HOUSE BILL No. 4411 March 4, 1997, Introduced by Reps. Hammerstrom, Dobb, Mathieu, Schauer, Law, Prusi, Vaughn, Owen, Wetters, McManus, Kelly, DeHart, Bodem, Crissman, Tesanovich, Galloway and McBryde and referred to the Committee on House Oversight and Ethics. A bill to amend 1995 PA 279, entitled "Horse racing law of 1995," by amending sections 7, 9, 17, and 20 (MCL 431.307, 431.309, 431.317, and 431.320). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 7. (1) The racing commissioner may promulgate rules 2 pursuant to the administrative procedures act of 1969,Act3No. 306 of the Public Acts of 1969, being sections 24.201 to424.328 of the Michigan Compiled Laws1969 PA 306, MCL 24.201 TO 5 24.328, for conducting horse racing, pari-mutuel wagering on 6 horse racing results, and simulcasting. The rules promulgated 7 under this section shall be designed to accomplish all of the 8 following: 9 (a) The governing, restricting, approving, or regulating of 10 horse racing, pari-mutuel wagering on the results of horse races, 00613'97 b VPW 2 1 and simulcasting conducted at licensed race meetings within this 2 state. 3 (b) The promoting of the safety, security, growth, and 4 integrity of all horse racing, pari-mutuel wagering on the 5 results of horse races, and simulcasting conducted at licensed 6 race meetings within this state. 7 (c) The licensing and regulating of each person participat- 8 ing in, or having to do with, pari-mutuel horse racing and wager- 9 ing, and simulcasting at licensed race meetings within this 10 state. 11 (2) Each race meeting licensee shall provide security at all 12 times so as to reasonably ensure the safety of all persons and 13 horses on the grounds, and to protect and preserve the integrity 14 of horse racing, pari-mutuel wagering, and simulcasting at 15 licensed race meetings. If the racing commissioner determines 16 that additional security is necessary to ensure the safety and 17 integrity of racing, the racing commissioner shall provide sup- 18 plemental security at each race meeting in areas where occupa- 19 tional licenses are required for admittance. 20 (3) The racing commissioner may issue sanctions including, 21 but not limited to, revocation or suspension of a license, exclu- 22 sion from racetrack grounds, or a fine of not more than 23 $25,000.00 for each violation of this act or a rule promulgated 24 under this act committed by a licensee or other person under this 25 act. A sanction issued under this section may be appealed to the 26 racing commissioner. The appeal shall be heard pursuant to the 27 contested case provisions ofAct No. 306 of the Public Acts of00613'97 b 3 11969THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 2 24.201 TO 24.328, OR, IN THE CASE OF A LICENSEE HOLDING A VIDEO 3 GAMING LICENSE, FOR A VIOLATION OF THE MICHIGAN VIDEO GAMING ACT 4 OR RULES PROMULGATED UNDER THAT ACT. 5 (4) All proposed extensions, additions, modifications, or 6 improvements to the racecourse, roadways, parking lots, build- 7 ings, stables, lighting and electrical service, plumbing, public 8 utilities, drainage, totalisator system and equipment, hardware 9 and software for all approved methods of conducting pari-mutuel 10 wagering, and security on the grounds of a licensed racetrack 11 owned or leased by a person licensed under this act are subject 12 to the approval of the racing commissioner. 13 (5) The racing commissioner may compel the production of 14 books, records, memoranda, electronically retrievable data, or 15 documents that relate to horse racing, simulcasting, and 16 pari-mutuel wagering conducted at a licensed race meeting. 17 (6) The racing commissioner at any time may require for 18 cause the removal of any employee or official involved in or 19 having to do with horse racing, simulcasting, or pari-mutuel 20 wagering conducted at a licensed race meeting. 21 (7) The racing commissioner may visit, investigate, and 22 place auditors and other persons as the racing commissioner con- 23 siders necessary in the offices, racetracks, or places of busi- 24 ness of a licensee under this act to ensure compliance with this 25 act and the rules promulgated under this act. 26 (8) The racing commissioner may summon witnesses and 27 administer oaths or affirmations to exercise and discharge his or 00613'97 b 4 1 her powers and duties under this act. A person failing to appear 2 before the racing commissioner at the time and place specified in 3 a summons from the racing commissioner or refusing to testify, 4 without just cause, in answer to a summons from the racing com- 5 missioner is guilty of a misdemeanor punishable by a fine of not 6 more than $1,000.00, or imprisonment for not more than 6 months, 7 or both, and may also be sanctioned by the racing commissioner. 8 A person testifying falsely to the racing commissioner or his or 9 her authorized representative while under oath is guilty of a 10 felony punishable by a fine of not more than $10,000.00 or 11 imprisonment for not more than 4 years, or both, and may also be 12 sanctioned by the racing commissioner. 13 Sec. 9. (1) The racing commissioner shall issue, without 14 further application, a track license to any person holding a 15 valid track license under formerAct No. 327 of the Public Acts16of 19801980 PA 327, and maintaining or operating a licensed 17 horse racetrack as of the effective date of this act at which 18 wagering by pari-mutuel methods on the results of horse racing 19 has been conducted by a race meeting licensee. 20 (2) A track license, once issued, is valid only as long as 21 the annual license fee is paid, or until the track license is 22 voluntarily surrendered or is revoked as provided in this act or 23 the rules promulgated under this act. 24 (3) An applicant for a track license shall submit an appli- 25 cation that is in writing, that demonstrates to the racing com- 26 missioner that the applicant has satisfactory financial 27 responsibility, that shows the location of the racetrack or of 00613'97 b 5 1 the proposed racetrack, and that is accompanied by substantially 2 detailed plans and specifications for the racecourse, paddock, 3 grandstand, stable barns, racetrack buildings, fences, electrical 4 service and lighting, plumbing, parking, and other facilities and 5 improvements. The application shall include the name and address 6 of the applicant, and, if a corporation, the place of its incor- 7 poration, and any other information required by the rules promul- 8 gated under this act by the racing commissioner. Upon the 9 applicant's filing of the application and the payment of the 10 license fee, the racing commissioner shall investigate the appli- 11 cant and the racetrack or proposed racetrack as the racing com- 12 missioner considers necessary. If the racing commissioner deter- 13 mines that the applicant and the racetrack satisfy the require- 14 ments of this act and the rules promulgated under this act, the 15 racing commissioner shall grant a license for the racetrack, des- 16 ignating in the license the county or other municipality in which 17 the licensed racetrack shall be or is located. If the racing 18 commissioner determines that the applicant or the racetrack, or 19 both, do not comply with this act and the rules promulgated under 20 this act, the racing commissioner shall deny the license. The 21 action of the racing commissioner in denying a track license may 22 be reviewed by the circuit court pursuant to section 631 of the 23 revised judicature act of 1961,Act No. 236 of the Public Acts24of 1961, being section 600.631 of the Michigan Compiled Laws25 1961 PA 236, MCL 600.631. 26 (4) A track license may be transferred to a new owner of a 27 racetrack with the consent of the racing commissioner. 00613'97 b 6 1 (5) After a track license is issued under this section, the 2 racing commissioner may impose a fine or suspend or revoke the 3 license if the holder of the license, after reasonable notice 4 from the racing commissioner, does not make necessary improve- 5 ments, additions, or corrections to the licensed premises, fix- 6 tures, or equipment as determined and required by the racing com- 7 missioner; if the holder of the license violates or is no longer 8 in compliance with the requirements of this act or the rules 9 promulgated under this act; IN THE CASE OF A LICENSEE HOLDING A 10 VIDEO GAMING LICENSE, IF THE LICENSEE WILLFULLY VIOLATES THE 11 MICHIGAN VIDEO GAMING ACT OR RULES PROMULGATED UNDER THAT ACT; or 12 if the licensed premises are not utilized to conduct a licensed 13 race meeting for 2 consecutive years. In addition to the suspen- 14 sion or revocation of the license, the racing commissioner may 15 impose a fine or bring an action in circuit court seeking an 16 order of the court requiring the licensee to make reasonable and 17 necessary racetrack improvements or additions as determined by 18 the commissioner if the licensee fails to make improvements or 19 corrections that comply with the applicable construction code or 20 local ordinances. The action of the racing commissioner in sus- 21 pending or revoking a track license shall comply with the admin- 22 istrative procedures act of 1969,Act No. 306 of the Public Acts23of 1969, being sections 24.201 to 24.328 of the Michigan Compiled24Laws1969 PA 306, MCL 24.201 TO 24.328, and shall be subject to 25 appeal. 00613'97 b 7 1 (6) In a city area, not more than 3 racetracks shall be 2 licensed, except that in a city with a population of 900,000 or 3 more the racing commissioner may issue 1 additional license. 4 (7) A person shall not be issued more than 1 track license. 5 Controlling ownership and interlocking directorates among the 6 holders of track licenses are prohibited. 7 (8) A track license shall not be issued under this section 8 if the new license would result in harmful competition among 9 existing racetracks. 10 Sec. 17. (1) The pari-mutuel system of wagering upon the 11 results of horse races as permitted by this act shall not be held 12 or construed to be unlawful. All forms of pari-mutuel wagering 13 conducted at a licensed race meeting shall be preapproved by the 14 racing commissioner pursuant to rule or written order of the 15 commissioner. 16 (2) A holder of a race meeting license may provide a place 17 in the race meeting grounds or enclosure at which he or she may 18 conduct and supervise the pari-mutuel system of wagering on the 19 results of horse races as permitted by this act AND VIDEO GAMING 20 AS PERMITTED BY THE MICHIGAN VIDEO GAMING ACT. If the 21 pari-mutuel system of wagering is used at a race meeting, a 22 totalisator or other device which is equal in accuracy and clear- 23 ness to a totalisator and approved by the racing commissioner 24 shall be used. The odds display of the totalisator or other 25 device shall be placed in full view of the patrons. VIDEO GAMING 26 SHALL COMPLY WITH THE STANDARDS PRESCRIBED IN THE MICHIGAN VIDEO 27 GAMING ACT AND THE RULES PROMULGATED UNDER THAT ACT. 00613'97 b 8 1 (3) Subject to section 18(3), each holder of a race meeting 2 license shall retain as his or her commission on all forms of 3 straight wagering 17% of all money wagered involving straight 4 wagers on the results of live and simulcast horse races conducted 5 at the licensee's race meetings. Except as provided in subsec- 6 tion (8) and subject to section 18(3), each holder of a race 7 meeting license shall retain as his or her commission on all 8 forms of multiple wagering, 20.5% of all money wagered involving 9 any form of multiple wager on the results of live and simulcast 10 horse races conducted at the licensee's race meeting. Except as 11 otherwise provided by contract, 50% of all commissions from 12 wagering on the results of live racing at the racetrack where the 13 live racing was conducted shall be paid to the horsemen's purse 14 pool at the racetrack where the live racing was conducted. As 15 used in this subsection: 16 (a) "Straight wagering" means a wager made on the finishing 17 position of a single specified horse in a single specified race. 18 (b) "Multiple wagering" means a wager made on the finishing 19 positions of more than 1 horse in a specified race or the finish- 20 ing positions of 1 or more horses in more than 1 specified race. 21 (4) All breaks shall be retained by the race meeting 22 licensee and paid directly to the city or township in which the 23 racetrack is located as a fee for services provided pursuant to 24 section 21. 25 (5) Payoff prices of tickets of a higher denomination shall 26 be calculated as even multiples of the payoff price for a $1.00 27 wager. Each holder of a race meeting license shall distribute to 00613'97 b 9 1 the persons holding winning tickets, as a minimum, a sum not less 2 than $1.10 calculated on the basis of each $1.00 deposited in a 3 pool, except that each race meeting licensee may distribute a sum 4 of not less than $1.05 to persons holding winning tickets for 5 each $1.00 deposited in a minus pool. As used in this subsec- 6 tion, "minus pool" means any win, place, or show pool in which 7 the payout would exceed the total value of the pool. 8 (6) REVENUE GENERATED BY A LICENSEE THROUGH THE CONDUCT OF 9 VIDEO GAMING IS SUBJECT TO THE ALLOCATION FORMULA PROVIDED IN THE 10 MICHIGAN VIDEO GAMING ACT. 11 (7)(6)A holder of a race meeting license shall not know- 12 ingly permit a person less than 18 years of age to be a patron of 13 the pari-mutuel wagering conducted or supervised by the holder OR 14 VIDEO GAMING CONDUCTED BY THE HOLDER. 15 (8)(7)Any act or transaction relative to pari-mutuel 16 wagering on the results of live or simulcast horse races shall 17 only occur or be permitted to occur within the enclosure of a 18 licensed race meeting OR OTHER LICENSED LOCATION WITHIN OR ADJA- 19 CENT TO THE ENCLOSURE. A person shall not participate or be a 20 party to any act or transaction relative to placing a wager or 21 carrying a wager for placement outside of a race meeting ground. 22 A person shall not provide messenger service for the placing of a 23 bet for another person who is not a patron. However, this sub- 24 section does not prevent simulcasting or intertrack or interstate 25 common pool wagering inside or outside this state, as permitted 26 by this act or the rules promulgated under this act. 00613'97 b 10 1 (9)(8)As used in this subsection, "special sweepstakes 2 pari-mutuel" means amounts wagered for a selection in each of 3 3 or more races designated by the race meeting licensee with the 4 approval of the racing commissioner. The racing commissioner may 5 promulgate rules or issue written orders to approve and regulate 6 a special sweepstakes pari-mutuel pool which shall not be con- 7 nected with or related to any other form of multiple wagering, or 8 to any other win, place, or show pool. A special sweepstakes 9 pari-mutuel pool may be given a distinctive name by the race 10 meeting licensee, subject to the approval of the racing 11 commissioner. Subject to section 18(3), each holder of a race 12 meeting license shall retain as his or her commission on special 13 sweepstakes pari-mutuel pools 25% of all money wagered on such 14 races. 15 Sec. 20. (1) It is the policy of this state to encourage 16 the breeding of horses of all breeds in this state and the owner- 17 ship of such horses by residents of this state to provide for 18 sufficient numbers of high quality race horses of all breeds to 19 participate in licensed race meetings in this state; to promote 20 the positive growth and development of high quality horse racing 21 and other equine competitions in this state as a beneficial busi- 22 ness and entertainment activity for residents of this state; and 23 to establish and preserve the substantial agricultural and com- 24 mercial benefits of the horse racing and breeding industry to the 25 state of Michigan. It is the intent and purpose of the legisla- 26 ture to further this policy by the provisions of the act and 27 annual appropriations to administer this act and adequately fund 00613'97 b 11 1 the agriculture and equine industry programs established by this 2 section. 3 (2) Money received by the racing commissioner and the state 4 treasurer under this act shall be paid promptly into the state 5 treasury and placed in the Michigan agriculture equine industry 6 development fund created in subsection (3). 7 (3) The Michigan agriculture equine industry development 8 fund is created in the department of treasury. The Michigan 9 agriculture equine industry development fund shall be adminis- 10 tered by the director of the department of agriculture with the 11 assistance and advice of the racing commissioner. 12 (4) Money shall not be expended from the Michigan agricul- 13 ture equine industry development fund except as appropriated by 14 the legislature. Money appropriated by the legislature for the 15 Michigan agriculture equine industry development fund shall be 16 expended by the director of the department of agriculture with 17 the advice and assistance of the racing commissioner to provide 18 funding for agriculture and equine industry development programs 19 as provided in subsections (5) to (11). 20 (5) The following amounts shall be paid to standardbred and 21 fair programs: 22 (a) A sum not to exceed 75% of the purses for standardbred 23 harness horse races offered by fairs and races at licensed 24 pari-mutuel racetracks. Purse supplements for overnight races at 25 fairs paid pursuant to this subsection may not exceed the lowest 26 purse offered for overnight races of the same breed at any 27 licensed race meeting in this state during the previous year. 00613'97 b 12 1 (b) A sum to be allotted on a matching basis, but not to 2 exceed $15,000.00 each year to a single fair, for the purpose of 3 equipment rental during fairs; ground improvement; constructing, 4 maintaining, and repairing buildings; and making the racetrack 5 more suitable and safe for racing at fairs. 6 (c) A sum to be allotted for paying special purses at fairs 7 on 2-year-old and 3-year-old standardbred harness horses con- 8 ceived after January 1, 1992, and sired by a standardbred stal- 9 lion registered with the Michigan department of agriculture that 10 was leased or owned by a resident or residents of this state and 11 which did not serve a mare at a location outside of this state 12 from February 1 through July 31 of the calendar year in which the 13 conception occurred. Transportation of semen from a standardbred 14 stallion registered with the Michigan department of agriculture 15 to a location outside the state of Michigan does not create eli- 16 gibility for Michigan tax supported races, and does not affect 17 the eligibility of Michigan conceived foals for the purses pro- 18 vided for by this section. A foal conceived outside the state of 19 Michigan by means of semen from a standardbred stallion regis- 20 tered with the Michigan department of agriculture is not eligible 21 for Michigan tax-supported races. 22 (d) A sum to pay not more than 75% of an eligible cash pre- 23 mium paid by a fair or exposition. The commission of agriculture 24 shall promulgate rules establishing which premiums are eligible 25 for payment and a dollar limit for all eligible payments. 26 (e) A sum to pay breeders' awards in an amount not to exceed 27 10% of the gross purse to breeders of Michigan bred standardbred 00613'97 b 13 1 harness horses for each time the horse wins a race at a licensed 2 race meeting or fair in this state. As used in this subdivision, 3 "Michigan bred standardbred harness horse" means a horse from a 4 mare owned by a resident or residents of this state at the time 5 of conception, that was conceived after January 1, 1992, and 6 sired by a standardbred stallion registered with the Michigan 7 department of agriculture that was leased or owned by a resident 8 or residents of this state and that did not serve a mare at a 9 location outside of this state from February 1 through July 31 of 10 the calendar year in which the conception occurred. To be eligi- 11 ble, each mare shall be registered with the Michigan department 12 of agriculture. Transportation of semen from a standardbred 13 stallion registered with the Michigan department of agriculture 14 to a location outside the state of Michigan does not create eli- 15 gibility for Michigan tax-supported races, and does not affect 16 the eligibility of Michigan conceived foals for the purses pro- 17 vided for by this section. A foal conceived outside the state of 18 Michigan by means of semen from a standardbred stallion regis- 19 tered with the Michigan department of agriculture is not eligible 20 for Michigan tax-supported races. 21 (f) A sum not to exceed $4,000.00 each year to be allotted 22 to fairs to provide training and stabling facilities for stan- 23 dardbred harness horses. 24 (g) A sum to be allotted to pay the presiding judges and 25 clerks of the course at fairs. Presiding judges and clerks of 26 the course shall be hired by the fair's administrative body with 27 the advice and approval of the racing commissioner. The director 00613'97 b 14 1 of the department of agriculture may allot funds for a photo 2 finish system and a mobile starting gate. The director of the 3 department of agriculture shall allot funds for the conducting of 4 tests, the collection and laboratory analysis of urine, saliva, 5 blood, and other samples from horses, and the taking of blood 6 alcohol tests on drivers, jockeys, and starting gate employees, 7 for those races described in this subdivision. The department 8 may require a driver, jockey, or starting gate employee to submit 9 to a breathalyzer test, urine test, or othernonevasive10 NONINVASIVE fluid test to detect the presence of alcohol or a 11 controlled substance as defined in section 7104 of the public 12 health code,Act No. 368 of the Public Acts of 1978, being sec-13tion 333.7104 of the Michigan Compiled Laws1978 PA 368, MCL 14 333.7104. If the results of a test show that a person has more 15 than .05% of alcohol in his or her blood, or has present in his 16 or her body a controlled substance, the person shall not be per- 17 mitted to continue in his or her duties on that race day and 18 until he or she can produce, at his or her own expense, a nega- 19 tive test result. 20 (h) A sum to pay purse supplements to licensed pari-mutuel 21 harness race meetings for special 4-year-old filly and colt horse 22 races. 23 (i) A sum not to exceed 0.25% of all money wagered on live 24 and simulcast horse races in Michigan shall be placed in a spe- 25 cial standardbred sire stakes fund each year, 100% of which shall 26 be used to provide purses for races run exclusively for 27 2-year-old and 3-year-old Michigan sired standardbred horses at 00613'97 b 15 1 licensed harness race meetings in this state. As used in this 2 subdivision, "Michigan sired standardbred horses" means standard- 3 bred horses conceived after January 1, 1992 and sired by a stan- 4 dardbred stallion registered with the Michigan department of 5 agriculture that was leased or owned by a resident or residents 6 of this state and which did not serve a mare at a location out- 7 side of this state from February 1 through July 31 of the calen- 8 dar year in which the conception occurred. Transportation of 9 semen from a standardbred stallion registered with the Michigan 10 department of agriculture to a location outside the state of 11 Michigan does not create eligibility for Michigan tax-supported 12 races, and does not affect the eligibility of Michigan conceived 13 foals for the purses provided for by this section. A foal con- 14 ceived outside the state of Michigan by means of semen from a 15 standardbred stallion registered with the Michigan department of 16 agriculture is not eligible for Michigan tax-supported races. 17 (6) The following amounts shall be paid to thoroughbred 18 programs: 19 (a) A sum to be allotted thoroughbred race meeting licensees 20 to supplement the purses for races to be conducted exclusively 21 for Michigan bred horses. 22 (b) A sum to pay awards to owners of Michigan bred horses 23 that finish first, second, or third in races open to non-Michigan 24 bred horses. 25 (c) A sum to pay breeders' awards in an amount not to exceed 26 10% of the gross purse to the breeders of Michigan bred 00613'97 b 16 1 thoroughbred horses for each time Michigan bred thoroughbred 2 horses win at a licensed race meeting in this state. 3 (d) A sum to pay purse supplements to licensed thoroughbred 4 race meetings for special 4-year-old and older filly and colt 5 horse races. 6 (e) A sum not to exceed 0.25% of all money wagered on live 7 and simulcast horse races in Michigan shall be placed in a spe- 8 cial thoroughbred sire stakes fund each year, 100% of which shall 9 be used to provide purses for races run exclusively for 10 2-year-old and 3-year-old and older Michigan sired thoroughbred 11 horses at licensed thoroughbred race meetings in this state and 12 awards for owners of Michigan sired horses or stallions. As used 13 in this subdivision, "Michigan sired thoroughbred horses" means 14 thoroughbred horses sired by a stallion registered with the 15 department of agriculture that was leased or owned exclusively by 16 a resident or residents of this state and that did not serve a 17 mare at a location outside of this state during the calendar year 18 in which the service occurred. 19 (f) A sum to be allotted sufficient to pay for the collec- 20 tion and laboratory analysis of urine, saliva, blood, and other 21 samples from horses and licensed persons and for the conducting 22 of tests described in section 16(3)(b). 23 (7) The following amounts shall be paid for quarter horse 24 programs: 25 (a) A sum to supplement the purses for races to be conducted 26 exclusively for Michigan bred quarter horses. 00613'97 b 17 1 (b) A sum to pay not more than 75% of the purses for 2 registered quarter horse races offered by fairs. 3 (c) A sum to pay breeders' awards in an amount not to exceed 4 10% of a gross purse to breeders of Michigan bred quarter horses 5 for each time a Michigan bred quarter horse wins at a county fair 6 or licensed race meeting in this state. 7 (d) A sum to pay for the collection and laboratory analysis 8 of urine, saliva, blood, and other samples from horses and 9 licensed persons and the taking of blood alcohol tests on jockeys 10 for those races described in this subsection and for the conduct- 11 ing of tests described in section 16(3)(b). 12 (e) As used in this subsection, "Michigan bred quarter 13 horse" means a horse from a mare owned by a resident of this 14 state at the time of breeding, sired by a registered stallion 15 owned exclusively by a resident of this state, and which did not 16 serve a mare at a location outside of this state during the cal- 17 endar year in which the service occurred. Each mare and stallion 18 shall be registered with the director of the department of 19 agriculture. 20 (8) The following amounts shall be paid for Appaloosa 21 programs: 22 (a) A sum to supplement the purses for races to be conducted 23 exclusively for Michigan bred Appaloosa horses. 24 (b) A sum to pay not more than 75% of the purses for regis- 25 tered Appaloosa horse races offered by fairs. 26 (c) A sum to pay breeders' awards in an amount not to exceed 27 10% of the gross purse to the breeders of Michigan bred Appaloosa 00613'97 b 18 1 horses for each time Michigan bred horses win at a fair or 2 licensed race meeting in this state. 3 (d) The department shall also allot sufficient funds from 4 the revenue received from Appaloosa horse racing to pay for the 5 collection and laboratory analysis of urine, saliva, blood, or 6 other samples from horses and licensed persons and the taking of 7 blood alcohol tests on jockeys for those races described in this 8 subsection and for the conducting of tests described in section 9 16(3)(b). 10 (e) As used in this subsection, "Michigan bred Appaloosa" 11 means a horse from a mare owned by a resident of this state at 12 the time of breeding, sired by a registered stallion owned exclu- 13 sively by a resident of this state, and which did not serve a 14 mare at a location outside of this state during the calendar year 15 in which the service occurred. Each mare and stallion shall be 16 registered with the director of the department of agriculture. 17 (9) The following amounts shall be paid for Arabian 18 programs: 19 (a) A sum to supplement the purses for races to be conducted 20 exclusively for Michigan bred Arabian horses. 21 (b) A sum to pay not more than 75% of the purses for regis- 22 tered Arabian horse races offered by fairs. 23 (c) A sum to pay breeders' awards in an amount not to exceed 24 10% of the gross purse to the breeders of Michigan bred Arabian 25 horses for each time Michigan bred horses win at a fair or 26 licensed racetrack in this state. 00613'97 b 19 1 (d) A sum allotted from the revenue received from Arabian 2 horse racing to pay for the collection and laboratory analysis of 3 urine, saliva, blood, and other samples from horses and licensed 4 persons and the taking of blood alcohol tests on jockeys for 5 those races described in this subsection and for the conducting 6 of tests described in section 16(3)(b). 7 (e) As used in this subsection, "Michigan bred Arabian" 8 means a horse from a mare owned by a resident of this state at 9 the time of breeding, sired by a registered stallion owned exclu- 10 sively by a resident of this state, and which did not serve a 11 mare at a location outside of this state during the calendar year 12 in which the service occurred. Each mare and stallion shall be 13 registered with the director of the department of agriculture. 14 (10) The following amounts shall be paid for the equine 15 industry research, planning, and development grant fund program: 16 (a) A sum to fund grants for research projects conducted by 17 persons affiliated with a university or governmental research 18 agency or institution or other private research entity approved 19 by the racing commissioner, which are beneficial to the horse 20 racing and breeding industry in this state. 21 (b) Money appropriated and allotted to this fund shall not 22 revert to the general fund and shall be carried forward from year 23 to year until disbursed to fund grants for research projects ben- 24 eficial to the industry. 25 (c) As used in this subsection, "equine research" means the 26 study, discovery and generation of accurate and reliable 27 information, findings, conclusions, and recommendations that are 00613'97 b 20 1 useful or beneficial to the horse racing and breeding industry in 2 this state through improvement of the health of horses; preven- 3 tion of equine illness and disease, and performance-related acci- 4 dents and injuries; improvement of breeding technique and racing 5 performance; and compilation and study of valuable and reliable 6 statistical data regarding the size, organization, and economics 7 of the industry in this state; and strategic planning for the 8 effective promotion, growth, and development of the industry in 9 this state. 10 (11) A sum to fund the development, implementation, and 11 administration of new programs that promote the proper growth and 12 development of the horse racing and breeding industry in this 13 state and other valuable equine related commercial and recrea- 14 tional activities in this state. 15 (12) The director of the department of agriculture shall 16 promulgate rules pursuant to the administrative procedures act of 17 1969,Act No. 306 of the Public Acts of 1969, being sections1824.201 to 24.328 of the Michigan Compiled Laws1969 PA 306, MCL 19 24.201 TO 24.328, to implement this section. The rules promul- 20 gated under this subsection shall do all of the following: 21 (a) Prescribe the conditions under which the Michigan agri- 22 culture equine industry development fund and related programs 23 described in subsections (1) to (11) shall be funded. 24 (b) Establish conditions and penalties regarding the pro- 25 grams described in subsections (5) to (11). 26 (c) Develop and maintain informational programs related to 27 this section. 00613'97 b 21 1 (13) Funds under the control of the department of 2 agriculture in this section shall be disbursed under the rules 3 promulgated pursuant to subsection (12). All funds under the 4 control of the department of agriculture approved for purse sup- 5 plements and breeders' awards shall be paid by the state trea- 6 surer not later than 45 days from the date of the race. 7 (14) THE MONEY GENERATED BY A LICENSEE THROUGH THE CONDUCT 8 OF VIDEO GAMING IS SUBJECT TO THE ALLOCATION FORMULA PROVIDED IN 9 THE MICHIGAN VIDEO GAMING ACT. 10 Enacting section 1. This amendatory act does not take 11 effect unless all of the following bills of the 89th Legislature 12 are enacted into law: 13 (a) Senate Bill No. ____ or House Bill No. ____ (request 14 no. 00613'97). 15 (b) Senate Bill No. ____ or House Bill No. ____ (request 16 no. 00613'97 a). 00613'97 b Final page. VPW