HF 1812

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to horse racing; providing for agreements between racetrack licensees
and horsepersons' organizations; modifying certain restrictions on simulcasting
and operating a card club; amending Minnesota Statutes 2004, sections 240.06,
subdivision 5a, by adding a subdivision; 240.13, subdivision 6; 240.135; 240.30,
subdivision 5.

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

Section 1.

Minnesota Statutes 2004, section 240.06, subdivision 5a, is amended to read:

Subd. 5a.

Additional license; metropolitan area.

new text begin (a) new text end Notwithstanding subdivision
5, the commission may issue one additional class A license within the seven-county
metropolitan area, provided that the additional license may only be issued for a facility:

(1) located more than 20 miles from any other racetrack in existence on January
1, 1987;

(2) containing a track no larger than five-eighths of a mile in circumference;

(3) deleted text begin used exclusively deleted text end new text begin at which new text end for standardbred racing new text begin is the only form of live horse
racing conducted new text end ;

(4) not owned or operated by a governmental entity or a nonprofit organization; and

(5) that has a current road or highway system adequate to facilitate present and
future vehicular traffic expeditiously to and from the facility.

The consideration of clause (5) shall prevail when two competing licensees are
relatively equal regarding other considerations mandated by law or rule.

new text begin (b) new text end An application for an additional class A license within the seven-county
metropolitan area may not delay or adversely affect an application for a class A license for
a facility to be located outside the seven-county metropolitan area.

Sec. 2.

Minnesota Statutes 2004, section 240.06, is amended by adding a subdivision
to read:

new text begin Subd. 5b. new text end

new text begin Sharing of purse set-aside and breeders fund revenues.
new text end

new text begin Notwithstanding subdivision 5, a class A licensed racetrack operating within the
seven-county metropolitan area may:
new text end

new text begin (a) enter into an agreement with a horsepersons' organization that represents a breed
other than the breed racing at the licensee's racetrack under which the licensee agrees to
pay a percentage of simulcasting or card club revenues to the purse set-aside account of
another class A licensed racetrack operating within the seven-county metropolitan area.
The licensee may only enter into such an agreement with a horsepersons' organization
that represents a breed other than the breed racing at the licensee's racetrack. All amounts
contributed to a class A racetrack under such an agreement must go to purses for races
run at that racetrack; and
new text end

new text begin (b) conduct simulcasting on all breeds of horses if it:
new text end

new text begin (1) enters into an agreement with another class A licensed racetrack within the
seven-county metropolitan area regarding simulcasting of any breed of horses raced at
such other class A licensed racetrack that the class A racetrack elects to simulcast; and
new text end

new text begin (2) contributes to the purse set-aside account of another class A licensed racetrack
operating within the seven-county metropolitan area, and to the breeders fund, an amount
equal to the amount that would have been contributed to the set-aside account and the
breeders fund, as required by statute, if the simulcast had been conducted at such other
class A licensed racetrack. The percentages used to determine the amount of the simulcast
contribution to the purse set-aside account and the breeders fund will be the percentages
required under law. Contributions to the purse set-aside account shall be used by such
other class A licensed racetrack for purses for races conducted by that racetrack in the
same manner as if the simulcast had occurred at that racetrack.
new text end

Sec. 3.

Minnesota Statutes 2004, section 240.13, subdivision 6, is amended to read:

Subd. 6.

Simulcasting.

(a) The commission may permit an authorized licensee to
conduct simulcasting at the licensee's facility on any day authorized by the commission.
All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States
Code, title 15, sections 3001 to 3007.

(b) The commission may not authorize any day for simulcasting at a class A facility
during the racing season, and a licensee may not be allowed to transmit out-of-state
telecasts of races the licensee conducts, unless the licensee has obtained the approval of
the horsepersons' organization representing the majority of the horsepersons racing the
breed involved at the licensed racetrack during the preceding 12 months. new text begin In the case of
a class A facility licensed under section 240.06, subdivision 5a, the approval applicable
to the first year of the racetrack's operation may be obtained from the horsepersons'
organization that represents the majority of horsepersons who will race the breed involved
at the licensed racetrack during the first year of the racetrack's operation.
new text end

(c) The licensee may pay fees and costs to an entity transmitting a telecast of a
race to the licensee for purposes of conducting pari-mutuel wagering on the race. The
licensee may deduct fees and costs related to the receipt of televised transmissions from a
pari-mutuel pool on the televised race, provided that one-half of any amount recouped in
this manner must be added to the amounts required to be set aside for purses.

(d) With the approval of the commission and subject to the provisions of this
subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes,
to locations outside the state, and the commission may allow this to be done on a
commingled pool basis.

(e) Except as otherwise provided in this section, simulcasting may be conducted
on a separate pool basis or, with the approval of the commission, on a commingled pool
basis. All provisions of law governing pari-mutuel betting apply to simulcasting except
as otherwise provided in this subdivision or in the commission's rules. If pools are
commingled, wagering at the licensed facility must be on equipment electronically linked
with the equipment at the licensee's class A facility or with the sending racetrack via
the totalizator computer at the licensee's class A facility. Subject to the approval of the
commission, the types of betting, takeout, and distribution of winnings on commingled
pari-mutuel pools are those in effect at the sending racetrack. Breakage for pari-mutuel
pools on a televised race must be calculated in accordance with the law or rules governing
the sending racetrack for these pools, and must be distributed in a manner agreed to
between the licensee and the sending racetrack. Notwithstanding subdivision 7 and
section 240.15, subdivision 5, the commission may approve procedures governing the
definition and disposition of unclaimed tickets that are consistent with the law and rules
governing unclaimed tickets at the sending racetrack. For the purposes of this section,
"sending racetrack" is either the racetrack outside of this state where the horse race is
conducted or, with the consent of the racetrack, an alternative facility that serves as the
racetrack for the purpose of commingling pools.

(f) new text begin Except as otherwise provided in section 240.06, subdivision 5b, paragraph (b),
new text end if there is more than one class B licensee conducting racing within the seven-county
metropolitan area, simulcasting may be conducted only on races run by a breed that ran at
the licensee's class A facility within the 12 months preceding the event.

Sec. 4.

Minnesota Statutes 2004, 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 ten
percent to be used as purses.

(2) For amounts in excess of $6,000,000, the licensee shall set aside 14 percent to
be used as purses.

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

new text begin (c) 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 new text begin , or, in the
case of a racetrack licensed under section 240.06, subdivision 5a, will race at the racetrack
during the first year of the racetrack's operation, new text end may negotiate percentages different
from those stated in this section if the agreement is in writing and filed with the Racing
Commission.

deleted text begin (c) deleted text end new text begin (d) new text end 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
purses. 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. 5.

Minnesota Statutes 2004, section 240.30, subdivision 5, is amended to read:

Subd. 5.

Limitation.

new text begin (a) Except as provided in paragraph (b), new text end the commission
shall not authorize a licensee to operate a card club unless the licensee has conducted at
least 50 days of live racing at a class A facility within the past 12 months or during the
preceding calendar year.

new text begin (b) In the case of a racetrack licensed under section 240.06, subdivision 5a, during
the first 12 months of the racetrack's operation, the commission may authorize the licensee
to operate a card club when the licensee has been assigned dates by the commission for at
least 50 days of live racing during those 12 months.
new text end