Bill Text: MI SB0955 | 2009-2010 | 95th Legislature | Engrossed


Bill Title: Gaming; horse racing; racing commissioner; abolish, and transfer duties to director of the department of agriculture. Amends title & secs. 2, 3, 4, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 19a, 20, 21, 22, 23, 25, 30, 31, 33 & 34 of 1955 PA 279 (MCL 431.302 et seq.) & repeals sec. 5 of 1995 PA 279 (MCL 431.305). TIE BAR WITH: SB 0956'09, SB 0957'09, SB 0958'09

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2010-12-01 - Notice Given To Discharge Committee [SB0955 Detail]

Download: Michigan-2009-SB0955-Engrossed.html

SB-0955, As Passed Senate, November 5, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 955

 

 

October 28, 2009, Introduced by Senator BROWN and referred to the Committee on Agriculture and Bioeconomy.

 

 

 

     A bill to amend 1995 PA 279, entitled

 

"Horse racing law of 1995,"

 

by amending the title and sections 2, 3, 4, 6, 7, 8, 9, 10, 12, 13,

 

14, 15, 16, 17, 18, 19, 19a, 20, 21, 22, 23, 25, 30, 31, 33, and 34

 

(MCL 431.302, 431.303, 431.304, 431.306, 431.307, 431.308, 431.309,

 

431.310, 431.312, 431.313, 431.314, 431.315, 431.316, 431.317,

 

431.318, 431.319, 431.319a, 431.320, 431.321, 431.322, 431.323,

 

431.325, 431.330, 431.331, 431.333, and 431.334), sections 2 and 4

 

as amended by 2006 PA 445, sections 7, 9, 10, and 12 as amended by

 

2000 PA 164, sections 14, 17, and 18 as amended and section 19a as

 

added by 1998 PA 408, section 16 as amended by 2005 PA 7, and

 

section 20 as amended by 2006 PA 185; and to repeal acts and parts

 

of acts.

 


THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to license and regulate the conducting of horse race

 

meetings in this state, with pari-mutuel wagering on the results of

 

horse races, and persons involved in horse racing and pari-mutuel

 

gaming activities; at such race meetings; to create the office of

 

racing commissioner; to prescribe the powers and duties of the

 

racing commissioner; to prescribe certain to provide for the powers

 

and duties of the department of agriculture and the director of the

 

department of agriculture certain state and local governmental

 

officers and agencies; to provide for the promulgation of rules; to

 

provide for the imposition of impose taxes and fees; and to provide

 

for the disposition of revenues; to impose certain taxes; to create

 

funds; to legalize and permit the pari-mutuel method of wagering on

 

the results of live and simulcast races at licensed race meetings

 

in this state; to appropriate the funds money derived from pari-

 

mutuel wagering on the results of horse races at licensed race

 

meetings in this state; to prescribe remedies and penalties; and to

 

repeal acts and parts of acts.

 

     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

 

registered with the office of racing commissioner department in a

 

manner and form required by the racing commissioner director, 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) "City area" means a city with a population of 750,000 or

 

more and every county located wholly or partly within 30 miles of

 

the city limits of the city.

 

     (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) "Department" means the department of agriculture.

 

     (h) "Director" means the director of the department or his or

 

her authorized representative.

 

     (i) (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, 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).

 

     (j) (h) "Fair" means any county, district, or community fair

 

and any state fair.

 

     (k) (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.

 

     (l) (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.

 

     (m) "Interstate simulcast" means, depending on the context,

 

either to simulcast a horse race held outside this state to a race

 

meeting in this state or the program so simulcast.

 

     (n) "Intertrack simulcast" means, depending on the context,

 

either to simulcast a horse race held in this state to a race

 

meeting in this state or the program so simulcast.

 

     (o) (k) "Member of the immediate family" means the spouse,

 


child, parent, or sibling.

 

     (p) (l) "Person" means an individual, firm, partnership,

 

corporation, association, or other legal entity.

 

     (q) (m) "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 pursuant to this

 

act.

 

     (r) "Simulcast" means, depending on the context, either to

 

transmit or receive live video and audio signals conveying a horse

 

race held either inside or outside this state to a licensed race

 

meeting in this state or the program so transmitted or received.

 

     (s) (n) "Veterinarian" means a person licensed to practice

 

veterinary medicine under part 188 of the public health code, 1978

 

PA 368, MCL 333.16101 333.18801 to 333.18838, or under a state or

 

federal law applicable to that person.

 

     Sec. 3. The office of racing commissioner is created within

 

the department of agriculture. The racing commissioner director has

 

the powers and duties prescribed in this act and shall administer

 

the provisions of this act relating to licensing, enforcement, and

 

regulation under this act. The racing commissioner director also

 

has those additional any other powers necessary and proper to

 

implement and enforce this act and to regulate and maintain

 

jurisdiction over the conduct of each licensed race meeting within

 

this state where horse races racing or pari-mutuel wagering on the

 

results of horse races racing is permitted for a stake, purse,

 

prize, share, or reward.

 

     Sec. 4. (1) The racing commissioner shall be appointed for a

 


term of 4 years by the governor by and with the advice and consent

 

of the senate.

 

     (1) (2) The racing commissioner shall be a resident of this

 

state and during his or her term of office director and any

 

individual to whom the director designates duties under this act

 

shall not be a stockholder of, or be directly or indirectly

 

connected with the conduct or management of, or have any other

 

legal or beneficial interest in, any of the following:

 

     (a) A racetrack, race meeting, or a racing interest,

 

including, but not limited to, the ownership, breeding, training,

 

or racing of horses or any vendor, supplier, or distributor of

 

goods or services to a racetrack, race meeting, or racing

 

participant licensed under this act.

 

     (b) Any gaming activity conducted at any licensed race meeting

 

in this state.

 

     (2) (3) The racing commissioner, an employee of the office of

 

the racing commissioner director and any individual to whom the

 

director designates duties under this act, or a member of the

 

immediate family of the racing commissioner or of an employee of

 

the office of the racing commissioner director or any individual to

 

whom the director designates duties under this act, shall not

 

participate in wagering permitted under this act or conducted by a

 

person or an affiliate of a person licensed or applying for a

 

license under this act. This subsection does not apply to wagering

 

that is part of surveillance, security, or other official duties

 

for the office of the racing commissioner related to the

 

administration of this act.

 


     Sec. 6. (1) The racing commissioner shall receive an annual

 

salary as appropriated by the legislature. The racing commissioner

 

shall appoint 2 deputy commissioners and 3 state stewards of racing

 

as special deputies for each licensed race meeting in the state.

 

For the purpose of carrying out this act, the racing commissioner

 

The director may delegate the performance of his or her duties to

 

the deputy commissioners directors or special deputies, known as

 

state stewards. A deputy commissioner and director or state steward

 

shall take the constitutional oath of office and may exercise any

 

power granted by the rules of the racing commissioner promulgated

 

pursuant to under this act. A decision of a deputy commissioner

 

director or state steward may be appealed to the racing

 

commissioner director pursuant to the contested case provisions of

 

the administrative procedures act of 1969, Act No. 306 of the

 

Public Acts of 1969 PA 306, being sections MCL 24.201 to 24.328. of

 

the Michigan Compiled Laws.

 

     (2) The racing commissioner shall employ other personnel

 

director may delegate duties to other individuals as necessary for

 

the administration of this act within the limits of the

 

appropriations made by the legislature and subject to civil service

 

rules. The racing commissioner is entitled to the reasonable and

 

necessary expenses incurred in performing his or her duties

 

prescribed in this act.

 

     (3) (2) The racing commissioner director shall keep a record

 

of all proceedings and preserve all books, maps, documents, and

 

papers belonging to the racing commissioner or entrusted to the

 

care of the office of racing commissioner director or the

 


department related to the administration of this act.

 

     (3) The racing commissioner shall make an annual report to the

 

governor before April 15 for the immediately preceding calendar

 

year, which report shall include a statement of the racing

 

commissioner's receipts and disbursements and additional

 

information and recommendations that the racing commissioner

 

considers necessary or the governor requires.

 

     Sec. 7. (1) The racing commissioner director may promulgate

 

rules pursuant to the administrative procedures act of 1969, 1969

 

PA 306, MCL 24.201 to 24.328, for conducting horse racing, pari-

 

mutuel wagering on horse racing results, and simulcasting. The

 

rules promulgated under this section shall be designed to

 

accomplish all of the following:

 

     (a) The governing, restricting, approving, or regulating of

 

horse racing, pari-mutuel wagering on the results of horse races,

 

and simulcasting conducted at licensed race meetings within this

 

state.

 

     (b) The promoting of the safety, security, growth, and

 

integrity of all horse racing, pari-mutuel wagering on the results

 

of horse races, and simulcasting conducted at licensed race

 

meetings within this state.

 

     (c) The licensing and regulating of each person participating

 

in, or having to do with, pari-mutuel horse racing and wagering,

 

and simulcasting at licensed race meetings within this state.

 

     (2) Each race meeting licensee shall provide security at all

 

times so as to reasonably ensure the safety of all persons and

 

horses on the grounds, and to protect and preserve the integrity of

 


horse racing, pari-mutuel wagering, and simulcasting at licensed

 

race meetings. If the racing commissioner director determines that

 

additional security is necessary to ensure the safety and integrity

 

of racing, the racing commissioner director shall provide

 

supplemental security at each race meeting in areas where

 

occupational licenses are required for admittance.

 

     (3) The racing commissioner director may issue sanctions

 

including, but not limited to, revocation or suspension of a

 

license, exclusion from racetrack grounds, or a fine of not more

 

than $25,000.00 for each violation of this act or a rule

 

promulgated under this act committed by a licensee or other person

 

under this act. A sanction issued under this section may be

 

appealed to the racing commissioner director. The appeal shall be

 

heard pursuant to the contested case provisions of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (4) All proposed extensions, additions, modifications, or

 

improvements to the racecourse, roadways, parking lots, buildings,

 

stables, lighting and electrical service, plumbing, public

 

utilities, drainage, totalisator system and equipment, hardware and

 

software for all approved methods of conducting pari-mutuel

 

wagering, and security on the grounds of a licensed racetrack owned

 

or leased by a person licensed under this act are subject to the

 

approval of the racing commissioner director.

 

     (5) The racing commissioner director may compel the production

 

of books, records, memoranda, electronically retrievable data, or

 

documents that relate to horse racing, simulcasting, and pari-

 


mutuel wagering conducted at a licensed race meeting.

 

     (6) The racing commissioner at any time director may at any

 

time require for cause the removal of any employee or official

 

involved in or having to do with horse racing, simulcasting, or

 

pari-mutuel wagering conducted at a licensed race meeting.

 

     (7) The racing commissioner director may visit, investigate,

 

and place auditors and other persons as the racing commissioner

 

director considers necessary in the offices, racetracks, or places

 

of business of a licensee under this act to ensure compliance with

 

this act and the rules promulgated under this act.

 

     (8) The racing commissioner director may summon witnesses and

 

administer oaths or affirmations to exercise and discharge his or

 

her powers and duties under this act. A person failing to appear

 

before the racing commissioner director at the time and place

 

specified in a summons from the racing commissioner director or

 

refusing to testify, without just cause, in answer to a summons

 

from the racing commissioner director is guilty of a misdemeanor

 

punishable by a fine of not more than $1,000.00 , or imprisonment

 

for not more than 6 months, or both, and may also be sanctioned by

 

the racing commissioner director. A person testifying falsely to

 

the racing commissioner director or his or her authorized

 

representative while under oath is guilty of a felony punishable by

 

a fine of not more than $10,000.00 or imprisonment for not more

 

than 4 years, or both, and may also be sanctioned by the racing

 

commissioner director.

 

     Sec. 8. (1) The racing commissioner director 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 a person 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 pursuant to and in

 

accordance with the provisions of this act.

 

     (c) Track licenses issued to a person to maintain or operate a

 

racetrack at which 1 or more race meeting licensees may conduct

 

licensed race meetings in this state.

 

     (2) The racing commissioner director 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 within a city

 

area and the person has a controlling interest in or co-ownership

 

of the other licensed racetrack within the city area.

 

     Sec. 9. (1) The racing commissioner director shall issue,

 

without further application, a track license to any person holding

 

a valid track license under former 1980 PA 327 , and maintaining or

 

operating a licensed horse racetrack as of the effective date of

 

this act January 6, 1996 at which wagering by pari-mutuel methods

 

on the results of horse racing has been conducted by a race meeting

 

licensee.

 

     (2) A track license, once issued, is valid only as long as the

 

annual license fee is paid, or until the track license is

 

voluntarily surrendered or is revoked as provided in this act or

 


the rules promulgated under this act.

 

     (3) An applicant for a track license shall submit an

 

application that is in writing, that demonstrates to the racing

 

commissioner director that the applicant has satisfactory financial

 

responsibility, that shows the location of the racetrack or of the

 

proposed racetrack, and that is accompanied by substantially

 

detailed plans and specifications for the racecourse, paddock,

 

grandstand, stable barns, racetrack buildings, fences, electrical

 

service and lighting, plumbing, parking, and other facilities and

 

improvements. The application shall include the name and address of

 

the applicant, and, if the applicant is a corporation, the place of

 

its incorporation, and any other information required by the rules

 

promulgated under this act. by the racing commissioner. Upon the

 

applicant's filing of the an application and the payment of the

 

license fee, the racing commissioner director shall investigate the

 

applicant and the racetrack or proposed racetrack as the racing

 

commissioner director considers necessary. If the racing

 

commissioner director determines that the applicant and the

 

racetrack satisfy the requirements of this act and the rules

 

promulgated under this act, the racing commissioner director shall

 

grant a license for the racetrack, designating in the license the

 

county or other municipality in which the licensed racetrack shall

 

be or is located. If the racing commissioner director determines

 

that the applicant or the racetrack, or both, do not comply with

 

this act and the rules promulgated under this act, the racing

 

commissioner director shall deny the license. The action of the

 

racing commissioner director in denying a track license may be

 


reviewed by the circuit court pursuant to section 631 of the

 

revised judicature act of 1961, 1961 PA 236, MCL 600.631.

 

     (4) A track license may be transferred to a new owner of a

 

racetrack with the consent of the racing commissioner director.

 

     (5) After a track license is issued under this section, the

 

racing commissioner director may impose a fine or suspend or revoke

 

the license if the holder of the license, after reasonable notice

 

from the racing commissioner director, does not make necessary

 

improvements, additions, or corrections to the licensed premises,

 

fixtures, or equipment as determined and required by the racing

 

commissioner director; if the holder of the license violates or is

 

no longer in compliance with the requirements of this act or the

 

rules promulgated under this act; or if the licensed premises are

 

not utilized to conduct a licensed race meeting for 2 consecutive

 

years. In addition to the suspension or revocation of the license,

 

the racing commissioner director may impose a fine or bring an

 

action in circuit court seeking an order of the court requiring the

 

licensee to make reasonable and necessary racetrack improvements or

 

additions as determined by the commissioner director if the

 

licensee fails to make improvements or corrections that comply with

 

the applicable construction code or local ordinances. The action of

 

the racing commissioner in In suspending or revoking a track

 

license, the director shall comply with the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. , and

 

shall be The action of the director under this subsection is

 

subject to appeal.

 

     (6) In a city area, The director shall not issue more than 3

 


licenses for racetracks shall be licensed in a city area, except

 

that in a city with a population of 900,000 or more the racing

 

commissioner director may issue 1 additional license.

 

     (7) A person shall not be issued more than 1 track license.

 

Controlling ownership and interlocking directorates among the

 

holders of track licenses are prohibited.

 

     (8) A track license shall not be issued under this section if

 

the new license would result in harmful competition among existing

 

racetracks.

 

     Sec. 10. (1) A person desiring that desires to conduct a

 

thoroughbred, standardbred, quarter horse, Appaloosa, American

 

paint horse, or Arabian race meeting, or a combination of these

 

race meetings, with pari-mutuel wagering on the results of live and

 

simulcast horse races pursuant to this act shall apply each year to

 

the racing commissioner director for a race meeting license in the

 

manner and form required by the racing commissioner director. The

 

application shall be filed with the racing commissioner director

 

before September 1 of the preceding year. except that applications

 

for 1999 racing dates may be filed at any time. The application,

 

after being filed, shall be made available for public inspection

 

during regular business hours. The application shall be in writing

 

and shall give the name and address of the applicant, and, if the

 

applicant is a corporation or partnership, shall state the place of

 

the applicant's incorporation or partnership and the names and

 

addresses of all corporate directors, officers, shareholders, and

 

partners. The application shall also do all of the following:

 

     (a) Specify the licensed racetrack at which the proposed race

 


meeting will be held.

 

     (b) Specify whether the applicant requests or will request to

 

conduct simulcasting at the proposed race meeting and, if so,

 

demonstrate the applicant's ability to conduct simulcasting in

 

accordance with this act.

 

     (c) Specify the horse breed for which the applicant desires to

 

conduct live racing at the proposed race meeting, and the days on

 

which the applicant proposes to conduct live horse racing at the

 

race meeting.

 

     (d) Specify the time period during which the applicant

 

requests to be licensed during the calendar year immediately

 

following the date of application.

 

     (e) Demonstrate to the racing commissioner director that the

 

applicant and all persons associated with the applicant who hold

 

any beneficial or ownership interest in the business activities of

 

the applicant or who have power or ability to influence or control

 

the business decisions or actions of the applicant satisfy all of

 

the following requirements:

 

     (i) Are persons of good character, honesty, and integrity.

 

     (ii) Possess sufficient financial resources and business

 

ability and experience to conduct the proposed race meeting.

 

     (iii) Do not pose a threat to the public interest of the this

 

state or to the security and integrity of horse racing or pari-

 

mutuel wagering on the results of horse races in the this state.

 

     (f) Provide any other information required by the rules

 

promulgated under this act or by the racing commissioner director.

 

     (2) Upon the filing of the application for a race meeting

 


license, the racing commissioner director shall conduct an

 

investigation of the applicant and the application to determine

 

whether the applicant, application, and proposed race meeting

 

comply with the licensing requirements under this act and the rules

 

promulgated under this act. Unless a different agreement is reached

 

by all the race meeting licensees in a city area, a race meeting

 

licensee shall not conduct a live thoroughbred horse race after

 

6:45 p.m. on any day except Sunday. Unless a different agreement is

 

reached by all the race meeting licensees in a city area, a race

 

meeting licensee shall not conduct a live standardbred horse race

 

before 6:45 p.m. on any day except Sunday. Notwithstanding the 6:45

 

p.m. time restrictions, the commissioner director, upon request by

 

a race meeting licensee, may grant to the race meeting licensee a

 

race meeting license authorizing any of the following:

 

     (a) The licensee to conduct live horse racing programs that

 

would otherwise be prevented by the 6:45 p.m. time restriction, if

 

no other race meeting in a city area is licensed or authorized to

 

conduct live horse racing at the same time the licensee proposes to

 

conduct the requested live horse racing programs.

 

     (b) Waiver of the 6:45 p.m. time restriction pursuant to the

 

written agreement of all race meeting licensees in the city area.

 

     (c) The licensee to conduct live horse racing programs after

 

6:45 p.m., if the licensee is not in a city area and is 75 miles or

 

more from the nearest race meeting licensee authorized to conduct

 

live horse racing.

 

     Sec. 12. (1) Each applicant for a thoroughbred, quarter horse,

 

Appaloosa, American paint horse, or Arabian license in a county

 


located outside of a city area shall apply to conduct at least 45

 

days of live thoroughbred, quarter horse, Appaloosa, American paint

 

horse, or Arabian horse racing during its race meeting. Except

 

during the opening and closing week of a race meeting, the

 

applicant shall apply to conduct live racing at least 3 days per

 

week, including Saturdays and Sundays, with not less than at least

 

9 live horse races programmed, and shall conduct live racing

 

programs on such the days allocated by the racing commissioner

 

director.

 

     (2) Each applicant for a thoroughbred, quarter horse,

 

Appaloosa, American paint horse, or Arabian race meeting license in

 

a city area shall apply to conduct at least 160 days of live

 

thoroughbred, quarter horse, Appaloosa, American paint horse, or

 

Arabian horse racing during its proposed race meeting. Except

 

during the opening and closing week of a race meeting, the

 

applicant shall apply to conduct live racing at least 5 days per

 

week, including Saturdays and Sundays, with not less than at least

 

9 live horse races programmed, and shall conduct live racing

 

programs on such the days allocated by the racing commissioner

 

director.

 

     (3) Each applicant for a standardbred race meeting license in

 

a county having with a population of less than 250,000 and that is

 

not part of a city area shall apply to conduct at least 75 days of

 

live standardbred harness horse racing during its proposed race

 

meeting. Except during the opening and closing week of a race

 

meeting, the applicant shall apply to conduct live horse racing at

 

least 4 days per week, including Saturdays, with not less than at

 


least 9 live horse races programmed, and shall conduct live racing

 

programs on such the days awarded.

 

     (4) Each applicant for a standardbred race meeting license in

 

a county having with a population greater than 250,000 but less

 

than 750,000 and that is not part of a city area shall apply to

 

conduct at least 100 days of live standardbred harness horse racing

 

during its proposed race meeting. Except during the opening and

 

closing week of a race meeting, the applicant shall apply to

 

conduct live racing at least 4 days per week, including Saturdays,

 

with not less than at least 9 live horse races programmed, and

 

shall conduct live racing programs on such the days awarded.

 

     (5) Each applicant for a standardbred race meeting license in

 

a city area shall apply to conduct during its race meeting no less

 

than at least the following number of live racing days:

 

     (a) The race meeting applicant with the highest pari-mutuel

 

handle in the previous calendar year shall apply for no less than

 

at least 140 days of live racing and the applicant shall apply to

 

conduct live racing at least 5 days per week, including Saturdays,

 

with not less than at least 9 live horse races programmed and shall

 

conduct live racing programs on the days awarded.

 

     (b) All other applicants shall apply for not less than an

 

aggregate total of at least 120 days of live racing and the

 

applicants shall apply to conduct live racing at least 5 days per

 

week, including Saturdays, with not less than at least 9 live horse

 

races programmed and shall conduct live racing programs on the days

 

awarded.

 

     (6) If a race meeting licensee is unable to program and

 


conduct 9 live horse races on any racing date that the commissioner

 

director allocates to the licensee because there are less fewer

 

than 5 entries in any race, the licensee shall not conduct any

 

simulcasting on that day without the written consent of the

 

certified horsemen's organization with which it has a contract.

 

     (7) If a race meeting licensee is unable to conduct racing on

 

any live racing dates allocated to the licensee by the racing

 

commissioner director or less fewer than 9 live horse races on any

 

allocated live racing dates because of a labor dispute, fire,

 

adverse weather conditions, or other causes beyond the race meeting

 

licensee's control, then the race meeting licensee is considered to

 

have conducted those races or race days for purposes of this act

 

and is not precluded from conducting any simulcasts because of the

 

licensee's inability to conduct those live races or race dates.

 

     (8) Intertrack simulcast races that a race meeting licensee

 

contracts to receive from other racetracks that are canceled for

 

any of the reasons described in subsection (7) shall be considered

 

to be offered to the public for purposes of this act.

 

     (9) If an entire race meeting or the balance of a race meeting

 

and racing dates allocated to a licensee cannot be raced due to

 

because of an act of God or significant physical damage to the

 

licensed racetrack at which the race meeting was licensed to be

 

conducted caused by fire or some other catastrophe, the racing

 

commissioner director may transfer those dates to another race

 

meeting licensee upon application of the substitute licensee if the

 

substitute licensee satisfies the requirements for licensure under

 

this act and demonstrates that it has or will have a legal or

 


contractual right to the use of a different licensed racetrack

 

facility on the racing dates, in question, and if all race meeting

 

licensees that will be conducting live racing on such those dates

 

within 50 miles of the substitute racetrack consent to the

 

transfer.

 

     Sec. 13. (1) A race meeting licensee shall have a current

 

written contract with a certified horsemen's organization before it

 

may not conduct live or simulcast horse races with pari-mutuel

 

wagering on the results of the races pursuant to its license unless

 

it has a current written contract with a certified horsemen's

 

organization.

 

     (2) The racing commissioner shall register and certify all

 

certified horsemen's organizations that had contracts with race

 

meeting licensees in this state in 1995 or 1994 for the conduct of

 

pari-mutuel racing at race meetings in this state during 1994 or

 

1995, and their successors or assigns as certified horsemen's

 

organizations for purposes of this act. The racing commissioner

 

shall also accept any current contracts that these certified

 

horsemen's organizations have with race meeting licensees as

 

complying with the requirements of subsection (1) for the term of

 

the contract.

 

     Sec. 14. (1) Except as provided in subsection (8), before By

 

November 1 of the year preceding before the year for which

 

applications are an application for a race meeting license is made,

 

the racing commissioner director shall grant or deny each the

 

application, for a race meeting license, allocate or deny the dates

 

, for which the application has been is made , on which to conduct

 


pari-mutuel wagering on live races, may be conducted at each

 

licensed race meeting in this state, and shall also determine

 

whether the applicant may simulcast under section 18 during the

 

calendar year for which the license is issued. The racing

 

commissioner director may grant a race meeting license for any time

 

period up to 1 year during which the licensee may conduct live and

 

simulcast horse races with pari-mutuel wagering on the results of

 

such the races.

 

     (2) Subject to section 12(7), all simulcasting authorized by

 

the racing commissioner director shall be conditioned upon the

 

holder of the license conducting at least 9 live horse races on

 

each live racing date allocated in the holder's race meeting

 

license, unless this requirement is waived in writing by both the

 

racing commissioner director and the certified horsemen's

 

organization with which the licensee has contracted.

 

     (3) The racing commissioner director shall not issue a race

 

meeting license to an organization organized for a charitable

 

purpose or organized for the purpose of distributing its profits or

 

income to charitable organizations.

 

     (4) Except as provided in section 12(7), (8), and (9), if

 

after the issuance of a race meeting license , the racing

 

commissioner director determines upon further investigation that

 

the holder of a race meeting the license has not met, or will be

 

unable to meet, the requirements of the license, the racing

 

commissioner director may impose a fine or suspend or revoke the

 

race meeting license, or both, for all or part of the remainder of

 

the time period for which the license was granted. Before making

 


the required determination to impose a fine or suspend or revoke a

 

race meeting license under this subsection, the racing commissioner

 

director shall consider whether the race meeting licensee's

 

inability or failure to meet the requirements of its license is due

 

to a cause beyond the control of the race meeting licensee.

 

     (5) Any action taken by the racing commissioner director under

 

subsection (4) shall become is effective 10 days after the holder

 

of the race meeting license has received written notice unless the

 

commissioner director finds that the public health, safety, or

 

welfare requires emergency action and immediate effect of the

 

commissioner's director's order.

 

     (6) A denial of a race meeting license under subsection (3)

 

may be appealed to the circuit court for judicial review pursuant

 

to section 631 of the revised judicature act of 1961, 1961 PA 236,

 

MCL 600.631. A suspension or revocation of a race meeting license

 

may be appealed pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328.

 

     (7) Each applicant issued a race meeting license shall

 

maintain an interest bearing account used exclusively for the

 

deposit of all funds due money required to be paid to horsemen's

 

purse pools under this act. All funds due to A race meeting

 

licensee shall deposit all money required to be deposited into this

 

account shall be deposited within a reasonable time after receipt

 

by the race meeting licensee. The name of the depository and the

 

identification number of the account shall be designated in each

 

race meeting license application and all interest earned by the

 

account shall be credited to the purse pool and deposited in the

 


account.

 

     (8) The November 1 deadline provided in subsection (1) does

 

not apply to 1999 thoroughbred race meeting dates. The racing

 

commissioner may issue 1999 thoroughbred race meeting dates at any

 

time.

 

     Sec. 15. (1) Before March 31 of each year, each holder of a

 

race meeting or track license shall file with the racing

 

commissioner director a certified statement of receipts from all

 

sources during the previous calendar year and of all expenses and

 

disbursements, itemized in a manner and on a standardized form as

 

directed by the state treasurer, showing the net revenue from all

 

sources derived by the holder of the license. These certified

 

financial statements shall be considered public records and made

 

available for public inspection during regular business hours. The

 

certified financial statements submitted shall be prepared by a

 

certified public accountant in accordance with generally accepted

 

accounting and auditing standards as promulgated by the American

 

institute of certified public accountants. The working papers and

 

other records pertaining to preparation of the financial statements

 

may be reviewed by the state treasurer and or the racing

 

commissioner director and shall be promptly provided to either of

 

them by the holders of the race meeting license upon their request.

 

     (2) On the first day other than Sunday after each day of

 

operation, each holder of a race meeting license shall remit the

 

money due required to be paid to the this state or other entities

 

under this act at the close of the day of operation with a detailed

 

statement of that money as required by this act and the rules

 


promulgated under this act.

 

     (3) A person shall not hold or conduct, or assist, aid, or

 

abet in holding or conducting a race meeting within the this state

 

where at which live or simulcast horse races with pari-mutuel

 

wagering on the results of horse racing for a stake, purse, prize,

 

share, or reward is are conducted, unless the person and the

 

racetrack at which the gaming activity is conducted are licensed by

 

the racing commissioner director.

 

     Sec. 16. (1) Each person participating in or having to do with

 

pari-mutuel horse racing or pari-mutuel wagering on the results of

 

horse races at a licensed race meeting, including, but not limited

 

to, all racing officials, veterinarians, pari-mutuel clerks or

 

tellers, totalisator company employees, security guards, timers,

 

horse owners, jockeys, drivers, apprentices, exercise riders,

 

authorized agents, trainers, grooms, valets, owners of stables

 

operating under an assumed name, jockey agents, pony riders, hot

 

walkers, blacksmiths, starting gate employees, owners and operators

 

of off-track training centers, farms or stables where racehorses

 

are kept, and vendors operating within the barn area of a licensed

 

racetrack or off-track training center, farm, or stable where

 

racehorses are kept may be licensed by the racing commissioner

 

director pursuant to rules promulgated by the racing commissioner

 

under this act. The racing commissioner director shall not issue an

 

occupational license to a person who, within the 6 years

 

immediately preceding the date of the person's application for the

 

occupational license, was convicted of a felony involving theft,

 

dishonesty, misrepresentation, fraud, corruption, drug possession,

 


delivery, or use, or other criminal misconduct that is related to

 

the person's ability to and the likelihood that the person will

 

perform the functions and duties of the racing related occupation

 

for which the person seeks to be licensed and participate in pari-

 

mutuel horse racing in that licensed occupation in a fair, honest,

 

open, and lawful manner. The racing commissioner director shall not

 

issue a pari-mutuel occupational license to a person who, within 2

 

years immediately preceding the date of the person's application

 

for the occupational license, was convicted of a misdemeanor

 

involving theft, dishonesty, misrepresentation, fraud, corruption,

 

drug possession, delivery, or use, or other criminal misconduct

 

that is related to the person's ability to and the likelihood that

 

the person will perform the functions and duties of the racing

 

related occupation for which the person seeks to be licensed and

 

participate in pari-mutuel horse racing in that licensed occupation

 

in a fair, honest, open, and lawful manner.

 

     (2) A veterinarian is not required to be licensed under this

 

act to provide necessary and appropriate emergency veterinary care

 

or treatment to any horse that is intended to be entered, is

 

entered, or participates in a race with wagering by pari-mutuel

 

methods or a nonbetting race or workout conducted at a licensed

 

race meeting in this state. For purposes of this section,

 

"emergency veterinary care or treatment" means care or treatment

 

necessary and appropriate to save the life of a horse or prevent

 

permanent physical injury or damage to a horse in a situation

 

requiring immediate veterinary action. Only veterinarians licensed

 

under this act may provide nonemergency veterinary care or

 


treatment to a horse in this state that is intended to be entered,

 

is entered, or participates in races at licensed race meetings in

 

this state. Only persons licensed under this act or otherwise

 

authorized by the racing commissioner director may enter the

 

restricted grounds of a licensed race meeting where horses are kept

 

that are eligible to race at the race meeting are kept. For the

 

purposes of this section and sections 30 and 31, a horse that is

 

intended to be entered is a horse that has its name put into the

 

draw for a specific race, and a horse that is entered in a race is

 

a horse that has been drawn into a specific race.

 

     (3) As conditions precedent to being issued and holding a

 

valid pari-mutuel occupational license, a license applicant shall

 

disclose, in writing, any ownership interest that the applicant has

 

in a racehorse and provide any other information the racing

 

commissioner director considers necessary and proper and proof of

 

compliance with the worker's disability compensation act of 1969,

 

1969 PA 317, MCL 418.101 to 418.941, except that the proof of

 

compliance requirement does not apply to horse owners and trainers

 

not covered under section 115 of the worker's disability

 

compensation act of 1969, 1969 PA 317, MCL 418.115.

 

     (4) In addition to the requirements of subsection (3), an

 

applicant for a pari-mutuel occupational license shall consent,

 

upon application and for the duration of the occupational license,

 

if issued, to all of the following:

 

     (a) Personal inspections, inspections of the applicant's

 

personal property, and inspections of premises and property related

 

to his or her participation in a race meeting by persons authorized

 


by the racing commissioner director.

 

     (b) If the applicant is applying for a racing official,

 

jockey, driver, trainer, or groom license, or for any other license

 

for an occupation that involves contact with or access to the

 

racehorses or the barn areas or stables where racehorses are kept,

 

a breathalyzer test, urine test, or other noninvasive fluid test to

 

detect the presence of alcohol or a controlled substance, if

 

directed to do so by the racing commissioner or his or her

 

representative director. If the results of a test show that an

 

occupational licensee has more than .05% of alcohol in his or her

 

blood, or has present in his or her body a controlled substance,

 

the person shall not be permitted to continue in his or her duties

 

or participate in horse racing until he or she can produce, at his

 

or her own expense, a negative test result. The licensee may be

 

penalized by the racing commissioner director for his or her

 

positive test results, which may include any disciplinary action

 

authorized by this act or rules promulgated under this act. This

 

subsection does not apply to a controlled substance obtained

 

directly from, or pursuant to a valid prescription from, a licensed

 

health care provider, except that the racing commissioner director

 

may consider the person's medical need for prescribed controlled

 

substances in determining the person's fitness to be licensed to

 

participate in pari-mutuel horse racing. The racing commissioner

 

director shall suspend for not less than 1 year the license of a

 

person who for the third time in a period of not more than 6

 

consecutive years is relieved of his or her duties because of this

 

subsection.

 


     (5) When applying for an occupational license, an applicant

 

shall provide the racing commissioner director with 1 or more sets

 

of his or her fingerprints and the appropriate fees as requested by

 

the racing commissioner director. The racing commissioner director

 

shall send the applicant's fingerprints and the appropriate fees to

 

either the department of state police or the federal bureau of

 

investigation in a manner acceptable to the federal bureau of

 

investigation. If the fingerprints and fees are sent to the

 

department of state police, the department of state police shall

 

forward the fingerprints and the fees to the federal bureau of

 

investigation for a criminal history check. Information obtained

 

under this subsection shall only be used to determine the character

 

and fitness of the applicant for licensing purposes.

 

     (6) A person who is issued a pari-mutuel occupational license

 

as a trainer is responsible for and absolute insurer of the

 

condition, fitness, eligibility, and qualification of the horses

 

entered to race for the person by whom the trainer is employed,

 

except as prescribed by the rules promulgated by the racing

 

commissioner under this act. This subsection shall not be construed

 

or interpreted to determine civil tort liability of any racehorse

 

owner or trainer but shall be for purposes of pertains only to

 

enforcement of this act. only. A trainer shall not start a horse

 

that has in its body a drug or foreign substance unless permitted

 

pursuant to section 30 and the rules promulgated under that

 

section. A trainer is strictly liable and subject to disciplinary

 

action if a horse under the trainer's actual or apparent care and

 

control as trainer has a drug or foreign substance in its body, in

 


violation of section 30 and the rules promulgated under that

 

section.

 

     (7) Upon the filing of a written complaint, under oath, in the

 

office of the racing commissioner with the department, or upon the

 

written motion of the racing commissioner director regarding the

 

actions or omissions of a person issued a pari-mutuel occupational

 

license, the racing commissioner director may summarily suspend the

 

occupational license of the person for a period of not more than 90

 

days pending a hearing and final determination by the racing

 

commissioner director regarding the acts or omissions complained of

 

in the written complaint or motion, if the commissioner director

 

determines from the complaint or motion that the public health,

 

safety, or welfare requires emergency action. The racing

 

commissioner director shall schedule the complaint or motion to be

 

heard within 14 business days after the occupational license is

 

summarily suspended and notify the holder of the occupational

 

license of the date, time, and place of the hearing not less than 5

 

days before the date of the hearing. The hearing shall be conducted

 

in accordance with the contested case provisions of the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328. The action of the racing commissioner director in revoking

 

or suspending a pari-mutuel occupational license may be appealed to

 

the circuit court pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328. If the racing

 

commissioner's director's order is predicated upon a series of

 

acts, the review by the circuit court may be in the county in which

 

any of the alleged acts or failures to act took place.

 


     (8) A decision by the racing commissioner director or a deputy

 

commissioner director or state steward of racing to deny an

 

application for an occupational license may be appealed to the

 

circuit court and reviewed pursuant to section 631 of the revised

 

judicature act of 1961, 1961 PA 236, MCL 600.631. A suspension or

 

revocation of an occupational license may be appealed and reviewed

 

pursuant to the administrative procedures act of 1969, 1969 PA 306,

 

MCL 24.201 to 24.328.

 

     (9) Each pari-mutuel occupational licensee shall pay a license

 

fee of not less than $10.00 or more than $100.00 as determined by

 

the racing commissioner director.

 

     (10) As used in this section, "emergency veterinary care or

 

treatment" means care or treatment necessary and appropriate to

 

save the life of a horse or prevent permanent physical injury or

 

damage to a horse in a situation requiring immediate veterinary

 

action.

 

     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 director pursuant to rule or written order of

 

the commissioner director.

 

     (2) A holder of a race meeting license may provide a place in

 

the race meeting grounds or enclosure at which he or she the

 

license holder may conduct and supervise the pari-mutuel system of

 

wagering on the results of horse races as permitted by this act. If

 

the pari-mutuel system of 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 director

 

shall be used. The odds display of the totalisator or other device

 

shall 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 a 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 director, not more than 28%

 

and or, with the written permission of the racing commissioner

 

director, 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 pursuant to section 21.

 

     (5) Payoff prices of tickets of a higher denomination shall 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 shall only occur or be

 

permitted to occur within the enclosure of 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 intertrack or interstate common pool

 

wagering inside or outside this state as permitted by this act or

 

the rules promulgated under this act.

 

     (8) As used in this section:

 


     (a) "Minus pool" means any win, place, or show pool in which

 

the payout would exceed the total value of the pool.

 

     (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.

 

     (c) "Straight wagering" means a wager made on the finishing

 

position of a single specified horse in a single specified race.

 

     Sec. 18. (1) Simulcasting by The director may authorize a race

 

meeting licensees may be authorized by the racing commissioner

 

licensee to simulcast subject to the limitations of this section.

 

As used in this section, "simulcast" means the live transmission of

 

video and audio signals conveying a horse race held either inside

 

or outside this state to a licensed race meeting in this state. A

 

simulcast from 1 racetrack in this state to another racetrack in

 

this state shall be called an "intertrack simulcast". A simulcast

 

from a racetrack outside this state to a racetrack inside this

 

state shall be called an "interstate simulcast".

 

     (2) The holder of a race meeting license may apply to the

 

racing commissioner director, in the manner and form required by

 

the commissioner director, for a permit to televise simulcasts of

 

horse races to viewing areas within the enclosure of the licensed

 

racetrack at which the applicant is licensed to conduct its race

 

meeting. The commissioner director may issue a permit for

 

individual race and full card simulcasts televised during, between,

 

before, or after programmed live horse races on any day that live

 

racing is conducted by the applicant, and also on other days during

 

the term of the applicant's license when the applicant does not

 


conduct live horse racing, subject to if the following conditions

 

are met:

 

     (a) The applicant shall have has a current contract with a

 

certified horsemen's organization.

 

     (b) The applicant shall have has applied for and been

 

allocated the minimum number of live racing dates required by

 

section 12(1) to (5), subject to the availability of adequate horse

 

supply as determined by the racing commissioner director.

 

     (c) The applicant shall make makes a continuing good faith

 

effort throughout the duration of its race meeting to program and

 

conduct not less than at least 9 live horse races on each live

 

racing date allocated to the applicant.

 

     (d) The certified horsemen's organization with which the

 

applicant has contracted shall have has consented to the requested

 

simulcasts on any live racing day when the applicant is unable to

 

program and conduct not less than at least 9 live horse races, if

 

required by section 12(6).

 

     (e) If the requested simulcasts are interstate, the applicant

 

shall waive has waived in writing any right that the applicant may

 

have under the interstate horse racing act of 1978, Public Law 95-

 

515, 15 U.S.C. USC 3001 to 3007, to restrict interstate simulcasts

 

by other race meeting licensees in this state.

 

     (f) If the applicant conducts its race meeting in a city area,

 

the applicant shall make makes the video and audio signals of its

 

live horse races available for intertrack simulcasting to all

 

licensed race meetings in this state located more than 12 miles

 

from the applicant's race meeting. The applicant shall charge each

 


race meeting licensee the same fee to receive its live signals for

 

intertrack simulcasting. The fee shall not exceed 3% of the total

 

amount wagered on the intertrack simulcast at each race meeting

 

that receives the simulcast.

 

     (g) Except as otherwise agreed by the race meeting licensees

 

in a city area and the respective certified horsemen's

 

organizations with which they contract, a if the licensee conducts

 

its race meetings in a city area, shall receive the licensee

 

receives all available intertrack simulcasts from licensed race

 

meetings in the city area located more than 12 miles from the

 

licensee's race meeting.

 

     (h) A licensed If the licensee conducts its race meeting

 

meetings outside a city area, the licensee shall not conduct

 

interstate simulcasts unless it also receives all intertrack

 

simulcasts from licensed race meetings in a city area that are

 

available.

 

     (i) All applicants conducting licensed If the licensee

 

conducts its race meetings in a city area, shall authorize the

 

licensee authorizes all other race meeting licensees in the this

 

state to conduct simulcasts of the breed for which the applicant is

 

licensed to conduct live horse racing. An applicant may shall not

 

conduct interstate simulcasts unless authorization to do so is

 

given by the applicant, in accordance with subdivision (j),

 

permitting all other race meeting licensees to receive interstate

 

simulcasts of a different breed than they are licensed to race

 

live.

 

     (j) A The race meeting licensee shall not conduct an

 


interstate simulcast of a different breed than it is licensed to

 

race live at its race meeting, unless the licensee has the written

 

permission of all race meeting licensees in a city area that are

 

licensed to race that breed live at their race meetings.

 

     (k) All authorized simulcasts shall be are conducted in

 

compliance with the written permit and related orders issued by the

 

racing commissioner director and all other requirements and

 

conditions of this act and the rules of the racing commissioner

 

promulgated under this act.

 

     (l) All authorized interstate simulcasts shall also comply with

 

the interstate horse racing act of 1978, Public Law 95-15, 15

 

U.S.C. USC 3001 to 3007.

 

     (3) All forms of wagering by pari-mutuel methods provided for

 

under this act for live racing shall be allowed on simulcast horse

 

races authorized under this section. All money wagered on simulcast

 

horse races at a licensed race meeting shall be included in

 

computing the total amount of all money wagered at the licensed

 

race meeting for purposes of section 17. When If the simulcast is

 

an interstate simulcast, the money wagered on that simulcast shall

 

form a separate pari-mutuel pool at the receiving track unless 2 or

 

more licensees receive the same interstate simulcast signals or the

 

racing commissioner director permits the receiving track to combine

 

its interstate simulcast pool with the pool created at the out-of-

 

state sending track on the same race. If 2 or more licensees

 

receive the same interstate simulcast signals, the money wagered on

 

the simulcasts shall be combined in a common pool and the licensees

 

shall jointly agree and designate at which race meeting the common

 


pool will be located. However, if the law of the jurisdiction in

 

which the sending racetrack is located permits interstate common

 

pools at the sending racetrack, the racing commissioner director

 

may permit pari-mutuel pools on interstate simulcast races in this

 

state to be combined with pari-mutuel pools on the same races

 

created at the out-of-state sending racetrack. If the pari-mutuel

 

pools on the interstate simulcast races in this state are combined

 

in a common pool at the out-of-state sending track, then the

 

commissions described in section 17 on the pool created in this

 

state shall be adjusted to equal the commissions in effect at the

 

sending track under the laws of its jurisdiction. If the simulcast

 

is an intertrack simulcast, the money wagered on that simulcast at

 

the receiving racetrack shall be added to the pari-mutuel pool at

 

the sending racetrack.

 

     (4) Each race meeting licensee that receives an interstate

 

simulcast shall pay to the horsemen's simulcast purse pool

 

established under section 19 a sum equal to 40% of the licensee's

 

net commission from all money wagered on the interstate simulcast,

 

as determined by 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

 

interstate simulcast signal. The licensee shall retain the

 

remaining balance of its net commission and shall be responsible

 

for paying all other capital and operational expenses related to

 

receiving interstate simulcasts at its race meeting. Any subsequent

 

rebate of a fee paid by a licensee to receive interstate simulcast

 


signals shall be shared equally by the licensee and the horsemen's

 

simulcast purse pool established under section 19.

 

     (5) A race meeting licensee licensed to conduct pari-mutuel

 

horse racing in a city area shall provide the necessary equipment

 

to send intertrack simulcasts of the live horse races conducted at

 

its race meeting to all other race meeting licensees in this state,

 

and shall send its intertrack simulcast signals to those licensees

 

upon request for an agreed fee, which shall not exceed 3% of the

 

total amount wagered on the race at the receiving track. Race

 

meeting licensees that send or receive intertrack simulcasts shall

 

make the following payments to the horsemen's purse pools:

 

     (a) Each race meeting licensee that sends an intertrack

 

simulcast shall pay 50% of the simulcast fee that it receives for

 

sending the simulcast signal to the horsemen's purse pool at the

 

sending track.

 

     (b) Each race meeting licensee that receives an intertrack

 

simulcast shall pay to the horsemen's simulcast purse pool

 

established pursuant to section 19 a sum equal to 40% of the

 

receiving track's net commission from wagering on the intertrack

 

simulcast under section 17(3) after first deducting from the

 

licensee's statutory commission the applicable state tax on

 

wagering due and owing under section 22 and the actual verified fee

 

paid by the receiving track to the sending host track to receive

 

the intertrack simulcast signal.

 

     (6) The racing commissioner director may authorize a race

 

meeting licensee to transmit simulcasts of live horse races

 

conducted at its racetrack to locations outside of this state in

 


accordance with the interstate horse racing act of 1978, Public Law

 

95-515, 15 U.S.C. USC 3001 to 3007, or any other applicable laws,

 

and may permit pari-mutuel pools on such the simulcast races

 

created under the laws of the jurisdiction in which the receiving

 

track is located to be combined in a common pool with pari-mutuel

 

pools on the same races created in this state. A race meeting

 

licensee that transmits simulcasts of its races to locations

 

outside this state shall pay 50% of the fee that it receives for

 

sending the simulcast signal to the horsemen's purse pool at the

 

sending track after first deducting the actual verified cost of

 

sending the signal out of state.

 

     (7) Simulcasting of events other than horse races for purposes

 

of pari-mutuel wagering is prohibited.

 

     Sec. 19a. If a thoroughbred track license is surrendered,

 

revoked, or escrowed, or after January 1, 1998, a licensed

 

thoroughbred track is closed, the racing commissioner director

 

shall order the deposit of horsemen's purse pool money deposited

 

and distributed pursuant to section 19 to a depository designated

 

by a race meeting licensee upon written direction of the affected

 

certified horsemen's organization regardless of whether there was

 

racing at the race meeting licensee's location during the previous

 

year.

 

     Sec. 20. (1) It is the policy of this state to encourage the

 

breeding of horses of all breeds in this state and the ownership of

 

such horses by residents of this state to provide for sufficient

 

numbers of high quality race horses of all breeds to participate in

 

licensed race meetings in this state; to promote the positive

 


growth and development of high quality horse racing and other

 

equine competitions in this state as a business and entertainment

 

activity for residents of this state; and to establish and preserve

 

the substantial agricultural and commercial benefits of the horse

 

racing and breeding industry to the state of Michigan. It is the

 

intent of the legislature to further this policy by the provisions

 

of this act and annual appropriations to administer this act and

 

adequately fund the agriculture and equine industry programs

 

established by this section.

 

     (2) Money received by the racing commissioner and department

 

or the state treasurer under this act shall be paid promptly into

 

the state treasury and placed in the Michigan agriculture equine

 

industry development fund created in subsection (3).

 

     (3) The Michigan agriculture equine industry development fund

 

is created in the department of treasury. The Michigan agriculture

 

equine industry development fund shall be administered by the

 

director. of the department of agriculture with the assistance and

 

advice of the racing commissioner.

 

     (4) Money shall not be expended from the Michigan agriculture

 

equine industry development fund except as appropriated by the

 

legislature. Money appropriated by the legislature for the Michigan

 

agriculture equine industry development fund shall be expended by

 

the director of the department of agriculture with the advice and

 

assistance of the racing commissioner to provide funding for the

 

general fund as provided in subsection (17) and agriculture and

 

equine industry development programs as provided in subsections (5)

 

to (11).

 


     (5) The following amounts shall be paid to standardbred and

 

fair programs:

 

     (a) A sum not to exceed 75% of the purses for standardbred

 

harness horse races offered by fairs and races at licensed pari-

 

mutuel racetracks. Purse supplements for overnight races at fairs

 

paid pursuant to this subsection shall be $1,000.00. However, if

 

the average purse offered for maiden overnight races of the same

 

breed at any licensed race meeting in this state during the

 

previous year as calculated by the department of agriculture was

 

less than $1,000.00, purse supplements for overnight races at fairs

 

paid under this subsection shall not exceed that average purse.

 

     (b) A sum to be allotted on a matching basis, but not to

 

exceed $15,000.00 each year to a single fair, for the purpose of

 

equipment rental during fairs; ground improvement; constructing,

 

maintaining, and repairing buildings; and making the racetrack more

 

suitable and safe for racing at fairs.

 

     (c) A sum to be allotted for paying special purses at fairs on

 

2-year-old and 3-year-old standardbred harness horses conceived

 

after January 1, 1992, and sired by a standardbred stallion

 

registered with the Michigan department of agriculture that was

 

leased or owned by a resident or residents of this state and that

 

did not serve a mare at a location outside of this state from

 

February 1 through July 31 of the calendar year in which the

 

conception occurred. A foal that is born on or after January 1,

 

2002 of a mare owned by a nonresident of this state and that is

 

conceived outside of this state from transported semen of a

 

stallion registered with the Michigan department of agriculture is

 


eligible for Michigan tax-supported races only if, in the year that

 

the foal is conceived, the Michigan department of agriculture's

 

department's agent for receiving funds as the holding agent for

 

stakes and futurities is paid a transport fee as determined by the

 

Michigan department of agriculture and administered by the Michigan

 

harness horsemen's association.

 

     (d) A sum to pay not more than 75% of an eligible cash premium

 

paid by a fair or exposition. The commission of agriculture shall

 

promulgate rules establishing which premiums are eligible for

 

payment and a dollar limit for all eligible payments.

 

     (e) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to breeders of Michigan bred standardbred

 

harness horses for each time the horse wins a race at a licensed

 

race meeting or fair in this state. As used in this subdivision,

 

"Michigan bred standardbred harness horse" means a horse from a

 

mare owned by a resident or residents of this state at the time of

 

conception, that was conceived after January 1, 1992, and sired by

 

a standardbred stallion registered with the Michigan department of

 

agriculture that was leased or owned by a resident or residents of

 

this state and that did not serve a mare at a location outside of

 

this state from February 1 through July 31 of the calendar year in

 

which the conception occurred. To be eligible, each mare shall be

 

registered with the Michigan department. of agriculture. A foal

 

that is born on or after January 1, 2002 of a mare owned by a

 

nonresident of this state and that is conceived outside of this

 

state from transported semen of a stallion registered with the

 

Michigan department of agriculture is eligible for Michigan tax-

 


supported races only if, in the year that the foal is conceived,

 

the Michigan department of agriculture's department's agent for

 

receiving funds as the holding agent for stakes and futurities is

 

paid a transport fee as determined by the Michigan department of

 

agriculture and administered by the Michigan harness horsemen's

 

association.

 

     (f) A sum not to exceed $4,000.00 each year to be allotted to

 

fairs to provide training and stabling facilities for standardbred

 

harness horses.

 

     (g) A sum to be allotted to pay the presiding judges and

 

clerks of the course at fairs. Presiding judges and clerks of the

 

course shall be hired by the fair's administrative body with the

 

advice and approval of the racing commissioner director. The

 

director of the department of agriculture may allot funds for a

 

photo finish system and a mobile starting gate. The director of the

 

department of agriculture shall allot funds for the conducting of

 

tests, the collection and laboratory analysis of urine, saliva,

 

blood, and other samples from horses, and the taking of blood

 

alcohol tests on drivers, jockeys, and starting gate employees, for

 

those races described in this subdivision. The department director

 

may require a driver, jockey, or starting gate employee to submit

 

to a breathalyzer test, urine test, or other noninvasive fluid test

 

to detect the presence of alcohol or a controlled substance. If the

 

results of a test show that a person has more than .05% of alcohol

 

in his or her blood, or has present in his or her body a controlled

 

substance, the person shall not be permitted to continue in his or

 

her duties on that race day and until he or she can produce, at his

 


or her own expense, a negative test result.

 

     (h) A sum to pay purse supplements to licensed pari-mutuel

 

harness race meetings for special 4-year-old filly and colt horse

 

races.

 

     (i) A sum not to exceed 0.25% of all money wagered on live and

 

simulcast horse races in Michigan this state shall be placed in a

 

special standardbred sire stakes fund each year, 100% of which

 

shall be used to provide purses for races run exclusively for 2-

 

year-old and 3-year-old Michigan sired standardbred horses at

 

licensed harness race meetings in this state. As used in this

 

subdivision, "Michigan sired standardbred horses" means

 

standardbred horses conceived after January 1, 1992 and sired by a

 

standardbred stallion registered with the Michigan department of

 

agriculture that was leased or owned by a resident or residents of

 

this state and that did not serve a mare at a location outside of

 

this state from February 1 through July 31 of the calendar year in

 

which the conception occurred. A foal that is born on or after

 

January 1, 2002 of a mare owned by a nonresident of this state and

 

that is conceived outside of this state from transported semen of a

 

stallion registered with the Michigan department of agriculture is

 

eligible for Michigan tax-supported races only if, in the year that

 

the foal is conceived, the Michigan department of agriculture's

 

department's agent for receiving funds as the holding agent for

 

stakes and futurities is paid a transport fee as determined by the

 

Michigan department of agriculture and administered by the Michigan

 

harness horsemen's association.

 

     (6) The following amounts shall be paid to thoroughbred

 


programs:

 

     (a) A sum to be allotted thoroughbred race meeting licensees

 

to supplement the purses for races to be conducted exclusively for

 

Michigan bred horses.

 

     (b) A sum to pay awards to owners of Michigan bred horses that

 

finish first, second, or third in races open to non-Michigan bred

 

horses.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred

 

thoroughbred horses for each time Michigan bred thoroughbred horses

 

win at a licensed race meeting in this state.

 

     (d) A sum to pay purse supplements to licensed thoroughbred

 

race meetings for special 4-year-old and older filly and colt horse

 

races.

 

     (e) A sum not to exceed 0.25% of all money wagered on live and

 

simulcast horse races in Michigan this state shall be placed in a

 

special thoroughbred sire stakes fund each year, 100% of which

 

shall be used to provide purses for races run exclusively for 2-

 

year-old and 3-year-old and older Michigan sired thoroughbred

 

horses at licensed thoroughbred race meetings in this state and

 

awards for owners of Michigan sired horses or stallions. As used in

 

this subdivision, "Michigan sired thoroughbred horses" means

 

thoroughbred horses sired by a stallion registered with the

 

department of agriculture that was leased or owned exclusively by a

 

resident or residents of this state and that did not serve a mare

 

at a location outside of this state during the calendar year in

 

which the service occurred.

 


     (f) A sum to be allotted sufficient to pay for the collection

 

and laboratory analysis of urine, saliva, blood, and other samples

 

from horses and licensed persons and for the conducting of tests

 

described in section 16(4)(b).

 

     (7) The following amounts shall be paid for quarter horse

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred quarter horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered quarter horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of a gross purse to breeders of Michigan bred quarter horses

 

for each time a Michigan bred quarter horse wins at a county fair

 

or licensed race meeting in this state.

 

     (d) A sum to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (e) As used in this subsection, "Michigan bred quarter horse"

 

means that term as defined in R 285.817.1 of the Michigan

 

administrative code. Each mare and stallion shall be registered

 

with the director. of the department of agriculture.

 

     (8) The following amounts shall be paid for Appaloosa

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred Appaloosa horses.

 


     (b) A sum to pay not more than 75% of the purses for

 

registered Appaloosa horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred Appaloosa

 

horses for each time Michigan bred horses win at a fair or licensed

 

race meeting in this state.

 

     (d) The department shall also allot sufficient funds from the

 

revenue received from Appaloosa horse racing to pay for the

 

collection and laboratory analysis of urine, saliva, blood, or

 

other samples from horses and licensed persons and the taking of

 

blood alcohol tests on jockeys for those races described in this

 

subsection and for the conducting of tests described in section

 

16(4)(b).

 

     (e) As used in this subsection, "Michigan bred Appaloosa

 

horse" means that term as defined in R 285.819.1 of the Michigan

 

administrative code. Each mare and stallion shall be registered

 

with the director. of the department of agriculture.

 

     (9) The following amounts shall be paid for Arabian programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred Arabian horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered Arabian horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred Arabian

 

horses for each time Michigan bred horses win at a fair or licensed

 

racetrack in this state.

 

     (d) A sum allotted from the revenue received from Arabian

 


horse racing to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (e) As used in this subsection, "Michigan bred Arabian horse"

 

means a Michigan-bred horse as that term is defined in R

 

285.822.1(i) of the Michigan administrative code. Each mare and

 

stallion shall be registered with the director. of the department

 

of agriculture.

 

     (10) The following sums shall be paid for American paint horse

 

programs:

 

     (a) A sum to supplement the purses for races to be conducted

 

exclusively for Michigan bred American paint horses.

 

     (b) A sum to pay not more than 75% of the purses for

 

registered American paint horse races offered by fairs.

 

     (c) A sum to pay breeders' awards in an amount not to exceed

 

10% of the gross purse to the breeders of Michigan bred American

 

paint horses for each time a Michigan bred American paint horse

 

wins at a county fair or licensed race meeting in this state.

 

     (d) A sum to pay for the collection and laboratory analysis of

 

urine, saliva, blood, and other samples from horses and licensed

 

persons and the taking of blood alcohol tests on jockeys for those

 

races described in this subsection and for the conducting of tests

 

described in section 16(4)(b).

 

     (e) As used in this subsection, "Michigan bred American paint

 

horse" means a Michigan-bred paint horse as that term is defined in

 


R 285.823.1 of the Michigan administrative code.

 

     (11) The following amounts shall be paid for the equine

 

industry research, planning, and development grant fund program:

 

     (a) A sum to fund grants for research projects conducted by

 

persons affiliated with a university or governmental research

 

agency or institution or other private research entity approved by

 

the racing commissioner director, which are beneficial to the horse

 

racing and breeding industry in this state.

 

     (b) A sum to fund the development, implementation, and

 

administration of new programs that promote the proper growth and

 

development of the horse racing and breeding industry in this state

 

and other valuable equine-related commercial and recreational

 

activities in this state.

 

     (12) As used in subsection (11), "equine industry research"

 

means the study, discovery and generation of accurate and reliable

 

information, findings, conclusions, and recommendations that are

 

useful or beneficial to the horse racing and breeding industry in

 

this state through improvement of the health of horses; prevention

 

of equine illness and disease , and performance-related accidents

 

and injuries; improvement of breeding technique and racing

 

performance; and compilation and study of valuable and reliable

 

statistical data regarding the size, organization, and economics of

 

the industry in this state; and strategic planning for the

 

effective promotion, growth, and development of the industry in

 

this state.

 

     (13) Subject to subsection (17), money appropriated and

 

allotted to the Michigan agriculture equine industry development

 


fund shall not revert to the general fund and shall be carried

 

forward from year to year until disbursed to fund grants for

 

research projects beneficial to the industry.

 

     (14) A percentage of the Michigan agriculture equine industry

 

development fund that is equal to 1/100 of 1% of the gross wagers

 

made each year in each of the racetracks licensed under this act

 

shall be deposited in the compulsive gaming prevention fund created

 

in section 3 of the compulsive gaming prevention act, 1997 PA 70,

 

MCL 432.253.

 

     (15) The director of the department of agriculture shall

 

promulgate rules pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section.

 

The rules promulgated under this subsection shall do all of the

 

following:

 

     (a) Prescribe the conditions under which the Michigan

 

agriculture equine industry development fund and related programs

 

described in subsections (1) to (13) shall be funded.

 

     (b) Establish conditions and penalties regarding the programs

 

described in subsections (5) to (12).

 

     (c) Develop and maintain informational programs related to

 

this section.

 

     (16) Funds Money under the control of the department of

 

agriculture in under this section shall be disbursed under the

 

rules promulgated pursuant to subsection (15). All funds money

 

under the control of the department of agriculture approved for

 

purse supplements and breeders' awards shall be paid by the state

 

treasurer not later than 45 days from the date of the race.

 


     (17) Two million dollars shall be transferred from the

 

Michigan agriculture equine industry development fund to the

 

general fund in the fiscal year ending September 30, 2006.

 

     Sec. 21. Local units of government participating in the

 

distribution of funds money under section 17(4) shall provide for

 

adequate police, fire, and traffic protection of persons and

 

property at and near each race meet, including areas where

 

occupational licenses are required. Each local unit of government

 

participating in the distribution of funds money under this act

 

shall show by a statement submitted annually on February 1 of each

 

year to the racing commissioner director the amounts of funds

 

amount of money received and shall detail the expenditure of those

 

amounts the money during the previous calendar year. The racing

 

commissioner director shall report annually to the governor and the

 

legislature regarding these statements.

 

     Sec. 22. (1) Each licensed racetrack located in a city area

 

shall pay a license fee to the racing commissioner director of

 

$1,000.00 annually, and any other licensed racetrack shall pay a

 

license fee of $200.00 annually.

 

     (2) During calendar year 1996, each Each calendar year, in a

 

manner and time as required by the director, a holder of a race

 

meeting license shall pay to the state treasurer, from the holder's

 

commission, a tax in the amount of 2.5% 3.5% of all money wagered

 

on interstate and intertrack simulcast races conducted at the

 

holder's licensed race meetings in 1996 in a manner and time as the

 

racing commissioner requires. For calendar year 1997 and each year

 

thereafter, the tax rate shall increase to 3.5% of all money

 


wagered on interstate and intertrack simulcast races conducted at

 

the holder's licensed race meetings each calendar year. Not later

 

than 4 years after the effective date of this act, the racing

 

commissioner shall report to the chairpersons of the senate and

 

house committees responsible for legislation concerning horse

 

racing as to the effect on the horse racing industry of the

 

reduction in the tax pursuant to subsection (2). the year.

 

     (3) By eliminating the pari-mutuel wagering tax on live racing

 

programs, it is not the intent of the legislature to diminish the

 

funding and appropriations for the Michigan agriculture equine

 

industry fund and related programs described in section 20. The

 

pari-mutuel tax reduction effected by this section is intended to

 

generally allow for the improvement of the pari-mutuel horse racing

 

and breeding industry in this state by increasing purses at

 

licensed race meetings and making additional pari-mutuel revenues

 

available for capital improvements at licensed racetracks in this

 

state.

 

     Sec. 23. (1) The auditing of pari-mutuel Pari-mutuel

 

operations at each race meeting shall be performed audited by a

 

private auditing firm appointed by the state treasurer and approved

 

by the racing commissioner director. The expense of pari-mutuel

 

audits shall be paid by the state as a part of the state

 

treasurer's budget. Daily audit reports on each day of pari-mutuel

 

racing shall be forwarded to the racing commissioner director and

 

the holder of the race meeting license not later than 2 business

 

days after the day for which the report is made. Within 60 days

 

following each race meeting, at least 3 copies of the pari-mutuel

 


audit report for the entire race meeting shall be forwarded to the

 

racing commissioner director and additional copies shall be

 

supplied to the state treasurer and the holder of the race meeting

 

license. The scope of the pari-mutuel audits shall be established

 

in specifications prepared by the state treasurer and approved by

 

the racing commissioner director.

 

     (2) The auditors representing the this state under subsection

 

(1) shall have free and full access to the space or enclosure where

 

the payoff prices are calculated, to the rooms and enclosures where

 

the totalisator equipment is operated, and to the money rooms and

 

cashier terminals, and shall be responsible for verifying the

 

accuracy of the calculations on which are based the payoff prices

 

to the public and amount of racetrack commission, state tax and

 

breakage, and for the amounts withheld by the holder of the race

 

meeting license for payment of uncashed tickets. The auditors at

 

all times shall have full and free access to all pari-mutuel

 

records and all aspects, areas, and functions of the totalisator

 

system, including but not limited to, all hardware, software, input

 

and output data, documents, and files. The auditors may audit

 

internally and externally any or all parts and elements of the

 

totalisator system whether on or off the site of the race meeting

 

grounds. If the records are maintained in a machine-readable form,

 

such as computer tapes or disks, copies shall be made available to

 

the auditors on request. The auditors, in addition to their regular

 

reports, shall make prompt report to the racing commissioner

 

director, the state treasurer, and the holder of the race meeting

 

license of any irregularities or discrepancies which they may

 


encounter during their auditing.

 

     (3) In addition to auditing the pari-mutuel operations, the

 

auditors described in subsection (1) shall include in their final

 

reports the daily attendance figures as supplied by the holder of

 

the race meeting license.

 

     Sec. 25. To the extent information is disclosed by any race

 

meeting licensee under this act regarding the name, address, or any

 

other personal information, including financial information, of any

 

patron of the licensee, neither the office of the racing

 

commissioner department nor any other governmental authority to

 

whom which disclosure has been made shall disclose that

 

information. All information provided to the office of racing

 

commissioner department or any other governmental authority by a

 

race meeting licensee that in any manner discloses the name,

 

address, or any other personal information, including financial

 

information, of any patron of the licensee is considered

 

confidential, and is not subject to disclosure under the freedom of

 

information act, Act No. 442 of the Public Acts of 1976, being

 

sections 1976 PA 442, MCL 15.231 to 15.246. of the Michigan

 

Compiled Laws.

 

     Sec. 30. (1) A drug or painkiller that is a stimulant to a

 

horse or depressant to a horse shall not be administered to a horse

 

or be present in a horse that is intended to be entered, is

 

entered, or participates in a race with wagering by pari-mutuel

 

methods or any nonbetting race or workout that is conducted at a

 

licensed race meeting in this state. Any drug or foreign substance,

 

other than a stimulant or depressant, may be administered to a

 


horse or present in a horse that is intended to be entered, is

 

entered, or participates in a race with wagering by pari-mutuel

 

methods or any nonbetting race or workout that is conducted at a

 

licensed race meeting in this state only if authorized by the

 

racing commissioner director by rule or written order for use in

 

the care or treatment of the horse. A veterinarian is not

 

prohibited by this section from administering to a horse any drug

 

or foreign substance that is necessary and appropriate for the

 

emergency veterinary care and treatment of the horse under accepted

 

standards of veterinary practice in this state. The treating

 

veterinarian and the horse's trainer shall report immediately to

 

the racing commissioner director, the state veterinarian, or the

 

state steward any unauthorized or emergency administration of an

 

unauthorized drug or foreign substance to a horse that is intended

 

to be entered, is entered, or participates in a race or workout at

 

a licensed race meeting in this state, before the running of the

 

race or workout, in the manner and form prescribed by the racing

 

commissioner director and the stewards shall scratch the horse from

 

the race. A veterinarian who administers a drug or foreign

 

substance to any horse that is intended to be entered, is entered,

 

or participates in a race or workout that is to be conducted at a

 

licensed race meeting in this state shall keep and maintain a true

 

and complete written record of the veterinarian's examination,

 

examination findings, diagnosis and treatment of the horse, and all

 

drugs or foreign substances administered to the horse by the

 

veterinarian, in the manner and form prescribed by the racing

 

commissioner director, and shall provide the record to the

 


commissioner director for review upon request.

 

     (2) The racing commissioner or his or her designee director

 

shall conduct random testing to detect the presence of a drug or

 

foreign substance in all winning horses and in any other horse in

 

each pari-mutuel horse race and may conduct individual testing for

 

the presence of a drug or foreign substance in any specific horse

 

within the racetrack.

 

     (3) The racing commissioner director shall issue written

 

orders or promulgate rules pursuant to the administrative

 

procedures act of 1969, Act No. 306 of the Public Acts of 1969,

 

being sections 24.201 to 24.328 of the Michigan Compiled Laws 1969

 

PA 306, MCL 24.201 to 24.328, that specify the what condition of

 

the a horse that must exist in order to permit authorization of

 

permits authorizing the use and possession of a foreign substance

 

or a permissible drug for the intended care or treatment of a the

 

horse and that specify the procedures that must be followed in

 

administering the an authorized drugs drug. Any written order

 

issued by the racing commissioner pursuant to director under this

 

section shall be available for review in the office of racing

 

commissioner the director at each licensed race meeting in this

 

state.

 

     (4) Except as authorized by the racing commissioner director

 

or as provided in this section, a person who administers does

 

either of the following is guilty of a felony punishable by a fine

 

of not more than $10,000.00 or imprisonment for not more than 5

 

years, or both:

 

     (a) Administers or conspires to administer to a horse that is

 


intended to be entered, is entered, or participates in a race or

 

workout at a licensed race meeting in this state a drug or foreign

 

substance , that could affect the racing condition or performance

 

of a horse. , This subdivision applies regardless of whether the

 

drug or substance is administered or intended to be administered

 

internally, externally, by hypodermic method, or by any other

 

method. , to a horse that is intended to be entered, is entered, or

 

participates in a race or workout at a licensed race meeting in

 

this state, or who knowingly

 

     (b) Knowingly starts a horse in any a race or workout at a

 

licensed race meeting in this state knowing that the horse was

 

administered a drug or foreign substance, by any method, after the

 

horse was entered or intended to be entered in the race or workout.

 

is guilty of a felony punishable by a fine of not more than

 

$10,000.00 or by imprisonment for not more than 5 years, or both.

 

     (5) A postmortem examination shall be performed on every horse

 

that dies at a racetrack. A postmortem examination shall be a

 

complete autopsy unless the racing commissioner director, on the

 

advice of the veterinarian, is satisfied as to the cause of death

 

without the a complete autopsy being performed. A complete autopsy

 

shall be ordered and performed if the presence of a drug or foreign

 

substance in the horse is suspected.

 

     Sec. 31. (1) Except as provided in subsection (3), a person

 

who does any of the following, or who aids or abets another in

 

doing any of the following, is guilty of a misdemeanor punishable

 

by a fine of not more than $10,000.00 or by imprisonment for not

 

more than 1 year, or both:

 


     (a) Introduces an object or foreign substance into the

 

nostrils or windpipe of a horse that is entered or intended to be

 

entered in a race or workout at a licensed race meeting in this

 

state for the purpose of affecting the racing condition or

 

performance of the horse in a race or workout, without

 

authorization of the racing commissioner director.

 

     (b) Has in his or her possession within the confines of a

 

racetrack, stable, shed, building, or grounds of a licensed race

 

meeting, or within the confines of an off-track stable, shed,

 

building, or grounds where horses are kept which that are eligible

 

to race over the racetrack of the holder of a race meeting license,

 

any a drug that is not authorized by the racing commissioner

 

director for use at those locations, or a battery or buzzer,

 

whether electrical or mechanical, or a syringe, hypodermic needle,

 

or other appliance or device, other than the ordinary whip, which

 

that may or can be used for the purpose of affecting a horse's

 

racing condition or performance in a race or workout at a licensed

 

race meeting in this state.

 

     (c) Has in his or her possession within the confines of a

 

racetrack, stable, shed, building, or grounds of a licensed race

 

meeting or within the confines of an off-track stable, shed,

 

building, or grounds where horses are kept that are eligible to

 

race over the racetrack of the holder of a race meeting license a

 

controlled substance as defined in section 7104 of the public

 

health code, Act No. 368 of the Public Acts of 1978, being section

 

333.7104 of the Michigan Compiled Laws, or a hypodermic needle or

 

other instrument that can be used to administer a controlled

 


substance, unless the controlled substance was obtained directly

 

from or pursuant to a prescription from , a licensed physician ,

 

and the person notifies the racing commissioner or racing

 

commissioner's designee director that the person possesses the

 

controlled substance or instrument.

 

     (2) In After a person who is a licensee under this act is

 

convicted of an offense under subsection (1), in addition to the

 

penalties prescribed in subsection (1), a the director shall

 

suspend the license of the person who is a licensee under this act

 

and who does any of the acts described in subsection (1) shall have

 

his or her license suspended by the racing commission for a period

 

of not less than 5 years. after being convicted.

 

     (3) Subsections (1) and (2) do not prohibit the possession and

 

use of drugs, foreign substances, controlled substances, hypodermic

 

needles and syringes, nasogastric tubes, endotracheal tubes,

 

endoscopes, or other instruments or equipment by a veterinarian

 

within the confines of a racetrack, stable, shed, building, or

 

grounds of a licensed race meeting or within the confines of an

 

off-track stable, shed, building, or grounds where horses are kept

 

that are eligible to race over the racetrack of the holder of a

 

race meeting license, if the drugs and equipment are recognized and

 

accepted in veterinary medicine for use in the care and treatment

 

of horses and are possessed and used by the veterinarian in

 

accordance with accepted standards of veterinary practice in this

 

state and applicable state and federal laws and not in violation of

 

other provisions of this act.

 

     Sec. 33. A person who has information regarding a violation or

 


attempted violation of sections section 30, 31, or 32 shall

 

immediately report that information to the racing commissioner

 

director or an agent of the racing commissioner director. A person

 

who violates this section is guilty of a misdemeanor punishable by

 

a fine of not more than $10,000.00 or imprisonment for not more

 

than 1 year, or both.

 

     Sec. 34. In addition to the penalties provided in sections 29,

 

30, 31, 32, and 33, the holder of a license who violates section

 

29, 30, 31, 32, or 33 is subject to penalties prescribed by the

 

racing commissioner director that may include the suspension or

 

revocation of the person's license.

 

     Enacting section 1. Section 5 of the horse racing law of 1995,

 

1995 PA 279, MCL 431.305, is repealed.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 958.                                   

 

           

 

     (b) Senate Bill No. 956.                                   

 

           

 

     (c) Senate Bill No.____ or House Bill No.____ (request no.

 

02648'09 c).

 

     (d) Senate Bill No. 957.                                   

 

           

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