SENATE BILL NO. 1070 April 22, 1998, Introduced by Senators GEAKE, HOFFMAN, MC MANUS, BENNETT, STILLE, NORTH, DUNASKISS, GAST, YOUNG and JAYE and referred to the Committee on Gaming and Casino Oversight. A bill to amend 1995 PA 279, entitled "Horse racing law of 1995," by amending section 20 (MCL 431.320), as amended by 1997 PA 73. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 20. (1) It is the policy of this state to encourage 2 the breeding of horses of all breeds in this state and the owner- 3 ship of such horses by STATE residentsof this stateto provide 4 for sufficient numbers of high quality race horses of all breeds 5 to participate in licensed race meetings in this state,;to 6 promote the positive growth and development of high quality horse 7 racing and other equine competitions in this state as a benefi- 8 cial business and entertainment activity for STATE residents,of9this state;and to establish and preserve the substantial 10 agricultural and commercial benefits of the horse racing and 11 breeding industry to the state of Michigan. It is the intent and 04450'97 TLG 2 1 purpose of the legislature to further this policy bythe2provisions of theTHIS act,andannual appropriations to 3 administer this act, and adequately fund the agriculture and 4 equine industry programs established by this section. 5 (2) Money received by the racing commissioner and the state 6 treasurer under this act shall be paid promptly into the state 7 treasury and placed in the Michigan agriculture equine industry 8 development fund created in subsection (3). 9 (3) The Michigan agriculture equine industry development 10 fund is created in the department of treasury. The Michigan 11 agriculture equine industry development fund shall be adminis- 12 tered by the director of the department of agriculture with the 13 assistance and advice of the racing commissioner. 14 (4) Money shall not be expended from the Michigan agricul- 15 ture equine industry development fund except as appropriated by 16 the legislature. Money appropriated by the legislature for the 17 Michigan agriculture equine industry development fund shall be 18 expended by the director of the department of agriculture with 19 the advice and assistance of the racing commissioner to provide 20 funding for agriculture and equine industry development programs 21 as provided in subsections (5) to (11). 22 (5) The following amounts shall be paid to standardbred and 23 fair programs: 24 (a) A sum not to exceed 75% of the purses for standardbred 25 harness horse races offered by fairs and races at licensed 26 pari-mutuel racetracks. Purse supplements for overnight races at 27 fairs paid pursuant to this subsection may not exceed the lowest 04450'97 3 1 purse offered for overnight races of the same breed at any 2 licensed race meeting in this state during the previous year. 3 (b) A sum to be allotted on a matching basis, but not to 4 exceed $15,000.00 each year to a single fair, for the purpose of 5 equipment rental during fairs,;ground improvement,;con- 6 structing, maintaining, and repairing buildings,;and making 7 the racetrack more suitable and safe for racing at fairs. 8 (c) A sum to be allotted for paying special purses at fairs 9 on 2-year-old and 3-year-old standardbred harness horses con- 10 ceived after January 1, 1992, and sired by a standardbred stal- 11 lion registered with the Michigan department of agriculture that 12 was leased or owned by a resident or residents of this state and 13 which did not serve a mare at a location outside of this state 14 from February 1 through July 31 of the calendar year in which the 15 conception occurred. Transportation of semen from a standardbred 16 stallion registered with the Michigan department of agriculture 17 to a location outside the state of Michigan does not create eli- 18 gibility for Michigan tax supported races, and does not affect 19 the eligibility of Michigan conceived foals for the purses pro- 20 vided for by this section. A foal conceived outside the state of 21 Michigan by means of semen from a standardbred stallion regis- 22 tered with the Michigan department of agriculture is not eligible 23 for Michigan tax-supported races. 24 (d) A sum to pay not more than 75% of an eligible cash pre- 25 mium paid by a fair or exposition. The commission of agriculture 26 shall promulgate rules establishing which premiums are eligible 27 for payment and a dollar limit for all eligible payments. 04450'97 4 1 (e) A sum to pay breeders' awards in an amount not to exceed 2 10% of the gross purse to breeders of Michigan bred standardbred 3 harness horses for each time the horse wins a race at a licensed 4 race meeting or fair in this state. As used in this subdivision, 5 "Michigan bred standardbred harness horse" means a horse from a 6 mare owned by a resident or residents of this state at the time 7 of conception, that was conceived after January 1, 1992, and 8 sired by a standardbred stallion registered with the Michigan 9 department of agriculture that was leased or owned by a resident 10 or residents of this state and that did not serve a mare at a 11 location outside of this state from February 1 through July 31 of 12 the calendar year in which the conception occurred. To be eligi- 13 ble, each mare shall be registered with the Michigan department 14 of agriculture. Transportation of semen from a standardbred 15 stallion registered with the Michigan department of agriculture 16 to a location outside the state of Michigan does not create eli- 17 gibility for Michigan tax-supported races, and does not affect 18 the eligibility of Michigan conceived foals for the purses pro- 19 vided for by this section. A foal conceived outside the state of 20 Michigan by means of semen from a standardbred stallion regis- 21 tered with the Michigan department of agriculture is not eligible 22 for Michigan tax-supported races. 23 (f) A sum not to exceed $4,000.00 each year to be allotted 24 to fairs to provide training and stabling facilities for stan- 25 dardbred harness horses. 26 (g) A sum to be allotted to pay the presiding judges and 27 clerks of the course at fairs. Presiding judges and clerks of 04450'97 5 1 the course shall be hired by the fair's administrative body with 2 the advice and approval of the racing commissioner. The director 3 of the department of agriculture may allot funds for a photo 4 finish system and a mobile starting gate. The director of the 5 department of agriculture shall allot funds for the conducting of 6 tests, the collection and laboratory analysis of urine, saliva, 7 blood, and other samples from horses, and the taking of blood 8 alcohol tests on drivers, jockeys, and starting gate employees, 9 for those races described in this subdivision. The department 10 may require a driver, jockey, or starting gate employee to submit 11 to a breathalyzer test, urine test, or othernonevasive12 NONINVASIVE fluid test to detect the presence of alcohol or a 13 controlled substance as defined in section 7104 of the public 14 health code, 1978 PA 368, MCL 333.7104. If the results of a test 15 show that a person has more than .05% of alcohol in his or her 16 blood, or has present in his or her body a controlled substance, 17 the person shall not be permitted to continue in his or her 18 duties on that race day and until he or she can produce, at his 19 or her own expense, a negative 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 04450'97 6 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 04450'97 7 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. 04450'97 8 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 04450'97 9 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. 04450'97 10 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 04450'97 11 1 useful or beneficial to the horse racing and breeding industry in 2 this state through improvement of the health of horses,;pre- 3 vention of equine illness and disease, and performance-related 4 accidents and injuries,;improvement of breeding technique and 5 racing performance,;and compilation and study of valuable and 6 reliable statistical data regarding the size, organization, and 7 economics of the industry in this state,;and strategic plan- 8 ning for the effective promotion, growth, and development of the 9 industry in 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) A percentage of the Michigan agriculture equine indus- 16 try development fund that is equal to 1/10 of 1% of the gross 17 wagers made each year in each of the racetracks licensed under 18 this act OR $100,000.00, WHICHEVER IS LESS, shall be deposited in 19 the compulsive gaming prevention fund created in SECTION 3 OF the 20 compulsive gaming prevention act, 1997 PA 70, MCL 432.253. 21 (13) The director of the department of agriculture shall 22 promulgate rules pursuant to the administrative procedures act of 23 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this 24 section. The rules promulgated under this subsection shall do 25 all of the following: 04450'97 12 1 (a) Prescribe the conditions under which the Michigan 2 agriculture equine industry development fund and related programs 3 described in subsections (1) to (11) shall be funded. 4 (b) Establish conditions and penalties regarding the pro- 5 grams described in subsections (5) to (11). 6 (c) Develop and maintain informational programs related to 7 this section. 8 (14) Funds under the control of the department of agricul- 9 ture in this section shall be disbursed under the rules promul- 10 gated pursuant to subsection (13). All funds under the control 11 of the department of agriculture approved for purse supplements 12 and breeders' awards shall be paid by the state treasurer not 13 later than 45 days from the date of the race. 04450'97 Final page. TLG