Bill Text: MI HB4611 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Gaming; horse racing; third party facilitator licenses; provide for. Amends secs. 2, 8 & 17 of 1995 PA 279 (MCL 431.302 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2018-12-31 - Vetoed By The Governor 12/28/2018 12/31/18 Addenda [HB4611 Detail]
Download: Michigan-2017-HB4611-Introduced.html
HOUSE BILL No. 4611
May 11, 2017, Introduced by Rep. Lauwers and referred to the Committee on Agriculture.
A bill to amend 1995 PA 279, entitled
"Horse racing law of 1995,"
by amending sections 2, 8, and 17 (MCL 431.302, 431.308, and
431.317), as amended by 2016 PA 271.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Affiliate" means a person who, directly or indirectly,
controls, is controlled by, or is under common control with; is in
a partnership or joint venture relationship with; or is a co-
shareholder of a corporation, co-member of a limited liability
company, or co-partner in a limited liability partnership with a
person who holds or applies for a race meeting or track license
under this act. For purposes of this subdivision, a controlling
interest is a pecuniary interest of more than 15%.
(b) "Breaks" means the cents over any multiple of 10 otherwise
payable to a patron on a wager of $1.00.
(c) "Certified horsemen's organization" means an organization
that is registered with the office of racing commissioner in a
manner and form required by the racing commissioner and that can
demonstrate all of the following:
(i) The organization's capacity to supply horses.
(ii) The organization's ability to assist a race meeting
licensee in conducting the licensee's racing program.
(iii) The organization's ability to monitor and improve
physical conditions and controls for individuals and horses
participating at licensed race meetings.
(iv) The organization's ability to protect the financial
interests of the individuals participating at licensed race
meetings.
(d) "Commissioner" or "racing commissioner" means the
executive director of the Michigan gaming control board appointed
under section 4 of the Michigan gaming control and revenue act,
1996 IL 1, MCL 432.204, who is ordered under Executive
Reorganization Order No. 2009-31, MCL 324.99919, to perform all the
functions and exercise the powers performed and exercised by the
racing commissioner before that position was abolished.
(e) "Controlled substance" means that term as defined in
section 7104 of the public health code, 1978 PA 368, MCL 333.7104.
(f) "Day of operation" means a period of 24 hours beginning at
12 noon and ending at 11:59 a.m. the following day.
(g) "Drug" means any of the following:
(i) A substance intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease in humans or other
animals.
(ii) A substance, other than food, intended to affect the
structure or condition or any function of the body of humans or
other animals.
(iii) A substance intended for use as a component of a
substance specified in subparagraph (i) or (ii).
(h) "Fair" means a county, district, or community fair or a
state fair.
(i) "Foreign substance" means a substance, or its metabolites,
that does not exist naturally in an untreated horse or, if natural
to an untreated horse, exists at an unnaturally high physiological
concentration as a result of having been administered to the horse.
(j) "Full card simulcast" means an entire simulcast racing
program of 1 or more race meeting licensees located in this state,
or an entire simulcast racing program of 1 or more races
simulcasted from 1 or more racetracks located outside of this
state.
(k) "Horsemen's simulcast purse account" means an account
maintained with a financial institution and managed by a designated
agent as described in section 19 to receive and distribute money as
provided in this act.
(l) "Member of the immediate family" means the spouse, child,
parent, or sibling.
(m) "Net commission" means the amount determined under section
17(3), after first deducting from the licensee's statutory
commission the applicable state tax on wagering due and payable
under section 22 and the actual verified fee paid by the licensee
to the sending host track to receive the simulcast signal.
(n) "Office of the racing commissioner" means the horse racing
section of the horse racing, audit, and gaming technology division
of the Michigan gaming control board created by section 4 of the
Michigan gaming control and revenue act, 1996 IL 1, MCL 432.204,
which operates under the direction of the executive director of the
Michigan gaming control board, to which Executive Reorganization
Order No. 2009-31, MCL 324.99919, transferred all of the authority,
powers, duties, functions, records, personnel, property, unexpended
balances of appropriations, allocations, or other funds of the
office of racing commissioner that previously existed under this
act and that was abolished by that executive reorganization order.
(o) "Pari-mutuel" and "pari-mutuel wagering" mean the form or
system of gambling in which the winner or winners divide the total
amount of money bet, after deducting the net commission.
(p) "Person" means an individual, firm, partnership,
corporation, association, or other legal entity.
(q) "Purse pool" means an amount of money allocated or
apportioned to pay prizes for horse races and from which payments
may be made to certified horsemen's organizations as provided in
this act.
(r) "Race meeting" means activities related to live horse
racing with the conducting and overseeing of pari-mutuel wagering
on live and simulcast wagering by a race meeting licensee.
(s) (r)
"Standardbred" means a
horse registered with the
United States Trotting Association that races on designated gaits
of pace or trot.
(t) (s)
"Thoroughbred" means a
thoroughbred, quarter, paint,
Arabian, or other breed horse. Thoroughbred does not include a
standardbred.
(u) (t)
"Veterinarian" means an
individual licensed to
practice veterinary medicine under part 188 of the public health
code, 1978 PA 368, MCL 333.18801 to 333.18838, or under a state or
federal law applicable to the individual.
Sec. 8. (1) The racing commissioner may issue the following
general classes of licenses:
(a) Occupational licenses issued to individuals participating
in, involved in, or otherwise having to do with horse racing, pari-
mutuel wagering, or simulcasting at a licensed race meeting in this
state.
(b) Race meeting licenses issued annually for the succeeding
year to persons to conduct live horse racing, simulcasting, and
pari-mutuel wagering on the results of live and simulcast horse
races at a licensed race meeting in this state under this act.
(c) Track licenses issued to persons to maintain or operate a
racetrack at which 1 or more race meeting licensees may conduct
licensed race meetings in this state.
(d) Third party facilitator licenses for persons contracted by
race meeting licensees to facilitate wagering on live and simulcast
racing. The racing commissioner shall set the terms and conditions
and the appropriate fee for the license. A license issued under
this subdivision ends once the contract with the race meeting
licensee to facilitate wagering on live and simulcast racing
activities terminates.
(2) The racing commissioner shall not issue a race meeting
license to a person if the person is licensed to conduct a licensed
race meeting at another licensed racetrack in this state and the
person has a controlling interest in or co-ownership of the other
licensed racetrack.
Sec. 17. (1) The pari-mutuel system of wagering upon the
results of horse races as permitted by this act shall not be held
or construed to be unlawful. All forms of pari-mutuel wagering
conducted at a licensed race meeting shall be preapproved by the
racing commissioner under rule or written order of the
commissioner.
(2)
A holder of a race meeting license may provide a place in
the
race meeting grounds or enclosure at
which he or she may
conduct and supervise pari-mutuel wagering on the results of horse
races as permitted by this act. If pari-mutuel wagering is used at
a race meeting, a totalisator or other device that is equal in
accuracy and clearness to a totalisator and approved by the racing
commissioner must be used. The odds display of the totalisator or
other device must be placed in full view of the patrons.
(3) Subject to section 18(3), each holder of a race meeting
license shall retain as his or her commission on all forms of
straight wagering 17% of all money wagered involving straight
wagers on the results of live and simulcast horse races conducted
at the licensee's race meetings. Subject to section 18(3), each
holder of a race meeting license shall retain as his or her
commission on all forms of multiple wagering, without the written
permission of the racing commissioner not more than 28% and with
the written permission of the racing commissioner not more than 35%
of all money wagered involving any form of multiple wager on the
results of live and simulcast horse races conducted at the
licensee's race meeting. Except as otherwise provided by contract,
50% of all commissions from wagering on the results of live racing
at the racetrack where the live racing was conducted shall be paid
to the horsemen's purse pool at the racetrack where the live racing
was conducted. As used in this subsection:
(a) "Straight wagering" means a wager made on the finishing
position of a single specified horse in a single specified race.
(b) "Multiple wagering" means a wager made on the finishing
positions of more than 1 horse in a specified race or the finishing
positions of 1 or more horses in more than 1 specified race.
(4) All breaks shall be retained by the race meeting licensee
and paid directly to the city or township in which the racetrack is
located as a fee for services provided under section 21.
(5) Payoff prices of tickets of a higher denomination must be
calculated as even multiples of the payoff price for a $1.00 wager.
Each holder of a race meeting license shall distribute to the
persons holding winning tickets, as a minimum, a sum not less than
$1.10 calculated on the basis of each $1.00 deposited in a pool,
except that each race meeting licensee may distribute a sum of not
less than $1.05 to persons holding winning tickets for each $1.00
deposited in a minus pool. As used in this subsection, "minus pool"
means any win, place, or show pool in which the payout would exceed
the total value of the pool.
(6) A holder of a race meeting license shall not knowingly
permit a person less than 18 years of age to be a patron of the
pari-mutuel wagering conducted or supervised by the holder.
(7) Any act or transaction relative to pari-mutuel wagering on
the results of live or simulcast horse races may be conducted by a
race meeting licensee under this act for the race meeting licensee
to comply with the auditing requirements of section 23. A person
shall not provide messenger service for the placing of a bet for
another person who is not a patron. However, this subsection does
not prevent simulcasting or intertrack or interstate common pool
wagering inside or outside this state as permitted by this act or
the rules promulgated under this act.
(8)
Any form of pari-mutuel wagering on the results of live or
simulcast
horse races must only occur or be permitted to occur at a
licensed
race meeting. A person shall not participate or be a party
to
any act or transaction relative to placing a wager or carrying a
wager
for placement outside of a race meeting ground. A person
shall
not provide messenger service for the placing of a bet for
another
person who is not a patron. However, this subsection does
not
prevent simulcasting or intrastate or interstate common pool
wagering
inside or outside this state as permitted by this act or
the
rules promulgated under this act.
(8) Any form of pari-mutuel wagering on the results of live or
simulcast horse races must only occur or be permitted to occur at a
licensed race meeting, as determined by the racing commissioner.
(9) A person that does not hold a race meeting license or a third
party facilitator license that solicits or accepts wagers on the
results of live or simulcast horse races from individuals in this
state is guilty of a felony punishable by imprisonment for not more
than 5 years or a fine of not more than $10,000.00, or both. Each
act of solicitation or wager that is accepted in violation of this
section is a separate offense.
(10) Only a race meeting licensee may process, accept, or
solicit wagers on the results of live or simulcast horse races. For
purposes of this subsection only, race meeting licensees may
utilize a third party facilitator licensee to assist with wagering
at a licensed racetrack.
(11) (10)
As used in this section, "act
or transaction
relative to pari-mutuel wagering on the results of live or
simulcast horse races" means those steps taken by a race meeting
licensee to accept a wager and process it within the ordinary
course of its business and in accordance with this act.
