HB-4609,As Passed House,May 22, 2003                                        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                              SUBSTITUTE FOR                                    

                                                                                

                           HOUSE BILL NO. 4609                                  

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 [A bill to amend 1995 PA 279, entitled                                             

                                                                                

    "Horse racing law of 1995,"                                                 

                                                                                

    by amending the title and sections 2, 8, 9, 10, 16, 17, 18, 20,             

                                                                                

    21, 23, and 25 (MCL 431.302, 431.308, 431.309, 431.310, 431.316,            

                                                                                

    431.317, 431.318, 431.320, 431.321, 431.323, and 431.325), sections 9 and   

                                                                                

    10 as amended by 2000 PA 164, sections 17 and 18 as amended by              

                                                                                

    1998 PA 408, and section 20 as amended by 2000 PA 471, and by               

                                                                                

    adding a heading for article 1 and adding section 19b and                   

                                                                                

    articles 2 and 3.]                                                          

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1                                 TITLE                                         

                                                                                

2                                                                                An act to license and regulate the conducting of horse race                        

                                                                                

3   meetings in this state with pari-mutuel wagering on the results             

                                                                                

4   of horse races and persons involved in horse racing and                     

                                                                                

5   pari-mutuel gaming activities at such race meetings and at                  

                                                                                


                                                                                

1   off-track racing theaters; to create the office of racing                   

                                                                                

2   commissioner; to prescribe the powers and duties of the racing              

                                                                                

3   commissioner; to prescribe certain powers and duties of the                 

                                                                                

4   department of agriculture and the director of the department of             

                                                                                

5   agriculture; to provide for the promulgation of rules; to provide           

                                                                                

6   for the imposition of taxes and fees and the disposition of                 

                                                                                

7   revenues; to impose certain taxes; to create funds; to legalize             

                                                                                

8   and permit the pari-mutuel method of wagering on the results of             

                                                                                

9   live and simulcast races at licensed race meetings in this state            

                                                                                

10  and at off-track racing theaters; to allow and regulate telephone           

                                                                                

11  and other electronic account wagering on horse races; to                    

                                                                                

12  appropriate the funds derived from pari-mutuel wagering on the              

                                                                                

13  results of horse races at licensed race meetings and at off-track           

                                                                                

14  racing theaters in this state; to appropriate funds derived from            

                                                                                

15  certain lottery games conducted by race meeting licensees in this           

                                                                                

16  state; to prescribe remedies and penalties; and to repeal acts              

                                                                                

17  and parts of acts.                                                          

                                                                                

18                              ARTICLE 1                                       

                                                                                

19      Sec. 2.  As used in this act:                                               

                                                                                

20      (a) "Account wagering" means a form of pari-mutuel wagering                 

                                                                                

21  on a horse race in which a wager is placed on the horse race by             

                                                                                

22  telephone or electronic means, including, but not limited to, the           

                                                                                

23  internet.                                                                   

                                                                                

24      (b) "Agricultural enhancement purse pool" means the purse                   

                                                                                

25  pool described in section 19b.                                              

                                                                                

26      (c)  (a)  "Breaks" means the cents over  any  a multiple of                 

                                                                                

27  10 otherwise payable to a patron on a wager of $1.00.                       


                                                                                

1       (d) "Certified breeders' organization" means an organization                

                                                                                

2   registered with the office of racing commissioner in the manner             

                                                                                

3   required by the racing commissioner that can demonstrate all of             

                                                                                

4   the following:                                                              

                                                                                

5                                                                                (i) The organization has been in existence more than 10                             

                                                                                

6   consecutive years.                                                          

                                                                                

7       (ii) The organization has historically demonstrated the                      

                                                                                

8   ability to produce promotional materials.                                   

                                                                                

9       (iii) The organization has previously managed the                            

                                                                                

10  distribution of breeders' or owners' awards.                                

                                                                                

11      (iv) The organization has the ability to protect the                         

                                                                                

12  financial interests of the recipients of breeders' and owners'              

                                                                                

13  awards.                                                                     

                                                                                

14      (e)  (b)  "Certified horsemen's organization" means an                      

                                                                                

15  organization registered with the office of racing commissioner in           

                                                                                

16  a manner and form required by the racing commissioner, that can             

                                                                                

17  demonstrate all of the following:                                           

                                                                                

18                                                                               (i) The organization's capacity to supply horses.                                   

                                                                                

19      (ii) The organization's ability to assist a race meeting                     

                                                                                

20  licensee in conducting the licensee's racing program.                       

                                                                                

21      (iii) The organization's ability to monitor and improve                      

                                                                                

22  physical conditions and controls for individuals and horses                 

                                                                                

23  participating at licensed race meetings.                                    

                                                                                

24      (iv) The organization's ability to protect the financial                     

                                                                                

25  interests of the individuals participating at licensed race                 

                                                                                

26  meetings.                                                                   

                                                                                

27      (f)  (c)  "City area" means a city in this state having a                   


                                                                                

1   population of 750,000 or more  ,  and  includes  the counties in            

                                                                                

2   this state wholly or partly within  a distance of  30 miles of              

                                                                                

3   the city limits of  the  that city.                                         

                                                                                

4       (g)  (d)  "Controlled substance" means that term as defined                 

                                                                                

5   in section 7104 of the public health code,  Act No. 368 of the              

                                                                                

6   Public Acts of 1978, being section 333.7104 of the Michigan                 

                                                                                

7   Compiled Laws  1978 PA 368, MCL 333.7104.                                   

                                                                                

8       (h)  (e)  "Day of operation" means a period of 24 hours                     

                                                                                

9   beginning at 12 noon and ending at 11:59 a.m. the following day.            

                                                                                

10      (i)  (f)  "Drug" means any of the following:                                

                                                                                

11                                                                               (i) A substance intended for use in the diagnosis, cure,                            

                                                                                

12  mitigation, treatment, or prevention of disease in humans or                

                                                                                

13  other animals.                                                              

                                                                                

14      (ii) A substance, other than food, intended to affect the                    

                                                                                

15  structure, condition, or  any  a function of the body of humans             

                                                                                

16  or other animals.                                                           

                                                                                

17      (iii) A substance intended for use as a component of a                       

                                                                                

18  substance specified in subparagraph (i) or (ii).                             

                                                                                

19      (j)  (g)  "Fair" means  any  a county, district, or                         

                                                                                

20  community fair  and any  or state fair.                                     

                                                                                

21      (k)  (h)  "Foreign substance" means a substance, or its                     

                                                                                

22  metabolites,  which  that does not exist naturally in an                    

                                                                                

23  untreated horse or, if natural to an untreated horse, exists at             

                                                                                

24  an unnaturally high physiological concentration as a result of              

                                                                                

25  having been administered to the horse.                                      

                                                                                

26                                                                               (l)  (i)  "Full card simulcast" means an entire simulcast                            

                                                                                

27  racing program of 1 or more race meet licensees located in this             


                                                                                

1   state, or an entire simulcast racing program of 1 or more races             

                                                                                

2   simulcasted from 1 or more racetracks located outside of this               

                                                                                

3   state.                                                                      

                                                                                

4       (m) "Interstate simulcast" means a simulcast of a horse race                

                                                                                

5   held outside this state to a racetrack inside this state.                   

                                                                                

6       (n) "Intertrack simulcast" means a simulcast of a horse race                

                                                                                

7   held at 1 racetrack in this state to another racetrack inside               

                                                                                

8   this state.                                                                 

                                                                                

9       (o) "Mixed breed" means a breed of horse other than                         

                                                                                

10  standardbred or thoroughbred.  Mixed breed includes, but is not             

                                                                                

11  limited to, quarter horse, Appaloosa, Arabian, and American                 

                                                                                

12  paint.                                                                      

                                                                                

13      (p) "Multijurisdictional wagering hub" means a business                     

                                                                                

14  conducted in this state and at least 1 other state that conducts            

                                                                                

15  account wagering.                                                           

                                                                                

16      (q) "Multiple wagering" means a wager made on the finishing                 

                                                                                

17  positions of more than 1 horse in a specified race or the                   

                                                                                

18  finishing positions of 1 or more horses in more than 1 specified            

                                                                                

19  race.                                                                       

                                                                                

20      (r) "Off-track telecasting" means the telecasting of a live                 

                                                                                

21  horse race to a location other than a racetrack.                            

                                                                                

22      (s) "Off-track wagering" means wagering on the results of a                 

                                                                                

23  horse race at a location other than a racetrack.                            

                                                                                

24      (t)  (j)  "Person" means an individual, firm, partnership,                  

                                                                                

25  corporation, association, or other legal entity.                            

                                                                                

26      (u)  (k)  "Purse pool" means an amount of money allocated or                

                                                                                

27  apportioned to pay prizes for horse races and from which payments           


                                                                                

1   may be made to certified horsemen's organizations pursuant to               

                                                                                

2   this act.                                                                   

                                                                                

3       (v) "Quarter horse" means a breed of horse developed in the                 

                                                                                

4   western United States that is capable of high speed for a short             

                                                                                

5   distance and used in quarter horse racing and registered with the           

                                                                                

6   American quarter horse association.                                         

                                                                                

7       (w) "Racing theater" means an enclosed facility where                       

                                                                                

8   patrons may view off-track telecasting and engage in off-track              

                                                                                

9   wagering on the results of the telecast horse races.  A racing              

                                                                                

10  theater may provide ancillary facilities, including, but not                

                                                                                

11  limited to, parking and food and beverage service provided at the           

                                                                                

12  viewing area.                                                               

                                                                                

13      (x) "Simulcast" means the live transmission of video and                    

                                                                                

14  audio signals conveying a horse race held either inside or                  

                                                                                

15  outside this state to a racetrack where a race meeting licensee             

                                                                                

16  holds its race meeting in this state.                                       

                                                                                

17      (y) "Standardbred" means a pacing or trotting horse that is                 

                                                                                

18  used in harness racing and that has been registered as a                    

                                                                                

19  standardbred by the United States trotting association or by a              

                                                                                

20  foreign registry whose stud book is recognized by the United                

                                                                                

21  States trotting association.                                                

                                                                                

22      (z) "Straight wagering" means a wager made on the finishing                 

                                                                                

23  position of a single specified horse in a single specified race.            

                                                                                

24      (aa) "Thoroughbred" means a purebred horse whose ancestry                   

                                                                                

25  can be traced back to 1 of 3 foundation sires and whose pedigree            

                                                                                

26  is registered in the American stud book or in a foreign stud book           

                                                                                

27  that is recognized by the jockey club and the international stud            


                                                                                

1   book committee.                                                             

                                                                                

2       (bb)  (l)  "Veterinarian" means a person licensed to                        

                                                                                

3   practice veterinary medicine under article 15 of the public                 

                                                                                

4   health code,  Act No. 368 of the Public Acts of 1978, being                 

                                                                                

5   sections 333.16101 to 333.18838 of the Michigan Compiled Laws               

                                                                                

6   1978 PA 368, MCL 333.16101 to 333.18838, or under a state or                

                                                                                

7   federal law applicable to that person.                                      

                                                                                

8       Sec. 8.   (1)  The racing commissioner may issue the                        

                                                                                

9   following general classes of licenses:                                      

                                                                                

10      (a) Occupational licenses issued to individuals participating               

                                                                                

11  in, involved in, or otherwise having to do with horse racing,               

                                                                                

12  pari-mutuel wagering, or simulcasting at a licensed race meeting            

                                                                                

13  or at a racing theater in this state.                                       

                                                                                

14      (b) Race meeting licenses issued annually for the succeeding                

                                                                                

15  year to a person to conduct live horse racing, simulcasting, and            

                                                                                

16  pari-mutuel wagering on the results of live and simulcast horse             

                                                                                

17  races at a licensed race meeting in this state and at a racing              

                                                                                

18  theater pursuant to and in accordance with the provisions of this           

                                                                                

19  act.                                                                        

                                                                                

20      (c) Track licenses issued to a person to maintain or operate                

                                                                                

21  a racetrack at which 1 or more race meeting licensees may conduct           

                                                                                

22  licensed race meetings in this state.                                       

                                                                                

23      (d) Licenses issued to multijurisdictional wagering hubs                    

                                                                                

24  under article 2.                                                            

                                                                                

25      (e) Racing theater licenses issued under article 3.                         

                                                                                

26      (2) The racing commissioner shall not issue a race meeting                  

                                                                                

27  license to a person if the person is licensed to conduct a                  


                                                                                

1   licensed race meeting at another licensed racetrack within a city           

                                                                                

2   area and the person has a controlling interest in or co-ownership           

                                                                                

3   of the other licensed racetrack within the city area.                       

                                                                                

4       Sec. 9.  (1) The racing commissioner shall issue, without                   

                                                                                

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

                                                                                

6   valid track license under former 1980 PA 327, and maintaining or            

                                                                                

7   operating a licensed horse racetrack as of  the effective date of           

                                                                                

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

                                                                                

9   methods on the results of horse racing has been conducted by a              

                                                                                

10  race meeting licensee.                                                      

                                                                                

11      (2) A track license, once issued, is valid only as long as                  

                                                                                

12  the annual license fee is paid, or until the track license is               

                                                                                

13  voluntarily surrendered or is revoked as provided in this act or            

                                                                                

14  the rules promulgated under this act.                                       

                                                                                

15      (3) An applicant for a track license shall submit an                        

                                                                                

16  application that is in writing, that demonstrates to the racing             

                                                                                

17  commissioner that the applicant has satisfactory financial                  

                                                                                

18  responsibility, that shows the location of the racetrack or of              

                                                                                

19  the proposed racetrack, and that is accompanied by substantially            

                                                                                

20  detailed plans and specifications for the racecourse, paddock,              

                                                                                

21  grandstand, stable barns, racetrack buildings, fences, electrical           

                                                                                

22  service and lighting, plumbing, parking, and other facilities and           

                                                                                

23  improvements.  The application shall include the name and address           

                                                                                

24  of the applicant, and, if a corporation, the place of its                   

                                                                                

25  incorporation, and any other information required by the rules              

                                                                                

26  promulgated under this act by the racing commissioner.  Upon the            

                                                                                

27  applicant's filing of the application and the payment of the                


                                                                                

1   license fee, the racing commissioner shall investigate the                  

                                                                                

2   applicant and the racetrack or proposed racetrack as the racing             

                                                                                

3   commissioner considers necessary.  If the racing commissioner               

                                                                                

4   determines that the applicant and the racetrack satisfy the                 

                                                                                

5   requirements of this act and the rules promulgated under this               

                                                                                

6   act, the racing commissioner shall grant a license for the                  

                                                                                

7   racetrack, designating in the license the county or other                   

                                                                                

8   municipality in which the licensed racetrack shall be or is                 

                                                                                

9   located.  If the racing commissioner determines that the                    

                                                                                

10  applicant or the racetrack, or both, do not comply with this act            

                                                                                

11  and the rules promulgated under this act, the racing commissioner           

                                                                                

12  shall deny the license.  The action of the racing commissioner in           

                                                                                

13  denying a track license may be reviewed by the circuit court                

                                                                                

14  pursuant to section 631 of the revised judicature act of 1961,              

                                                                                

15  1961 PA 236, MCL 600.631.                                                   

                                                                                

16      (4) A track license may be transferred to a new owner of a                  

                                                                                

17  racetrack with the consent of the racing commissioner.                      

                                                                                

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

                                                                                

19  racing commissioner may impose a fine or suspend or revoke the              

                                                                                

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

                                                                                

21  from the racing commissioner, does not make necessary                       

                                                                                

22  improvements, additions, or corrections to the licensed premises,           

                                                                                

23  fixtures, or equipment as determined and required by the racing             

                                                                                

24  commissioner; if the holder of the license violates or is no                

                                                                                

25  longer in compliance with the requirements of this act or the               

                                                                                

26  rules promulgated under this act; or if the licensed premises are           

                                                                                

27  not utilized to conduct a licensed race meeting for 2 consecutive           


                                                                                

1   years.  In addition to the suspension or revocation of the                  

                                                                                

2   license, the racing commissioner may impose a fine or bring an              

                                                                                

3   action in circuit court seeking an order of the court requiring             

                                                                                

4   the licensee to make reasonable and necessary racetrack                     

                                                                                

5   improvements or additions as determined by the commissioner if              

                                                                                

6   the licensee fails to make improvements or corrections that                 

                                                                                

7   comply with the applicable construction code or local                       

                                                                                

8   ordinances.  The action of the racing commissioner in suspending            

                                                                                

9   or revoking a track license shall comply with the administrative            

                                                                                

10  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, and              

                                                                                

11  shall be  is subject to appeal.                                            

                                                                                

12      (6) In a city area, not more than 3 racetracks shall be                     

                                                                                

13  licensed, except that in a city with a population of 900,000 or             

                                                                                

14  more the racing commissioner may issue 1 additional license.                

                                                                                

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

                                                                                

16  Controlling ownership and interlocking directorates among the               

                                                                                

17  holders of track licenses are prohibited.                                   

                                                                                

18      (8) A track license shall not be issued under this section if               

                                                                                

19  the new license would result in harmful competition among                   

                                                                                

20  existing racetracks.                                                        

                                                                                

21      (7) A racetrack license shall not be issued for a racetrack                 

                                                                                

22  located in the part of this state that is not in a city area                

                                                                                

23  unless the racetrack was licensed before the effective date of              

                                                                                

24  the act that added this subsection.                                         

                                                                                

25      (8) A racetrack that first applies for a license after the                  

                                                                                

26  effective date of the act that added this subsection shall not be           

                                                                                

27  located within 10 miles of a racetrack licensed before that date.           


                                                                                

1       Sec. 10.  (1) A person desiring to conduct a  thoroughbred,                 

                                                                                

2   standardbred, quarter horse, Appaloosa, American paint horse, or            

                                                                                

3   Arabian race meeting, or a combination of these race meetings               

                                                                                

4   race meeting, including a race meeting conducted with a                     

                                                                                

5   combination of horse breeds, with pari-mutuel wagering on the               

                                                                                

6   results of live and simulcast horse races pursuant to this act              

                                                                                

7   shall apply each year to the racing commissioner for a race                 

                                                                                

8   meeting license in the manner and form required by the racing               

                                                                                

9   commissioner.  The application shall be filed with the racing               

                                                                                

10  commissioner before September 1 of the preceding year.  except              

                                                                                

11  that applications for 1999 racing dates may be filed at any                 

                                                                                

12  time.  The application, after being filed, shall be made                    

                                                                                

13  available for public inspection during regular business hours.              

                                                                                

14  The application shall be in writing and shall give the name and             

                                                                                

15  address of the applicant, and, if the applicant is a corporation            

                                                                                

16  or partnership, shall state the place of the applicant's                    

                                                                                

17  incorporation or partnership and the names and addresses of all             

                                                                                

18  corporate directors, officers, shareholders, and partners.  The             

                                                                                

19  application shall also do all of the following:                             

                                                                                

20      (a) Specify the licensed racetrack at which the proposed race               

                                                                                

21  meeting will be held.                                                       

                                                                                

22      (b) Specify whether the applicant requests or will request to               

                                                                                

23  conduct simulcasting at the proposed race meeting and, if so,               

                                                                                

24  demonstrate the applicant's ability to conduct simulcasting in              

                                                                                

25  accordance with this act.                                                   

                                                                                

26      (c) Specify the horse breed or breeds for which the applicant               

                                                                                

27  desires to conduct live racing at the proposed race meeting, and            


                                                                                

1   the days on which the applicant proposes to conduct live horse              

                                                                                

2   racing at the race meeting.                                                 

                                                                                

3       (d) Specify the time period during which the applicant                      

                                                                                

4   requests to be licensed during the calendar year immediately                

                                                                                

5   following the date of application.                                          

                                                                                

6       (e) Demonstrate to the racing commissioner that the applicant               

                                                                                

7   and all persons associated with the applicant who hold any                  

                                                                                

8   beneficial or ownership interest in the business activities of              

                                                                                

9   the applicant or who have power or ability to influence or                  

                                                                                

10  control the business decisions or actions of the applicant                  

                                                                                

11  satisfy all of the following requirements:                                  

                                                                                

12                                                                               (i) Are persons of good character, honesty, and integrity.                          

                                                                                

13      (ii) Possess sufficient financial resources and business                     

                                                                                

14  ability and experience to conduct the proposed race meeting.                

                                                                                

15      (iii) Do not pose a threat to the public interest of the                     

                                                                                

16  state or to the security and integrity of horse racing or                   

                                                                                

17  pari-mutuel wagering on the results of horse races in the state.            

                                                                                

18      (f) Provide any other information required by the rules                     

                                                                                

19  promulgated under this act or by the racing commissioner.                   

                                                                                

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

                                                                                

21  license, the racing commissioner shall conduct an investigation             

                                                                                

22  of the applicant and the application to determine whether the               

                                                                                

23  applicant, application, and proposed race meeting comply with the           

                                                                                

24  licensing requirements under this act and the rules promulgated             

                                                                                

25  under this act.   Unless a different agreement is reached by all            

                                                                                

26  the race meeting licensees in a city area, a race meeting                   

                                                                                

27  licensee shall not conduct a live thoroughbred horse race after             


                                                                                

1   6:45 p.m. on any day except Sunday.  Unless a different agreement           

                                                                                

2   is reached by all the race meeting licensees in a city area, a              

                                                                                

3   race meeting licensee shall not conduct a live standardbred horse           

                                                                                

4   race before 6:45 p.m. on any day except Sunday.  Notwithstanding            

                                                                                

5   the 6:45 p.m. time restrictions, the commissioner, upon request             

                                                                                

6   by a race meeting licensee, may grant to the race meeting                   

                                                                                

7   licensee a race meeting license authorizing any of the                      

                                                                                

8   following:                                                                  

                                                                                

9       (a) The licensee to conduct live horse racing programs that                 

                                                                                

10  would otherwise be prevented by the 6:45 p.m. time restriction,             

                                                                                

11  if no other race meeting in a city area is licensed or authorized           

                                                                                

12  to conduct live horse racing at the same time the licensee                  

                                                                                

13  proposes to conduct the requested live horse racing programs.               

                                                                                

14      (b) Waiver of the 6:45 p.m. time restriction pursuant to the                

                                                                                

15  written agreement of all race meeting licensees in the city                 

                                                                                

16  area.                                                                       

                                                                                

17      (c) The licensee to conduct live horse racing programs after                

                                                                                

18  6:45 p.m., if the licensee is not in a city area and is 75 miles            

                                                                                

19  or more from the nearest race meeting licensee authorized to                

                                                                                

20  conduct live horse racing.                                                  

                                                                                

21      Sec. 16.  (1) Each person participating in or having to do                  

                                                                                

22  with pari-mutuel horse racing or pari-mutuel wagering on the                

                                                                                

23  results of horse races at a licensed race meeting or at a racing            

                                                                                

24  theater, including, but not limited to, all racing officials,               

                                                                                

25  veterinarians, pari-mutuel clerks or tellers, totalisator company           

                                                                                

26  employees, security guards, timers, horse owners, jockeys,                  

                                                                                

27  drivers, apprentices, exercise riders, authorized agents,                   


                                                                                

1   trainers, grooms, valets, owners of stables operating under an              

                                                                                

2   assumed name, jockey agents, pony riders, hot walkers,                      

                                                                                

3   blacksmiths, starting gate employees, owners and operators of               

                                                                                

4   off-track training centers, farms or stables where racehorses are           

                                                                                

5   kept, and vendors operating within the barn area of a licensed              

                                                                                

6   racetrack or off-track training center, farm, or stable where               

                                                                                

7   racehorses are kept may be licensed by the racing commissioner              

                                                                                

8   pursuant to rules promulgated by the racing commissioner under              

                                                                                

9   this act.  The racing commissioner shall not issue an                       

                                                                                

10  occupational license to a person who, within the 6 years                    

                                                                                

11  immediately preceding the date of the person's application for              

                                                                                

12  the occupational license, was convicted of a felony involving               

                                                                                

13  theft, dishonesty, misrepresentation, fraud, corruption, drug               

                                                                                

14  possession, delivery, or use, or other criminal misconduct that             

                                                                                

15  is related to the person's ability to and likelihood  to  that              

                                                                                

16  the person will perform the functions and duties of the racing              

                                                                                

17  related occupation for which the person seeks to be licensed and            

                                                                                

18  participate in pari-mutuel horse racing in that licensed                    

                                                                                

19  occupation in a fair, honest, open, and lawful manner.  The                 

                                                                                

20  racing commissioner shall not issue a pari-mutuel occupational              

                                                                                

21  license to a person who, within 2 years immediately preceding the           

                                                                                

22  date of the person's application for the occupational license,              

                                                                                

23  was convicted of a misdemeanor involving theft, dishonesty,                 

                                                                                

24  misrepresentation, fraud, corruption, drug possession, delivery,            

                                                                                

25  or use, or other criminal misconduct that is related to the                 

                                                                                

26  person's ability to and likelihood  to  that the person will                

                                                                                

27  perform the functions and duties of the racing related occupation           


                                                                                

1   for which the person seeks to be licensed and participate in                

                                                                                

2   pari-mutuel horse racing in that licensed occupation in a fair,             

                                                                                

3   honest, open, and lawful manner.                                            

                                                                                

4       (2) A veterinarian is not required to be licensed under this                

                                                                                

5   act to provide necessary and appropriate emergency veterinary               

                                                                                

6   care or treatment to any horse that is intended to be entered, is           

                                                                                

7   entered, or participates in a race with wagering by pari-mutuel             

                                                                                

8   methods or a nonbetting race or workout conducted at a licensed             

                                                                                

9   race meeting in this state.  For purposes of this section,                  

                                                                                

10  "emergency veterinary care or treatment" means care or treatment            

                                                                                

11  necessary and appropriate to save the life of a horse or prevent            

                                                                                

12  permanent physical injury or damage to a horse in a situation               

                                                                                

13  requiring immediate veterinary action.  Only veterinarians                  

                                                                                

14  licensed under this act may provide nonemergency veterinary care            

                                                                                

15  or treatment to a horse in this state that is intended to be                

                                                                                

16  entered, is entered, or participates in races at licensed race              

                                                                                

17  meetings in this state.  Only persons licensed under this act or            

                                                                                

18  otherwise authorized by the racing commissioner may enter the               

                                                                                

19  restricted grounds of a licensed race meeting where horses are              

                                                                                

20  kept that are eligible to race at the race meeting.  For the                

                                                                                

21  purposes of this section and sections 30 and 31, a horse that is            

                                                                                

22  intended to be entered is a horse that has its name put into the            

                                                                                

23  draw for a specific race, and a horse that is entered in a race             

                                                                                

24  is a horse that has been drawn into a specific race.                        

                                                                                

25      (3) As conditions precedent to being issued and holding a                   

                                                                                

26  valid pari-mutuel occupational license, a license applicant shall           

                                                                                

27  disclose, in writing, any ownership interest that the applicant             


                                                                                

1   has in a racehorse  in addition to  and provide any other                   

                                                                                

2   information the racing commissioner considers necessary and                 

                                                                                

3   proper, including fingerprints of occupational license applicants           

                                                                                

4   and proof of compliance with the worker's disability compensation           

                                                                                

5   act of 1969,  Act No. 317 of the Public Acts of 1969, being                 

                                                                                

6   sections 418.101 to 418.941 of the Michigan Compiled Laws  1969             

                                                                                

7   PA 317, MCL 418.101 to 418.941, except that the proof of                    

                                                                                

8   compliance requirement does not apply to horse owners and                   

                                                                                

9   trainers not covered under section 115 of  Act No. 317 of the               

                                                                                

10  Public Acts of 1969, being section 418.115 of the Michigan                  

                                                                                

11  Compiled Laws  the worker's disability compensation act of 1969,            

                                                                                

12  1969 PA 317, MCL 418.115.                                                   

                                                                                

13      (4) In addition to the requirements of subsection (3), an                   

                                                                                

14  applicant for a pari-mutuel occupational license shall consent,             

                                                                                

15  upon application and for the duration of the occupational                   

                                                                                

16  license, if issued, to all of the following:                                

                                                                                

17      (a) Personal inspections, inspections of the applicant's                    

                                                                                

18  personal property, and inspections of premises and property                 

                                                                                

19  related to his or her participation in a race meeting by persons            

                                                                                

20  authorized by the racing commissioner.                                      

                                                                                

21      (b) If the applicant is applying for a racing official,                     

                                                                                

22  jockey, driver, trainer, or groom license, or for any other                 

                                                                                

23  license for an occupation that involves contact with or access to           

                                                                                

24  the racehorses or the barn areas or stables where racehorses are            

                                                                                

25  kept,  then the applicant shall agree as a condition of licensure           

                                                                                

26  to submit for the duration of the license period to  a                      

                                                                                

27  breathalyzer test, urine test, or other noninvasive fluid test to           


                                                                                

1   detect the presence of alcohol or a controlled substance,  as               

                                                                                

2   defined in section 7104 of the public health code, Act No. 368 of           

                                                                                

3   the Public Acts of 1978, being section 333.7104 of the Michigan             

                                                                                

4   Compiled Laws,  if directed to do so by the racing commissioner             

                                                                                

5   or his or her representative.  If the results of a test show that           

                                                                                

6   an occupational licensee has more than .05% of alcohol in his or            

                                                                                

7   her blood, or has present in his or her body a controlled                   

                                                                                

8   substance, the person shall not be permitted to continue in his             

                                                                                

9   or her duties or participate in horse racing until he or she can            

                                                                                

10  produce, at his or her own expense, a negative test result.  The            

                                                                                

11  licensee may be penalized by the racing commissioner for his or             

                                                                                

12  her positive test results, which may include any disciplinary               

                                                                                

13  action authorized by this act or rules promulgated under this               

                                                                                

14  act.  This subsection does not apply to a controlled substance              

                                                                                

15  obtained directly from, or pursuant to a valid prescription from,           

                                                                                

16  a licensed health care provider, except that the racing                     

                                                                                

17  commissioner may consider the person's medical need for                     

                                                                                

18  prescribed controlled substances in determining the person's                

                                                                                

19  fitness to be licensed to participate in pari-mutuel horse                  

                                                                                

20  racing.  The racing commissioner shall suspend for not less than            

                                                                                

21  1 year the license of a person who for the third time in a period           

                                                                                

22  of not more than 6 consecutive years is relieved of his or her              

                                                                                

23  duties  for the reasons prescribed in  because of this                      

                                                                                

24  subsection.                                                                 

                                                                                

25      (5) A person who is issued a pari-mutuel occupational license               

                                                                                

26  as a trainer is responsible for and absolute insurer of the                 

                                                                                

27  condition, fitness, eligibility, and qualification of the horses            


                                                                                

1   entered to race for the person by whom the trainer is employed,             

                                                                                

2   except as prescribed by the rules promulgated by the racing                 

                                                                                

3   commissioner under this act.  This subsection shall not be                  

                                                                                

4   construed or interpreted to determine civil tort liability of any           

                                                                                

5   racehorse owner or trainer but shall be for purposes of                     

                                                                                

6   enforcement of this act only.  A trainer shall not start a horse            

                                                                                

7   that has in its body a drug or foreign substance unless permitted           

                                                                                

8   pursuant to section 30 and the rules promulgated under that                 

                                                                                

9   section.  A trainer is strictly liable and subject to                       

                                                                                

10  disciplinary action if a horse under the trainer's actual or                

                                                                                

11  apparent care and control as trainer has a drug or foreign                  

                                                                                

12  substance in its body, in violation of section 30 and the rules             

                                                                                

13  promulgated under that section.                                             

                                                                                

14      (6) Upon the filing of a written complaint, under oath, in                  

                                                                                

15  the office of the racing commissioner, or upon the written motion           

                                                                                

16  of the racing commissioner regarding the actions or omissions of            

                                                                                

17  a person issued a pari-mutuel occupational license, the racing              

                                                                                

18  commissioner may summarily suspend the occupational license of              

                                                                                

19  the person for a period of not more than 90 days pending a                  

                                                                                

20  hearing and final determination by the racing commissioner                  

                                                                                

21  regarding the acts or omissions complained of in the written                

                                                                                

22  complaint or motion, if the commissioner determines from the                

                                                                                

23  complaint or motion that the public health, safety, or welfare              

                                                                                

24  requires emergency action.  The racing commissioner shall                   

                                                                                

25  schedule the complaint or motion to be heard within 14 business             

                                                                                

26  days after the occupational license is summarily suspended and              

                                                                                

27  notify the holder of the occupational license of the date, time,            


                                                                                

1   and place of the hearing not less than 5 days before the date of            

                                                                                

2   the hearing.  The hearing shall be conducted in accordance with             

                                                                                

3   the contested case provisions of the administrative procedures              

                                                                                

4   act of 1969,  Act No. 306 of the Public Acts of 1969, being                 

                                                                                

5   sections 24.201 to 24.328 of the Michigan Compiled Laws  1969 PA            

                                                                                

6   306, MCL 24.201 to 24.328.  The action of the racing commissioner           

                                                                                

7   in revoking or suspending a pari-mutuel occupational license may            

                                                                                

8   be appealed to the circuit court pursuant to  Act No. 306 of the            

                                                                                

9   Public Acts of 1969  the administrative procedures act of 1969,             

                                                                                

10  1969 PA 306, MCL 24.201 to 24.328.  If the racing commissioner's            

                                                                                

11  order is predicated upon a series of acts, the review by the                

                                                                                

12  circuit court may be in the county in which any of the alleged              

                                                                                

13  acts or failures to act took place.                                         

                                                                                

14      (7) A decision by the racing commissioner or  his or her                    

                                                                                

15  deputies or appointed state stewards  a deputy commissioner or              

                                                                                

16  state steward of racing to deny an application for an                       

                                                                                

17  occupational license may be appealed to the circuit court and               

                                                                                

18  reviewed pursuant to section 631 of the revised judicature act of           

                                                                                

19  1961,  Act No. 236 of the Public Acts of 1961, being section                

                                                                                

20  600.631 of the Michigan Compiled Laws  1961 PA 236, MCL 600.631.            

                                                                                

21  A suspension or revocation of an occupational license may be                

                                                                                

22  appealed and reviewed pursuant to the administrative procedures             

                                                                                

23  act of 1969,  Act No. 306 of the Public Acts of 1969, being                 

                                                                                

24  sections 24.201 to 24.328 of the Michigan Compiled Laws  1969 PA            

                                                                                

25  306, MCL 24.201 to 24.328.                                                  

                                                                                

26      (8) Each pari-mutuel occupational licensee shall pay a                      

                                                                                

27  license fee of not less than $10.00 or more than $100.00 as                 


                                                                                

1   determined by the racing commissioner.                                      

                                                                                

2       Sec. 17.  (1) The pari-mutuel system of wagering upon the                   

                                                                                

3   results of horse races as permitted by this act shall not be held           

                                                                                

4   or construed to be unlawful.  All forms of pari-mutuel wagering             

                                                                                

5   conducted at a licensed race meeting shall be preapproved by the            

                                                                                

6   racing commissioner pursuant to rule or written order of the                

                                                                                

7   commissioner.                                                               

                                                                                

8       (2) A holder of a race meeting license may provide a place in               

                                                                                

9   the race meeting grounds or enclosure at which he or she may                

                                                                                

10  conduct and supervise the pari-mutuel system of wagering on the             

                                                                                

11  results of horse races as permitted by this act.  If the                    

                                                                                

12  pari-mutuel system of wagering is used at a race meeting, a                 

                                                                                

13  totalisator or other device that is equal in accuracy and                   

                                                                                

14  clearness to a totalisator and approved by the racing                       

                                                                                

15  commissioner shall be used.  The odds display of the totalisator            

                                                                                

16  or other device shall be placed in full view of the patrons.                

                                                                                

17      (3) Subject to section 18(3), each holder of a race meeting                 

                                                                                

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

                                                                                

19  straight wagering 17% of all money wagered involving straight               

                                                                                

20  wagers on the results of live and simulcast horse races conducted           

                                                                                

21  at the licensee's race meetings.  Subject to section 18(3), each            

                                                                                

22  holder of a race meeting license shall retain as his or her                 

                                                                                

23  commission on all forms of multiple wagering, without the written           

                                                                                

24  permission of the racing commissioner not more than 28% and with            

                                                                                

25  the written permission of the racing commissioner not more than             

                                                                                

26  35% of all money wagered involving any form of multiple wager on            

                                                                                

27  the results of live and simulcast horse races conducted at the              


                                                                                

1   licensee's race meeting.  Except as otherwise provided by                   

                                                                                

2   contract, 50% of all commissions from wagering on the results of            

                                                                                

3   live racing at the racetrack where the live racing was conducted            

                                                                                

4   shall be paid to the horsemen's purse pool at the racetrack where           

                                                                                

5   the live racing was conducted.   As used in this subsection:                

                                                                                

6       (a) "Straight wagering" means a wager made on the finishing                 

                                                                                

7   position of a single specified horse in a single specified race.            

                                                                                

8       (b) "Multiple wagering" means a wager made on the finishing                 

                                                                                

9   positions of more than 1 horse in a specified race or the                   

                                                                                

10  finishing positions of 1 or more horses in more than 1 specified            

                                                                                

11  race.                                                                       

                                                                                

12      (4) All breaks shall be retained by the race meeting licensee               

                                                                                

13  and paid directly to the city or township in which the racetrack            

                                                                                

14  is located as a fee for services provided pursuant to section               

                                                                                

15  21.                                                                         

                                                                                

16      (5) Payoff prices of tickets of a higher denomination shall                 

                                                                                

17  be calculated as even multiples of the payoff price for a $1.00             

                                                                                

18  wager.  Each holder of a race meeting license shall distribute to           

                                                                                

19  the persons holding winning tickets, as a minimum, a sum not less           

                                                                                

20  than $1.10 calculated on the basis of each $1.00 deposited in a             

                                                                                

21  pool, except that each race meeting licensee may distribute a sum           

                                                                                

22  of not less than $1.05 to persons holding winning tickets for               

                                                                                

23  each $1.00 deposited in a minus pool.  As used in this                      

                                                                                

24  subsection, "minus pool" means any win, place, or show pool in              

                                                                                

25  which the payout would exceed the total value of the pool.                  

                                                                                

26      (6) A holder of a race meeting license shall not knowingly                  

                                                                                

27  permit a person less than 18 years of age to be a patron of the             


                                                                                

1   pari-mutuel wagering conducted or supervised by the holder.                 

                                                                                

2       (7)  Any  Except as authorized under article 2 or 3, an act                 

                                                                                

3   or transaction relative to pari-mutuel wagering on the results of           

                                                                                

4   live or simulcast horse races shall only occur or be permitted to           

                                                                                

5   occur within the enclosure of a licensed race meeting.   A                  

                                                                                

6   Except as authorized under article 2 or 3, a person shall not               

                                                                                

7   participate or be a party to any act or transaction relative to             

                                                                                

8   placing a wager or carrying a wager for placement outside of a              

                                                                                

9   race meeting ground.  A person shall not provide messenger                  

                                                                                

10  service for the placing of a bet for another person who is not a            

                                                                                

11  patron.  However, this subsection does not prevent simulcasting,            

                                                                                

12  wagering at racing theaters, telephone or other electronic                  

                                                                                

13  account wagering, or intertrack or interstate  common pool                  

                                                                                

14  simulcast wagering  inside or outside this state  as permitted by           

                                                                                

15  this act or the rules promulgated under this act.                           

                                                                                

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

                                                                                

17  authorized by the racing commissioner subject to the limitations            

                                                                                

18  of this section.   As used in this section, "simulcast" means the           

                                                                                

19  live transmission of video and audio signals conveying a horse              

                                                                                

20  race held either inside or outside this state to a licensed race            

                                                                                

21  meeting in this state.  A simulcast from 1 racetrack in this                

                                                                                

22  state to another racetrack in this state shall be called an                 

                                                                                

23  "intertrack simulcast".  A simulcast from a racetrack outside               

                                                                                

24  this state to a racetrack inside this state shall be called an              

                                                                                

25  "interstate simulcast".                                                     

                                                                                

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

                                                                                

27  racing commissioner, in the manner and form required by the                 


                                                                                

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

                                                                                

2   to viewing areas within the enclosure of the licensed racetrack             

                                                                                

3   at which the applicant is licensed to conduct its race meeting.             

                                                                                

4   The commissioner may issue a permit for individual race and full            

                                                                                

5   card simulcasts televised during, between, before, or after                 

                                                                                

6   programmed live horse races on any day that live racing is                  

                                                                                

7   conducted by the applicant, and also on other days during the               

                                                                                

8   term of the applicant's license when the applicant does not                 

                                                                                

9   conduct live horse racing, subject to the following conditions:             

                                                                                

10      (a) The applicant  shall have  has a current contract with a                

                                                                                

11  certified horsemen's organization.                                          

                                                                                

12      (b) The applicant  shall have  has applied for and been                     

                                                                                

13  allocated the minimum number of live racing dates required by               

                                                                                

14  section  12(1) to (5)  12, subject to the availability of                   

                                                                                

15  adequate horse supply as determined by the racing commissioner.             

                                                                                

16      (c) The applicant  shall make  makes a continuing good faith                

                                                                                

17  effort throughout the duration of its race meeting to program and           

                                                                                

18  conduct not less than 9 live horse races on each live racing date           

                                                                                

19  allocated to the applicant.                                                 

                                                                                

20      (d) The certified horsemen's organization with which the                    

                                                                                

21  applicant has contracted  shall have  has consented to the                  

                                                                                

22  requested simulcasts on any live racing day when the applicant is           

                                                                                

23  unable to program and conduct not less than 9 live horse races,             

                                                                                

24  if required by section 12(6).                                               

                                                                                

25      (e) If the requested simulcasts are interstate, the applicant               

                                                                                

26  shall waive  waives in writing any right that the applicant may            

                                                                                

27  have under the interstate horse racing act of 1978, Public Law              


                                                                                

1   95-515, 15 U.S.C. 3001 to 3007, to restrict interstate simulcasts           

                                                                                

2   by other race meeting licensees in this state.                              

                                                                                

3       (f) If the applicant conducts its race meeting in a city                    

                                                                                

4   area, the applicant  shall make  does both of the following:                

                                                                                

5                                                                                (i) Makes the video and audio signals of its live horse races                       

                                                                                

6   available for intertrack simulcasting to all licensed race                  

                                                                                

7   meetings in this state located more than 12 miles from the                  

                                                                                

8   applicant's race meeting.                                                   

                                                                                

9       The applicant shall charge                                                  

                                                                                

10      (ii) Charges each race meeting licensee the same fee to                      

                                                                                

11  receive its live signals for intertrack simulcasting.  The fee              

                                                                                

12  shall not exceed 3% of the total amount wagered on the intertrack           

                                                                                

13  simulcast at each race meeting that receives the simulcast.                 

                                                                                

14      (g)  Except  If the applicant conducts its race meeting in a                

                                                                                

15  city area, except as otherwise agreed by the race meeting                   

                                                                                

16  licensees in  a  the city area and the respective certified                 

                                                                                

17  horsemen's organizations with which they contract,  a  the                  

                                                                                

18  licensee  in a city area shall receive  receives all available              

                                                                                

19  intertrack simulcasts from licensed race meetings in the city               

                                                                                

20  area located more than 12 miles from the licensee's race                    

                                                                                

21  meeting.                                                                    

                                                                                

22      (h)  A licensed  As a condition of conducting interstate                    

                                                                                

23  simulcasts, if the applicant conducts its race meeting outside a            

                                                                                

24  city area,  shall not conduct interstate simulcasts unless it               

                                                                                

25  also  the applicant receives all intertrack simulcasts from                 

                                                                                

26  licensed race meetings in a city area that are available.                   

                                                                                

27      (i)  All applicants conducting licensed  If the applicant                   


                                                                                

1   conducts its race meetings in a city area,  shall authorize  the            

                                                                                

2   applicant authorizes all other race meeting licensees in the                

                                                                                

3   state to conduct simulcasts of the breed for which the applicant            

                                                                                

4   is licensed to conduct live horse racing.  An applicant may not             

                                                                                

5   conduct interstate simulcasts unless authorization to do so is              

                                                                                

6   given by the applicant, in accordance with subdivision (j),                 

                                                                                

7   permitting all other race meeting licensees to receive interstate           

                                                                                

8   simulcasts of a different breed than they are licensed to race              

                                                                                

9   live.                                                                       

                                                                                

10      (j)  A race meeting licensee shall not conduct  As a                        

                                                                                

11  condition of conducting an interstate simulcast of a different              

                                                                                

12  breed than it is licensed to race live at its race meeting,                 

                                                                                

13  unless  the  licensee  applicant has the written permission of             

                                                                                

14  all race meeting licensees in a city area that are licensed to              

                                                                                

15  race that breed live at their race meetings.                                

                                                                                

16      (k) All authorized simulcasts  shall be  are conducted in                   

                                                                                

17  compliance with the written permit and related orders issued by             

                                                                                

18  the racing commissioner and all other requirements and conditions           

                                                                                

19  of this act and the rules of the racing commissioner promulgated            

                                                                                

20  under this act.                                                             

                                                                                

21                                                                               (l) All authorized interstate simulcasts  shall  also comply                        

                                                                                

22  with the interstate horse racing act of 1978, Public Law  95-15             

                                                                                

23  95-515, 15 U.S.C. 3001 to 3007.                                             

                                                                                

24      (3) All forms of wagering by pari-mutuel methods  provided                  

                                                                                

25  for  allowed under this act for live racing shall be allowed on             

                                                                                

26  simulcast horse races authorized under this section.  All money             

                                                                                

27  wagered on simulcast horse races at a licensed race meeting shall           


                                                                                

1   be included in computing the total amount of all money wagered at           

                                                                                

2   the licensed race meeting for purposes of section 17.  When the             

                                                                                

3   simulcast is an interstate simulcast, the money wagered on that             

                                                                                

4   simulcast shall form a separate pari-mutuel pool at the receiving           

                                                                                

5   track unless 2 or more licensees receive the same interstate                

                                                                                

6   simulcast signals or the racing commissioner permits the                    

                                                                                

7   receiving track to combine its interstate simulcast pool with the           

                                                                                

8   pool created at the out-of-state sending track on the same race.            

                                                                                

9   If 2 or more licensees receive the same interstate simulcast                

                                                                                

10  signals, the money wagered on the simulcasts shall be combined in           

                                                                                

11  a common pool and the licensees shall jointly agree and designate           

                                                                                

12  at which race meeting the common pool will be located.  However,            

                                                                                

13  if the law of the jurisdiction in which the sending racetrack is            

                                                                                

14  located permits interstate common pools at the sending racetrack,           

                                                                                

15  the racing commissioner may permit pari-mutuel pools on                     

                                                                                

16  interstate simulcast races in this state to be combined with                

                                                                                

17  pari-mutuel pools on the same races created at the out-of-state             

                                                                                

18  sending racetrack.  If the pari-mutuel pools on the interstate              

                                                                                

19  simulcast races in this state are combined in a common pool at              

                                                                                

20  the out-of-state sending track, then the commissions described in           

                                                                                

21  section 17 on the pool created in this state shall be adjusted to           

                                                                                

22  equal the commissions in effect at the sending track under the              

                                                                                

23  laws of its jurisdiction.  If the simulcast is an intertrack                

                                                                                

24  simulcast, the money wagered on that simulcast at the receiving             

                                                                                

25  racetrack shall be added to the pari-mutuel pool at the sending             

                                                                                

26  racetrack.                                                                  

                                                                                

27      (4) Each race meeting licensee that receives an interstate                  


                                                                                

1   simulcast shall pay to the horsemen's simulcast purse pool                  

                                                                                

2   established under section 19 a sum equal to 40% of the licensee's           

                                                                                

3   net commission from all money wagered on the interstate                     

                                                                                

4   simulcast, as determined by section 17(3) after first deducting             

                                                                                

5   from the licensee's statutory commission the applicable state tax           

                                                                                

6   on wagering due  and payable  under section 22 and the actual               

                                                                                

7   verified fee paid by the licensee to the sending host track to              

                                                                                

8   receive the interstate simulcast signal.  The licensee shall                

                                                                                

9   retain the remaining balance of its net commission and shall be             

                                                                                

10  responsible for paying all other capital and operational expenses           

                                                                                

11  related to receiving interstate simulcasts at its race meeting.             

                                                                                

12  Any subsequent rebate of a fee paid by a licensee to receive                

                                                                                

13  interstate simulcast signals shall be shared equally by the                 

                                                                                

14  licensee and the horsemen's simulcast purse pool established                

                                                                                

15  under section 19.                                                           

                                                                                

16      (5) A race meeting licensee licensed to conduct pari-mutuel                 

                                                                                

17  horse racing in a city area shall provide the necessary equipment           

                                                                                

18  to send intertrack simulcasts of the live horse races conducted             

                                                                                

19  at its race meeting to all other race meeting licensees in this             

                                                                                

20  state, and shall send its intertrack simulcast signals to those             

                                                                                

21  licensees upon request for an agreed fee, which shall not exceed            

                                                                                

22  3% of the total amount wagered on the race at the receiving                 

                                                                                

23  track.  Race meeting licensees that send or receive intertrack              

                                                                                

24  simulcasts shall make the following payments to the horsemen's              

                                                                                

25  purse pools:                                                                

                                                                                

26      (a) Each race meeting licensee that sends an intertrack                     

                                                                                

27  simulcast shall pay 50% of the simulcast fee that it receives for           


                                                                                

1   sending the simulcast signal to the horsemen's purse pool at the            

                                                                                

2   sending track.                                                              

                                                                                

3       (b) Each race meeting licensee that receives an intertrack                  

                                                                                

4   simulcast shall pay to the horsemen's simulcast purse pool                  

                                                                                

5   established pursuant to section 19 a sum equal to 40% of the                

                                                                                

6   receiving track's net commission from wagering on the intertrack            

                                                                                

7   simulcast under section 17(3) after first deducting from the                

                                                                                

8   licensee's statutory commission the applicable state tax on                 

                                                                                

9   wagering due and owing under section 22 and the actual verified             

                                                                                

10  fee paid by the receiving track to the sending host track to                

                                                                                

11  receive the intertrack simulcast signal.                                    

                                                                                

12      (6) The racing commissioner may authorize a race meeting                    

                                                                                

13  licensee to transmit simulcasts of live horse races conducted at            

                                                                                

14  its racetrack to locations outside of this state in accordance              

                                                                                

15  with the interstate horse racing act of 1978, Public Law 95-515,            

                                                                                

16  15 U.S.C. 3001 to 3007, or any other applicable laws, and may               

                                                                                

17  permit pari-mutuel pools on  such  the simulcast races created              

                                                                                

18  under the laws of the jurisdiction in which the receiving track             

                                                                                

19  is located to be combined in a common pool with pari-mutuel pools           

                                                                                

20  on the same races created in this state.  A race meeting licensee           

                                                                                

21  that transmits simulcasts of its races to locations outside this            

                                                                                

22  state shall pay 50% of the fee that it receives for sending the             

                                                                                

23  simulcast signal to the horsemen's purse pool at the sending                

                                                                                

24  track after first deducting the actual verified cost of sending             

                                                                                

25  the signal out of state.                                                    

                                                                                

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

                                                                                

27  purposes of pari-mutuel wagering is prohibited.                             


                                                                                

1       Sec. 19b.  (1) All certified horsemen's organizations                       

                                                                                

2   participating in the distribution of money under this section               

                                                                                

3   shall designate a depository as the recipient of money designated           

                                                                                

4   by law to be deposited into the agricultural enhancement purse              

                                                                                

5   pool.  Money deposited with the depository designated by law to             

                                                                                

6   be deposited into the agricultural enhancement purse pool shall             

                                                                                

7   be distributed by the escrow agent designated by the                        

                                                                                

8   participating horsemen's organizations as follows:                          

                                                                                

9       (a) One percent to be divided between all mixed breed purse                 

                                                                                

10  pools.  The amount distributed to mixed breed purse pools each              

                                                                                

11  year shall be not less than a minimum amount that is 1 of the               

                                                                                

12  following:                                                                  

                                                                                

13                                                                               (i) For the first full calendar year in which money is                              

                                                                                

14  distributed under this subsection, $1,200,001.00.                           

                                                                                

15      (ii) For each year after the first full calendar year in                     

                                                                                

16  which money is distributed under this subsection, the minimum               

                                                                                

17  amount for the previous year adjusted as follows:                           

                                                                                

18      (A) If the amount of the simulcast purse pool for the                       

                                                                                

19  previous year increased from the amount of the simulcast purse              

                                                                                

20  pool for the year before that, by increasing the minimum amount             

                                                                                

21  by the percentage of the increase in the simulcast purse pool.              

                                                                                

22      (B) If the amount of the simulcast purse pool for the                       

                                                                                

23  previous year decreased from the amount of the simulcast purse              

                                                                                

24  pool for the year before that, by decreasing the minimum amount             

                                                                                

25  by the percentage of the decrease in the simulcast purse pool.              

                                                                                

26      (b) If there is no race meeting licensee conducting                         

                                                                                

27  thoroughbred racing in a city area, the balance of the money                


                                                                                

1   shall be distributed as follows:                                            

                                                                                

2                                                                                (i) Of the money paid under this act, 55% shall be paid to                          

                                                                                

3   thoroughbred purse pools, and 45% shall be paid to standardbred             

                                                                                

4   purse pools.                                                                

                                                                                

5       (ii) Of the money paid under the                                             

                                                                                

6   McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL           

                                                                                

7   432.1 to 432.47, 45% shall be paid to thoroughbred purse pools,             

                                                                                

8   and 55% shall be paid to standardbred purse pools.                          

                                                                                

9       (c) If there is a race meeting licensee conducting                          

                                                                                

10  thoroughbred racing in a city area, the balance of the money                

                                                                                

11  shall be distributed equally between thoroughbred and                       

                                                                                

12  standardbred purse pools.                                                   

                                                                                

13      (2) Money from any source designated to be distributed to                   

                                                                                

14  breeders' awards under this section shall be distributed as                 

                                                                                

15  follows:                                                                    

                                                                                

16      (a) One percent to pay mixed breed breeders' awards described               

                                                                                

17  in section 20(7)(c), (8)(c), (9)(c), and (10)(c).                           

                                                                                

18      (b) The balance of the money to be divided between                          

                                                                                

19  standardbred breeders' awards described in section 20(5)(e) and             

                                                                                

20  thoroughbred breeders' awards described in section 20(6)(c), the            

                                                                                

21  division being the same as the division between standardbred and            

                                                                                

22  thoroughbred purse pools under subsection (1).                              

                                                                                

23      (3) Money to be distributed for thoroughbred breeders' awards               

                                                                                

24  under subsection (2) shall be administered by the thoroughbred              

                                                                                

25  certified breeders' organization.  The thoroughbred certified               

                                                                                

26  breeders' organization may expend not more than 5% from money it            

                                                                                

27  administers for administrative expenses, including expenses of              


                                                                                

1   registering and certifying the eligibility of mares and foals,              

                                                                                

2   paying awards, and other expenses approved by the department of             

                                                                                

3   agriculture.                                                                

                                                                                

4       (4) Money distributed to a breed's purse pools under                        

                                                                                

5   subsection (1) or a breed's breeders' awards under subsection (2)           

                                                                                

6   shall be divided between all race meeting licensees that hold               

                                                                                

7   races in which that breed of horse participates, each licensee's            

                                                                                

8   portion being determined by the percentage of the total amount              

                                                                                

9   wagered on races of that breed of horse conducted in this state             

                                                                                

10  during the previous year that was wagered on races of that breed            

                                                                                

11  of horse conducted by the licensee in this state during the                 

                                                                                

12  previous year.                                                              

                                                                                

13      Sec. 20.  (1) It is the policy of this state to encourage                   

                                                                                

14  the breeding of horses of all breeds in this state and the                  

                                                                                

15  ownership of such horses by residents of this state to provide              

                                                                                

16  for sufficient numbers of high quality race horses of all breeds            

                                                                                

17  to participate in licensed race meetings in this state; to                  

                                                                                

18  promote the positive growth and development of high quality horse           

                                                                                

19  racing and other equine competitions in this state as a business            

                                                                                

20  and entertainment activity for residents of this state; and to              

                                                                                

21  establish and preserve the substantial agricultural and                     

                                                                                

22  commercial benefits of the horse racing and breeding industry to            

                                                                                

23  the state of Michigan.  It is the intent and purpose of the                 

                                                                                

24  legislature to further this policy by the provisions of this act            

                                                                                

25  and annual appropriations to administer this act and adequately             

                                                                                

26  fund the agriculture and equine industry programs established by            

                                                                                

27  this section.                                                               


                                                                                

1       (2) Money received by the racing commissioner and the state                 

                                                                                

2   treasurer under this act shall be paid promptly into the state              

                                                                                

3   treasury and placed in the Michigan agriculture equine industry             

                                                                                

4   development fund created in subsection (3).                                 

                                                                                

5       (3) The Michigan agriculture equine industry development fund               

                                                                                

6   is created in the department of treasury.  The Michigan                     

                                                                                

7   agriculture equine industry development fund shall be                       

                                                                                

8   administered by the director of the department of agriculture               

                                                                                

9   with the assistance and advice of the racing commissioner.                  

                                                                                

10      (4) Money shall not be expended from the Michigan agriculture               

                                                                                

11  equine industry development fund except as appropriated by the              

                                                                                

12  legislature.  Money appropriated by the legislature for the                 

                                                                                

13  Michigan agriculture equine industry development fund shall be              

                                                                                

14  expended by the director of the department of agriculture with              

                                                                                

15  the advice and assistance of the racing commissioner to provide             

                                                                                

16  funding for agriculture and equine industry development programs            

                                                                                

17  as provided in subsections (5) to (12).                                     

                                                                                

18      (5) The following amounts shall be paid to standardbred and                 

                                                                                

19  fair programs:                                                              

                                                                                

20      (a) A sum not to exceed 75% of the purses for standardbred                  

                                                                                

21  harness horse races offered by fairs and races at licensed                  

                                                                                

22  pari-mutuel racetracks.  Purse supplements for overnight races at           

                                                                                

23  fairs paid pursuant to this subsection may not exceed the lowest            

                                                                                

24  purse offered for overnight races of the same breed at any                  

                                                                                

25  licensed race meeting in this state during the previous year.               

                                                                                

26      (b) A sum to be allotted on a matching basis, but not to                    

                                                                                

27  exceed $15,000.00 each year to a single fair, for the purpose of            


                                                                                

1   equipment rental during fairs; ground improvement; constructing,            

                                                                                

2   maintaining, and repairing buildings; and making the racetrack              

                                                                                

3   more suitable and safe for racing at fairs.                                 

                                                                                

4       (c) A sum to be allotted for paying special purses at fairs                 

                                                                                

5   on 2-year-old and 3-year-old standardbred harness horses                    

                                                                                

6   conceived after January 1, 1992, and sired by a standardbred                

                                                                                

7   stallion registered with the Michigan department of agriculture             

                                                                                

8   that was leased or owned by a resident or residents of this state           

                                                                                

9   and that did not serve a mare at a location outside of this state           

                                                                                

10  from February 1 through July 31 of the calendar year in which the           

                                                                                

11  conception occurred.  A foal that is born on or after January 1,            

                                                                                

12  2002 of a mare owned by a nonresident of this state and that is             

                                                                                

13  conceived outside of this state from transported semen of a                 

                                                                                

14  stallion registered with the Michigan department of agriculture             

                                                                                

15  is eligible for Michigan tax-supported races only if, in the year           

                                                                                

16  that the foal is conceived, the Michigan department of                      

                                                                                

17  agriculture's agent for receiving funds as the holding agent for            

                                                                                

18  stakes and futurities is paid a transport fee as determined by              

                                                                                

19  the Michigan department of agriculture and administered by the              

                                                                                

20  Michigan harness horsemen's association.                                    

                                                                                

21      (d) A sum to pay not more than 75% of an eligible cash                      

                                                                                

22  premium paid by a fair or exposition.  The commission of                    

                                                                                

23  agriculture shall promulgate rules establishing which premiums              

                                                                                

24  are eligible for payment and a dollar limit for all eligible                

                                                                                

25  payments.                                                                   

                                                                                

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

                                                                                

27  10% of the gross purse to breeders of Michigan bred standardbred            


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   of conception, that was conceived after January 1, 1992, and                

                                                                                

6   sired by a standardbred stallion registered with the Michigan               

                                                                                

7   department of agriculture that was leased or owned by a resident            

                                                                                

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

                                                                                

9   location outside of this state from February 1 through July 31 of           

                                                                                

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

                                                                                

11  eligible, each mare shall be registered with the Michigan                   

                                                                                

12  department of agriculture.  A foal that is born on or after                 

                                                                                

13  January 1, 2002 of a mare owned by a nonresident of this state              

                                                                                

14  and that is conceived outside of this state from transported                

                                                                                

15  semen of a stallion registered with the Michigan department of              

                                                                                

16  agriculture is eligible for Michigan tax-supported races only if,           

                                                                                

17  in the year that the foal is conceived, the Michigan department             

                                                                                

18  of agriculture's agent for receiving funds as the holding agent             

                                                                                

19  for stakes and futurities is paid a transport fee as determined             

                                                                                

20  by the Michigan department of agriculture and administered by the           

                                                                                

21  Michigan harness horsemen's association.                                    

                                                                                

22      (f) A sum not to exceed $4,000.00 each year to be allotted to               

                                                                                

23  fairs to provide training and stabling facilities for                       

                                                                                

24  standardbred harness horses.                                                

                                                                                

25      (g) A sum to be allotted to pay the presiding judges and                    

                                                                                

26  clerks of the course at fairs.  Presiding judges and clerks of              

                                                                                

27  the course shall be hired by the fair's administrative body with            


                                                                                

1   the advice and approval of the racing commissioner.  The director           

                                                                                

2   of the department of agriculture may allot funds for a photo                

                                                                                

3   finish system and a mobile starting gate.  The director of the              

                                                                                

4   department of agriculture shall allot funds for the conducting of           

                                                                                

5   tests, the collection and laboratory analysis of urine, saliva,             

                                                                                

6   blood, and other samples from horses, and the taking of blood               

                                                                                

7   alcohol tests on drivers, jockeys, and starting gate employees,             

                                                                                

8   for those races described in this subdivision.  The department              

                                                                                

9   may require a driver, jockey, or starting gate employee to submit           

                                                                                

10  to a breathalyzer test, urine test, or other noninvasive fluid              

                                                                                

11  test to detect the presence of alcohol or a controlled substance            

                                                                                

12  as defined in section 7104 of the public health code, 1978 PA               

                                                                                

13  368, MCL 333.7104.  If the results of a test show that a person             

                                                                                

14  has more than .05% of alcohol in his or her blood, or has present           

                                                                                

15  in his or her body a controlled substance, the person shall not             

                                                                                

16  be permitted to continue in his or her duties on that race day              

                                                                                

17  and until he or she can produce, at his or her own expense, a               

                                                                                

18  negative test result.                                                       

                                                                                

19      (h) A sum to pay purse supplements to licensed pari-mutuel                  

                                                                                

20  harness race meetings for special 4-year-old filly and colt horse           

                                                                                

21  races.                                                                      

                                                                                

22      (i) A sum not to exceed 0.25% of all money wagered on live                  

                                                                                

23  and simulcast horse races in Michigan shall be placed in a                  

                                                                                

24  special standardbred sire stakes fund each year, 100% of which              

                                                                                

25  shall be used to provide purses for races run exclusively for               

                                                                                

26  2-year-old and 3-year-old Michigan sired standardbred horses at             

                                                                                

27  licensed harness race meetings in this state.  As used in this              


                                                                                

1   subdivision, "Michigan sired standardbred horses" means                     

                                                                                

2   standardbred horses conceived after January 1, 1992 and sired by            

                                                                                

3   a standardbred stallion registered with the Michigan department             

                                                                                

4   of agriculture that was leased or owned by a resident or                    

                                                                                

5   residents of this state and that did not serve a mare at a                  

                                                                                

6   location outside of this state from February 1 through July 31 of           

                                                                                

7   the calendar year in which the conception occurred.  A foal that            

                                                                                

8   is born on or after January 1, 2002 of a mare owned by a                    

                                                                                

9   nonresident of this state and that is conceived outside of this             

                                                                                

10  state from transported semen of a stallion registered with the              

                                                                                

11  Michigan department of agriculture is eligible for Michigan                 

                                                                                

12  tax-supported races only if, in the year that the foal is                   

                                                                                

13  conceived, the Michigan department of agriculture's agent for               

                                                                                

14  receiving funds as the holding agent for stakes and futurities is           

                                                                                

15  paid a transport fee as determined by the Michigan department of            

                                                                                

16  agriculture and administered by the Michigan harness horsemen's             

                                                                                

17  association.                                                                

                                                                                

18      (6) The following amounts shall be paid to thoroughbred                     

                                                                                

19  programs:                                                                   

                                                                                

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

                                                                                

21  to supplement the purses for races to be conducted exclusively              

                                                                                

22  for Michigan bred horses.                                                   

                                                                                

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

                                                                                

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

                                                                                

25  bred horses.                                                                

                                                                                

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

                                                                                

27  10%  30% of the gross purse to the breeders of Michigan bred               


                                                                                

1   thoroughbred horses for each time Michigan bred thoroughbred                

                                                                                

2   horses  win  finish first, second, or third at a licensed race              

                                                                                

3   meeting in this state.                                                      

                                                                                

4       (d) A sum to pay purse supplements to licensed thoroughbred                 

                                                                                

5   race meetings for special 4-year-old and older filly and colt               

                                                                                

6   horse races.                                                                

                                                                                

7       (e) A sum not to exceed 0.25% of all money wagered on live                  

                                                                                

8   and simulcast horse races in Michigan shall be placed in a                  

                                                                                

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

                                                                                

10  shall be used to provide purses for races run exclusively for               

                                                                                

11  2-year-old and 3-year-old and older Michigan sired thoroughbred             

                                                                                

12  horses at licensed thoroughbred race meetings in this state and             

                                                                                

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

                                                                                

14  in this subdivision, "Michigan sired thoroughbred horses" means             

                                                                                

15  thoroughbred horses sired by a stallion registered with the                 

                                                                                

16  department of agriculture that was leased or owned exclusively by           

                                                                                

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

                                                                                

18  mare at a location outside of this state during the calendar year           

                                                                                

19  in which the service occurred.                                              

                                                                                

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

                                                                                

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

                                                                                

22  samples from horses and licensed persons and for the conducting             

                                                                                

23  of tests described in section 16(4)(b).                                     

                                                                                

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

                                                                                

25  programs:                                                                   

                                                                                

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

                                                                                

27  exclusively for Michigan bred quarter horses.                               


                                                                                

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

                                                                                

2   registered quarter horse races offered by fairs.                            

                                                                                

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

                                                                                

4   10% of a gross purse to breeders of Michigan bred quarter horses            

                                                                                

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

                                                                                

6   or licensed race meeting in this state.                                     

                                                                                

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

                                                                                

8   of urine, saliva, blood, and other samples from horses and                  

                                                                                

9   licensed persons and the taking of blood alcohol tests on jockeys           

                                                                                

10  for those races described in this subsection and for the                    

                                                                                

11  conducting of tests described in section 16(4)(b).                          

                                                                                

12      (e) A sum not to exceed 0.25% of all money wagered on live                  

                                                                                

13  and simulcast horse races in Michigan shall be placed in a                  

                                                                                

14  special quarter horse sire stakes fund each year, 100% of which             

                                                                                

15  shall be used to provide purses for races run exclusively for               

                                                                                

16  2-year-old and 3-year-old Michigan sired quarter horses at                  

                                                                                

17  licensed race meetings in this state.  As used in this                      

                                                                                

18  subdivision, "Michigan sired quarter horses" means quarter horses           

                                                                                

19  sired by a stallion registered with the Michigan department of              

                                                                                

20  agriculture that was leased or owned by a resident or residents             

                                                                                

21  of this state and that did not serve a mare at a location outside           

                                                                                

22  of this state during the calendar year in which the conception              

                                                                                

23  occurred.  Transportation of semen from a quarter horse stallion            

                                                                                

24  registered with the Michigan department of agriculture to a                 

                                                                                

25  location outside of this state does not create eligibility for              

                                                                                

26  Michigan tax-supported races, and does not affect the eligibility           

                                                                                

27  of Michigan conceived foals for the purses provided for by this             


                                                                                

1   section.  A foal conceived outside of this state from transported           

                                                                                

2   semen of a quarter horse stallion registered with the Michigan              

                                                                                

3   department of agriculture is not eligible for Michigan                      

                                                                                

4   tax-supported races.                                                        

                                                                                

5       (f)  (e)  As used in this subsection, "Michigan bred quarter                

                                                                                

6   horse" means that term as defined in R 285.817.1(j) of the                  

                                                                                

7   Michigan administrative code.  Each mare and stallion shall be              

                                                                                

8   registered with the director of the department of agriculture.              

                                                                                

9       (8) The following amounts shall be paid for Appaloosa                       

                                                                                

10  programs:                                                                   

                                                                                

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

                                                                                

12  exclusively for Michigan bred Appaloosa horses.                             

                                                                                

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

                                                                                

14  registered Appaloosa horse races offered by fairs.                          

                                                                                

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

                                                                                

16  10% of the gross purse to the breeders of Michigan bred Appaloosa           

                                                                                

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

                                                                                

18  licensed race meeting in this state.                                        

                                                                                

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

                                                                                

20  revenue received from Appaloosa horse racing to pay for the                 

                                                                                

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

                                                                                

22  other samples from horses and licensed persons and the taking of            

                                                                                

23  blood alcohol tests on jockeys for those races described in this            

                                                                                

24  subsection and for the conducting of tests described in section             

                                                                                

25  16(4)(b).                                                                   

                                                                                

26      (e) As used in this subsection, "Michigan bred Appaloosa                    

                                                                                

27  horse" means that term as defined in  R 285.817.1(k)                        


                                                                                

1   R 285.819.1(k) of the Michigan administrative code.  Each mare              

                                                                                

2   and stallion shall be registered with the director of the                   

                                                                                

3   department of agriculture.                                                  

                                                                                

4       (9) The following amounts shall be paid for Arabian                         

                                                                                

5   programs:                                                                   

                                                                                

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

                                                                                

7   exclusively for Michigan bred Arabian horses.                               

                                                                                

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

                                                                                

9   registered Arabian horse races offered by fairs.                            

                                                                                

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

                                                                                

11  10% of the gross purse to the breeders of Michigan bred Arabian             

                                                                                

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

                                                                                

13  licensed racetrack in this state.                                           

                                                                                

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

                                                                                

15  horse racing to pay for the collection and laboratory analysis of           

                                                                                

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

                                                                                

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

                                                                                

18  those races described in this subsection and for the conducting             

                                                                                

19  of tests described in section 16(4)(b).                                     

                                                                                

20      (e) As used in this subsection, "Michigan bred Arabian" means               

                                                                                

21  that term as defined  Michigan bred horse as that term is used             

                                                                                

22  in R 285.822.1(i) of the Michigan administrative code.  Each mare           

                                                                                

23  and stallion shall be registered with the director of the                   

                                                                                

24  department of agriculture.                                                  

                                                                                

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

                                                                                

26  horse programs:                                                             

                                                                                

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


                                                                                

1   conducted exclusively for Michigan bred American paint horses.              

                                                                                

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

                                                                                

3   registered American paint horse races offered by fairs.                     

                                                                                

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

                                                                                

5   10% of the gross purse to the breeders of Michigan bred American            

                                                                                

6   paint horses for each time a Michigan bred American paint horse             

                                                                                

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

                                                                                

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

                                                                                

9   of urine, saliva, blood, and other samples from horses and                  

                                                                                

10  licensed persons and the taking of blood alcohol tests on jockeys           

                                                                                

11  for those races described in this subsection and for the                    

                                                                                

12  conducting of tests described in section 16(4)(b).                          

                                                                                

13      (e) A sum not to exceed 0.25% of all money wagered on live                  

                                                                                

14  and simulcast horse races in Michigan shall be placed in a                  

                                                                                

15  special American paint horse sire stakes fund each year, 100% of            

                                                                                

16  which shall be used to provide purses for races run exclusively             

                                                                                

17  for 2-year-old and 3-year-old Michigan sired American paint                 

                                                                                

18  horses at licensed race meetings in this state.  As used in this            

                                                                                

19  subdivision, "Michigan sired American paint horses" means                   

                                                                                

20  American paint horses sired by a stallion registered with the               

                                                                                

21  Michigan department of agriculture that was leased or owned by a            

                                                                                

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

                                                                                

23  at a location outside of this state during the calendar year in             

                                                                                

24  which the conception occurred.  Transportation of semen from an             

                                                                                

25  American paint horse stallion registered with the Michigan                  

                                                                                

26  department of agriculture to a location outside of this state               

                                                                                

27  does not create eligibility for Michigan tax-supported races, and           


                                                                                

1   does not affect the eligibility of Michigan conceived foals for             

                                                                                

2   the purses provided for by this section.  A foal conceived                  

                                                                                

3   outside of this state from transported semen of an American paint           

                                                                                

4   horse stallion registered with the Michigan department of                   

                                                                                

5   agriculture is not eligible for Michigan tax-supported races.               

                                                                                

6       (f)  (e)  As used in this subsection, "Michigan bred American               

                                                                                

7   paint horse" means that term as defined by the department of                

                                                                                

8   agriculture by rules promulgated under this section.                        

                                                                                

9       (11) The following amounts shall be paid for the equine                     

                                                                                

10  industry research, planning, and development grant fund program:            

                                                                                

11      (a) A sum to fund grants for research projects conducted by                 

                                                                                

12  persons affiliated with a university or governmental research               

                                                                                

13  agency or institution or other private research entity approved             

                                                                                

14  by the racing commissioner, which are beneficial to the horse               

                                                                                

15  racing and breeding industry in this state.                                 

                                                                                

16      (b)  Money appropriated and allotted to this fund shall not                 

                                                                                

17  revert to the general fund and shall be carried forward from year           

                                                                                

18  to year until disbursed to fund grants for research projects                

                                                                                

19  beneficial to the industry.  A sum to fund the development,                 

                                                                                

20  implementation, and administration of new programs that promote             

                                                                                

21  the proper growth and development of the horse racing and                   

                                                                                

22  breeding industry in this state and other valuable equine related           

                                                                                

23  commercial and recreational activities in this state.                       

                                                                                

24      (c) As used in this subsection, "equine research" means the                 

                                                                                

25  study, discovery and generation of accurate and reliable                    

                                                                                

26  information, findings, conclusions, and recommendations that are            

                                                                                

27  useful or beneficial to the horse racing and breeding industry in           


                                                                                

1   this state through improvement of the health of horses;                     

                                                                                

2   prevention of equine illness and disease, and performance-related           

                                                                                

3   accidents and injuries; improvement of breeding technique and               

                                                                                

4   racing performance; and compilation and study of valuable and               

                                                                                

5   reliable statistical data regarding the size, organization, and             

                                                                                

6   economics of the industry in this state; and strategic planning             

                                                                                

7   for the effective promotion, growth, and development of the                 

                                                                                

8   industry in this state.                                                     

                                                                                

9       (12)  A sum to fund the development, implementation, and                    

                                                                                

10  administration of new programs that promote the proper growth and           

                                                                                

11  development of the horse racing and breeding industry in this               

                                                                                

12  state and other valuable equine related commercial and                      

                                                                                

13  recreational activities in this state.  Money appropriated and              

                                                                                

14  allotted to this fund shall not revert to the general fund and              

                                                                                

15  shall be carried forward from year to year until disbursed to               

                                                                                

16  fund grants for research projects beneficial to the industry.               

                                                                                

17      (13) A percentage of the Michigan agriculture equine industry               

                                                                                

18  development fund that is equal to 1/100 of 1% of the gross wagers           

                                                                                

19  made each year in each of the racetracks licensed under this act            

                                                                                

20  shall be deposited in the compulsive gaming prevention fund                 

                                                                                

21  created in section 3 of the compulsive gaming prevention act,               

                                                                                

22  1997 PA 70, MCL 432.253.                                                    

                                                                                

23      (14) The director of the department of agriculture shall                    

                                                                                

24  promulgate rules pursuant to the administrative procedures act of           

                                                                                

25  1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this                  

                                                                                

26  section.  The rules promulgated under this subsection shall do              

                                                                                

27  all of the following:                                                       


     House Bill No. 4609 (H-2) as amended May 22, 2003        (1 of 2)

   

1       (a) Prescribe the conditions under which the Michigan                       

                                                                                

2   agriculture equine industry development fund and related programs           

                                                                                

3   described in subsections (1) to (12) shall be funded.                       

                                                                                

4       (b) Establish conditions and penalties regarding the programs               

                                                                                

5   described in subsections (5) to (12).                                       

                                                                                

6       (c) Develop and maintain informational programs related to                  

                                                                                

7   this section.                                                               

                                                                                

8       (15) Funds under the control of the department of agriculture               

                                                                                

9   in this section shall be disbursed under the rules promulgated              

                                                                                

10  pursuant to subsection (14).  All funds under the control of the            

                                                                                

11  department of agriculture approved for purse supplements and                

                                                                                

12  breeders' awards shall be paid by the state treasurer not later             

                                                                                

13   than 45 days from the date of the race.

 

    [Sec. 21. Local units of government participating in the distribution of funds under section 17(4) shall use all or a portion of the funds to provide for adequate police, fire, and traffic protection of persons and property at and near each race meet, including areas where occupational licenses are required. Each local unit of government participating in the distribution of funds under this act shall show by a statement submitted annually on February 1 of each year to the racing commissioner the amounts of funds received and shall detail the expenditure of those amounts during the previous calendar year. The racing commissioner shall report annually to the governor and the legislature regarding these statements.]

                                                                                

14      Sec. 23.  (1) The auditing of pari-mutuel operations at each                

                                                                                

15  race meeting, at racing theaters, and by telephone or electronic            

                                                                                

16  account wagering shall be performed by a private auditing firm              

                                                                                

17  appointed by the state treasurer and approved by the racing                 

                                                                                

18  commissioner.  The expense of pari-mutuel audits shall be paid by           

                                                                                

19  the state as a part of the state treasurer's budget.  Daily audit           

                                                                                

20  reports on each day of pari-mutuel racing shall be forwarded to             

                                                                                

21  the racing commissioner and the holder of the race meeting                  

                                                                                

22  license not later than 2 business days after the day for which              

                                                                                

23  the report is made.  Within 60 days following each race meeting,            

                                                                                

24  at least 3 copies of the pari-mutuel audit report for the entire            

                                                                                

25  race meeting shall be forwarded to the racing commissioner and              

                                                                                

26  additional copies shall be supplied to the state treasurer and              

                                                                                

27  the holder of the race meeting license.  The scope of the                   


                                                                                

1   pari-mutuel audits shall be established in specifications                   

                                                                                

2   prepared by the state treasurer and approved by the racing                  

                                                                                

3   commissioner.                                                               

                                                                                

4       (2) The auditors representing the state shall have free and                 

                                                                                

5   full access to  the  a space or enclosure where  the  payoff                

                                                                                

6   prices are calculated, to  the  rooms and enclosures where  the             

                                                                                

7   totalisator equipment is operated,  and  to  the  money rooms and           

                                                                                

8   cashier terminals, and to areas under the control of a licensee             

                                                                                

9   where telephone or electronic account wagering is conducted or              

                                                                                

10  equipment used in telephone or electronic account wagering is               

                                                                                

11  located.  The auditors shall be responsible for verifying the               

                                                                                

12  accuracy of the calculations on which are based the payoff prices           

                                                                                

13  to the public and amount of racetrack commission, state tax and             

                                                                                

14  breakage, and for verifying the amounts withheld by the holder of           

                                                                                

15  the race meeting license for payment of uncashed tickets.  The              

                                                                                

16  auditors at all times shall have full and free access to all                

                                                                                

17  pari-mutuel records and all aspects, areas, and functions of                

                                                                                

18  the  a totalisator system, including, but not limited to, all              

                                                                                

19  hardware, software, input and output data, documents, and files.            

                                                                                

20  The auditors may audit internally and externally any or all parts           

                                                                                

21  and elements of  the  a totalisator system whether on or off the            

                                                                                

22  site of  the  a race meeting grounds or a racing theater.  If the           

                                                                                

23  records are maintained in a machine-readable form, such as                  

                                                                                

24  computer tapes or disks, copies shall be made available to the              

                                                                                

25  auditors on request.  The auditors, in addition to their regular            

                                                                                

26  reports, shall make prompt report to the racing commissioner, the           

                                                                                

27  state treasurer, and the holder of the race meeting license of              


                                                                                

1   any irregularities or discrepancies which they may encounter                

                                                                                

2   during their auditing.                                                      

                                                                                

3       (3) In addition to auditing  the  pari-mutuel operations                    

                                                                                

4   under this act, the auditors shall include in their final reports           

                                                                                

5   the daily attendance figures as supplied by the holder of the               

                                                                                

6   race meeting license.                                                       

                                                                                

7       Sec. 25.  To the extent information is disclosed by any race                

                                                                                

8   meeting licensee, racing theater licensee, or multijurisdictional           

                                                                                

9   wagering hub under this act regarding the name, address, or any             

                                                                                

10  other personal information, including financial information, of             

                                                                                

11  any patron of the licensee or multijurisdictional wagering hub,             

                                                                                

12  neither the office of the racing commissioner nor any other                 

                                                                                

13  governmental authority to whom disclosure has been made shall               

                                                                                

14  disclose that information.  All information provided to the                 

                                                                                

15  office of racing commissioner or any other governmental authority           

                                                                                

16  by a race meeting licensee, racing theater licensee, or                     

                                                                                

17  multijurisdictional wagering hub that in any manner discloses the           

                                                                                

18  name, address, or any other personal information, including                 

                                                                                

19  financial information, of any patron of the licensee or hub is              

                                                                                

20  considered confidential, and is not subject to disclosure under             

                                                                                

21  the freedom of information act,  Act No. 442 of the Public Acts             

                                                                                

22  of 1976, being sections 15.231 to 15.246 of the Michigan Compiled           

                                                                                

23  Laws  1976 PA 442, MCL 15.231 to 15.246.                                    

                                                                                

24                              ARTICLE 2                                       

                                                                                

25      Sec. 51.  As used in this article:                                          

                                                                                

26      (a) "Account holder" means the race meeting licensee or                     

                                                                                

27  multijurisdictional wagering hub that has established a wagering            


                                                                                

1   account for an individual.                                                  

                                                                                

2       (b) "Account owner" means the individual who has established                

                                                                                

3   a wagering account with a race meeting licensee or                          

                                                                                

4   multijurisdictional wagering hub.                                           

                                                                                

5       (c) "Wagering account" means an account established for an                  

                                                                                

6   individual in which the individual deposits money for use to                

                                                                                

7   place telephone or electronic wagers on horse races as authorized           

                                                                                

8   by this article.                                                            

                                                                                

9       Sec. 52.  A person shall not conduct or participate in                      

                                                                                

10  account wagering in this state unless the account wagering is               

                                                                                

11  conducted in accordance with this act.                                      

                                                                                

12      Sec. 53.  (1) The racing commissioner may authorize a race                  

                                                                                

13  meeting licensee to conduct account wagering.  The licensee shall           

                                                                                

14  submit to the racing commissioner a full description of how its             

                                                                                

15  proposed account wagering system will operate.  If a race meeting           

                                                                                

16  licensee is authorized to conduct account wagering under this               

                                                                                

17  subsection, a licensee shall not change the operation of its                

                                                                                

18  account wagering system without approval from the racing                    

                                                                                

19  commissioner.  The racing commissioner may conduct investigations           

                                                                                

20  or inspections or request additional information from the                   

                                                                                

21  licensee as the racing commissioner determines necessary to                 

                                                                                

22  determine whether to approve an application.                                

                                                                                

23      (2) The racing commissioner may authorize a race meeting                    

                                                                                

24  licensee to contract with 1 or more persons to operate the                  

                                                                                

25  licensee's account wagering.  The prohibitions and obligations              

                                                                                

26  imposed on a race meeting licensee by this article and rules                

                                                                                

27  promulgated under this article apply to a person that contracts             


                                                                                

1   with the licensee under this subsection.  A licensee that                   

                                                                                

2   contracts with a person under this subsection remains responsible           

                                                                                

3   for all obligations and duties under this article and rules                 

                                                                                

4   promulgated under this article.                                             

                                                                                

5       (3) A race meeting licensee that is first licensed to conduct               

                                                                                

6   race meetings after the effective date of this article shall not            

                                                                                

7   conduct account wagering until 90 days after the first day of               

                                                                                

8   horse racing is completed by the licensee.                                  

                                                                                

9       (4) Authorization under subsection (1) is valid for the                     

                                                                                

10  remainder of the licensee's race meeting license.  The                      

                                                                                

11  authorization may be extended for a succeeding year in                      

                                                                                

12  conjunction with the licensee's race meeting license.  If the               

                                                                                

13  authorization is extended, subsection (3) does not apply.                   

                                                                                

14      (5) A race meeting licensee shall not make a contract or                    

                                                                                

15  agree to a change in a contract related to the licensee's                   

                                                                                

16  authorized conduct of account wagering unless the contract or the           

                                                                                

17  change is approved in advance by the racing commissioner.                   

                                                                                

18      (6) A race meeting licensee's authority to conduct account                  

                                                                                

19  wagering may be suspended or revoked if the racing commissioner             

                                                                                

20  determines that the licensee or its employees or agents have                

                                                                                

21  violated this act or rules promulgated under this act.  A race              

                                                                                

22  meeting licensee's authority to conduct account wagering shall be           

                                                                                

23  revoked if the licensee stops conducting its race meeting as                

                                                                                

24  allocated by the racing commissioner.                                       

                                                                                

25      Sec. 54.  (1) The racing commissioner may license 1 or more                 

                                                                                

26  multijurisdictional wagering hubs to conduct account wagering in            

                                                                                

27  this state.                                                                 


                                                                                

1       (2) The racing commissioner shall not license a                             

                                                                                

2   multijurisdictional wagering hub to conduct account wagering in             

                                                                                

3   this state unless the racing commissioner determines that the               

                                                                                

4   multijurisdictional wagering hub has established satisfactory               

                                                                                

5   security access policies and safeguards, including, but not                 

                                                                                

6   limited to, all of the following:                                           

                                                                                

7       (a) The multijurisdictional wagering hub shall use an                       

                                                                                

8   independent third party that has been approved by the racing                

                                                                                

9   commissioner to perform identity, residence, and age verification           

                                                                                

10  services with respect to individuals applying to establish a                

                                                                                

11  wagering account.                                                           

                                                                                

12      (b) The multijurisdictional wagering hub shall use personal                 

                                                                                

13  identification numbers and other technologies to assure that only           

                                                                                

14  the account owner has access to the wagering account.                       

                                                                                

15      (c) The multijurisdictional wagering hub shall provide for                  

                                                                                

16  withdrawals from the wagering account only by 1 or more of the              

                                                                                

17  following ways:                                                             

                                                                                

18                                                                               (i) A check made payable to the account owner and sent to the                       

                                                                                

19  address of the account owner as identified in the application to            

                                                                                

20  establish the account.                                                      

                                                                                

21      (ii) An electronic transfer to an account held by the account                

                                                                                

22  owner as identified in the application to establish the account.            

                                                                                

23      (iii) Withdrawal of money from the wagering account by the                   

                                                                                

24  account owner at a facility approved by the racing commissioner             

                                                                                

25  by presenting verifiable personal and account identification                

                                                                                

26  information.                                                                

                                                                                

27      (d) The multijurisdictional wagering hub shall allow the                    


                                                                                

1   racing commissioner access to its premises to visit, investigate,           

                                                                                

2   and place expert accountants and other persons the racing                   

                                                                                

3   commissioner determines necessary to ensure that this act and               

                                                                                

4   rules promulgated under this act are strictly complied with.                

                                                                                

5       (3) A multijurisdictional wagering hub shall not conduct                    

                                                                                

6   account wagering in this state unless it is covered by a surety             

                                                                                

7   or, if required by the racing commissioner, fidelity bond in the            

                                                                                

8   amount determined by the racing commissioner with a company                 

                                                                                

9   approved by the racing commissioner.                                        

                                                                                

10      (4) A multijurisdictional wagering hub that is licensed to                  

                                                                                

11  conduct account wagering in this state shall not conduct account            

                                                                                

12  wagering until 90 days after the license is issued.                         

                                                                                

13      (5) A license issued under this section is valid for the                    

                                                                                

14  remainder of the calendar year.  The license, and any subsequent            

                                                                                

15  extensions of the license, may be extended for a succeeding                 

                                                                                

16  year.  Subsection (4) does not apply to an extension of a                   

                                                                                

17  license.  The license may be suspended or revoked if the racing             

                                                                                

18  commissioner determines that the multijurisdictional wagering hub           

                                                                                

19  or its employees or agents have violated this act or rules                  

                                                                                

20  promulgated under this act.                                                 

                                                                                

21      Sec. 55.  (1) An individual shall not place an account wager                

                                                                                

22  in this state unless the individual has established a wagering              

                                                                                

23  account with a race meeting licensee authorized or                          

                                                                                

24  multijurisdictional wagering hub licensed by the racing                     

                                                                                

25  commissioner to conduct account wagering under this article.                

                                                                                

26      (2) An individual shall not apply for or establish a wagering               

                                                                                

27  account unless the individual is 18 years of age or older.  A               


                                                                                

1   race meeting licensee or multijurisdictional wagering hub shall             

                                                                                

2   not knowingly establish a wagering account for an individual who            

                                                                                

3   is less than 18 years of age.                                               

                                                                                

4       (3) An individual may apply to a race meeting licensee that                 

                                                                                

5   is authorized or multijurisdictional wagering hub that is                   

                                                                                

6   licensed by the racing commissioner to conduct account wagering             

                                                                                

7   to establish a wagering account by completing a written form or             

                                                                                

8   an online facsimile of a written form approved by the racing                

                                                                                

9   commissioner, signing the form, either manually or                          

                                                                                

10  electronically, and submitting the form to the race meeting                 

                                                                                

11  licensee or the multijurisdictional wagering hub.  The form shall           

                                                                                

12  include the principal residence address of the applicant.                   

                                                                                

13      (4) A race meeting licensee authorized or a                                 

                                                                                

14  multijurisdictional wagering hub licensed by the racing                     

                                                                                

15  commissioner to conduct account wagering that receives an                   

                                                                                

16  application to establish a wagering account may accept the                  

                                                                                

17  application and establish the account if the application complies           

                                                                                

18  with this article and applicable rules promulgated under this               

                                                                                

19  article.                                                                    

                                                                                

20      (5) On establishing a wagering account, an account holder                   

                                                                                

21  shall assign a unique personal identification number to the                 

                                                                                

22  account and disclose that number only to the account owner.                 

                                                                                

23      Sec. 56.  (1) Deposits to a wagering account by the account                 

                                                                                

24  owner shall be submitted or mailed by the account owner directly            

                                                                                

25  to the account holder and shall be in 1 of the following forms:             

                                                                                

26      (a) Cash given to a pari-mutuel clerk or teller employed by                 

                                                                                

27  the account holder within the racetrack enclosure where the                 


                                                                                

1   account holder conducts race meetings or, if the account holder             

                                                                                

2   is a multijurisdictional wagering hub, in the racetrack enclosure           

                                                                                

3   of a race meeting licensee with whom the account holder has a               

                                                                                

4   written contract.                                                           

                                                                                

5       (b) A negotiable instrument drawn on an account as "account"                

                                                                                

6   is defined in section 4104 of the uniform commercial code, 1962             

                                                                                

7   PA 174, MCL 440.4104.                                                       

                                                                                

8       (c) If approved by the racing commissioner as part of a                     

                                                                                

9   licensee's or multijurisdictional wagering hub's account wagering           

                                                                                

10  system, a charge to an account owner's debit or credit card at              

                                                                                

11  the owner's direct and personal instruction in a manner approved            

                                                                                

12  by the commissioner, which may include instructions given by                

                                                                                

13  telephone or the internet.                                                  

                                                                                

14      (2) Credit for winnings from wagers placed with funds in a                  

                                                                                

15  wagering account and credit for account wagers on horses that are           

                                                                                

16  scratched shall be posted to the account by the account holder.             

                                                                                

17      Sec. 57.  (1) On receipt by an account holder of a wager                    

                                                                                

18  placed with funds from a wagering account held by the account               

                                                                                

19  holder, the account holder shall debit the account in the amount            

                                                                                

20  of the wager.                                                               

                                                                                

21      (2) An account holder that is a race meeting licensee may                   

                                                                                

22  authorize a withdrawal from a wagering account that it holds                

                                                                                

23  under 1 of the following circumstances:                                     

                                                                                

24      (a) The account owner is present at the racetrack where the                 

                                                                                

25  licensee conducts its race meetings and provides all of the                 

                                                                                

26  following:                                                                  

                                                                                

27                                                                               (i) Proper identification.                                                          


                                                                                

1       (ii) The correct personal identification number assigned                     

                                                                                

2   under section 55.                                                           

                                                                                

3       (iii) A properly completed and executed withdrawal slip on a                 

                                                                                

4   form approved by the racing commissioner.                                   

                                                                                

5       (b) The account owner sends a properly completed and executed               

                                                                                

6   withdrawal slip on a form approved by the racing commissioner to            

                                                                                

7   the licensee at the racetrack where the licensee conducts its               

                                                                                

8   race meetings.  On receipt of a properly completed and executed             

                                                                                

9   withdrawal slip, and if there are sufficient funds in the account           

                                                                                

10  to cover the withdrawal, the licensee shall, not more than 2                

                                                                                

11  business days after receipt of the withdrawal slip, send a check            

                                                                                

12  to the owner at the address specified in the application for the            

                                                                                

13  wagering account.  The check shall be payable to the account                

                                                                                

14  owner and in the amount of the requested withdrawal.                        

                                                                                

15      Sec. 58.  (1) An account holder shall not accept an account                 

                                                                                

16  wager unless it is placed directly by the account owner.                    

                                                                                

17      (2) An account owner placing an account wager shall provide                 

                                                                                

18  the account holder with the correct personal identification                 

                                                                                

19  number assigned under section 55.                                           

                                                                                

20      (3) An account holder shall not accept an account wager or                  

                                                                                

21  series of account wagers that exceeds the amount in the wagering            

                                                                                

22  account, including amounts credited under section 56, at the time           

                                                                                

23  the wager is placed.                                                        

                                                                                

24      (4) A race meeting licensee authorized to conduct account                   

                                                                                

25  wagering shall not accept an account wager at a site that is not            

                                                                                

26  within the enclosure of the racetrack where the licensee conducts           

                                                                                

27  it race meetings.                                                           


                                                                                

1       (5) Only employees of a race meeting licensee or of a person                

                                                                                

2   that is authorized to conduct the race meeting licensee's account           

                                                                                

3   wagering under section 53 who are licensed under section 16 may             

                                                                                

4   operate the licensee's or authorized person's account wagering.             

                                                                                

5       (6) An individual shall not directly or indirectly make an                  

                                                                                

6   account wager as an intermediary, transmitter, or agent for an              

                                                                                

7   account owner, including, but not limited to, placing a wager               

                                                                                

8   using a system, sometimes referred to as a transfer account or              

                                                                                

9   master account, whereby funds are deposited to a wagering account           

                                                                                

10  from another wagering account or other account.  This subsection            

                                                                                

11  does not prohibit the use of credit or debit cards specifically             

                                                                                

12  approved by the racing commissioner, checks, money orders, or               

                                                                                

13  negotiable orders of withdrawal.                                            

                                                                                

14      (7) A race meeting licensee or multijurisdictional wagering                 

                                                                                

15  hub that conducts account wagering by the internet or other                 

                                                                                

16  electronic method that involves a visual display of information             

                                                                                

17  shall display a toll-free compulsive gaming helpline number at              

                                                                                

18  its website in a conspicuous manner approved by the racing                  

                                                                                

19  commissioner and shall include that number on all advertisement             

                                                                                

20  and promotional materials.                                                  

                                                                                

21      Sec. 59.  (1) A race meeting licensee authorized or a                       

                                                                                

22  multijurisdictional wagering hub licensed to conduct account                

                                                                                

23  wagering under this act shall, as required by the racing                    

                                                                                

24  commissioner, comply with applicable auditing requirements of               

                                                                                

25  section 23 and provide a full accounting and verification of the            

                                                                                

26  source of wagers made, in the form of a daily download of data to           

                                                                                

27  a database designated by the racing commissioner.                           


                                                                                

1       (2) A race meeting licensee authorized or a                                 

                                                                                

2   multijurisdictional wagering hub licensed to conduct account                

                                                                                

3   wagering under this act shall only conduct account wagering with            

                                                                                

4   communications systems or other equipment that has been approved            

                                                                                

5   by the racing commissioner.                                                 

                                                                                

6       (3) The racing commissioner may promulgate rules as                         

                                                                                

7   authorized in section 7 to implement this article.  The rules               

                                                                                

8   promulgated under this section shall do all of the following:               

                                                                                

9       (a) Establish application requirements and standards for                    

                                                                                

10  authorizing race meeting licensees and licensing                            

                                                                                

11  multijurisdictional wagering hubs to conduct account wagering.              

                                                                                

12      (b) Establish procedures for suspending or revoking                         

                                                                                

13  authorization granted and licenses issued under this article.               

                                                                                

14      (c) Establish application or license fees, or both.                         

                                                                                

15      (d) Anything else that the racing commissioner, in his or her               

                                                                                

16  discretion, determines is necessary to the proper administration            

                                                                                

17  of this article.                                                            

                                                                                

18      Sec. 60.  (1) An account wager shall be included in the                     

                                                                                

19  appropriate pari-mutuel pool of 1 of the following:                         

                                                                                

20      (a) If the wager is on a live race, the race meeting licensee               

                                                                                

21  that conducts the race.                                                     

                                                                                

22      (b) If the wager is on a simulcast race under section 18, the               

                                                                                

23  appropriate race meeting licensee as determined by section                  

                                                                                

24  18(3).                                                                      

                                                                                

25      (2) A race meeting licensee or multijurisdictional wagering                 

                                                                                

26  hub that conducts account wagering shall retain a commission                

                                                                                

27  equal to the commission allowed under section 17.  The race                 


                                                                                

1   meeting licensee or multijurisdictional wagering hub shall pay              

                                                                                

2   all breaks as required by section 17.  The race meeting licensee            

                                                                                

3   or multijurisdictional wagering hub shall pay the following from            

                                                                                

4   its commission:                                                             

                                                                                

5       (a) If the race wagered on is a live race held by the race                  

                                                                                

6   meeting licensee, 43.1% of the commission to the agricultural               

                                                                                

7   enhancement purse pool and 6.9% of the commission to be                     

                                                                                

8   distributed to breeders' awards under section 19b.                          

                                                                                

9       (b) If the race wagered on is a simulcast race, the state tax               

                                                                                

10  on wagering under section 22, the fee paid to the sending host              

                                                                                

11  track under section 18, 34.5% of the balance of the commission to           

                                                                                

12  the agricultural enhancement purse pool, and 5.5% of the balance            

                                                                                

13  of the commission to be distributed to breeders' awards under               

                                                                                

14  section 19b.                                                                

                                                                                

15      Sec. 61.  A multijurisdictional wagering hub licensed to                    

                                                                                

16  conduct account wagering under this article shall comply with the           

                                                                                

17  requirements of sections 14(7) and 15(2).                                   

                                                                                

18                              ARTICLE 3                                       

                                                                                

19      Sec. 101.  (1) The racing commissioner shall promulgate                     

                                                                                

20  rules under the administrative procedures act of 1969, 1969                 

                                                                                

21  PA 306, MCL 24.201 to 24.328, as necessary to implement this                

                                                                                

22  article.                                                                    

                                                                                

23      (2) The rules authorized under this section may include, but                

                                                                                

24  are not limited to, all of the following:                                   

                                                                                

25      (a) The method of application for and conditions of issuing a               

                                                                                

26  racing theater license.                                                     

                                                                                

27      (b) The procedure for suspending or revoking a racing theater               


     House Bill No. 4609 (H-2) as amended May 22, 2003

   

1   license.                                                                    

                                                                                

2       (c) The establishment of application fees, license fees, or                 

                                                                                

3   both.                                                                       

                                                                                

4       (d) Standards and requirements for commissioner approval of                 

                                                                                

5   racing theater facilities.                                                  

                                                                                

6       (e) The conditions under which off-track wagering shall be                  

                                                                                

7   conducted in this state.                                                    

                                                                                

8       (f) Specifications concerning the scope of audits performed                 

                                                                                

9   under section 108.                                                          

                                                                                

10      Sec. 102.  (1) The racing commissioner may issue not more                   

                                                                                

11  than 15 racing theater licenses [         ].  A racing theater              

                                                                                

12  license is valid for 1 year.  If a race meeting licensee or a               

                                                                                

13  race meeting licensee that is part of a racing corporation is               

                                                                                

14  first licensed to conduct race meetings after the effective date            

                                                                                

15  of this article, the licensee or corporation of which the                   

                                                                                

16  licensee is a part shall not begin to operate a racing theater              

                                                                                

17  until 90 days after the first day of horse racing completed by              

                                                                                

18  the licensee.                                                               

                                                                                

19      (2) A racing theater license shall only be issued to a race                 

                                                                                

20  meeting licensee, to a racing corporation formed under section              

                                                                                

21  104, or to a person licensed to conduct casino gaming under the             

                                                                                

22  Michigan gaming control and revenue act, the Initiated Law of               

                                                                                

23  1996, MCL 432.201 to 432.226.  A racing theater license does not            

                                                                                

24  entitle the racing theater licensee to conduct account wagering.            

                                                                                

25      (3) The racing commissioner shall give preference to a race                 

                                                                                

26  meeting licensee that is, or a racing corporation comprised of              

                                                                                

27  race meeting licensees that are, performing ongoing racing                  


     House Bill No. 4609 (H-2) as amended May 22, 2003

   

1   operations in determining which applicants shall receive a racing           

                                                                                

2   theater license.  In deciding whether to issue a racing theater             

                                                                                

3   license for a subsequent year, the racing commissioner shall give           

                                                                                

4   preference to a current racing theater licensee that has not                

                                                                                

5   violated this act or any other law or ordinance related to the              

                                                                                

6   operation of the racing theater, including, but not limited to,             

                                                                                

7   laws relating to serving food or beverages or local zoning or               

                                                                                

8   other ordinances.                                                           

                                                                                

9       (4) The racing commissioner shall conduct an additional                     

                                                                                

10  investigation of an applicant for a racing theater license that             

                                                                                

11  the racing commissioner determines is necessary.                            

                                                                                

12      (5) Before issuing a racing theater license, the racing                     

                                                                                

13  commissioner shall inspect the facility where an applicant                  

                                                                                

14  proposes to conduct off-track telecasting and off-track wagering            

                                                                                

15  and the equipment, including, but not limited to, the                       

                                                                                

16  communication systems, the applicant proposes to use in                     

                                                                                

17  conducting off-track telecasting and off-track wagering.  If the            

                                                                                

18  license is approved, the license shall state the address at which           

                                                                                

19  the licensee will conduct off-track telecasting and off-track               

                                                                                

20  wagering.  A racing theater licensee shall only conduct off-track           

                                                                                

21  telecasting and off-track wagering at the address stated in the             

                                                                                

22  license and shall only use equipment and communication systems              

                                                                                

23  approved by the racing commissioner.                                        

                                                                                

24      Sec. 103.  A racing theater shall not be located less than                  

                                                                                

25  [25] miles from a licensed racetrack or another racing theater              

                                                                                

26  unless all race meeting licensees that conduct race meetings at             

                                                                                

27  the other racetrack or the other racing theater licensee waives             


                                                                                

1   this restriction.                                                           

                                                                                

2       Sec. 104.  A racing corporation may be formed by 2 or more                  

                                                                                

3   race meeting licensees for the operation of 1 or more racing                

                                                                                

4   theaters.                                                                   

                                                                                

5       Sec. 105.  (1) A racing theater licensee may conduct                        

                                                                                

6   pari-mutuel wagering by patrons on the results of horse races               

                                                                                

7   held in this state under this act or, if approved by the racing             

                                                                                

8   commissioner, on the results of horse races held in other                   

                                                                                

9   states.  No other method of betting, pool making, wagering, or              

                                                                                

10  gaming shall be used or permitted at licensed racing theaters.              

                                                                                

11      (2) A racing theater licensee shall not knowingly accept a                  

                                                                                

12  wager from an individual less than 18 years of age.  An                     

                                                                                

13  individual who is less than 18 years of age shall not place or              

                                                                                

14  attempt to place a wager at a racing theater.                               

                                                                                

15      (3) A racing theater licensee shall post a toll-free                        

                                                                                

16  compulsive gaming helpline telephone number at each entrance and            

                                                                                

17  exit of the racing theater and at each location at the racing               

                                                                                

18  theater where wagers are accepted and shall include that number             

                                                                                

19  on all advertisement and promotional materials.                             

                                                                                

20      Sec. 106.  A racing theater licensee shall televise and                     

                                                                                

21  conduct off-track wagering on all horse races held in this state            

                                                                                

22  for which a televised signal is available.  The licensee may use            

                                                                                

23  any racing information about the race available from the race               

                                                                                

24  meeting licensee conducting the horse race that is necessary to             

                                                                                

25  conduct off-track wagering.  The racing theater licensee shall              

                                                                                

26  pay compensation to the race meeting licensee holding the race              

                                                                                

27  for the off-track telecast and the information.  Compensation               


                                                                                

1   under this subsection shall be a percentage of the money wagered            

                                                                                

2   on the horse race at the racing theater as approved by the racing           

                                                                                

3   commissioner.                                                               

                                                                                

4       Sec. 107.  (1) The pari-mutuel system of wagering at a                      

                                                                                

5   racing theater shall result in the combination of all off-track             

                                                                                

6   wagers placed at a racing theater on a horse race held in this              

                                                                                

7   state and all wagers included in the pari-mutuel wagering pool              

                                                                                

8   for the horse race at the race meeting where the race is held as            

                                                                                

9   required or allowed by this act so as to produce a common                   

                                                                                

10  pari-mutuel wagering pool for the calculation of odds and the               

                                                                                

11  determination of payouts from the pool.  The payout shall be the            

                                                                                

12  same for all winning tickets, regardless of where the wager is              

                                                                                

13  placed.                                                                     

                                                                                

14      (2) With the approval of the racing commissioner, wagers on                 

                                                                                

15  horse races conducted in other states may be pooled in 1 of the             

                                                                                

16  following manners:                                                          

                                                                                

17      (a) With other wagers on the race pooled at the racetrack                   

                                                                                

18  where the race is held.                                                     

                                                                                

19      (b) With other wagers on the race pooled at the racetrack                   

                                                                                

20  where the racing theater licensee conducts its race meeting.                

                                                                                

21      (c) With other wagers on the race placed at other racing                    

                                                                                

22  theaters.                                                                   

                                                                                

23      (3) Wagers accepted by a racing theater licensee shall                      

                                                                                

24  conform in denomination, character, terms, conditions, and all              

                                                                                

25  other respects to wagers accepted for the same race at the race             

                                                                                

26  meeting where the race is held.  A racing theater may, with                 

                                                                                

27  approval of the racing commissioner, establish and accept other             


                                                                                

1   wager types on out-of-state races.                                          

                                                                                

2       (4) A racing theater licensee shall retain a commission equal               

                                                                                

3   to the commission allowed under section 17.  The racing theater             

                                                                                

4   licensee shall pay all breaks as required by section 17.  The               

                                                                                

5   racing theater licensee shall pay the following from its                    

                                                                                

6   commission:                                                                 

                                                                                

7       (a) If the race wagered on is a live race held by the race                  

                                                                                

8   meeting licensee, 43.1% of the commission to the agricultural               

                                                                                

9   enhancement purse pool and 6.9% of the commission to be                     

                                                                                

10  distributed to breeders' awards under section 19b.                          

                                                                                

11      (b) If the race wagered on is a simulcast race, the state tax               

                                                                                

12  on wagering under section 22, the fee paid to the sending host              

                                                                                

13  track under section 18, 34.5% of the balance of the commission to           

                                                                                

14  the agricultural enhancement purse pool, and 5.5% of the balance            

                                                                                

15  of the commission to be distributed to breeders' awards under               

                                                                                

16  section 19b.                                                                

                                                                                

17      Sec. 108.  (1) In addition to audits required by section 23,                

                                                                                

18  the racing commissioner shall audit racing theater operations.              

                                                                                

19  The expense of the audits shall be paid by the state as a part of           

                                                                                

20  the racing commissioner's budget.  Daily audit reports on each              

                                                                                

21  day's off-track wagering shall be forwarded by the racing                   

                                                                                

22  commissioner to the racing theater licensee on the day for which            

                                                                                

23  the report is made.  The scope of the audits shall be established           

                                                                                

24  by the racing commissioner.                                                 

                                                                                

25      (2) An auditor conducting an audit required by subsection (1)               

                                                                                

26  shall have free and full access to all of the following:                    

                                                                                

27      (a) A facility, space, or enclosure where off-track wagering                


                                                                                

1   is conducted.                                                               

                                                                                

2       (b) A calculating room where pay-off prices are calculated.                 

                                                                                

3       (c) A room or enclosure where totalisator equipment is                      

                                                                                

4   operated.                                                                   

                                                                                

5       (d) A money room and cashier terminals.                                     

                                                                                

6       (e) All off-track wagering records.                                         

                                                                                

7       (3) An auditor conducting an audit required by subsection (1)               

                                                                                

8   is responsible for all of the following:                                    

                                                                                

9       (a) The accuracy of the calculations on which the pay-off                   

                                                                                

10  prices to the public are based.                                             

                                                                                

11      (b) The amount of racetrack commission, state tax, and                      

                                                                                

12  breaks.                                                                     

                                                                                

13      (c) The amount withheld for payment of uncashed tickets.                    

                                                                                

14      Enacting section 1.  This amendatory act does not take                      

                                                                                

15  effect unless all of the following bills of the 92nd Legislature            

                                                                                

16  are enacted into law:                                                       

                                                                                

17      (a) House Bill No. 4610.                                                    

                                                                                

18      (b) House Bill No. 4611.