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HF 4597

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 06/09/2020 10:59am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to horse racing; modifying certain revenue and reimbursement provisions;
granting certain discretion to the commission for operation of a card club; amending
Minnesota Statutes 2018, section 240.30, subdivisions 5, 9; Minnesota Statutes
2019 Supplement, sections 240.13, subdivision 5; 240.131, subdivision 7.

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

Section 1.

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. 2.

Minnesota Statutes 2019 Supplement, section 240.131, subdivision 7, is amended
to read:


Subd. 7.

Payments to state.

(a) A regulatory fee is imposed at the rate of deleted text beginonedeleted text endnew text begin twonew text end 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 15 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 15 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. 3.

Minnesota Statutes 2018, section 240.30, subdivision 5, is amended to read:


Subd. 5.

Limitation.

The commission shall not authorize a licensee to operate a card
club deleted text beginunlessdeleted text endnew text begin ifnew text end the licensee has new text beginnot new text endconducted at least 50 days of live racing at a class A
facility within the past 12 months or during the preceding calendar yearnew text begin unless the
commission authorizes a shorter period because of circumstances beyond the licensee's
control
new text end.

Sec. 4.

Minnesota Statutes 2018, section 240.30, subdivision 9, is amended to read:


Subd. 9.

Reimbursement to commission.

The commission deleted text beginshalldeleted text endnew text begin maynew text end require that the
licensee reimburse it for the commission's actual costs, including personnel costs, of
regulating the card club. Amounts received under this subdivision must be deposited as
provided in section 240.155, subdivision 1.

Sec. 5. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment and expire on December
31, 2021.
new text end