AN ACT Relating to horse racing; amending RCW 67.16.014, 67.16.102, 67.16.105, 67.16.130, 67.16.170, and 67.16.200; reenacting and amending RCW 67.16.100 and 67.16.175; repealing RCW 67.16.210, 67.16.220, 67.16.910, and 67.16.911; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 67.16.014 and 1987 c 453 s 3 are each amended to read as follows:

In addition to the commission members appointed under RCW 67.16.012, there shall be four ex officio nonvoting members consisting of: (1) Two members of the senate, one from the majority political party and one from the minority political party, both to be appointed by the president of the senate; and (2) two members of the house of representatives, one from the majority political party and one from the minority political party, both to be appointed by the speaker of the house of representatives. The appointments shall be for the term of two years or for the period in which the appointee serves as a legislator, whichever expires first. Members may be reappointed, and vacancies shall be filled in the same manner as original appointments are made. The ex officio members shall assist in the policy making, rather than administrative, functions of the commission, and shall collect data deemed essential to future legislative proposals and exchange information with the commission. The ex officio members shall be deemed engaged in legislative business while in attendance upon the business of the commission and shall be limited to such allowances therefor as otherwise provided in RCW 44.04.120, the same to be paid from the horse racing commission fund as being expenses relative to commission business.

((~~This section shall expire on October 31, 1991.~~))

Sec. 2. RCW 67.16.100 and 1985 c 466 s 67 and 1985 c 146 s 6 are each reenacted and amended to read as follows:

In addition to the license fees required by this chapter, the licensee shall pay to the commission the percentages of the gross receipts of all parimutuel machines at each race meet in accordance with RCW 67.16.105, which sums shall be paid daily to the commission.

All sums paid to the commission, together with all sums collected for license fees under the provisions of this chapter, shall be disposed of by the commission as follows: ((~~Twenty‑two~~)) Fifty percent thereof shall be retained by the commission for the payment of the salaries of its members, secretary, clerical, office, and other help and all expenses incurred in carrying out the provisions of this chapter. No salary, wages, expenses, or compensation of any kind shall be paid by the state in connection with the work of the commission. ((~~Forty~~)) One percent shall, on the next business day following the receipt thereof, be paid to the state treasurer to be deposited in the general fund, and three percent shall, on the next business day following the receipt thereof, be paid to the state treasurer, who is hereby made ex officio treasurer of a fund to be known as the "state trade fair fund" which shall be maintained as a separate and independent fund, and made available to the director of trade and economic development for the sole purpose of assisting state trade fairs. ((~~Thirty-five~~)) Forty-six percent shall be paid to the state treasurer, who is hereby made ex officio treasurer of a fund to be known as the "fair fund," which shall be maintained as a separate and independent fund outside of the state treasury, and made available to the director of agriculture for the sole purpose of assisting fairs in the manner provided in Title 15 RCW. Any moneys collected or paid to the commission under the terms of this chapter and not expended at the close of the fiscal biennium shall be paid to the state treasurer and be placed in the general fund. The commission may, with the approval of the office of financial management, retain any sum required for working capital.

Sec. 3. RCW 67.16.102 and 1982 c 132 s 5 are each amended to read as follows:

(1) Notwithstanding any other provision of chapter 67.16 RCW to the contrary the licensee shall withhold and shall pay daily to the commission, in addition to the percentages authorized by RCW 67.16.100 and 67.16.130, as now or hereafter amended, and RCW 67.16.105, one percent of the gross receipts of all parimutuel machines at each race meet which sums shall, at the end of each meet, be paid by the commission to the licensed owners of those horses finishing first, second, third and fourth Washington bred only at each meet from which the additional one percent is derived in accordance with an equitable distribution formula to be promulgated by the commission prior to the commencement of each race meet: PROVIDED, That nothing in this section shall apply to race meets which are nonprofit in nature, or of ten days or less or which have an average daily handle of less than one hundred twenty thousand dollars: PROVIDED, That the additional one percent of the gross receipts of all parimutuel machines at each race meet and the amount retained by the commission as specified in RCW 67.16.100 shall be deposited daily in a time deposit by the commission and the interest derived therefrom shall be distributed annually on an equal basis to those race courses at which independent race meets are held which are nonprofit in nature and are of ten days or less: PROVIDED, That prior to receiving a payment under this section any new race course shall meet the qualifications set forth in this section for a period of two years: PROVIDED, FURTHER, That said distributed funds shall be used for the purpose of maintaining and upgrading the respective racing courses and equine quartering areas of said nonprofit meets. The commission shall not permit the licensees to take into consideration the benefits derived from this section in establishing purses.

(2) The commission is authorized to pay fifty percent of the funds retained under this section to a new licensee, from that new licensee's race meet, for reimbursement of capital construction of the licensee's new racetrack for a period of five years.

Sec. 4. RCW 67.16.105 and 1987 c 347 s 4 are each amended to read as follows:

((~~Except as provided for satellite wagers in RCW 67.16.210,~~)) The licensee shall pay to the commission daily for each authorized day of racing the following applicable percentage of all daily gross receipts from all parimutuel machines at each race meet, including satellites:

(1) If the daily gross receipts of all parimutuel machines, including satellites, are more than two hundred fifty thousand dollars, the licensee shall pay to the commission daily two and one‑half percent of the daily gross receipts((~~, if the daily gross receipts are two hundred thousand dollars or less~~));

(2) If the daily gross receipts of all parimutuel machines, including satellites, are two hundred fifty thousand dollars or less, the licensee shall pay to the commission daily one percent of the daily gross receipts((~~, if the daily gross receipts are two hundred thousand one dollars to four hundred thousand dollars; and~~

~~(3) Four percent of the daily gross receipts if the daily gross receipts are four hundred thousand one dollars or more~~)).

Sec. 5. RCW 67.16.130 and 1985 c 146 s 8 are each amended to read as follows:

(1) Notwithstanding any other provision of law or of chapter 67.16 RCW, the commission may license race meets which are nonprofit in nature, of ten days or less, and which have an average daily handle of one hundred twenty thousand dollars or less, at a daily licensing fee of ten dollars, and the sponsoring nonprofit association shall be exempt from any other fees as provided for in chapter 67.16 RCW or by rule or regulation of the commission: PROVIDED, That the commission on or after January 1, 1971 may deny the application for a license to conduct a racing meet by a nonprofit association, if same shall be determined not to be a nonprofit association by the Washington state racing commission.

(2) Notwithstanding any other provision of law or of chapter 67.16 RCW the licensees of race meets which are nonprofit in nature, of ten days or less, and which have an average daily handle of one hundred twenty thousand dollars or less, shall withhold and shall pay daily to the commission ((~~the percentages authorized by RCW 67.16.105, 67.16.170, and 67.16.175~~)) one-half percent.

(3) Notwithstanding any other provision of law or of chapter 67.16 RCW or any rule promulgated by the commission, no license for a race meet which is nonprofit in nature, of ten days or less, and which has an average daily handle of one hundred twenty thousand dollars or less, shall be denied for the reason that the applicant has not installed an electric parimutuel tote board.

(4) As a condition to the reduction in fees as provided for in subsection (1) ((~~hereof~~)) of this section, all fees charged to horse owners, trainers, or jockeys, or any other fee charged for a permit incident to the running of such race meet shall be retained by the commission as reimbursement for its expenses incurred in connection with the particular race meet.

Sec. 6. RCW 67.16.170 and 1987 c 347 s 2 are each amended to read as follows:

((~~Except as provided for satellite wagers in RCW 67.16.220,~~)) Race meets, including satellites, which have gross receipts of all parimutuel machines for each authorized day of racing may retain the following from the daily gross receipts of all parimutuel machines:

(1) ((~~On a daily handle of two hundred thousand dollars or less, the licensee shall retain fourteen~~)) If the daily gross receipts of all parimutuel machines, including satellites, are more than two hundred fifty thousand dollars, the licensee may retain twelve and one‑half percent of ((~~such~~)) the daily gross receipts;

(2) ((~~On a daily handle of two hundred thousand one dollars to four hundred thousand dollars, the licensee shall~~)) If the daily gross receipts of all parimutuel machines, including satellites, are two hundred fifty thousand dollars or less, the licensee may retain fourteen percent of ((~~such~~)) the daily gross receipts; and

(3) ((~~On a daily handle of four hundred thousand one dollars or more, the licensee shall retain eleven percent of such gross receipts.~~)) On licensees of race meets that are nonprofit in nature of ten days or less, and that have an average daily handle of one hundred twenty thousand dollars or less may retain fourteen and one-half percent of daily gross receipts.

Sec. 7. RCW 67.16.175 and 1987 c 453 s 1 and 1987 c 347 s 3 are each reenacted and amended to read as follows:

(1) ((~~Except as provided for satellite wagers in RCW 67.16.210 and 67.16.220, daily gross receipts of all parimutuel machines from wagers on exotic races shall be distributed according to this section:~~

(a) In addition to the amounts set forth in RCW 67.16.105, an additional two and five‑tenths percent of gross receipts on races with two or more selections and three and five‑tenths percent of gross receipts on races with three or more selections shall be paid to the commission. The commission shall retain thirty‑one percent of the additional percentages from exotic races and shall forward the balance to the state treasurer daily for deposit in the general fund.

(b) In addition to the amounts authorized to be retained in RCW 67.16.170, race meets may retain an additional three percent of the daily gross receipts of all parimutuel machines from wagers on exotic races requiring two selections to be used as provided in subsection (2) of this section.

(c) In addition to the amounts authorized to be retained in RCW 67.16.170, race meets may retain an additional six percent of the daily gross receipts of all parimutuel machines from wagers on exotic races requiring three or more selections to be used as provided in subsection (2) of this section.)) In addition to the amounts authorized to be retained in RCW 67.16.170, race meets may retain an additional six percent of the daily gross receipts of all parimutuel machines from wagers on exotic wagers.

(2) Of the amounts retained in subsection (1) ((~~(b) and (c)~~)) of this section, one percent of the daily gross receipts of all parimutuel machines from wagers on exotic wagers shall be used for Washington-bred breeder awards((~~, not to exceed twenty percent of the winner's share of the purse~~)).

(3) ((Any portion of the remaining moneys retained in subsection (1) (b) and (c) of this section shall be shared equally by the race track and participating horsemen. The amount shared by participating horsemen shall be in addition to and shall not supplant the customary purse structure between race tracks and participating horsemen)) Of the amounts retained for breeder awards in subsection (2) of this section, twenty-five percent shall be retained by a new licensee for reimbursement of capital construction of the licensee's new race track for a period of five years.

(4) As used in this section, "exotic races" means any multiple wager. Exotic races are subject to approval of the commission.

Sec. 8. RCW 67.16.200 and 1987 c 347 s 1 are each amended to read as follows:

(1) A racing association licensed by the commission to conduct a race meet may seek approval from the commission to conduct parimutuel wagering on its program at a satellite location or locations within the state of Washington. The sale of parimutuel pools at satellite locations shall be conducted only during the licensee's race meet and simultaneous to all parimutuel wagering activity conducted at the licensee's racing facility in the state of Washington. The commission's authority to approve satellite wagering at a particular location is subject to the following limitations:

(a) The commission may approve only one satellite location in each county in the state; however, the commission may grant four satellite locations in counties classified AA and two satellite locations in counties classified as A. The commission may grant approval for more than one licensee to conduct wagering at each satellite location.

(b) The commission shall not allow a licensee to conduct satellite wagering at a satellite location within ((~~fifty air~~)) twenty ground miles of the licensee's racing facility. For purposes of this section "ground miles" means miles measured from point to point in a straight line.

(c)(i) The commission may allow a licensee to conduct satellite wagering at a satellite location within fifty ((~~air~~)) ground miles of the racing facility of another licensee who conducts race meets of thirty days or more, but only if the satellite location is the racing facility of another licensee who conducts race meets of thirty days or more and only if the licensee seeking to conduct satellite wagering suspends its program during the conduct of the meets of all licensees within fifty ((~~air~~)) ground miles; except that the commission may allow a licensee that conducts satellite wagering at another track, pursuant to this subsection, to use other satellite locations, used by that track with the approval of the owner of that track, even though those satellite locations are within a fifty ground mile radius.

(ii) Subject to subsection (1)(c)(i) of this section, the commission may allow a licensee to conduct satellite wagering at a satellite location within fifty ((~~air~~)) ground miles of the racing facility of another licensee who conducts race meets of under thirty days, but only if the licensee seeking to conduct satellite wagering suspends its satellite program during the conduct of the meets of all licensees within fifty ((~~air~~)) ground miles.

(2) Subject to local zoning and other land use ordinances, the commission shall be the sole judge of whether approval to conduct wagering at a satellite location shall be granted.

(3) The licensee shall combine the parimutuel pools of the satellite location with those of the racing facility for the purpose of determining odds and computing payoffs. The amount wagered at the satellite location shall be combined with the amount wagered at the racing facility for the application of take out formulas and distribution as provided in RCW 67.16.102, 67.16.105, 67.16.130, 67.16.170, and 67.16.175((~~, 67.16.210, and 67.16.220~~)). A satellite extension of the licensee's racing facility shall be subject to the same application of the rules of racing as the licensee's racing facility.

NEW SECTION. Sec. 9. The following acts or parts of acts are each repealed:

(1) RCW 67.16.210 and 1987 c 347 s 5;

(2) RCW 67.16.220 and 1987 c 347 s 6;

(3) RCW 67.16.910 and 1990 c 297 s 24; and

(4) RCW 67.16.911 and 1990 c 297 s 25.

NEW SECTION. Sec. 10. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.