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HF 3217

as introduced - 90th Legislature (2017 - 2018) Posted on 03/21/2018 12:28pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/21/2018

Current Version - as introduced

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A bill for an act
relating to pari-mutuel horse racing; modifying provisions relating to licensing
and regulation; amending Minnesota Statutes 2016, sections 240.01, by adding a
subdivision; 240.02, subdivision 6; 240.08, subdivision 5; 240.131, subdivision
7; 240.135; 240.22.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 240.01, is amended by adding a subdivision
to read:


new text begin Subd. 18a. new text end

new text begin Racing or gaming-related vendor. new text end

new text begin "Racing or gaming-related vendor"
means any person or entity that manufactures, sells, provides, distributes, repairs, or maintains
equipment or supplies used at a Class A facility or provides services to a Class A facility
or Class B license holder that are directly related to the running of a horse race, simulcasting,
pari-mutuel betting, or card playing.
new text end

Sec. 2.

Minnesota Statutes 2016, section 240.02, subdivision 6, is amended to read:


Subd. 6.

Annual report.

The commission shall on February 15 of each new text begin odd-numbered
new text end year submit a report to the governor and legislature on its activities, organizational structure,
receipts and disbursements, and recommendations for changes in the laws relating to racing
and pari-mutuel betting.

Sec. 3.

Minnesota Statutes 2016, section 240.08, subdivision 5, is amended to read:


Subd. 5.

Revocation and suspension.

(a) The commission may revoke a class C license
for a violation of law or rule which in the commission's opinion adversely affects the integrity
of horse racing in Minnesota, the public health, welfare, or safety, or for an intentional false
statement made in a license application.

The commission may suspend a class C license for up to one year for a violation of law,
order or rule.

The commission may delegate to its designated agents the authority to impose suspensions
of class C licenses, and the revocation or suspension of a class C license may be appealed
to the commission according to its rules.

(b) deleted text begin A license revocation or suspensiondeleted text end new text begin If the commission revokes or suspends a licensenew text end
for more than deleted text begin 90deleted text end new text begin 180new text end days deleted text begin isdeleted text end new text begin , in lieu of appealing to the commission under paragraph (a),
the license holder has the right to request
new text end a contested case new text begin hearing new text end under deleted text begin sections 14.57 to
14.69 of the Administrative Procedure Act and is in addition to criminal penalties imposed
for a violation of law or rule.
deleted text end new text begin chapter 14. The request must be made in writing to the
commission by certified mail or personal service. A request sent by certified mail must be
postmarked within ten days after the license holder receives the revocation or suspension
order from the commission. A request sent by personal service must be received by the
commission within ten days after the license holder receives the revocation or suspension
order from the commission.
new text end The commission may summarily suspend a license for deleted text begin more
than
deleted text end new text begin up tonew text end 90 days deleted text begin prior to a contested case hearingdeleted text end where it is necessary to ensure the
integrity of racing or to protect the public health, welfare, or safety. new text begin The license holder may
appeal a summary suspension by making a written request to the commission within five
calendar days after the license holder receives notice of the summary suspension.
new text end A deleted text begin contested
case
deleted text end hearing must be held within deleted text begin 30deleted text end new text begin tennew text end days of the new text begin commission's receipt of the request for
appeal of a
new text end summary suspension deleted text begin and the administrative law judge's report must be issued
within 30 days from the close of the hearing record. In all cases involving summary
suspension the commission must issue its final decision within 30 days from receipt of the
report of the administrative law judge and subsequent exceptions and argument under section
14.61.
deleted text end new text begin to determine whether the license should remain suspended pending a final disciplinary
action.
new text end

Sec. 4.

Minnesota Statutes 2016, section 240.131, subdivision 7, is amended to read:


Subd. 7.

Payments to state.

(a) A regulatory fee is imposed at the rate of one percent
of all amounts wagered by Minnesota residents with an authorized advance deposit wagering
provider. The fee shall be declared on a form prescribed by the commission. The ADW
provider must pay the fee to the commission no more than deleted text begin sevendeleted text end new text begin 15new text end days after the end of
the month in which the wager was made. Fees collected under this paragraph must be
deposited in the state treasury and credited to a racing and card-playing regulation account
in the special revenue fund and are appropriated to the commission to offset the costs
associated with regulating horse racing and pari-mutuel wagering in Minnesota.

(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all
amounts wagered by Minnesota residents with an authorized advance deposit wagering
provider. The fee shall be declared on a form prescribed by the commission. The ADW
provider must pay the fee to the commission no more than deleted text begin sevendeleted text end new text begin 15new text end days after the end of
the month in which the wager was made. Fees collected under this paragraph must be
deposited in the state treasury and credited to a racing and card-playing regulation account
in the special revenue fund and are appropriated to the commission to offset the cost of
administering the breeders fund and promote horse breeding in Minnesota.

Sec. 5.

Minnesota Statutes 2016, section 240.135, is amended to read:


240.135 CARD CLUB REVENUE.

(a) From the amounts received from charges authorized under section 240.30, subdivision
4
, the licensee shall set aside the amounts specified in this section to be used for purse
payments. These amounts are in addition to the breeders fund and purse requirements set
forth elsewhere in this chapter.

(1) For amounts between zero and $6,000,000, the licensee shall set aside not less than
ten percent to be used as pursesnew text begin for races conducted at licensed racetracksnew text end .

(2) For amounts in excess of $6,000,000, the licensee shall set aside not less than 14
percent to be used as pursesnew text begin for races conducted at licensed racetracksnew text end .

(b) From all amounts set aside under paragraph (a), the licensee shall set aside ten percent
to be deposited in the breeders fund.

(c) It is the intent of the legislature that the proceeds of the card playing activities
authorized by this chapter be used to improve the horse racing industry by improving pursesnew text begin
for races conducted at licensed racetracks
new text end . The licensee and the horseperson's organization
representing the majority of horsepersons who have raced at the racetrack during the
preceding 12 months may negotiate percentages that exceed those stated in this section if
the agreement is in writing and filed with the commission. The commission shall annually
review the financial details of card playing activities and determine if the present use of
card playing proceeds is consistent with the policy established by this paragraph. If the
commission determines that the use of the proceeds does not comply with the policy set
forth herein, then the commission shall direct the parties to make the changes necessary to
ensure compliance. If these changes require legislation, the commission shall make the
appropriate recommendations to the legislature.

Sec. 6.

Minnesota Statutes 2016, section 240.22, is amended to read:


240.22 FINES.

(a) The commission shall by rule establish a schedule of civil fines for violations of laws
related to horse racing or of the commission's rules. The schedule must be based on and
reflect the culpability, frequency and severity of the violator's actions. The commission may
impose a fine from this schedule on a licensee for a violation of those rules or laws relating
to horse racing. The fine is in addition to any criminal penalty imposed for the same violation.
Fines imposed by the commission must be paid to the commission and except as provided
in paragraph (c), forwarded to the commissioner of management and budget for deposit in
the state treasury and credited to a racing and card-playing regulation account in the special
revenue fund and appropriated to the commission new text begin to distribute in the form of grants, contracts,
or expenditures
new text end to support racehorse adoption, retirement, and repurposing.

(b) If the commission issues a fine in excess of $5,000, the license holder has the right
to request a contested case hearing under chapter 14, to be held as set forth in Minnesota
Rules, chapter 1400. The appeal of a fine must be made in writing to the commission by
certified mail or personal service. An appeal sent by certified mail must be postmarked
within ten days after the license holder receives the fine order from the commission. An
appeal sent by personal service must be received by the commission within ten days after
the license holder receives the fine order from the commission.

(c) If the commission is the prevailing party in a contested case proceeding, the
commission may recover, from amounts to be forwarded under paragraph (a), reasonable
attorney fees and costs associated with the contested case.