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HF 4597

as introduced - 91st Legislature (2019 - 2020) Posted on 04/28/2020 11:04am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to horse racing; modifying provisions relating to wagering and simulcasting;
providing for certain waivers and expenditures; amending Minnesota Statutes
2018, sections 240.01, subdivisions 1b, 20; 240.25, subdivision 2; Minnesota
Statutes 2019 Supplement, sections 240.10; 240.13, subdivision 5; repealing
Minnesota Rules, part 7880.0010.

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

Section 1.

Minnesota Statutes 2018, section 240.01, subdivision 1b, is amended to read:


Subd. 1b.

Advance deposit wager.

"Advance deposit wager" means a wager placed
through an advance deposit wagering provider on a horse race deleted text beginthat is conducted outside of
the state
deleted text end.

Sec. 2.

Minnesota Statutes 2018, section 240.01, subdivision 20, is amended to read:


Subd. 20.

Simulcasting.

"Simulcasting" means deleted text beginthe televised display, fordeleted text end pari-mutuel
wagering deleted text beginpurposes, ofdeleted text endnew text begin onnew text end one or more horse races conducted at another location deleted text beginwherein
the televised display occurs simultaneously with the race being televised
deleted text end.

Sec. 3.

Minnesota Statutes 2019 Supplement, section 240.10, is amended to read:


240.10 LICENSE FEES.

(a) The fee for a class A license is $253,000 per year and must be remitted on July 1.
The fee for a class B license is $500 for each assigned racing day and $100 for each day on
which simulcasting is authorized and must be remitted on July 1. The fee for a class D
license is $50 for each assigned racing day on which racing is actually conducted. Fees
imposed on class D licenses must be paid to the commission at a time and in a manner as
provided by rule of the commission.

(b) The commission shall by rule establish an annual license fee for each occupation it
licenses under section 240.08.

(c) The initial annual license application fee for a class C license to provide advance
deposit wagering on horse racing under this chapter is $10,000 and an annual license fee
of $2,500 applies thereafter.

(d) Notwithstanding section 16A.1283, the commission shall by rule establish an annual
license fee for each type of racing or gaming-related vendor it licenses, not to exceed $2,500.

new text begin (e) From the day following final enactment until January 1, 2022, license fees and all
other fees for class A and B licensees are waived and no reimbursements, including
reimbursements pursuant to section 240.155, may be required of the licensees.
new text end

Sec. 4.

Minnesota Statutes 2019 Supplement, section 240.13, subdivision 5, is amended
to read:


Subd. 5.

Purses.

(a) From the amounts deducted from all pari-mutuel pools by a licensee,
including breakage, an amount equal to not less than the following percentages of all money
in all pools must be set aside by the licensee and used for purses for races conducted by the
licensee, provided that a licensee may agree by contract with an organization representing
a majority of the horsepersons racing the breed involved to set aside amounts in addition
to the following percentages, if the contract is in writing and reviewed by the commission
for compliance with this subdivision:

(1) for live races conducted at a class A facility, 8.4 percent of handle;

(2) for simulcasts conducted any day a class A facility is licensed, not less than 37 percent
of the amount remaining after deduction for the state pari-mutuel tax, payment to the breeders
fund, and payment to the sending out-of-state racetrack for receipt of the signal.

The commission may by rule provide for the administration and enforcement of this
subdivision. The deductions for payment to the sending out-of-state racetrack must be actual,
except that when there exists any overlap of ownership, control, or interest between the
sending out-of-state racetrack and the receiving licensee, the deduction must not be greater
than three percent unless agreed to between the licensee and the horsepersons' organization
representing the majority of horsepersons racing the breed racing the majority of races
during the existing racing meeting or, if outside of the racing season, during the most recent
racing meeting.

The licensee shall pay to the commission for deposit in the Minnesota breeders fund
5-1/2 percent of the takeout from all pari-mutuel pools generated by wagering at the licensee's
facility on simulcasts of races not conducted in this state.

(b) The licensee shall pay to the horseperson's organization representing the majority of
the horsepersons racing the breed involved and contracting with the licensee with respect
to purses and the conduct of the racing meetings and providing representation to its members,
an amount as may be determined by agreement by the licensee and the horsepersons'
organization sufficient to providenew text begin for capital improvements and expense reimbursements
specific to the operation of live racing at the licensee and beneficial to horsepersons racing
at the licensee's facility,
new text end benevolent programs, benefits, and services for horsepersons and
their on-track employees. The amount paid may be deducted from the money set aside for
purses to be paid in races for the breed represented by the horseperson's organization or
may be paid from breakage retained by the licensee from live or simulcast wagering as
agreed between the licensee and horsepersons' organization. With respect to racing meetings
where more than one breed is racing, the licensee may contract independently with the
horseperson's organization representing each breed racing. The contract must be in writing
and reviewed by the commission for compliance with this subdivision.

(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization
representing the majority of the horsepersons racing a breed at a meeting, and the members
thereof, may agree to withhold horses during a meeting.

(d) Money set aside for purses from wagering on simulcasts must be used for purses for
live races involving the same breed involved in the simulcast except that money set aside
for purses and payments to the breeders fund from wagering on simulcasts of races not
conducted in this state, occurring during a live mixed meet, must be allotted to the purses
and breeders fund for each breed participating in the mixed meet as agreed upon by the
breed organizations participating in the live mixed meet. The agreement shall be in writing
and reviewed by the commission for compliance with this subdivision prior to the first day
of the live mixed meet. In the absence of a written agreement reviewed by the commission,
the money set aside for purses and payments to the breeders fund from wagering on
simulcasts, occurring during a live mixed meet, shall be allotted to each breed participating
in the live mixed meet in the same proportion that the number of live races run by each
breed bears to the total number of live races conducted during the period of the mixed meet.

(e) The allocation of money set aside for purses to particular racing meets may be
adjusted, relative to overpayments and underpayments, by contract between the licensee
and the horsepersons' organization representing the majority of horsepersons racing the
breed involved at the licensee's facility. The contract must be in writing and reviewed by
the commission for compliance with this subdivision.

(f) Subject to the provisions of this chapter, money set aside from pari-mutuel pools for
purses must be for the breed involved in the race that generated the pool, except that if the
breed involved in the race generating the pari-mutuel pool is not racing in the current racing
meeting, or has not raced within the preceding 12 months at the licensee's class A facility,
money set aside for purses may be distributed proportionately to those breeds that have run
during the preceding 12 months or paid to the commission and used for purses or to promote
racing for the breed involved in the race generating the pari-mutuel pool, or both, in a manner
prescribed by the commission.

(g) This subdivision does not apply to a class D licensee.

Sec. 5.

Minnesota Statutes 2018, section 240.25, subdivision 2, is amended to read:


Subd. 2.

Off-track bets.

new text begin(a) Except as provided in paragraph (b), new text endno person shall:

(1) for a fee, directly or indirectly, accept anything of value from another to be transmitted
or delivered for wager in any licensed pari-mutuel system of wagering on horse races, or
for a fee deliver anything of value which has been received outside of the enclosure of a
licensed racetrack holding a race meet licensed under this chapter, to be placed as wagers
in the pari-mutuel system of wagering on horse racing within the enclosure or facility; or

(2) give anything of value to be transmitted or delivered for wager in any licensed
pari-mutuel system of wagering on horse races to another who charges a fee, directly or
indirectly, for the transmission or delivery.

new text begin (b) An agent approved by the commission, for the purpose of facilitating wagering, may,
by any means, accept and place wagers for a client, present at the racetrack or not, utilizing
the client's established account, provided that the agent, or an employee thereof, is physically
present at the racetrack at the time of the transaction, that the transaction is pursuant to a
contract approved by the commission, and that no credit is extended.
new text end

Sec. 6. new text beginREPEALER.
new text end

new text begin Minnesota Rules, part 7880.0010, new text end new text begin is repealed.
new text end

Sec. 7. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective the day following final enactment and expire December 31,
2021.
new text end

APPENDIX

Repealed Minnesota Rule: 20-8378

7880.0010 SCOPE.

This chapter applies to advance deposit wagering providers licensed by the commission under Minnesota Statutes, section 240.131. Advance deposit wagering providers shall not accept wagers from Minnesota residents on races conducted in Minnesota. The activities of a licensed advance deposit wagering provider are deemed to be relevant to the integrity of horse racing activities in Minnesota for purposes of Minnesota Statutes, sections 240.03 and 240.08.