Bill Text: MI SB0433 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Gaming; horse racing; Michigan agriculture equine industry development fund; provide for payment of breeders' awards to Michigan-bred thoroughbred horses racing out of state. Amends title & sec. 20 of 1995 PA 279 (MCL 431.320).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-10-04 - Referred To Committee Of The Whole With Substitute S-2 [SB0433 Detail]
Download: Michigan-2011-SB0433-Introduced.html
SENATE BILL No. 433
June 14, 2011, Introduced by Senator HUNE and referred to the Committee on Agriculture.
A bill to amend 1995 PA 279, entitled
"Horse racing law of 1995,"
by amending the title and section 20 (MCL 431.320), section 20 as
amended by 2006 PA 185.
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 entities; to provide for the promulgation of rules; to
provide
for the imposition of taxes and fees and 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. 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 this
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 director of the
Michigan gaming control board and 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 and rural development
with
the assistance and advice of the racing commissionerdirector
of the Michigan gaming control board.
(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 and rural development
with
the advice and assistance of the racing commissioner director
of the Michigan gaming control board 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 under 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 and
rural development 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 and rural
development 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 and
rural development is eligible for Michigan tax-supported races only
if,
in the year that the foal is conceived, the Michigan department
of
agriculture's agriculture
and rural development's agent for
receiving
funds money as the holding agent for stakes and
futurities
is paid a transport fee as determined by the Michigan
department of agriculture and rural development 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 director of the
department of agriculture and rural development 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 and rural development 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 and rural development. 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 and rural development is eligible for
Michigan tax-supported races only if, in the year that the foal is
conceived,
the Michigan department of agriculture's agriculture and
rural
development's agent for receiving funds
money as the holding
agent for stakes and futurities is paid a transport fee as
determined
by the Michigan department of agriculture and rural
development 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 of the
Michigan gaming control board. The director of the department of
agriculture and rural development may allot funds for a photo
finish system and a mobile starting gate. The director of the
department of agriculture and rural development 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 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 and rural development 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 and rural development is
eligible for Michigan tax-supported races only if, in the year that
the
foal is conceived, the Michigan department of agriculture's
agriculture
and rural development's agent for
receiving funds money
as the holding agent for stakes and futurities is paid a transport
fee
as determined by the Michigan department of agriculture and
rural development 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. If, during a fiscal
year, live thoroughbred horse races are not conducted at a licensed
race meeting in this state, a sum shall be appropriated under this
subdivision to pay breeders' awards, in amounts not to exceed 10%
of the gross purses, to the breeders of Michigan bred thoroughbred
horses that win at races conducted at licensed horse racetracks
outside of 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 and rural development 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 and rural
development.
(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 and rural
development.
(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 and rural development.
(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
of the Michigan gaming control
board, 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 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 and rural
development 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 and rural development in this section shall be
disbursed under the rules promulgated pursuant to subsection (15).
All
funds money under the control of the department of agriculture
and rural development 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.
