance, or nonfeasance in office, or any other good cause.

 

     (7) The chairperson of the advisory commission appointed under

 

subsection (2)(a) shall call the first meeting of the advisory

 

commission. At the first meeting, the advisory commission shall

 

elect from among its members other officers as it considers

 

necessary or appropriate. After the first meeting, the advisory

 

commission shall meet at the call of the chairperson or if

 

requested by 3 or more members.

 

     (8) A majority of the members of the advisory commission

 

constitute a quorum for the transaction of business at a meeting of

 

the advisory commission. A majority of the members present and

 

serving are required for official action of the advisory

 

commission.


     (9) The advisory commission shall conduct its business at

 

public meetings held in compliance with the open meetings act, 1976

 

PA 267, MCL 15.261 to 15.275.

 

     (10) A writing prepared, owned, used, in the possession of, or

 

retained by the advisory commission in the performance of an

 

official function is subject to the freedom of information act,

 

1976 PA 442, MCL 15.231 to 15.246.

 

     (11) Members of the advisory commission shall serve without

 

compensation. However, members of the advisory commission may be

 

reimbursed for their actual and necessary expenses incurred in the

 

performance of their official duties as members of the advisory

 

commission.

 

     (12) The advisory commission shall do all of the following:

 

     (a) Establish for the commissioner procedures governing the

 

operation and promotion of horse racing in this state.

 

     (b) Make recommendations to the legislature on amendments to

 

this act that would improve the regulatory structure of horse

 

racing in this state with a goal of maintaining the long-term

 

viability of horse racing in this state.

 

     (c) Annually submit a report to the legislature detailing its

 

recommendations under subdivisions (a) and (b).

 

     (13) The racing commissioner shall take under consideration

 

the procedures established by the advisory commission under

 

subsection (12)(a) in performing his or her duties under this act.

 

     Sec. 8. (1) The racing commissioner 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.

 

     (2) The racing commissioner 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 in

 

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 shall issue, without

 

further application, a track license to any person holding a valid

 

track license under former 1980 PA 327, and maintaining or

 

operating a licensed horse racetrack as of the effective date of

 

this act January 9, 1996 at which wagering by pari-mutuel methods

 

on the results of horse racing has been conducted by a race meeting

 

licensee.

 

     (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 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 shall

 

investigate the applicant and the racetrack or proposed racetrack

 

as the racing commissioner considers necessary. If the racing

 

commissioner determines that the applicant and the racetrack

 

satisfy the requirements of this act and the rules promulgated

 

under this act, the racing commissioner 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 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 shall

 

deny the license. The action of the racing commissioner 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.

 

     (5) After a track license is issued under this section, the

 

racing commissioner may impose a fine or suspend or revoke the

 

license if the holder of the license, after reasonable notice from

 

the racing commissioner, does not make necessary improvements,

 

additions, or corrections to the licensed premises, fixtures, or

 

equipment as determined and required by the racing commissioner; 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 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 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

 

racing commissioner 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 racing commissioner 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.

 

     (7) A person shall not be issued more than 1 track license.

 

Controlling ownership and interlocking directorates among the

 

holders of track licenses are prohibited.

 

     (6) (8) A The racing commissioner shall not issue a track

 

license shall not be issued 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 , or 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. The

 

application shall must be filed with the racing commissioner before

 

September 1 of the preceding year. except that applications for

 

1999 racing dates may be filed at any time. The racing commissioner

 

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 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.

 

     (2) Upon the filing of the application for a race meeting

 

license, the racing commissioner 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 at least 45 not fewer than 30 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 not fewer

 

than 2 days per week, including Saturdays and Sundays, with not

 

less fewer than 9 8 live horse races programmed, and shall conduct

 

live racing programs on such the days allocated by the racing

 

commissioner. The commissioner 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.

 

     (2) (3) Each An applicant for a license to conduct 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 not fewer than 30 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 not

 

fewer than 2 days per week, including Saturdays, with not less

 

fewer than 9 8 live horse races programmed, and shall conduct live

 

racing programs on such the days awarded. The commissioner 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.

 

     (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.

 

     (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 fewer than 5 entries in any a race, the licensee shall not

 

conduct any simulcasting on that day without the written consent of

 

the certified horsemen's organization with which it has a contract.

 

     (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 considered to be (4) are 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 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.

 

     (7) Notwithstanding anything in this act to the contrary, if

 

the racing commissioner determines that 1 or more of the conditions

 

listed in subsection (8) apply and the contracted certified

 

horseman's organization is in agreement, the racing commissioner

 

may amend an existing race meeting license and simulcast permit to

 

allow the licensee to continue simulcasting during the remaining

 

period of the race meeting license. An amended license under this

 

section may be issued by the racing commissioner at any time,

 

including at the time of the initial issuance of the race meeting

 

license for the upcoming year during which it is valid.

 

     (8) The racing commissioner may issue an order amending a race

 

meeting license under subsection (7) if he or she determines that

 

the licensee is capable of conducting simulcast horse racing in

 

accordance with this act and that 1 or more of the following


conditions exist:

 

     (a) There is inadequate horse supply for the licensee to

 

conduct a live race meeting of at least 10 days with 6 races per

 

day.

 

     (b) There is inadequate funding of live racing purses to

 

support the licensee's conducting of a live race meeting of at

 

least 10 days with 6 races per day.

 

     (c) There is no certified horsemen's organization operating in

 

this state.

 

     (9) In order to obtain an amended license issued under

 

subsection (7) and satisfy the live racing requirements of this

 

act, the licensee must have a written contract with a certified

 

horsemen's organization to pay a percentage of its net commission

 

from simulcasting to the live racing purse pool at another

 

racetrack licensed under this act during the period when the

 

amended license issued under subsection (7) is in effect. Unless

 

otherwise provided in the written contract between the licensee and

 

the certified horsemen's organization, the payment must be not less

 

than 25% of net commission from simulcasting if only 1 certified

 

horsemen's organization has a contract for live race days in this

 

state for the calendar year. If both certified horsemen's

 

organizations have a contract for live race dates in this state for

 

the calendar year, the payment must be not more than 40% of the net

 

commission from simulcasting.

 

     (10) Subsections (7) to (9) apply only to amendments to a race

 

meeting license for the purpose of allowing simulcast-only

 

operations and are not limitations on or requirements for other


race meeting license amendments the racing commissioner may approve

 

or deny.

 

     (11) Notwithstanding anything in this act to the contrary, if

 

a race meeting licensee and the certified horsemen's organization

 

with which the licensee has a contract jointly request that the

 

licensee be allowed to conduct a live race meeting with fewer than

 

8 races per day, the racing commissioner shall approve the request

 

and issue an order amending the license accordingly.

 

     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 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 may grant

 

a race meeting license for any time period up to 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 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 and the certified

 

horsemen's organization with which the licensee has contracted.


     (3) The racing commissioner 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),

 

(5), and (6), if after the issuance of a race meeting license , the

 

racing commissioner 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

 

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 shall consider whether the

 

race meeting licensee's inability or failure to meet the

 

requirements of its license is due to a cause beyond the control of

 

the race meeting licensee.

 

     (5) Any action taken by the racing commissioner under

 

subsection (4) shall become becomes effective 10 days after the

 

holder of the race meeting license has received receives written

 

notice unless the commissioner finds 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 under 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 under 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 to

 

deposit of all funds money due to 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. 17. (1) The pari-mutuel system of wagering upon 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 be preapproved by the

 

racing commissioner pursuant to under rule or written order of the

 

commissioner.

 

     (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 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 holder of a race meeting

 

license shall retain as his or her commission on all forms of

 

straight wagering 17% 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,

 

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 breaks shall be retained by the race meeting licensee

 

and paid 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 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. may be conducted by a

 

race meeting licensee under this act for the race meeting licensee

 

to comply with the auditing requirements of section 23. 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.


     (8) Any form of pari-mutuel wagering on the results of live or

 

simulcast horse races must only occur or be permitted to occur at 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 intrastate or interstate common pool

 

wagering inside or outside this state as permitted by this act or

 

the rules promulgated under this act.

 

     (9) A person that does not hold a race meeting license that

 

solicits or accepts wagers on the results of live or simulcast

 

horse races from individuals in this state is guilty of a felony

 

punishable by imprisonment for not more than 5 years or a fine of

 

not more than $10,000.00, or both. Each act of solicitation or

 

wager that is accepted in violation of this section is a separate

 

offense.

 

     (10) As used in this section, "act or transaction relative to

 

pari-mutuel wagering on the results of live or simulcast horse

 

races" means those steps taken by a race meeting licensee to accept

 

a wager and process it within the ordinary course of its business

 

and in accordance with this act.

 

     Sec. 18. (1) Simulcasting by race meeting licensees may be

 

authorized by the racing commissioner 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".Except

 

as specifically provided in section 12, a race meeting licensee

 

shall not conduct simulcast wagering unless the race meeting

 

licensee conducts 30 or more live racing days in that calendar

 

year.

 

     (2) The holder of a race meeting license may apply to the

 

racing commissioner, in the manner and form required by the

 

commissioner, for a permit to televise simulcasts of horse races to

 

viewing areas within the enclosure of the licensed racetrack at

 

which the applicant is licensed to conduct its race meeting. The

 

commissioner 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 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), or (2), subject to the availability of

 

adequate horse supply as determined by the racing commissioner.

 

     (c) The applicant shall must make a continuing good faith

 

effort throughout the duration of its race meeting to program and


conduct not less fewer than 9 8 live horse races on each live

 

racing date allocated to the applicant.

 

     (d) The certified 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 fewer than 9 8 live horse races, if

 

required by section 12(6).12(3).

 

     (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 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 other 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 the applicant must receive all available intertrack

 

simulcasts from licensed race meetings in the city area located

 

more than 12 miles from the licensee's applicant's race meeting.


     (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 other 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.

 

     (i) (k) All authorized simulcasts shall must be conducted in

 

compliance with the written permit and related orders issued by the

 

racing commissioner and all other requirements and conditions of

 

this act and the rules of the racing commissioner promulgated under

 

this act.

 

     (j) (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 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 If the simulcast is

 

an interstate simulcast, the money wagered on that the simulcast

 

shall must 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 must 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 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 request for an agreed fee, which shall 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 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) Unless otherwise approved by the racing commissioner, a

 

race meeting licensee shall not receive and offer wagers on an


interstate simulcast unless the interstate simulcast is available

 

to all race meeting licensees in this state at the same rate.

 

     (7) Simulcasting of events other than horse races for purposes

 

of pari-mutuel wagering is prohibited.

 

     (8) As used in this section:

 

     (a) "Interstate simulcast" means a live simulcast from a

 

racetrack outside of this state to a racetrack inside this state.

 

     (b) "Intertrack simulcast" means a live simulcast from 1

 

racetrack in this state to another racetrack in this state.

 

     (c) "Simulcast" means the live transmission of video and audio

 

signals conveying a horse race held either inside or outside of

 

this state to a licensed race meeting in this state.

 

     Sec. 19. (1) All money designated by this act to be paid into

 

the A race meeting licensee shall pay an amount equal to not less

 

than 25% and not more than 40% of the net commission generated at

 

the licensee's race meeting to a site-specific horsemen's simulcast

 

purse pool, shall account. Money paid into a horsemen's simulcast

 

purse account under this act must be deposited in a depository

 

designated by all the participating certified 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.

 

     (2) The certified horsemen's organizations and race meeting

 

licensees shall have audit rights of the funds set forth in this

 

section.

 

     (a) For purses for live horse races at a licensed race meeting

 

in this state.

 

     (b) Each year, all certified horsemen's organizations that

 

participate in a live race meeting may receive an amount approved

 

by order of the racing commissioner to use for general expenses.

 

Beginning on January 1 and ending on December 31 of each year, the

 

certified horsemen's organization is entitled to not less than 5%

 

of the site-specific horsemen's simulcast purse account as ordered

 

by the racing commissioner.

 

     Sec. 19a. If a thoroughbred track license is surrendered,

 

revoked, or escrowed, or after January 1, 1998, a licensed

 

thoroughbred track is closed, the racing commissioner shall order

 

the deposit of horsemen's purse pool money deposited and

 

distributed pursuant to section 19 from the track be transferred to

 

a depository designated by a race meeting licensee upon on written

 

direction of the affected certified horsemen's organization


regardless of whether there was racing at the race meeting

 

licensee's location during the previous year. The money shall be

 

transferred to the horsemen's simulcast purse account at any

 

licensed racetrack in this state where the affected certified

 

horsemen's organization subsequently obtains a written contract for

 

live horse racing with pari-mutuel wagering. If the affected

 

certified horsemen's organization does not enter into a written

 

contract for live horse racing with pari-mutuel wagering at a track

 

in this state within 12 months after the date when the horsemen's

 

simulcast purse account money can be transferred under this

 

section, the money must be equally divided between the horsemen's

 

simulcast purse accounts at the licensed tracks in this state

 

conducting pari-mutuel wagering on the results of horse races. The

 

racing commissioner may rescind or modify any existing escrow

 

orders to carry out this section.

 

     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 racing commissioner before the

 

effective date of the amendatory act that added this section must

 

be used by September 1, 2017 for a race meeting conducted by the

 

certified horsemen's organization and the race meeting licensee

 

that were the subjects of the order in accordance with a

 

contractual agreement between a race meeting licensee and the

 

certified horsemen's organization. If a contractual agreement is

 

not reached by September 1, 2017, the racing commissioner shall

 

order distribution of the escrowed money as follows:

 

     (a) Fifteen percent to the race meeting licensee that was the


subject of the order to be used for track operations and

 

enhancements.

 

     (b) Eighty-five percent to the certified horsemen's

 

organization that was the subject of the order to be used for

 

purses at any race meeting in this state for which the certified

 

horsemen's organization has a contract.

 

     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 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.

 

     (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 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 paid under this subdivision

 

for overnight races at fairs paid pursuant to this subsection shall

 

for which Michigan sired, Michigan bred, or Michigan owned harness

 

horses are eligible must 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, 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% 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. 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% 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% 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% 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% 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% 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, 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 racing

 

commissioner that is sufficient to pay for the collection and

 

laboratory analysis of urine, saliva, blood, and other samples from

 

horses and licensed individuals involved in horse racing on which

 

pari-mutuel wagers are made and for the conducting of tests


described in section 16(4).

 

     (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.

 

     Sec. 22. (1) Each A licensed racetrack located in a city area

 

shall pay a license fee to the racing commissioner 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 Each 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 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 and altering the calculation of the tax on simulcast horse


racing, 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 alteration 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.

 

     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

 

racing commissioner 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 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, 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 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, and shall provide the record to the commissioner for

 

review upon on request.

 

     (4) (2) The racing commissioner 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 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 under this section shall must be

 

available for review in the office of racing commissioner at each

 

licensed race meeting in this state.

 

     (6) (4) Except as authorized by the racing commissioner 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, 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), 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.

 

     (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 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 or racing

 

commissioner's designee that the person possesses the controlled

 

substance or instrument.

 

     (2) In addition to the penalties prescribed in subsection (1),

 

the racing commissioner 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) 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.