WSR 03-04-090

PROPOSED RULES

HORSE RACING COMMISSION


[ Filed February 4, 2003, 10:33 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 03-01-017.

Title of Rule: New section WAC 260-72-040 Transmission of simulcast signal to an account wagering facility.

Purpose: To allow for the transmission of a live race signal from a class 1 racing association to an account wagering facility only in accordance with RCW 67.16.200(4) and the Interstate Horse Racing Act, 15 U.S.C. sections 3001 to 3007.

Statutory Authority for Adoption: RCW 67.16.020.

Summary: The rule will allow a class 1 racing association in Washington state to send a simulcast signal of their live races to an account wagering facility only when it complies with RCW 67.16.200(4) and the Interstate Horse Racing Act, 15 U.S.C. sections 3001 to 3007.

Name of Agency Personnel Responsible for Drafting: Robert J. Lopez, Olympia, Washington, (360) 459-6462; Implementation and Enforcement: Robert M. Leichner, Olympia, Washington, (360) 459-6462.

Name of Proponent: Washington Horse Racing Commission, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The proposed rule will allow for a class 1 racing association as defined in RCW 67.16.200(7) to transmit simulcast of live horse races conducted at its tracks to an account wagering facility outside of the state of Washington only when it complies with RCW 67.16.200(4) and the Interstate Horse Racing Act, 15 U.S.C. sections 3001 to 3007.

Proposal does not change existing rules.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The changes will not impose any costs upon businesses in the horse racing industry.

RCW 34.05.328 does not apply to this rule adoption. The rule is not subject to this section under RCW 34.05.328 (5)(a).

Hearing Location: Auburn City Council Chambers, 25 West Main, Auburn, WA 98001, (253) 931-3041, on March 13, 2003, at 1:00 p.m.

Submit Written Comments to: Robert M. Leichner, Washington Horse Racing Commission, 6326 Martin Way, #209, Olympia, WA 98516-5578, fax (360) 459-6461, by March 12, 2003.

Date of Intended Adoption: March 13, 2003.

February 3, 2003

R. M. Leichner

Executive Secretary


NEW SECTION
WAC 260-72-040   Transmission of simulcast signal to account wagering facility.   (1) A class 1 racing association may transmit simulcasts of live horse races conducted at its racetrack to an account wagering facility only in accordance with this section, RCW 67.16.200(4), and the interstate horse racing act, 15 U.S.C. Sections 3001 to 3007. In this section, "class 1 racing association" or "association" means the same as in RCW 67.16.200(7).

(2) In this section, "account wagering facility" or "facility" means a business, other than a racing association, that

(a) Facilitates pari-mutuel wagering on horse races it simulcasts;

(b) Is conducted outside the state of Washington; and

(c) Is licensed or otherwise permitted by law in the state in which it is located.

(3) To transmit a simulcast signal under this section, an association must file an application on a form provided by the commission at least 30 days before the first simulcast race covered by the application. The executive secretary may approve a request to simulcast under this section, subject to rescission of the approval by the commission within 60 days. The application must include at a minimum:

(a) A copy of the written contract or agreement between the class 1 association and the account wagering facility and an assurance that the commission will be notified of any other agreements between the association and the facility pertaining to this section, whether written or oral;

(b) Written approval from the horsemen's association representing the majority of owners and trainers racing at the class 1 racing association;

(c) Written approval from the appropriate regulatory authority in the state where the account wagering facility is located.

(d) A description of how the state where the facility is located regulates and monitors the account wagering facility for compliance with applicable law and for the protection of the public.

(e) Dates of the live race meet for which the application is being made.

(4) The written agreement between the class 1 racing association and the account wagering facility must contain substantially the following terms:

(a) A specific description of the fee structure and fees to be paid to the association under the agreement;

(b) A provision requiring the facility to maintain books, records, documents, data and other evidence relating to the agreement entered into under this section, sufficiently and properly reflecting all operations and financial transactions under the agreement. The facility must retain these records for at least two years after the agreement is terminated. At no additional cost, the facility must make these records available at all reasonable times to inspection, review or audit by authorized commission personnel and shall permit copying of such records at commission expense.

(c) A provision requiring the facility to agree it shall not accept any wager that violates Washington law, including any wager originating in the state of Washington unless affirmatively permitted by Washington law.

(d) If the commission deems the state compliance and monitoring efforts described in WAC 260-72-040 (3)(d) and contained in the application sufficient to ensure the integrity of all operations and financial transactions under the agreement, the commission may, in its sole discretion, waive the requirement in WAC 260-72-040 (4)(b).

(e) The executive secretary may require the association to submit additional information if he or she determines the additional information is necessary for the commission to effectively evaluate the application.

(f) Approval of an application under this section shall be in effect from the date of approval through the close of the live race meet for which the application is made, unless rescinded by the commission under subsection (3).

(g) The commission's approval of a specific application under this section is not binding on the commission as to any other application.

(6) In determining whether to approve an application under this section, the commission shall consider the following factors:

(a) The impacts on all Washington racing associations, Washington horsemen, and the Washington horse racing industry.

(b) Whether the commission deems the state compliance and monitoring efforts described in WAC 260-72-040 (3)(d) and contained in the application sufficient to ensure the integrity of all operations and financial transactions under the agreement.

(c) Any other factor the commission identifies on the record as relevant to its approval.

(7) No class 1 racing association shall enter a written agreement under this section that is in violation of, or may be construed as waiving any provision of chapter 67.16 RCW, Title 260 WAC or any applicable federal, state or local law.

(8) Every class 1 racing association approved to transmit a simulcast signal under this section shall file with the commission an annual report of its operations under this section, including amounts deposited into the horsemen's purse account under 67.16.200(4) and other financial data as specified by the commission.

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Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.

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