SENATE BILL No. 433

 

 

June 14, 2011, Introduced by Senator HUNE 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 section 20 (MCL 431.320), section 20 as

 

amended by 2006 PA 185.

 

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 the powers and duties of the

 

racing commissioner; to prescribe certain to provide for the powers

 

and duties of the department of agriculture and the director of the


 

department of agriculture certain state and local governmental

 

officers and entities; to provide for the promulgation of rules; to

 

provide for the imposition of taxes and fees and the disposition 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 remedies and penalties; and to repeal acts and parts

 

of acts.

 

     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 director of the

 

Michigan gaming control board 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 commissionerdirector

 

of the Michigan gaming control board.

 

     (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 director

 

of the Michigan gaming control board 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 under this subsection 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 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 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 money 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 director of the

 

department of agriculture and rural development shall promulgate

 

rules establishing which premiums are eligible for payment and a

 

dollar limit for all eligible payments.

 

     (e) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to breeders of Michigan bred standardbred

 

harness horses for each time the horse wins a race at a licensed

 

race meeting or fair in this state. As used in this subdivision,

 

"Michigan bred standardbred harness horse" means a horse from a

 

mare owned by a resident or residents of this state at the time of

 

conception, that was conceived after January 1, 1992, and sired by

 

a standardbred stallion registered with the Michigan department of

 

agriculture and rural development that was leased or owned by a

 

resident or residents of this state and that did not serve a mare

 

at a location outside of this state from February 1 through July 31

 

of the calendar year in which the conception occurred. To be

 

eligible, each mare shall 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 money 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 director of the

 

Michigan gaming control board. 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 money

 

as the holding agent for stakes and futurities is paid a transport

 

fee as determined by the Michigan department of agriculture and

 

rural development and administered by the Michigan harness

 

horsemen's association.

 

     (6) The following amounts shall be paid to thoroughbred

 

programs:


 

     (a) A sum to be allotted thoroughbred race meeting licensees

 

to supplement the purses for races to be conducted exclusively for

 

Michigan bred horses.

 

     (b) A sum to pay awards to owners of Michigan bred horses that

 

finish first, second, or third in races open to non-Michigan bred

 

horses.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred

 

thoroughbred horses for each time Michigan bred thoroughbred horses

 

win at a licensed race meeting in this state. If, during a fiscal

 

year, live thoroughbred horse races are not conducted at a licensed

 

race meeting in this state, a sum shall be appropriated under this

 

subdivision to pay breeders' awards, in amounts not to exceed 10%

 

of the gross purses, to the breeders of Michigan bred thoroughbred

 

horses that win at races conducted at licensed horse racetracks

 

outside of 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 this state shall be placed in a

 

special thoroughbred sire stakes fund each year, 100% of which

 

shall be used to provide purses for races run exclusively for 2-

 

year-old and 3-year-old and older Michigan sired thoroughbred

 

horses at licensed thoroughbred race meetings in this state and

 

awards for owners of Michigan sired horses or stallions. As used in

 

this subdivision, "Michigan sired thoroughbred horses" means


 

thoroughbred horses sired by a stallion registered with the

 

department of agriculture and rural development that was leased or

 

owned exclusively by a resident or residents of this state and that

 

did not serve a mare at a location outside of this state during the

 

calendar year in which the service occurred.

 

     (f) A sum to be allotted sufficient to pay for the collection

 

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

 

from horses and licensed persons and for the conducting of tests

 

described in section 16(4)(b).

 

     (7) The following amounts shall be paid for quarter horse

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred quarter horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered quarter horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of a gross purse to breeders of Michigan bred quarter horses

 

for each time a Michigan bred quarter horse wins at a county fair

 

or licensed race meeting in this state.

 

     (d) A sum to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (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. Each mare and stallion shall be registered


 

with the director of the department of agriculture and rural

 

development.

 

     (8) The following amounts shall be paid for Appaloosa

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred Appaloosa horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered Appaloosa horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred Appaloosa

 

horses for each time Michigan bred horses win at a fair or licensed

 

race meeting in this state.

 

     (d) The department shall also allot sufficient funds from the

 

revenue received from Appaloosa horse racing to pay for the

 

collection and laboratory analysis of urine, saliva, blood, or

 

other samples from horses and licensed persons and the taking of

 

blood alcohol tests on jockeys for those races described in this

 

subsection and for the conducting of tests described in section

 

16(4)(b).

 

     (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. Each mare and stallion shall be registered

 

with the director of the department of agriculture and rural

 

development.

 

     (9) The following amounts shall be paid for Arabian programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred Arabian horses.


 

     (b) A sum to pay not more than 75% of the purses for

 

registered Arabian horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred Arabian

 

horses for each time Michigan bred horses win at a fair or licensed

 

racetrack in this state.

 

     (d) A sum allotted from the revenue received from Arabian

 

horse racing to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (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. Each mare and

 

stallion shall be registered with the director of the department of

 

agriculture and rural development.

 

     (10) The following sums shall be paid for American paint horse

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred American paint horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered American paint horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred American

 

paint horses for each time a Michigan bred American paint horse

 

wins at a county fair or licensed race meeting in this state.


 

     (d) A sum to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (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.

 

     (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 director of the Michigan gaming control

 

board, 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) 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.

 

     (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.

 

     (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) 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.

 

     (16) Funds Money 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).

 

All funds money 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.