SF 2500

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to horse racing; providing for sharing of purse set-aside and breeder's
fund revenue; modifying certain restrictions on simulcasting; amending
Minnesota Statutes 2006, sections 240.06, subdivision 5a, by adding a
subdivision; 240.13, subdivision 6.

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

Section 1.

Minnesota Statutes 2006, 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 for deleted text end new text begin at which new text end 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 2006, 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 revenue. 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 (1) 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 (2) conduct simulcasting on all breeds of horses if it:
new text end

new text begin (i) 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 (ii) 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 percentage
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 2006, 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.