HB-5881, As Passed House, June 24, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 5881

                                                                             A bill to amend 1995 PA 279, entitled                                             

"Horse racing law of 1995,"                                                 

by amending section 9 (MCL 431.309), as amended by 2000 PA 164.             

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

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

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

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

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

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

7   race meeting licensee.                                                      

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

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

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

11  the rules promulgated under this act.                                       

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

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

3   commissioner that the applicant has satisfactory financial                  

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

5   the proposed racetrack, and that is accompanied by substantially            

6   detailed plans and specifications for the racecourse, paddock,              

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

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

9   improvements.  The application shall include the name and address           

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

11  incorporation, and any other information required by the rules              

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

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

14  license fee, the racing commissioner shall investigate the                  

15  applicant and the racetrack or proposed racetrack as the racing             

16  commissioner considers necessary.  If the racing commissioner               

17  determines that the applicant and the racetrack satisfy the                 

18  requirements of this act and the rules promulgated under this               

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

20  racetrack, designating in the license the county or other                   

21  municipality in which the licensed racetrack shall be or is                 

22  located.  If the racing commissioner determines that the                    

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

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

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

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

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

1   1961 PA 236, MCL 600.631.                                                   

2   (4) Beginning the effective date of the amendatory act that                 

3   added this sentence, the racing commissioner shall grant or deny            

4   an application under this section not later than 90 days after              

5   the applicant files a completed application.  Receipt of the                

6   application is considered the date the application is received by           

7   an agency or department of this state.  If the racing                       

8   commissioner determines that the application is incomplete, the             

9   racing commissioner shall notify the applicant in writing, or               

10  make information electronically available, within 30 days after             

11  receipt of the incomplete application, describing the deficiency            

12  and requesting the additional information.  The 90-day period is            

13  tolled upon notification by the racing commissioner of a                    

14  deficiency until the date the requested information is received             

15  by the racing commissioner.  The determination of the                       

16  completeness of an application does not operate as an approval of           

17  the application for the license and does not confer eligibility             

18  of an applicant determined otherwise ineligible for issuance of a           

19  license.                                                                    

20      (5) If the racing commissioner fails to issue or deny a                     

21  license within the time required by this section, the racing                

22  commissioner shall return the application fee.  The failure to              

23  issue a license within the time required under this section does            

24  not allow the racing commissioner to otherwise delay the                    

25  processing of the application, and that application, upon                   

26  completion, shall be placed in sequence with other completed                

27  applications received at that same time.  The racing commissioner           

1   shall not discriminate against an applicant in the processing of            

2   the application based upon the fact that the application fee was            

3   refunded under this subsection.                                             

4       (6) Beginning October 1, 2005, the racing commissioner shall                

5   submit a report by December 1 of each year to the standing                  

6   committees and appropriations subcommittees of the senate and               

7   house of representatives concerned with racing issues.  The                 

8   racing commissioner shall include all of the following                      

9   information in the report concerning the preceding fiscal year:             

10      (a) The number of initial and renewal applications the racing               

11  commissioner received and completed within the 90-day time period           

12  described in subsection (4).                                                

13      (b) The number of applications denied.                                      

14      (c) The number of applicants not issued a license within the                

15  90-day time period and the amount of money returned to applicants           

16  under subsection (5).

17  (7)  (4)  A track license may be transferred to a new owner                 

18  of a racetrack with the consent of the racing commissioner.                 

19  (8)  (5)  After a track license is issued under this section,               

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

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

22  from the racing commissioner, does not make necessary                       

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

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

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

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

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

House Bill No. 5881 (H-4) as amended June 24, 2004

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

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

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

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

5   the licensee to make reasonable and necessary racetrack                     

6   improvements or additions as determined by the commissioner if              

7   the licensee fails to make improvements or corrections that                 

8   comply with the applicable construction code or local                       

9   ordinances.  The action of the racing commissioner in suspending            

10  or revoking a track license shall comply with the administrative            

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

12  shall be subject to appeal may be appealed.                               

13  (9)  (6)  In a city area, not more than 3 racetracks shall be               

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

15  more the racing commissioner may issue 1 additional license.                

[(10) A track license shall not be issued under this section if the new license would result in harmful competition among existing racetracks.]

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

17  Controlling ownership and interlocking directorates among the               

18  holders of track licenses are prohibited.                                   

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

20  the new license would result in harmful competition among                   

21  existing racetracks.

22  [(11)] As used in this section, "completed application" means               

23  an application complete on its face and submitted with any                  

24  application fees and any other information, records, approval,              

25  security, or similar item required by this act or a rule                    

26  promulgated under this act.