SF 796

as introduced - 91st Legislature (2019 - 2020) Posted on 07/19/2019 01:35pm

A bill for an act
relating to pari-mutuel horse racing; modifying provisions relating to reporting,
licensing, and regulation; amending Minnesota Statutes 2018, sections 240.01, by
adding a subdivision; 240.02, subdivision 6; 240.131, subdivision 7; 240.22.

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

Section 1.

Minnesota Statutes 2018, section 240.01, is amended by adding a subdivision
to read:

new text begin Subd. 18a. new text end

new text begin Racing or gaming-related vendor. new text end

new text begin "Racing or gaming-related vendor"
means any person or entity that manufactures, sells, provides, distributes, repairs or maintains
equipment or supplies used at a Class A facility, or provides services to a Class A facility
or Class B license holder, that are directly related to the running of a horse race, simulcasting,
pari-mutuel betting, or card playing.
new text end

Sec. 2.

Minnesota Statutes 2018, section 240.02, subdivision 6, is amended to read:

Subd. 6.

deleted text begin Annual deleted text end new text begin Biennial new text end report.

The commission shall on February 15 of each
new text begin odd-numbered new text end year submit a report to the governor and legislature on its activities,
organizational structure, receipts and disbursements, and recommendations for changes in
the laws relating to racing and pari-mutuel betting.

Sec. 3.

Minnesota Statutes 2018, section 240.131, subdivision 7, is amended to read:

Subd. 7.

Payments to state.

(a) A regulatory fee is imposed at the rate 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 deleted text begin seven deleted text end new text begin 15 new text end 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 deleted text begin seven deleted text end new text begin 15 new text end 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. 4.

Minnesota Statutes 2018, section 240.22, is amended to read:

240.22 FINES.

(a) The commission shall by rule establish a schedule of civil fines for violations of laws
related to horse racing or of the commission's rules. The schedule must be based on and
reflect the culpability, frequency and severity of the violator's actions. The commission may
impose a fine from this schedule on a licensee for a violation of those rules or laws relating
to horse racing. The fine is in addition to any criminal penalty imposed for the same violation.
Fines imposed by the commission must be paid to the commission and except as provided
in paragraph (c), forwarded to the commissioner of management and budget for deposit in
the state treasury and credited to a racing and card-playing regulation account in the special
revenue fund and appropriated to the commission new text begin to distribute in the form of grants, contracts,
or expenditures new text end to support racehorse adoption, retirement, and repurposing.

(b) If the commission issues a fine in excess of $5,000, the license holder has the right
to request a contested case hearing under chapter 14, to be held as set forth in Minnesota
Rules, chapter 1400. The appeal of a fine must be made in writing to the commission by
certified mail or personal service. An appeal sent by certified mail must be postmarked
within ten days after the license holder receives the fine order from the commission. An
appeal sent by personal service must be received by the commission within ten days after
the license holder receives the fine order from the commission.

(c) If the commission is the prevailing party in a contested case proceeding, the
commission may recover, from amounts to be forwarded under paragraph (a), reasonable
attorney fees and costs associated with the contested case.