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.