HS HB 882 -- HORSE RACING AND PARI-MUTUEL WAGERING (Crump)

This substitute makes numerous changes to the Missouri Horse
Racing Commission and its powers and duties.  In its main
provisions, the substitute:

(1)  Specifies qualifications for commission members; current
law does not list any qualifications;

(2)  Establishes procedures for filling member vacancies, moves
the commission from the Missouri Gaming Commission to the
Department of Public Safety, and authorizes the commission to
hire employees, which is prohibited in current law;

(3)  Requires all licensing revenues to be deposited into the
Missouri Horse Racing Fund, except for amounts designated for
the Missouri Breeders Fund.  The Horse Racing Fund will pay the
commission's expenses, and any surplus will be deposited into
the School Building Revolving Fund.  Current law requires all
moneys to be deposited into the Missouri Horse Racing Fund,
subject to appropriation;

(4)  Requires that the 3 stewards appointed by the commission to
be at each horse race meeting be certified by the Association of
Racing Commissioners International or an equivalent
organization.  Current law does not require certification;

(5)  Authorizes the commission to license applicants for tracks
and pari-mutuel wagering facilities and to impose penalties on
non-compliant licensees;

(6)  Makes it a class C felony for second and subsequent
violations involving false testimony under oath to the
commission, its employees, or the stewards in any proceeding or
investigation;

(7)  Outlines the powers of the commission and specifies grounds
for disciplinary action by the commission against licensees;

(8)  Authorizes simulcasts of horse races;

(9)  Makes licenses valid until revoked for cause;

(10)  Establishes application procedures, including a $50,000
application fee;

(11)  Requires an applicant to affirm that it will conduct at
least 50 days of live racing in Missouri during each 12-month
period following licensure and that it will make a capital
investment in its race meeting grounds in Missouri of at least
$25 million within the first year of operation.  The commission
is authorized to waive, suspend, or modify these requirements if
circumstances beyond the control of the applicant prevent it
from complying, and the commission is required to restrict,
revoke, or suspend a licensee's right to operate until the
licensee demonstrates the ability to satisfy these requirements;

(12)  Requires licensees to disclose the names of owners of 5%
of the stock, not of all owners, and to submit to the commission
affidavits from each record owner of 5% or more of the stock of
the licensee, not owners of 2%;

(13)  Prohibits the commission from issuing a license to and
authorizes the commission to revoke or suspend the license of a
person or organization that has a 5% or greater financial
interest in the shares of stock or other ownership in both a
licensee and any other gaming activity or business unrelated to
horse racing;

(14)  Subjects the pari-mutuel system to be used by the licensee
to commission approval and outlines additional requirements of
pari-mutuel systems and duties of the operators of the systems;

(15)  Repeals the requirement that all of the licensee's
contracts for payment of compensation and any improvements to
the property be subject to commission approval;

(16)  Requires a licensee to pay to the State Treasurer an
admission fee of $2 per person for deposit into the School
Building Revolving Fund.  These funds will be considered state
funds;

(17)  Repeals fees for registration of stable names; under
current law, these fees are deposited into the General Revenue
Fund;

(18)  Designates certain percentages of wagers to be paid to the
commission, the Missouri Horse Racing Fund, and the Missouri
Breeders Fund;

(19)  Allows a licensee to contract with a race track or
off-track betting system outside Missouri and authorizes
pari-mutuel wagering on the licensee's live races meeting
certain conditions.  The revenue received from simulcast
wagering will be retained by the licensee, subject to a purse
money deduction determined by an agreement between the licensee
and the organization representing the majority of the horsemen
racing at the track;

(20)  Prohibits individuals from taking wagers for a fee outside
of the licensed race meeting grounds.  Violation is a class C
felony;

(21)  Makes it a class A misdemeanor to operate pari-mutuel
wagering without an appropriate license or in a manner other
than authorized; and

(22)  Specifies that the moneys in the Missouri Breeders Fund
will be used to establish a program to encourage and reward
owners and breeders of Missouri-bred horses that win horse races
in the state, subject to rules established by the commission.
The program will include a "Missouri Bred" event within 2 years
of the first race held and which will be held at least twice
each calendar year.

FISCAL NOTE:  Estimated Cost to General Revenue Fund of $0 to
$100,000 in FY 2002, FY 2003, and FY 2004.  Estimated Net Effect
to Missouri Horse Racing Fund of $0 in FY 2002, FY 2003, and FY
2004.  Estimated Net Income to the School Building Revolving
Fund of $0 to Unknown in FY 2002, FY 2003, and FY 2004.  Income
to Missouri Breeders Fund of $0 to Unknown in FY 2002, FY 2003,
and FY 2004.

Missouri House of Representatives
Last Updated November 26, 2001 at 11:46 am