SENATE BILL REPORT

                  ESHB 1247

              As Reported By Senate Committee On:

            Labor, Commerce & Trade, March 30, 1995

Title:  An act relating to Washington thoroughbred racing.

Brief Description:  Promoting horse racing.

Sponsors:  House Committee on Commerce & Labor (originally sponsored by Representatives L. Thomas, Lisk, G. Fisher, Robertson, Casada, Basich, Clements, Ebersole, Horn, Boldt, Mason, B. Thomas, Cairnes, Radcliff, Foreman, Cooke, Chandler, Mielke, Dyer, Mitchell, Schoesler, Skinner, Appelwick, Sheldon, Costa and Morris).

Brief History:

Committee Activity:  Labor, Commerce & Trade:  3/30/95 [DP].

SENATE COMMITTEE ON LABOR, COMMERCE & TRADE

Majority Report:  Do pass.

  Signed by Senators Pelz, Chair; Heavey, Vice Chair; Deccio, Franklin, Fraser, Hale, Newhouse, Palmer and Wojahn.

Staff:  Max Williams (786-7439)

Background:   In 1991, the Legislature required licensed nonprofit corporations that have race meets of 30 days or more to pay 2.5 percent of their daily gross receipts to the Horse Racing Commission for deposit into the Washington Thoroughbred Fund.  The only operator required to contribute to the fund under this provision was the nonprofit Emerald Racing Association.  In 1993, legislation reduced Emerald's contribution to the fund to 1.25 percent, and required Emerald to use the additional money it retained to enhance purses for the owners of winning horses.  In 1994, further legislation allowed the 1.25 percent previously deposited into the thoroughbred fund, to be deposited into escrow or trust accounts, solely for the construction of a new race track facility in western Washington.

Currently, 1.25 percent is withheld for the purses, and 1.25 percent is deposited into a trust account.  Both provisions terminate on June 1, 1995, when the licensees will be required to put the entire 2.5 percent of daily gross receipts back into the Washington Thoroughbred Fund.

Summary of Bill:  The termination date of June 1, 1995, for the provisions that earmark 1.25 percent of daily gross receipts for purse enhancement and 1.25 percent to an escrow or trust account is removed.

Appropriation:  None.

Fiscal Note:  Requested on March 15, 1995.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  This bill is necessary for survival of the Washington horse racing industry and is consistent with the intent of past legislatures.

Testimony Against:  None.

Testified:  Representative Les Thomas, prime sponsor.