April 19, 2012, Introduced by Reps. Daley, LaFontaine, Denby, Kurtz, Rendon, Muxlow, Outman, Tyler, Brunner, Smiley, McBroom, Heise, Hovey-Wright and Lipton 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, 3, 4, 6, 7, 8, 9, 9a, 10, 12,
13, 14, 15, 16, 17, 18, 19, 19a, 20, 21, 22, 23, 24, 25, 26, 27,
28, 29, and 32 (MCL 431.302, 431.303, 431.304, 431.306, 431.307,
431.308, 431.309, 431.309a, 431.310, 431.312, 431.313, 431.314,
431.315, 431.316, 431.317, 431.318, 431.319, 431.319a, 431.320,
431.321, 431.322, 431.323, 431.324, 431.325, 431.326, 431.327,
431.328, 431.329, and 431.332), sections 2 and 4 as amended by 2006
PA 445, sections 7, 9, 10, and 12 as amended by 2000 PA 164,
section 9a as added by 1997 PA 73, 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
to repeal acts and parts of acts.
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
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 and gaming on the
results of live and simulcast races and events at licensed race
meetings in this state; to appropriate the funds 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. 2. As used in this act:
(a) "Affiliate" means a person who, directly or indirectly,
controls, is controlled by, or is under common control with; is in
a partnership or joint venture relationship with; or is a co-
shareholder of a corporation, co-member of a limited liability
company, or co-partner in a limited liability partnership with a
person who holds or applies for a race meeting or track license
under this act. For purposes of this subdivision, a controlling
interest is a pecuniary interest of more than 15%.
(b) "Breaks" means the cents over any multiple of 10 otherwise
payable to a patron on a wager of $1.00.
(c) "Certified horsemen's organization" means an organization
that is registered with the office of racing commissioner in a
manner and form required by the racing commissioner, and that can
demonstrate all of the following:
(i) The organization's capacity to supply horses.
(ii) The organization's ability to assist a race meeting
licensee in conducting the licensee's racing program.
(iii) The organization's ability to monitor and improve physical
conditions and controls for individuals and horses participating at
licensed race meetings.
(iv) The organization's ability to protect the financial
interests of the individuals participating at licensed race
meetings.
(d)
"City area" means a city with a population of 750,000 or
more
and every county located wholly or partly within 30 miles of
the
city limits of the city.
(d) "Commissioner" or "racing commissioner" means the
executive director of the Michigan gaming control board appointed
under section 4 of the Michigan gaming control and revenue act,
1996 IL 1, MCL 432.204, who is ordered under Executive
Reorganization Order No. 2009-31, MCL 324.99919, to perform all the
functions and exercise the powers performed and exercised by the
racing commissioner before that position was abolished.
(e) "Controlled substance" means that term as defined in
section 7104 of the public health code, 1978 PA 368, MCL 333.7104.
(f) "Day of operation" means a period of 24 hours beginning at
12 noon and ending at 11:59 a.m. the following day.
(g) "Drug" means any of the following:
(i) A substance intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in humans or other
animals.
(ii) A substance, other than food, intended to affect the
structure , or condition , or any 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)
"Fair" means any a
county, district, or community fair and
any
or a state fair.
(i) "Foreign substance" means a substance, or its metabolites,
that does not exist naturally in an untreated horse or, if natural
to an untreated horse, exists at an unnaturally high physiological
concentration as a result of having been administered to the horse.
(j)
"Full card simulcast" means an entire simulcast racing
program of 1 or more race meeting licensees or events located in
this
state, or an entire simulcast racing program of 1 or more
races
simulcasted or events
simulcast from 1 or more racetracks
located
or locations outside of this state.
(k) "Interstate simulcast" means a simulcast from a racetrack
outside this state to a racetrack inside this state.
(l) "Intertrack simulcast" means a simulcast from 1 racetrack
in this state to another racetrack in this state.
(m) (k)
"Member of the immediate
family" means the spouse,
child, parent, or sibling.
(n) "Net commission" means the money retained by the race
meeting licensee from pari-mutuel wagering under this act after all
winning wagers and fees and taxes paid by the race meeting licensee
are deducted. As used in this subdivision:
(i) "Fees and taxes" includes, but is not limited to, breaks,
simulcast fees, licensing fees, and other regulatory fees.
(ii) "Money retained by the race meeting licensee from pari-
mutuel wagering" includes any money paid by participants to engage
in pari-mutuel wagering, including a fee to participate in a pari-
mutuel card game.
(iii) "Winning wagers" includes payments by the race meeting
licensee in the form of cash, prizes, awards, or other things of
value.
(o) "Office of the racing commissioner" means the Michigan
gaming control board created under section 4 of the Michigan gaming
control and revenue act, 1996 IL 1, MCL 432.204, to which Executive
Reorganization Order No. 2009-31, MCL 324.99919, transferred all of
the authority, powers, duties, functions, records, personnel,
property, unexpended balances of appropriations, allocations, or
other funds of the office of racing commissioner that previously
existed under this act and that was abolished by that executive
reorganization order.
(p) "Pari-mutuel", "pari-mutuel gaming activities", and "pari-
mutuel wagering" mean the form or system of gambling on races,
events, games, and activities in which the winner or winners divide
the total amount of money bet, after deducting all commissions,
fees, and taxes. Pari-mutuel, pari-mutuel gaming activities, and
pari-mutuel wagering do not include banked games 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 participants play. Pari-mutuel,
pari-mutuel gaming activities, and pari-mutuel wagering under this
act 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.
(q) (l) "Person"
means an individual, firm, partnership,
corporation, association, or other legal entity.
(r) (m)
"Purse pool" means an
amount of money allocated or
apportioned to pay prizes for horse races and from which other
payments
may be made to certified horsemen's organizations pursuant
to
consistent with this act.
(s) "Simulcast" means a 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.
(t) (n)
"Veterinarian" means a
person an individual licensed
to practice veterinary medicine under part 188 of the public health
code,
1978 PA 368, MCL 333.16101 333.18801
to 333.18838, or under a
state
or federal law applicable to that person.individual.
Sec.
3. The office of racing commissioner is created within
the
department of agriculture. The
racing commissioner has the
powers
and duties prescribed in this act and shall administer the
provisions
of this act. relating
to licensing, enforcement, and
regulation.
The racing commissioner also has
those additional
powers
necessary and proper to implement and enforce this act, and
to regulate and maintain jurisdiction over the conduct of each
licensed
race meeting within in this state where horse races or
subject to this act, and to take any other actions necessary to
support and promote horse racing, simulcast races and events, and
pari-mutuel
wagering on the results of horse races is permitted for
a
stake, purse, prize, share, or reward.and pari-mutuel gaming
activities under this act.
Sec.
4. (1) The racing commissioner shall be appointed for a
term
of 4 years by the governor by and with the advice and consent
of
the senate.
(1) (2)
The racing commissioner shall be a
resident of this
state and, during his or her term of office, shall not be a
stockholder of, or be directly or indirectly connected with the
conduct or management of, or have any other legal or beneficial
interest in, any of the following:
(a) A racetrack, race meeting, or a racing interest,
including, but not limited to, the ownership, breeding, training,
or racing of horses or any vendor, supplier, or distributor of
goods or services to a racetrack, race meeting, or racing
participant licensed under this act.
(b) Any pari-mutuel wagering and pari-mutuel gaming activity
conducted
at any a licensed race meeting in this state.
(2) (3)
The racing commissioner, an
employee of the office of
the racing commissioner, or a member of the immediate family of the
racing commissioner or of an employee of the office of the racing
commissioner shall not participate in wagering permitted under this
act or conducted by a person or an affiliate of a person licensed
or applying for a license under this act. This subsection does not
apply to wagering that is part of surveillance, security, or other
official duties for the office of the racing commissioner.
Sec.
6. (1) The racing commissioner shall receive an annual
salary
as appropriated by the legislature. The
racing commissioner
shall appoint 2 deputy commissioners and 3 state stewards of racing
as
special deputies for each licensed race meeting in the this
state. The racing commissioner shall appoint additional deputy
commissioners or special deputies as necessary. For the purpose of
carrying out this act, the racing commissioner may delegate the
performance of his or her duties to the deputy commissioners or
special
deputies. A An individual
appointed as a deputy
commissioner
and or state steward shall take the constitutional
oath of office and may exercise any power granted by the rules of
the
racing commissioner promulgated pursuant to under this
act. A
decision of a deputy commissioner or state steward may be appealed
to the racing commissioner pursuant to the contested case
provisions
of 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. The racing
commissioner shall employ other personnel as necessary for the
administration of this act within the limits of the appropriations
made by the legislature and subject to civil service rules. The
racing commissioner is entitled to the reasonable and necessary
expenses incurred in performing his or her duties prescribed in
this act.
(2) The racing commissioner shall keep a record of all
proceedings and preserve all books, maps, documents, and papers
belonging to the racing commissioner or entrusted to the care of
the office of racing commissioner.
(3) The racing commissioner shall make an annual report to the
governor before April 15 for the immediately preceding calendar
year. ,
which The report shall include a statement of the racing
commissioner's receipts and disbursements and additional
information and recommendations that the racing commissioner
considers necessary or the governor requires.
Sec.
7. (1) The racing commissioner may shall promulgate rules
pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328, for conducting live horse racing, simulcast
races
and events, and pari-mutuel wagering on
horse racing results,
and
simulcasting and pari-mutuel gaming
activities. The rules
promulgated
under this section shall be designed to accomplish do
all of the following:
(a)
The governing, restricting, approving, or regulating of
Govern, restrict, approve, or regulate horse racing, pari-mutuel
wagering
on the results of horse races and
pari-mutuel gaming
activities, and simulcasting conducted at of races and events for
licensed
race meetings within in this state.
(b)
The promoting of Promote the safety, security, growth, and
integrity
of all horse racing, pari-mutuel wagering on the results
of
horse races and pari-mutuel gaming
activities, and simulcasting
conducted
at of races and events for licensed race meetings within
in this state.
(c)
The licensing and regulating of License
or regulate each
person
participating in, or having to do with, pari-mutuel live
horse
racing, and wagering, and simulcasting of races and events,
pari-mutuel wagering and pari-mutuel gaming activities at licensed
race
meetings within in this state.
(d) Provide a process by which race meeting licensees may
request and obtain approval from the racing commissioner to conduct
and offer to the public all pari-mutuel wagering and pari-mutuel
gaming activities consistent with this act.
(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 pari-mutuel gaming
activities, and simulcasting races and events at licensed race
meetings. If the racing commissioner determines that additional
security is necessary to ensure the safety and integrity of racing,
the racing commissioner shall provide supplemental security at each
race meeting in areas where occupational licenses are required for
admittance.
(3) The racing commissioner 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. The appeal shall 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 pari-mutuel gaming activities, 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.
(5) The racing commissioner may compel the production of
books, records, memoranda, electronically retrievable data, or
documents
that relate to horse racing, simulcasting simulcast races
and
events, and pari-mutuel wagering conducted
and pari-mutuel
gaming activities at a licensed race meeting.
(6) The racing commissioner at any time may require for cause
the removal of any employee or official involved in or having to do
with
horse racing, simulcasting a
simulcast race or event, or pari-
mutuel
wagering conducted and pari-mutuel
gaming activities at a
licensed race meeting.
(7) The racing commissioner may visit, investigate, and place
auditors and other persons as the racing commissioner 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 may summon witnesses and
administer oaths or affirmations to exercise and discharge his or
her powers and duties under this act. A person failing to appear
before the racing commissioner at the time and place specified in a
summons from the racing commissioner or refusing to testify,
without just cause, in answer to a summons from the racing
commissioner 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. A
person testifying falsely to the racing commissioner 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.
Sec.
8. (1) The racing commissioner may issue the following
general classes of licenses:
(a) Occupational licenses issued to individuals participating
in, involved in, or otherwise having to do with horse racing, pari-
mutuel wagering and pari-mutuel gaming activities, or simulcasting
at
races and events for 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
of
races and events, and pari-mutuel
wagering on the results of
live
and simulcast horse races at a and
pari-mutuel gaming
activities
for licensed race meeting meetings 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 racetracks at which 1 or more race meeting
licensees may conduct licensed race meetings in this state.
(2)
The racing commissioner shall not issue a race meeting
license
to a person if the person is licensed to conduct a licensed
race
meeting at another licensed racetrack within a city area and
the
person has a controlling interest in or co-ownership of the
other
licensed racetrack within the city area.
Sec.
9. (1) The racing commissioner shall issue, without
further
application, a track license to any person holding a valid
track
license under former 1980 PA 327, and maintaining or
operating
a licensed horse racetrack as of the effective date of
this
act at which wagering by pari-mutuel methods on the results of
horse
racing has been conducted by a race meeting licensee.
(2)
A track license, once issued, is valid only as long as the
annual
license fee is paid, or until the track license is
voluntarily
surrendered or is revoked as provided in this act or
the
rules promulgated under this act.
(1) On and after the effective date of the amendatory act that
added this sentence, a track license for a racetrack where live
horse racing with pari-mutuel wagering under a race meeting license
was conducted in 2010 is valid and remains valid under the terms
and requirements of this act. A track license in existence in 2010
for a facility that did not offer live horse racing with pari-
mutuel wagering under a race meeting license in 2010 is invalid.
(2) If at any time there are fewer than 5 valid track licenses
in this state, the racing commissioner shall accept applications
for new track licenses from any person, regardless of whether the
person conducted live horse racing with pari-mutuel wagering under
a race meeting license in 2010, if the application is for a license
for a track located where live horse racing with pari-mutuel
wagering occurred in 2010 or at least 100 miles away from any other
licensed track.
(3) An applicant for a new track license under this section
shall submit an application that is in writing, that demonstrates
to the racing commissioner that the applicant has satisfactory
financial responsibility, that shows the location of the racetrack
or of the proposed racetrack, and that is accompanied by
substantially detailed plans and specifications for the racecourse,
paddock, grandstand, stable barns, racetrack buildings, fences,
electrical service and lighting, plumbing, parking, and other
facilities and improvements. The application shall 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
(4)
On the applicant's filing of the
a new application under
this section and the payment of the license fee, the racing
commissioner shall investigate the applicant and the racetrack or
proposed racetrack as the racing commissioner considers necessary.
(5) If the racing commissioner determines that the an
applicant for a new track license under this section and the
racetrack satisfy the requirements of this act and the rules
promulgated
under this act, the racing commissioner shall may grant
a license for the racetrack, designating in the license the address
where and the county or other municipality in which the licensed
racetrack
shall will be or is located. If the racing commissioner
(6) The racing commissioner shall deny an application for and
shall not issue a new track license under this section if approving
the application would increase the number of valid track licenses
in this state to more than 5 or would cause harmful competition by
or among existing tracks. The racing commissioner shall deny a new
track license application if he or she determines that the
applicant or the racetrack, or both, do not comply with this act
and
the rules promulgated under this act.
, the racing commissioner
shall
deny the license.
(7) The action of the racing commissioner in denying a new
track license under this section may be reviewed by the circuit
court pursuant to section 631 of the revised judicature act of
1961, 1961 PA 236, MCL 600.631.
(8) Subject to subsection (1), a track license is valid if the
annual license fee is paid or until the license is voluntarily
surrendered or is revoked as provided in this act or the rules
promulgated under this act.
(9)
(4) A valid
track license may be transferred to
a new
owner
of a racetrack or sold by the
licensee with the consent of
the racing commissioner. The racing commissioner shall consent to
the transfer or sale of a track license unless the person seeking
to acquire the track license does not meet the requirements for a
new track license under subsections (2) to (6). A track license
transferred or sold with the racing commissioner's consent is
entitled to all privileges and subject to all requirements
applicable to other track licenses.
(10) (5)
After a track license is issued under this section,
the
The racing commissioner may impose a fine or suspend or
revoke
the
a track license if the holder of the license, after
reasonable
notice from the racing commissioner, does not make necessary
improvements, additions, or corrections to the licensed premises,
fixtures, or equipment as reasonably determined and required by the
racing
commissioner ; or
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 to conduct a licensed race meeting for 2 consecutive
years.
In addition to the suspension or
revocation of the
suspending or revoking a license, the racing commissioner may
impose a fine or bring an action in circuit court seeking an order
of the court requiring the licensee to make reasonable and
necessary racetrack improvements or additions as determined by the
commissioner if the licensee fails to make improvements or
corrections that comply with the applicable construction code or
local ordinances. The action of the racing commissioner in
suspending or revoking a track license shall comply with and is
subject to the administrative procedures act of 1969, 1969 PA 306,
MCL
24.201 to 24.328, and shall be subject including the right to
judicial appeal.
(6)
In a city area, not more than 3 racetracks shall be
licensed,
except that in a city with a population of 900,000 or
more
the racing commissioner may issue 1 additional license.
(7)
A person shall not be issued more than 1 track license.
Controlling
ownership and interlocking directorates among the
holders
of track licenses are prohibited.
(8)
A track license shall not be issued under this section if
the
new license would result in harmful competition among existing
racetracks.
Sec.
9a. Each holder of the a track license shall post a toll-
free compulsive gaming helpline number at each entrance and exit of
the
racetrack and at each location on the racetrack where wagers on
horse
races are accepted and shall include that number on all in
prominent places in other areas where pari-mutuel wagering and
pari-mutuel gaming activities are allowed. All printed
advertisement and promotional materials for the track shall include
the toll-free compulsive gaming helpline number.
Sec.
10. (1) A person desiring 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 this act live
horse racing, simulcasting of races
and events, pari-mutuel wagering and pari-mutuel gaming activities,
or a combination of any of these activities under a license issued
under section 8(b) shall apply each year to the racing commissioner
for a race meeting license in the manner and form required by the
racing commissioner. The application shall be filed with the racing
commissioner
before September 1 of the preceding year. except that
applications
for 1999 racing dates may be filed at any time. The
application, after being filed, shall be made available for public
inspection during regular business hours. The application shall 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 also do all of
the following:
(a)
Specify the licensed racetrack facility
of a track
licensee at which the proposed race meeting will be held.
(b)
Specify whether that 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 live horse racing, the horse breed or breeds for
which the applicant desires to conduct live horse racing at the
proposed race meeting, and the days on which the applicant proposes
to conduct live horse racing at the race meeting.
(c) Specify whether the applicant requests or will request to
conduct other pari-mutuel wagering and pari-mutuel gaming
activities and simulcasting of races and events.
(d) Specify what pari-mutuel wagering will be conducted on
live horse racing, simulcast races and events, and gaming
activities, including any pari-mutuel wagering with common, linked,
or progressive pools.
(e) (d)
Specify the time period
during which the applicant
requests to be licensed during the calendar year immediately
following the date of application.
(f) For an applicant requesting to conduct standardbred
racing, apply for a minimum of 50 days of live racing. For an
applicant requesting to conduct thoroughbred racing, apply for a
minimum of 75 days of live racing.
(g) Specify that the applicant requests to offer at least 9
live horse races on each day of live horse racing allocated by the
racing commissioner in the race meeting license, unless another
number of live horse races per day is specified in the applicant's
contract with a certified horsemen's organization.
(h) (e)
Demonstrate to the racing
commissioner that the
applicant and all persons associated with the applicant who hold
any beneficial or ownership interest in the business activities of
the applicant or who have power or ability to influence or control
the business decisions or actions of the applicant satisfy all of
the following requirements:
(i) Are persons of good character, honesty, and integrity.
(ii) Possess sufficient financial resources and business
ability and experience to conduct the proposed race meeting.
(iii) Do not pose a threat to the public interest of the
this
state or to the security and integrity of horse racing,
simulcasting
of races and events, or pari-mutuel wagering
on the
results
of horse races and pari-mutuel
gaming activities in the
this state.
(i) (f)
Provide any other information
required by the rules
promulgated under this act or by the racing commissioner.
(2)
Upon the filing of the an application for a race meeting
license, the racing commissioner shall conduct an investigation of
the applicant and the application to determine whether the
applicant, application, and proposed race meeting comply with the
licensing requirements 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.If the racing commissioner
determines that the
applicant, application, and proposed race meeting comply with the
licensing requirements of this act and the rules promulgated under
this act, the racing commissioner shall issue the race meeting
license. The racing commissioner shall not deny a race meeting
license or restrict the lawful activities available under a race
meeting license because live racing cannot be offered or authorized
for a reason allowed under this act, the rules promulgated under
this act, or an order of the racing commissioner. However, a race
meeting licensee shall have a contract with a certified horsemen's
organization during any year in which the race meeting licensee
does not conduct live horse racing.
(3) A race meeting licensee may conduct live racing of any
breed or breeds of horse named in section 20 and any combination of
other activities permitted under this act.
Sec.
12. (1) Each applicant for a thoroughbred, quarter horse,
Appaloosa,
American paint horse, or Arabian license in a county
located
outside of a city area shall apply to conduct at least 45
days
of live thoroughbred, quarter horse, Appaloosa, American paint
horse,
or Arabian horse racing during its 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 shall conduct live racing programs on
such
days allocated by the racing commissioner.
(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.
(6)
If a race meeting licensee is unable to program and
conduct
9 live horse races on any racing date that the commissioner
allocates
to the licensee because there are less than 5 entries in
any
race, the licensee shall not conduct any simulcasting on that
day
without the written consent of the certified horsemen's
organization
with which it has a contract.
(1) (7)
If a race meeting licensee is
unable to conduct live
horse racing on any live racing dates allocated to the licensee by
the
racing commissioner or less than 9 cannot conduct the number of
live
horse races on any per allocated day
of live horse racing
dates
required by the race meeting
license because of a labor
dispute,
a fire, adverse weather conditions, or other causes
another
cause beyond the race meeting licensee's
control, then the
race meeting licensee is considered to have conducted those races
or
race days 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 race dates.The
race meeting licensee
shall make a good-faith effort to reschedule live horse races on
allocated live racing dates not held for 1 of the reasons described
in this section unless rescheduling is impracticable.
(2) (8)
Intertrack simulcast races and events that a race
meeting licensee contracts to receive from other racetracks that
are
canceled for any of the reasons described in subsection (7) (1)
shall be considered to be offered to the public for purposes of
this act.
(3) (9)
If an entire live horse race meeting or the balance of
a live horse race meeting and live horse racing dates allocated to
a licensee cannot be raced due to an act of God or significant
physical damage to the licensed racetrack at which the race meeting
was licensed to be conducted caused by fire or some other
catastrophe, the racing commissioner may transfer those live horse
racing 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 if all race meeting licensees that will be conducting
live
horse racing on such those dates within 50 miles
of the
substitute racetrack consent to the transfer.
Sec. 13. (1) A race meeting licensee shall have a current
written contract with a certified horsemen's organization before it
may
conduct live horse racing or simulcast horse races with pari-
mutuel
wagering on the results of the races pursuant to racing
under its 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) Except as provided in section 18, a certified horsemen's
organization may use its own horsemen's purse pool money to pay for
all of the following:
(a) Its reasonable annual expenses.
(b) Purses for live horse races at the track where the race
meeting licensee with which it has a contract operates.
(c) Costs of regulation by the racing commissioner at the
racetrack where the race meeting licensee with which it has a
contract operates.
(3) After the effective date of the amendatory act that added
this subsection, a certified horsemen's organization may also pay
or disburse purse pool money directly to the race meeting licensee
with which the certified horsemen's organization has a contract
according to the terms and conditions of a written contract with
the race meeting licensee.
(4) The racing commissioner shall determine annually whether
to certify a horsemen's organization. The racing commissioner shall
require, at a minimum, that a horsemen's organization seeking
certification has provided the consents required by the interstate
horse racing act of 1978, 15 USC 3001 to 3007, to allow simulcast
horse racing and interstate off-track wagering on simulcast horse
racing consistent with this act at all licensed race meetings in
this state that have been licensed to offer simulcast horse racing.
(5) The racing commissioner's decision not to certify a
horsemen's organization or to revoke its certification is subject
to review under the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328, and to appeal to the circuit court.
(6) A horsemen's purse pool may be audited by the racing
commissioner, the certified horsemen's organization that
establishes and maintains the purse pool, and the race meeting
licensee that provides money for the purse pool. The racing
commissioner may order an accounting, restitution, and
redistribution of money handled in a manner inconsistent with this
act. The certified horsemen's organization and the race meeting
licensee may seek any remedy available if purse pool money is
handled in a manner inconsistent with this act.
Sec.
14. (1) Except as provided in subsection (8), before
Before November 1 of the year preceding the year for which
applications are made, the racing commissioner shall grant or deny
each
application for a race meeting license
, and 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 any
live horse racing
dates requested in the application for the license. In granting the
race meeting license, the racing commissioner shall also authorize
the conduct of any other pari-mutuel wagering and pari-mutuel
gaming activities, including simulcasting and common, linked, or
progressive pool wagering, as requested by the applicant during the
calendar year for which the license is issued. The racing
commissioner may grant a race meeting license for any time period
up
to 1 year. during which the licensee may conduct live and
simulcast
horse races with pari-mutuel wagering on the results of
such
races.
(2)
Subject to section 12(7), all simulcasting authorized by
the
racing commissioner shall be conditioned upon the holder of the
license
conducting at least 9 live horse races on each live racing
date
allocated in the holder's race meeting license, unless this
requirement
is waived in writing by both the racing commissioner
and
the certified horsemen's organization with which the licensee
has
contracted.
(2) (3)
The racing commissioner shall not
issue a race meeting
license
to an organization a
person organized for a charitable
purpose or organized for the purpose of distributing its profits or
income to charitable organizations.
(3) (4)
Except as provided in section 12(7),
(8), and (9) 12,
if
after the issuance of a race meeting license , the racing
commissioner determines upon further investigation that the holder
of a race meeting license has not met, or will be unable to meet,
the
requirements of the license , the
racing commissioner may
impose a fine or suspend or revoke the race meeting license, or
both, for all or part of the remainder of the time period for which
the license was granted. Before making the required determination
to impose a fine or suspend or revoke a race meeting license under
this subsection, the racing commissioner shall consider whether the
race meeting licensee's inability or failure to meet the
requirements of its license is due to a cause beyond the control of
the race meeting licensee.
(4) (5)
Any action taken by the racing
commissioner under
subsection
(4) shall become effective (3)
takes effect 10 days
after
the holder of the race meeting license has received receives
written notice unless the commissioner finds that the public
health, safety, or welfare requires emergency action and immediate
effect of the commissioner's order.
(5) (6)
A denial of a race meeting license
under subsection
(3)
(2) may be appealed directly 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.
(6) (7)
Each applicant issued a race
meeting license licensee
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 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 be designated in each race meeting license application and
all interest earned by the account shall 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 or track license shall file with the racing
commissioner 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. These certified
financial
statements shall be considered are
public records and
shall be made available for public inspection during regular
business hours. The certified financial statements submitted shall
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. The
working papers and other records pertaining to preparation of the
financial statements may be reviewed by the state treasurer and the
racing commissioner and shall be promptly provided to them by the
holders of the race meeting license upon their request.
(2) On the first day other than Sunday after each day of
operation, each holder of a race meeting license shall remit the
money due to the state or other entities under this act at the
close of the day of operation with a detailed statement of that
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 person participating in or having to do with
pari-mutuel
horse racing, simulcasting of races or events, or pari-
mutuel
wagering on the results of horse races and pari-mutuel
gaming activities at a licensed race meeting under this act,
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, or vendors
operating where pari-mutuel wagering and pari-mutuel gaming
activities are allowed may be licensed by the racing commissioner
pursuant to rules promulgated by the racing commissioner under this
act. The racing commissioner 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 shall not issue a pari-
mutuel
an 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) 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
a
veterinarian 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 an individual
licensed under this act or otherwise authorized by the racing
commissioner may enter the restricted grounds of a licensed race
meeting
where horses are kept that are eligible to race at the race
meeting are kept. 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
in a race if the horse's name is
put into the draw for a that
specific
race , and a
horse that is entered in a race is a if the
horse
that has been drawn into a that 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.
(3) As conditions precedent to being issued and holding a
valid
pari-mutuel occupational license
under this act, 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 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.
(4) In addition to the requirements of subsection (3), an
applicant
for a pari-mutuel an occupational license under this act
shall consent, upon 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 the applicant's
participation in a race meeting by
persons authorized by the racing commissioner.
(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 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
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 racing commissioner may
penalize
a licensee may be penalized by the
racing commissioner for
his
or her positive test results, which may include including 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 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 shall suspend for not less than 1 year the
license of a person 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.
(5) When applying for an occupational license, an applicant
shall provide the racing commissioner with 1 or more sets of his or
her fingerprints and the appropriate fees as requested by the
racing commissioner. The racing commissioner 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.
(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 not be construed
or interpreted to determine civil tort liability of any racehorse
owner
or trainer but shall only be for purposes of used in the
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.
(7) Upon the filing of a written complaint, under oath, in the
office of the racing commissioner, or upon the written motion of
the racing commissioner regarding the actions or omissions of a
person
issued a pari-mutuel an occupational license, the racing
commissioner 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 regarding the acts
or omissions complained of in the written complaint or motion, if
the commissioner determines from the complaint or motion that the
public health, safety, or welfare requires emergency action. The
racing commissioner 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 be conducted
in
accordance with the as a contested case provisions of under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
The action of the racing commissioner in revoking or
suspending
a pari-mutuel revocation or
suspension of an
occupational license by the racing commissioner may be appealed to
the circuit court pursuant to the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328. If the racing
commissioner's order is predicated upon 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.
(8)
A decision by the racing commissioner, or a deputy
commissioner, or a state steward of racing to deny an application
for an occupational license may be appealed to the circuit court
and reviewed pursuant to 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 the
administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(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.
Sec.
17. (1) The pari-mutuel system of wagering upon the
results
of horse races as permitted by this
act shall not be held
or construed to be unlawful. All forms of pari-mutuel wagering and
pari-mutuel gaming activities conducted at a licensed race meeting
shall be preapproved by the racing commissioner pursuant to rule or
written order of the commissioner, or in a license issued by the
commissioner, including the use of common, linked, or progressive
pools.
(2) A holder of a race meeting license may provide a place in
the
race meeting grounds, or enclosure, or facility at a licensed
racetrack 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 with live or simulcast horse racing, a
totalisator or other device that is equal in accuracy and clearness
to a totalisator and approved by the racing commissioner shall be
used for the live or simulcast horse racing. The odds display of
the totalisator or other device shall be placed in full view of the
patrons.
(3)
Subject to section 18(3), each A
holder of a race meeting
license
shall retain as his or her commission on all forms of
straight
wagering 17% of all money wagered involving straight
wagers
on the results of live and simulcast horse races conducted
at
the licensee's race meetings. Subject to section 18(3), each
holder
of a race meeting license shall retain as his or her
commission
on all forms of multiple wagering, without the written
permission
of the racing commissioner not more than 28% and with
the
written permission of the racing commissioner not more than 35%
of
all money wagered involving any form of multiple wager on the
results
of live and simulcast horse races conducted at the
licensee's
race meeting. Except as otherwise provided by contract,
50%
of all commissions not more
than 35% of all money wagered on or
fees paid to participate in any pari-mutuel wagering and pari-
mutuel gaming activity under this act.
(4) Unless a different percentage is stated in a written
contract between the race meeting licensee and a certified
horsemen's organization, 50% of net commission from wagering on the
results of live horse racing at the racetrack where the live horse
racing was conducted shall be paid to the horsemen's purse pool at
the
racetrack where the live horse 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.
(5) The racing commissioner may request and the race meeting
licensee and the certified horsemen's organization shall provide
information concerning any commission retained or withheld by the
race meeting licensee and any net commission paid into a horsemen's
purse pool.
(6) (4)
All breaks on wagers placed on live or simulcast races
and events shall be retained by the race meeting licensee and paid
directly to the city or township in which the racetrack is located
as
a fee for services provided pursuant to under section 21.
(7) (5)
Payoff prices of tickets for wagers on live or
simulcast races and events of a higher denomination shall 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.
(8) (6)
A holder of a race meeting license
licensee shall not
knowingly permit a person less than 18 years of age to be a patron
of the pari-mutuel wagering and pari-mutuel gaming activities
conducted
or supervised by the holder.licensee.
(9) (7)
Any act or transaction relative to pari-mutuel
wagering
on the results of live or simulcast horse races shall only
occur
or be permitted to occur within the enclosure of a licensed
race
meeting. A person shall not participate or be a party to any
act
or transaction relative to placing a wager or carrying a wager
for
placement outside of a race meeting ground. A person shall not
provide messenger service for the placing of a bet for another
person
who is not a patron. However, this subsection This act does
not prevent account wagering, advanced deposit wagering,
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, or order of the commissioner.
Sec. 18. (1) Simulcasting by race meeting licensees may be
authorized by the racing commissioner subject to the limitations of
this
section. As used in this section, "simulcast" means the live
transmission
of video and audio signals conveying a horse race held
either
inside or outside this state to a licensed race meeting in
this
state. A simulcast from 1 racetrack in this state to another
racetrack
in this state shall be called an "intertrack simulcast".
A
simulcast from a racetrack outside this state to a racetrack
inside
this state shall be called an "interstate simulcast".
(2) The holder of a race meeting license may apply to the
racing commissioner, in the manner and form required by the
commissioner,
for a permit license to televise simulcasts of horse
races and events to viewing areas within the enclosure of the
licensed racetrack at which the applicant is licensed to conduct
its
race meeting. The commissioner may issue a permit license 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 have a current contract with a
certified
horsemen's organization.
(b)
The applicant shall 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 make a continuing 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 horsemen's organization with which the
applicant
has contracted shall 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).
(a) (e)
If the requested simulcasts are
interstate simulcast
horse
races, the applicant shall waive has waived 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 those interstate simulcasts by other race meeting
licensees in this state.
(b) (f)
If the applicant conducts its race meeting in a city
area,
the applicant shall make The
applicant makes 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
charge
(c) The applicant charges each race meeting licensee the same
fee to receive its live signals for intertrack simulcasting. The
fee shall not exceed 3% of the total amount wagered on the
intertrack simulcast at each race meeting that receives the
simulcast.
(d) The applicant does not pay a fee to a track sending a
signal of a simulcast horse race that exceeds 3% of the total
amount wagered on the simulcast horse race unless it is a horse
race with a purse that exceeds $200,000.00 or the higher fee is
authorized by an order of the racing commissioner.
(e) (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 The applicant receives all available intertrack
simulcasts
from licensed race meetings in the city area located
more than 12 miles from the licensee's race meeting.
(h)
A licensed race meeting outside a city area shall 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.
(f) (k)
All authorized simulcasts shall
be are conducted in
compliance
with the written permit license
and related orders
issued by the racing commissioner and all other requirements and
conditions
of this act and the rules of the racing commissioner
promulgated under this act.
(g) (l) All
authorized interstate horse race simulcasts shall
also
comply with the interstate horse racing act of 1978, Public
Law
95-15, 15 U.S.C. USC 3001
to 3007.
(3)
All forms of wagering by pari-mutuel methods provided for
under
this act for live racing shall be allowed on simulcast horse
races
authorized under this section. All money wagered on simulcast
horse
races at a licensed race meeting shall 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 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 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 simulcast at the
receiving
racetrack shall 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.
(3) (5)
A race meeting licensee licensed
to conduct pari-
mutuel
that conducts live horse racing in a city area shall provide
the necessary equipment to send intertrack simulcasts of the live
horse races conducted at its race meeting to all other race meeting
licensees in this state, and shall send its intertrack simulcast
signals to those licensees upon request for an agreed fee as a
commission, which shall not exceed 3% of the total amount wagered
on
the race at the receiving track. Race meeting licensees that
send
or receive intertrack simulcasts shall make the following
payments
to the horsemen's purse pools:
(a)
Each race meeting licensee that sends an intertrack
simulcast
shall pay 50% of the simulcast fee that it receives for
sending
the simulcast signal to the horsemen's purse pool at the
sending
track.
(b)
Each race meeting licensee that receives an intertrack
simulcast
shall pay to the horsemen's simulcast purse pool
established
pursuant to section 19 a sum equal to 40% of the
receiving
track's net commission from wagering on the intertrack
simulcast
under section 17(3) after first deducting from the
licensee's
statutory commission the applicable state tax on
wagering
due and owing under section 22 and the actual verified fee
paid
by the receiving track to the sending host track to receive
the
intertrack simulcast signal. A
race meeting licensee that
distributes simulcast signals for another licensee may charge a
separate fee for that service.
(4) (6)
The racing commissioner may
authorize a race meeting
licensee to transmit simulcasts of live horse races conducted at
its racetrack to locations outside of this state in accordance with
the
interstate horse racing act of 1978, Public Law 95-515, 15
U.S.C.
USC 3001 to 3007, or any other applicable laws, and may
permit
pari-mutuel pools on such the 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.
(7)
Simulcasting of events other than horse races for purposes
of
pari-mutuel wagering is prohibited.
(5) Each race meeting licensee that receives an interstate
simulcast shall pay to the horsemen's simulcast purse pool
established under section 19 an amount equal to 40% of the
licensee's net commission from all money wagered on the interstate
simulcast.
(6) A race meeting licensee shall pay to the horsemen's purse
pool at its track 15% of the net commission retained from all pari-
mutuel wagering and pari-mutuel gaming activities other than live
horse racing or simulcast horse races. The money paid to a
horsemen's purse pool under this section shall be distributed and
used as follows:
(a) The certified horsemen's organization shall expend 1/15 of
the money for marketing and promotion of live racing at the track
for the race meeting licensee that generated the money.
(b) The certified horsemen's organization shall expend 1/15 of
the money for capital improvements at the track for the race
meeting licensee that generated the money by paying for the
improvements directly or by reimbursing the race meeting licensee
for the improvements. The race meeting licensee must agree to the
capital improvements being made or paid for at the track by the
certified horsemen's organization.
(c) The certified horsemen's organization shall use 2/15 of
the money for purses or purse supplements for Michigan-bred 2- and
3-year-old horses that race at fairs or pari-mutuel racetracks in
this state.
(d) The certified horsemen's organization shall use 1/15 of
the money for awards to breeders of Michigan-bred horses that race
at fairs or pari-mutuel racetracks in this state.
(e) The remainder of the money shall be distributed and used
as provided in section 13(2).
(7) All purse pools and other accounts established under this
section may be audited by the racing commissioner, the certified
horsemen's organization named on the account, and the race meeting
licensee that provides money for the account. The racing
commissioner may order an accounting, restitution, and
redistribution of money handled in a manner inconsistent with this
act. The certified horsemen's organization and the race meeting
licensee may seek any remedy available if purse pool money is
handled in a manner inconsistent with this act.
Sec. 19. (1) All money designated by this act to be paid into
the
horsemen's simulcast purse pool, shall be deposited in a
depository designated by all participating certified horsemen's
organizations and distributed by their designated escrow agent as
follows:
(a)
50% of the funds money generated from thoroughbred
simulcasts
for horsemen's purses and 35% of the funds money
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 money generated from thoroughbred
simulcasts
for horsemen's purses and 65% of the funds money
generated from standardbred simulcasts for horsemen's purses shall
be divided between all standardbred purse pools. The division shall
be on a pro rata basis between all standardbred race meeting
licensees based upon the percentage of total standardbred handle,
from all sources, for the previous calendar year.
(2)
The certified horsemen's organizations, and race meeting
licensees, shall
have and racing commissioner may
audit rights of
the
funds set forth in money
deposited and distributed under this
section. The racing commissioner may order an accounting,
restitution, and redistribution of money handled in a manner
inconsistent with this act and take all actions necessary to
require the establishment of the accounts necessary for the
simulcast purse pool. The certified horsemen's organizations and
the race meeting licensees may seek any remedy available at law or
equity if simulcast purse pool money is handled in a manner
inconsistent with this act.
(3) A participating certified horsemen's organization is only
entitled to simulcast purse pool money generated from simulcast
horse racing during a time in which it has a contract with a race
meeting licensee that offers simulcast horse racing and is making
the payments required by this act into the simulcast purse pool.
(4) As used in this section, "participating certified
horsemen's organization" means an organization certified under
section 13 that has a contract with a race meeting licensee that
offers simulcast horse racing on at least 350 days in a year, or on
less than 350 days if the certified horsemen's organization and
race meeting licensee agree in writing to decrease the number of
days and the decreased number of days is also authorized by the
racing commissioner by order or in the race meeting license.
Sec.
19a. If a thoroughbred track license is surrendered,
revoked,
or escrowed, or after January 1, 1998, a licensed
thoroughbred
track is closed, the racing commissioner shall order
the
deposit of horsemen's purse pool money deposited and
distributed
pursuant to section 19 to a depository designated by a
race
meeting licensee upon written direction of the affected
certified
horsemen's organization regardless of whether there was
racing
at the race meeting licensee's location during the previous
year.
(1) If a track license or race meeting license is surrendered,
revoked, or escrowed, the racing commissioner shall issue an order
to pay, distribute, reallocate, or refund money due or owing
between the affected licensee and its certified horsemen's
organization. The racing commissioner's order shall not reallocate
or refund money approved for the reasonable annual expenses of the
affected licensee's certified horsemen's organization, money paid
to this state for regulatory costs at the affected licensee's
track, or money already disbursed or payable as purses for live
horse races already conducted at the affected licensee's race
meeting.
(2) The racing commissioner shall take all actions and issue
all orders necessary to deal with the closing or suspension of
operations by the affected licensee and may compel the production
and preservation of books, receipts, and other information that may
be necessary to this process.
(3) The attorney general may institute a civil action or
intervene in any action to enforce an order issued by the racing
commissioner under this section.
(4) As used in this section, "affected licensee" means the
track licensee or race meeting licensee whose license has been
surrendered, revoked, or escrowed.
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 horse 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 generated under this act from licensing fees, fines,
and the simulcast horse racing tax imposed under section 22(3) that
is received by the department of agriculture and rural development,
the racing commissioner, the office of racing commissioner, and the
state
treasurer under this act shall
be used first to pay the
actual costs incurred by the department of agriculture and rural
development, the racing commissioner, and the office of racing
commissioner in carrying out their duties under this act and then
to fund the programs as provided in subsections (5) to (11). At the
end of each fiscal year, money generated under this act from
licensing fees, fines, and the simulcast horse racing tax imposed
under section 22(3) that was appropriated for and that exceeds the
actual costs incurred by the department of agriculture and rural
development, the racing commissioner, and the office of racing
commissioner in carrying out their duties under this act shall be
paid promptly into the state treasury and placed in the Michigan
agriculture equine industry development fund created in subsection
(3).
(3) The Michigan agriculture equine industry development fund
is created in the department of treasury. The Michigan agriculture
equine industry development fund shall be administered by the
director of the department of agriculture and rural development
with the assistance and advice of the racing commissioner.
(4) Money shall not be expended from the Michigan agriculture
equine industry development fund except as appropriated by the
legislature. Money appropriated by the legislature for the Michigan
agriculture equine industry development fund shall be expended by
the director of the department of agriculture and rural development
with the advice and assistance of the racing commissioner to
provide
funding for the general fund as provided in subsection (17)
and
agriculture and equine industry
development programs as
provided in subsections (5) to (11). However, any money
appropriated by the legislature out of the Michigan agriculture
equine industry development fund to the racing commissioner or
office of racing commissioner shall be administered only by the
racing commissioner.
(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 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
and races at which pari-mutuel wagering is conducted 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 is
eligible
for Michigan tax-supported races only if, in the year that
the
foal is conceived, the Michigan department of agriculture'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 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 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%
15% 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
and sired by a standardbred stallion that was registered
with
the
Michigan department of agriculture that and rural development,
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
department of agriculture and rural development. The director of
the
department of agriculture and
rural development may allot funds
money for a photo finish system and a mobile starting gate. The
director of the department of agriculture and rural development
shall
allot funds money 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 of agriculture and rural
development 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 that was registered with the Michigan
department
of agriculture that and
rural development, 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 thoroughbred horses.
(b) A sum to pay awards to owners of Michigan bred
thoroughbred horses that finish first, second, or third in races
open to non-Michigan bred thoroughbred horses.
(c) A sum to pay breeders' awards in an amount not to exceed
10%
15% 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 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%
15% 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.
(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%
15% 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 of agriculture and rural development 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.
(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%
15% 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.
(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%
15% 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 department of agriculture
and rural development, 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 the provisions this section that relate to the department
of agriculture and rural development. 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 under 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 after 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.
(17) The director of the department of agriculture and rural
development has any additional powers necessary and proper to
implement and enforce this section.
(18) As used in this section:
(a) "Michigan bred American paint horse" means a horse to
which both of the following apply:
(i) The horse is from a mare that is owned by a resident of
this state at the time of conception, was registered with the
department of agriculture and rural development by February 15 of
the foaling year, was in this state on or before February 15 of the
foaling year, and remained in this state until foaling and for not
less than 7 months of the foaling year.
(ii) The horse is sired by a stallion registered with the
department of agriculture and rural development once per ownership
at the time the ownership is transferred with the American paint
horse association.
(b) "Michigan bred Appaloosa horse" means an Appaloosa horse
to which both of the following apply:
(i) The horse is from a mare owned by a resident of this state
at the time of conception and registered with the department of
agriculture and rural development once per ownership at the time
the ownership is transferred with the Appaloosa horse club.
(ii) The horse is sired by a stallion that is owned or leased
exclusively by a resident of this state, did not serve a mare at a
location outside of this state during the calendar year in which
the service occurred, and is registered with the department of
agriculture and rural development once per ownership at the time
the ownership is transferred with the Appaloosa horse club.
(c) "Michigan bred Arabian horse" means an Arabian horse to
which both of the following apply:
(i) The horse is from a mare that is owned by a resident of
this state at the time of conception and registered with the
department of agriculture and rural development once per ownership,
at the time the ownership is transferred with the Arabian horse
association.
(ii) The horse is sired by a stallion that is owned or leased
exclusively by a resident of this state, did not serve a mare at a
location outside of this state during the calendar year in which
the service occurred, and is registered with the department of
agriculture and rural development once per ownership at the time
the ownership is transferred with the Arabian horse association.
(d) "Michigan bred quarter horse" means a quarter horse to
which both of the following apply:
(i) The horse is from a mare that was owned by a resident of
this state at the time of conception, was registered with the
department of agriculture and rural development by February 15 of
the foaling year, was in this state on or before February 15 of the
foaling year, and remained in this state until foaling and for not
less than 7 months of the foaling year.
(ii) The horse was sired by a stallion registered with the
director of the department of agriculture and rural development once
per ownership at the time the ownership is transferred with the
American quarter horse association.
(e) "Michigan bred thoroughbred horse" means a thoroughbred
horse to which both of the following apply:
(i) The horse is from a thoroughbred mare that was registered
with the department of agriculture and rural development by
February 15 of the foaling year, was in this state on or before
February 15 of the foaling year, and remained in this state until
foaling and for not less than 7 months of the foaling year.
(ii) The horse has a jockey club, incorporated, certificate of
foal registration that states "Afoaled in Michigan, U.S.A.".
Sec. 21. Local units of government participating in the
distribution
of funds money under section 17(4) 17(6) shall
provide
for adequate police, fire, and traffic protection of persons and
property
at and near each race meet meeting, including areas where
occupational licenses are required. Each local unit of government
participating
in the distribution of funds money
under this act
shall
show by a submit a statement submitted annually on February 1
of
each year to the racing commissioner showing
the amounts of
funds
amount of money received and shall detail the expenditure of
those
amounts the money during the previous calendar year. The
racing commissioner shall report annually to the governor and the
legislature
regarding these the statements
received under this
section.
Sec.
22. (1) Each licensed racetrack located in a city area
shall pay a license fee to the racing commissioner of $1,000.00
annually. ,
and any other licensed racetrack shall pay a license
fee
of $200.00 annually.
(2)
During calendar year 1996, each 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% of all money wagered on
interstate
and intertrack simulcast races conducted at the holder's
licensed
race meetings in 1996 in a manner and time as the racing
commissioner
requires. For calendar year 1997 and each year
thereafter,
the tax rate shall increase to 3.5% of all money
wagered
on interstate and intertrack simulcast races conducted at
the
holder's licensed race meetings each calendar year. Not later
than
4 years after the effective date of this act, the racing
commissioner
shall report to the chairpersons of the senate and
house
committees responsible for legislation concerning horse
racing
as to the effect on the horse racing industry of the
reduction
in the tax pursuant to subsection (2).
(2) A tax imposed by this act does not apply to and is not
imposed on money wagered on or commissions retained from live horse
racing.
(3) Each holder of a race meeting license shall pay a tax in
the amount of 16% of its commissions on the simulcasting of horse
races it conducts to the state treasurer to be deposited in the
Michigan agriculture equine industry development fund and
appropriated and expended as provided in section 20.
(4) Each holder of a race meeting license shall pay a tax in
the amount of 15% of its commissions on pari-mutuel wagering and
pari-mutuel gaming activities other than wagering and gaming
activities on which a tax is paid under subsection (3). The tax
collected under this subsection is not subject to section 20, but
shall be paid as follows:
(a) Three-quarters shall be paid by the race meeting licensee
to the state treasurer for deposit in the state general fund and
appropriation by the legislature.
(b) One-eighth shall be paid by the race meeting licensee to
the city, township, or village in which the race meeting licensee
conducts race meetings at a licensed track facility.
(c) One-eighth shall be paid by the race meeting licensee to
the county in which the race meeting licensee conducts race
meetings at a licensed track facility.
(5) (3)
By eliminating the pari-mutuel
wagering tax on live
horse
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 while also creating a new source of tax
revenue for this state.
(6) As used in this section, "commission" means the money
retained by the race meeting licensee from pari-mutuel wagering
under this act after winning wagers are deducted. Winning wagers
include wagers paid by the race meeting licensee in the form of
cash, prizes, awards, or other things of value. Money retained by
the race meeting licensee as commission includes any money paid by
participants to engage in pari-mutuel wagering, including a fee to
participate in a pari-mutuel card game.
Sec.
23. (1) The auditing of pari-mutuel operations at each a
race meeting shall be performed by a private auditing firm
appointed by the state treasurer and approved by the racing
commissioner. The expense of pari-mutuel audits shall be paid by
the
this state as a part of the state treasurer's budget.
Daily
audit
reports on each day of pari-mutuel racing wagering and pari-
mutuel gaming activities shall be forwarded to the racing
commissioner 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 after
a race meeting, at least 3
copies of the pari-mutuel audit report for the entire race meeting
shall be forwarded to the racing commissioner and additional copies
shall be supplied to the state treasurer and the holder of the race
meeting license. The scope of the pari-mutuel audits shall be
established in specifications prepared by the state treasurer and
approved by the racing commissioner.
(2)
The auditors representing the this
state under this
section 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 shall be responsible for verifying 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 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 be made available to
the auditors on request. The auditors, in addition to their regular
reports, shall make prompt report to the racing commissioner, the
state treasurer, and the holder of the race meeting license of any
irregularities
or discrepancies which 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. 24. A person licensed under this act shall not knowingly
permit the dissemination of racing or other information that might
be of benefit to the operator of an illegal handbook or other
illegal
gambling enterprise, including the changes in odds which
that may take place during the period of wagering in advance of
each race. This section does not prevent the accredited
representatives of newspapers, turf publications, newspaper press
services, radio and television networks and stations, and other
news and sports reporting media from promptly reporting from the
racetrack the results of races, payoff prices on winning tickets,
entries, claims, and other information concerning the actual
running of races and training activities.
Sec.
25. (1) To the extent information is disclosed by any a
race meeting licensee under this act regarding the name, address,
or
any other personal information, including financial information,
of
any a patron of the licensee, neither the office of
the racing
commissioner
nor and any other governmental authority to whom
disclosure
has been made shall not disclose that the information.
All information provided to the office of racing commissioner or
any other governmental authority by a race meeting licensee that in
any
manner discloses the name, address, or any other personal
information,
including financial information, of any a patron of
the licensee is considered confidential, and is not subject to
disclosure
under the freedom of information act, Act No. 442 of the
Public
Acts of 1976, being sections 1976
PA 442, MCL 15.231 to
15.246. of
the Michigan Compiled Laws.
(2) A person regulated under this act may designate a record,
license application, other information, or a portion of a record,
license application, or other information furnished to or obtained
by the racing commissioner or the racing commissioner's agents or
employees as being only for the confidential use of the racing
commissioner. The racing commissioner shall notify the regulated
person of a request for public records under the freedom of
information act, 1976 PA 442, MCL 15.231 to 15.246, if the scope of
the request includes information designated as confidential. The
person regulated under this act has 30 days after the receipt of
the notice to demonstrate to the racing commissioner that the
information designated as confidential should not be disclosed
because the information is a trade secret or secret process; is
operational, commercial, or financial information the disclosure of
which would jeopardize the competitive position of the person from
whom the information was obtained and make available information
not otherwise publicly available; relates to security or the
internal controls of a racetrack; or is of a personal nature, the
release of which would constitute a clearly unwarranted invasion of
a person's privacy or otherwise cause harm. The racing commissioner
shall grant the request for the information unless the person
regulated under this act makes a satisfactory demonstration to the
racing commissioner that the information should not be disclosed.
If the racing commissioner makes a decision to grant a request for
information, the information requested shall not be released until
3 business days have elapsed after the decision is made.
(3) This section does not protect information from disclosure
if the information is otherwise expressly required to be made
public under this act.
Sec.
26. (1) Except as provided for in section 20, this act
applies
to a county or state fairs fair or
to an agricultural or
livestock
exhibitions exhibition only if the pari-mutuel system of
wagering
upon on the result of horse racing is conducted at the
fair or exhibition.
(2) This act does not permit the pari-mutuel system of
wagering
upon at a racetrack unless the racetrack is licensed as
provided
by under this act. A person shall not permit, conduct, or
supervise
upon on racetrack grounds, the pari-mutuel system of
wagering or other pari-mutuel wagering and pari-mutuel gaming
activities, except in accordance with this act.
Sec. 27. (1) A person shall not participate in live horse
racing, simulcast races and events, or other gaming activities
involving wagering of any kind except as permitted under this act
or otherwise permitted by law.
(2) Live horse racing, simulcast races and events, and gaming
and activities with pari-mutuel wagering, including, but not
limited to, the placing of pari-mutuel wagers and collection of
winning pari-mutuel wagers, are authorized to the extent that they
are conducted in accordance with this act and not prohibited by
federal law.
(3) This act does not apply to any of the following:
(a) Casino gaming authorized under the Michigan gaming control
and revenue act, 1996 IL 1, MCL 432.201 to 432.226.
(b) Lottery games authorized under the McCauley-Traxler-Law-
Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47.
(c) Bingo or millionaire parties or any other activities
authorized under the Traxler-McCauley-Law-Bowman bingo act, 1972 PA
382, MCL 432.101 to 432.120.
(d) Gambling on Native American land and land held in trust by
the United States for a federally recognized Indian tribe on which
gaming may be conducted under the Indian gaming regulatory act,
Public Law 100-497, 102 Stat. 2467.
(e) Recreational card playing, bowling, redemption games, and
occasional promotional activities allowed under sections 303a,
310a, 310b, 372, and 375 of the Michigan penal code, 1931 PA 328,
MCL 750.303a, 750.310a, 750.310b, 750.372, and 750.375.
Sec. 28. Except as provided in section 21, a political
subdivision of this state shall not assess or collect an excise or
license
tax or fee from a person licensed under this act based upon
on an activity performed under or authorized by this act.
Sec. 29. A person who willfully aids, assists, or abets the
violation of this act or the rules promulgated under this act 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.
For
the purpose of this section, each day of racing in violation of
this act constitutes a separate offense.
Sec. 32. A person influencing or attempting to influence the
result of a race or workout or any lawful pari-mutuel wagering and
pari-mutuel gaming activity at a licensed race meeting in this
state, by offer of money, thing of value, future benefit, favor,
preferment;
by any form of pressure or threat; or by seeking or
having
an agreement, understanding, or conniving with any an owner,
jockey, driver, trainer, groom, valet, agent, or other person
associated
with or interested in any a
stable of horses , or a
horse , or a race or workout in which the horse participates; or
in
any other manner, 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.
Enacting section 1. Sections 5 and 35 of the horse racing law
of 1995, 1995 PA 279, MCL 431.305 and 431.335, are repealed.