Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 141-H.F.No. 707 
           An act relating to horse racing; allowing a licensed 
          racetrack to conduct pari-mutuel betting on televised 
          races on days when races are not conducted at the 
          licensed racetrack; allowing the licensed racetrack to 
          commingle pari-mutuel pools with the sending 
          racetrack; allowing a licensed racetrack to transmit 
          telecasts of races it conducts to other racetracks; 
          amending Minnesota Statutes 1988, sections 240.01, 
          subdivision 10, and by adding a subdivision; 240.10; 
          240.13, subdivisions 1, 3, 6, and by adding a 
          subdivision; 240.14, by adding a subdivision; 240.16, 
          by adding a subdivision; and 240.29.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 240.01, 
subdivision 10, is amended to read: 
    Subd. 10.  [RACING DAY.] "Racing day" is a day assigned by 
the commission on which racing is conducted.  Racing day 
includes televised racing day. 
    Sec. 2.  Minnesota Statutes 1988, section 240.01, is 
amended by adding a subdivision to read: 
    Subd. 13.  [TELEVISED RACING DAY.] "Televised racing day" 
means a day assigned by the commission on which pari-mutuel 
betting is conducted only on horse races run at racetracks 
outside of the state which are broadcast by television at a 
licensed racetrack. 
    Sec. 3.  Minnesota Statutes 1988, section 240.10, is 
amended to read: 
    240.10 [LICENSE FEES.] 
    The fee for a class A license is $10,000 per year.  The fee 
for a class B license is $100 for each assigned racing day on 
which racing is actually conducted, and $50 for each assigned 
televised racing day on which televised racing is actually 
conducted.  The fee for a class D license is $50 for each 
assigned racing day on which racing is actually conducted.  Fees 
imposed on class B and class D licenses must be paid to the 
commission at a time and in a manner as provided by rule of the 
commission.  
    The commission shall by rule establish an annual license 
fee for each occupation it licenses under section 240.08 but no 
annual fee for a class C license may exceed $100.  
    License fee payments received must be paid by the 
commission to the state treasurer for deposit in the general 
fund. 
    Sec. 4.  Minnesota Statutes 1988, section 240.13, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORIZED.] Class B and class D licenses 
give the licensees authority to conduct pari-mutuel betting on 
the results of races run at the licensed racetrack, and on other 
races as authorized by the commission under 
subdivision subdivisions 6 or 6a.  
    Sec. 5.  Minnesota Statutes 1988, section 240.13, 
subdivision 3, is amended to read: 
    Subd. 3.  [TYPES OF BETTING.] The commission shall by rule 
designate those types of pari-mutuel pools which are permitted 
at licensed racetracks, and no licensee may conduct any type of 
pari-mutuel pool which has not been so designated, except as 
provided for in subdivision 6a.  
     Sec. 6.  Minnesota Statutes 1988, section 240.13, 
subdivision 6, is amended to read: 
    Subd. 6.  [TELEVISED RACES.] (a) The commission may by rule 
permit a class B or class D licensee to conduct on the premises 
of the licensed racetrack pari-mutuel betting on horse races run 
in other states and broadcast by television on the premises.  
All provisions of law governing pari-mutuel betting apply to 
pari-mutuel betting on televised races except as otherwise 
provided in this subdivision or in the commission's rules. 
Pari-mutuel pools conducted on such televised races may consist 
only of money bet on the premises and may not be commingled with 
any other pool off the premises, except that:  
    (a) (1) the licensee may pay a fee to the person or entity 
conducting the race for the privileges of conducting pari-mutuel 
betting on the race,; and 
    (b) (2) the licensee may pay the costs of transmitting the 
broadcast of the race.  
    (b) Pari-mutuel betting on a televised race may be 
conducted only on a racing day assigned by the commission.  The 
takeout and taxes on pari-mutuel pools on televised races are as 
provided for other pari-mutuel pools.  All televised races under 
this subdivision must comply with the Interstate Horse Racing 
Act of 1978 as found in United States Code, title 15, section 
3001 and the following relevant sections.  In lieu of the purse 
requirement established by subdivision 5, the licensee shall set 
aside for purses one-half of the take-out from the amount bet on 
televised races after the payment of fees and taxes.  For the 
purposes of purse distribution under subdivision 5, the average 
daily handle shall not include amounts bet in pari-mutuel pools 
on televised races. 
    (c) A licensee may, with the approval of the commission, 
transmit telecasts of races the licensee conducts, for wagering 
purposes, to a location outside the state.  The commission may 
allow the licensee to commingle its wagering pools with the 
wagering pools at a facility located outside of this state that 
is regulated by a state racing commission, when it transmits 
telecasts under this paragraph. 
    Sec. 7.  Minnesota Statutes 1988, section 240.13, is 
amended by adding a subdivision to read: 
    Subd. 6a.  [TELEVISED RACING DAYS.] (a) The commission may 
by rule permit a class B licensee to conduct on the premises of 
a licensed racetrack pari-mutuel betting on horse races 
conducted at racetracks located outside of this state and which 
are broadcast by television to a licensed racetrack.  All 
televised races under this subdivision must comply with the 
Interstate Horse Racing Act of 1978, United States Code, title 
15, sections 3001 to 3007.  All provisions of law governing 
pari-mutuel betting apply to pari-mutuel betting on televised 
racing days except as provided under this subdivision.  A class 
B licensee within the seven-county metropolitan area may conduct 
pari-mutuel betting on a televised racing day only on televised 
races run by a breed which ran at the licensed racetrack within 
the 12 months preceding the televised racing day. 
    (b) With the prior approval of the commission, the licensee 
may commingle the amounts bet at the licensed racetrack on a 
televised racing day with the pools at the sending racetrack.  
If the pools are commingled, the wagering at the licensed 
racetrack must be on tabulating equipment capable of issuing 
pari-mutuel tickets and be electronically linked with the 
equipment at the sending racetrack.  Subject to the approval of 
the commission, the types of betting, takeout, and distribution 
of winnings on pari-mutuel pools of the sending licensed 
racetrack are those in effect at the sending racetrack.  
Notwithstanding subdivision 4, breakage for pari-mutuel pools on 
a televised racing day must be calculated in accordance with the 
law or rules governing the sending racetrack, and must be 
distributed in a manner agreed to between the licensee and the 
sending racetrack.  The licensee may deduct from any pari-mutuel 
pool on a televised racing day, any fee to the person or entity 
conducting the race for the privilege of conducting pari-mutuel 
betting on the race and payment of costs incurred in 
transmitting the broadcast of the race. 
     (c) Notwithstanding section 240.13, subdivision 7, and 
section 240.15, subdivision 5, the commission may approve 
procedures governing the definition and disposition of unclaimed 
tickets which are consistent with the law and rules governing 
unclaimed tickets at the sending racetrack. 
    (d) In lieu of the amount required to be set aside under 
subdivision 5 or paid to the Minnesota breeders' fund under 
section 240.15, subdivision 1, the licensee must set aside 22 
percent of the amounts withheld from all pari-mutuel pools to be 
divided as follows:  
    (1) 50 percent to be retained by the licensee; 
    (2) 25 percent to be paid to the commission for deposit in 
the Minnesota breeders' fund for the purpose to supplement 
purses at the next racing meeting for the breed involved as 
provided under section 240.18, paragraph (2), clause (a); and 
    (3) 25 percent to be retained by the licensee and set aside 
for purse monies in the next racing meeting for the breed 
involved in addition to the amounts required to be set aside 
during the next racing meeting under subdivision 5.  
    (e) The disbursement of all remaining amounts withheld from 
pari-mutuel pools on a televised racing day, except amounts 
payable as a tax under section 240.15, subdivision 1, must be as 
agreed to between the sending racetrack and the licensee.  
However, a portion of the disbursement before division between 
the sending racetrack and the licensee may be used by the 
licensee to pay purses in excess of the amounts required under 
subdivision 5 during the licensee's next racing meeting.  If the 
licensee so uses a portion of the remaining amounts for purse 
payments the allocation must be as agreed to between the 
licensee and the horseperson's organization which represented, 
at the licensee's racetrack during the previous 12 months, the 
breed running the racing on the televised racing day. 
    Sec. 8.  Minnesota Statutes 1988, section 240.14, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [TELEVISED RACING DAY.] Notwithstanding 
subdivision 1, the commission may assign televised racing days 
at any time.  The commission may not assign a televised racing 
day to a licensee between April 1 and October 31, unless the 
licensee has obtained the approval of the horseperson's 
organization representing the majority of horsepersons racing at 
each licensed racetrack in this state during the preceding 12 
months.  
    Sec. 9.  Minnesota Statutes 1988, section 240.16, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [TELEVISED RACING DAY.] All races on which 
pari-mutuel betting is conducted on televised racing days must 
be presided over by an official of the commission.  The official 
of the commission presiding over races conducted on televised 
racing days has the powers and duties as provided by rule. 
    Sec. 10.  Minnesota Statutes 1988, section 240.29, is 
amended to read: 
    240.29 [REQUIRED RACES.] 
    Each holder of a class B or D license must declare and 
schedule, on each racing day it conducts, except for televised 
racing days, at least one race which: 
    (a) before January 1, 1988, is limited to horses which are 
Minnesota-bred, Minnesota-foaled, or Minnesota-owned, and 
    (b) on and after January 1, 1988, is limited to horses 
which are Minnesota-bred or Minnesota-foaled. 
    If there is not a sufficient number of such horses entered 
in the declared race to make up an adequate slate of entries, 
another similarly restricted race may be substituted. 
    The commission shall by rule define "Minnesota-bred," 
"Minnesota-foaled," and "Minnesota-owned." 
    Sec. 11.  [EFFECTIVE DATE.] 
    Sections 1 to 10 are effective the day following final 
enactment. 
    Presented to the governor May 12, 1989 
    Signed by the governor May 15, 1989, 5:50 p.m.