Minnesota Legislature
SF 1775
as introduced - 89th Legislature (2015 - 2016) Posted on 03/17/2015 09:15am
Current Version - as introduced
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A bill for an act
relating to horse racing; providing for occupation licenses; modifying purses;
providing for appointment of stewards; amending Minnesota Statutes 2014,
sections 240.08, subdivision 5; 240.13, subdivision 5; 240.16, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 240.08, subdivision 5, is amended to read:
Subd. 5.
Revocation and suspension.
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, 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.new text begin No person shall be deemed to have violated a law or rule, or shall
have a license suspended or revoked or be fined or penalized, without having been first
afforded full procedural and substantive due process of law.
new text end
The commission may delegate to its designated agents the authority to impose
suspensions of class C licenses, and the suspension may be appealed to the commission
according to its rules.
A license revocation or suspension for more than 90 days is a contested case under
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. The commission may summarily suspend
a license for more than 90 days prior to a contested case hearing new text begin in unusual cases new text end where
it is necessary to ensure the integrity of racing. A contested case hearing must be held
within 20 days of the summary suspension and the administrative law judge's report must
be issued within 20 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.
Sec. 2.
Minnesota Statutes 2014, section 240.13, subdivision 5, is amended to read:
Subd. 5.
Purses.
(a) deleted text begin From the amounts deducted from all pari-mutuel pools bydeleted text end Anew text begin
class Bnew text end licenseedeleted text begin , an amount equal to not less than the following percentages of all money
in all poolsdeleted text end must deleted text begin bedeleted text end set asidenew text begin not less than the following amounts of money which must be
usednew text end by the licensee deleted text begin and useddeleted text end 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 involvednew text begin ,new text end to set aside amounts in addition to the following
percentages:
(1) for live races conducted at a class A facility, deleted text begin and for races that are part of full
racing card simulcasting that takes place within the time period of the live races,deleted text end 8.4
percentnew text begin of all money in all poolsnew text end ;
(2) for simulcasts conducted during the racing season other than as provided for
in clause (1), deleted text begin 50deleted text end new text begin .......new text end percent of the takeout remaining after deduction for taxes on
pari-mutuel pools, payment to the breeders fund, and payment to the sending out-of-state
racetrack for receipt of the signal; and
(3) for simulcasts conducted outside of the racing season, deleted text begin 25deleted text end new text begin .......new text end percent of the
takeout remaining after deduction for the state pari-mutuel tax, payment to the breeders
fund, payment to the sending out-of-state racetrack for receipt of the signal and, before
January 1, 2005, a further deduction of eight percent of all money in all pools. In the event
that wagering on simulcasts outside of the racing season exceeds $125 million in any
calendar year, the amount set aside for purses by this formula is increased to 30 percent
on amounts between $125,000,000 and $150,000,000 wagered; 40 percent on amounts
between $150,000,000 and $175,000,000 wagered; and 50 percent on amounts in excess
of $175,000,000 wagered. In lieu of the eight percent deduction, a deduction as agreed
to between the licensee and the horsepersons' organization representing the majority of
horsepersons racing at the licensee's class A facility during the preceding 12 months, is
allowed after December 31, 2004.
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.
In lieu of the amount the licensee must pay to the commission for deposit in the
Minnesota breeders fund under section 240.15, subdivision 1, the licensee shall pay 5-1/2
percent of the takeout from all pari-mutuel pools generated by wagering at the licensee's
facility on full racing card simulcasts of races not conducted in this state.
(b) From the money set aside for purses, 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, benevolent programs, benefits, and services for horsepersons
and their on-track employees, an amount, sufficient to perform these services, as may be
determined by agreement by the licensee and the horseperson's organization. The amount
paid may be deducted only from the money set aside for purses to be paid in races for
the breed represented by the horseperson's 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.
(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, during the racing season, on
simulcasts must be used for purses for live races conducted at the licensee's class A facility
during the same racing season, over and above the 8.4 percent purse requirement or any
higher requirement to which the parties agree, for races conducted in this state. Money
set aside for purses from wagering, outside of the racing season, on simulcasts must be
for purses for live races conducted at the licensee's class A facility during the next racing
season, over and above the 8.4 percent purse requirement or any higher requirement to
which the parties agree, for races conducted in this state.
(e) 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 full racing card
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
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.
(f) 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.
(g) 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.
(h) This subdivision does not apply to a class D licensee.
Sec. 3.
Minnesota Statutes 2014, section 240.16, subdivision 1, is amended to read:
Subdivision 1.
Powers and duties.
All horse races run at a licensed racetrack must
be presided over by a board of three stewardsdeleted text begin , who must be appointees of the commission
or persons approved by itdeleted text end .new text begin The commission shall appoint two of the stewards and the
association shall nominate the third steward, to be approved by the commission.new text end The
commission shall designate one steward as chair. At least two stewards for all races either
shall be employees of the commission who shall serve in the unclassified service, or
shall be under contract with the commission to serve as stewards. The commission may
delegate the following duties and powers to a board of stewards:
(a) to ensure that races are run in accordance with the commission's rules;
(b) to supervise the conduct of racing to ensure the integrity of the sport;
(c) to settle disputes arising from the running of horse races, and to certify official
results;
(d) to impose on licensees, for violation of law or commission rules, fines not
exceeding $2,000 and license suspensions not exceeding 90 days;
(e) to recommend to the commission where warranted penalties in excess of those
in clause (d);
(f) to otherwise enforce the laws and rules of racing; and
(g) to perform other duties and have other powers assigned by the commission.