AN
ACT Relating to benefiting the equine industry by parimutuel satellite and
simulcast wagering restricted to live racing facilities and providing lottery
games; amending RCW 67.16.050, 67.16.105, and 67.16.200; creating a new
section; repealing RCW 67.16.190 and 67.16.250; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that Washington's equine racing industry creates economic,
environmental, and recreational impacts across the state affecting agriculture,
horse breeding, the horse training industry, agricultural fairs and youth
programs, and tourism and employment opportunities. The Washington equine
industry has incurred a financial decline coinciding with increased competition
from the gaming industry in the state and from the lack of a class 1 racing
facility in western Washington from 1993 through 1995. This act is necessary
to preserve, restore, and revitalize the equine breeding and racing industries
and to preserve in Washington the economic and social impacts associated with
these industries. Preserving Washington's equine breeding and racing
industries, and in particular those sectors of the industries that are
dependent upon live horse racing, is in the public interest of the state. The
purpose of this act is to preserve Washington's equine breeding and racing
industries and to protect these industries from adverse economic impacts. This
act does not establish a new form of gaming in Washington or allow expanded
gaming within the state beyond what has been previously authorized. Simulcast
wagering has been allowed in Washington before the effective date of this act.
Therefore, this act does not allow gaming of any nature or scope that was
prohibited before the effective date of this act.
Sec.
2. RCW
67.16.050 and 1985 c 146 s 3 are each amended to read as follows:
Every
person making application for license to hold a race meet, under the provisions
of this chapter shall file an application with the commission which shall set
forth the time, the place, the number of days such meet will continue, and such
other information as the commission may require. The commission shall be the
sole judge of whether or not the race meet shall be licensed and the number of
days the meet shall continue. No person who has been convicted of any crime
involving moral turpitude shall be issued a license, nor shall any license be
issued to any person who has violated the terms or provisions of this chapter,
or any of the rules and regulations of the commission made pursuant thereto, or
who has failed to pay to the commission any or all sums required under the
provisions of this chapter. The license shall specify the number of days the
race meet shall continue and the number of races per day, which shall ((be))
include not less than six nor more than eleven live races per day,
and for which a fee shall be paid daily in advance of five hundred dollars for
each live race day for those ((meets)) licensees which had
gross receipts from parimutuel machines in excess of fifty million dollars in
the previous year and two hundred dollars for each day for meets which had
gross receipts from parimutuel machines at or below fifty million dollars in
the previous year; in addition any newly authorized live race meets
shall pay two hundred dollars per day for the first year: PROVIDED, That if
unforeseen obstacles arise, which prevent the holding, or completion of any
race meet, the license fee for the meet, or for a portion which cannot be held
may be refunded the licensee, if the commission deems the reasons for failure
to hold or complete the race meet sufficient. Any unexpired license held by
any person who violates any of the provisions of this chapter, or any of the
rules or regulations of the commission made pursuant thereto, or who fails to
pay to the commission any and all sums required under the provisions of this
chapter, shall be subject to cancellation and revocation by the commission.
Such cancellation shall be made only after a summary hearing before the
commission, of which three days' notice, in writing, shall be given the
licensee, specifying the grounds for the proposed cancellation, and at which
hearing the licensee shall be given an opportunity to be heard in opposition to
the proposed cancellation.
Sec.
3. RCW
67.16.105 and 1995 c 173 s 2 are each amended to read as follows:
(1)
Licensees of race meets that are nonprofit in nature, are of ten days or less,
and have an average daily handle of one hundred twenty thousand dollars or less
shall withhold and pay to the commission daily for each authorized day of
racing one-half percent of the daily gross receipts from all parimutuel
machines at each race meet.
(2)
Licensees ((of race meets)) that do not fall under subsection (1) of
this section shall withhold and pay to the commission ((daily for each
authorized day of racing)) the following applicable percentage of all daily
gross receipts from ((all)) its in-state parimutuel machines ((at
each race meet)):
(a)
If the daily gross receipts of all its in-state parimutuel machines are
more than two hundred fifty thousand dollars, the licensee shall withhold and
pay to the commission daily two and one-half percent of the daily gross
receipts; and
(b)
If the daily gross receipts of all its in-state parimutuel machines are
two hundred fifty thousand dollars or less, the licensee shall withhold and pay
to the commission daily one percent of the daily gross receipts.
(3)
In addition to those amounts in subsections (1) and (2) of this section, ((all))
a licensee((s)) shall forward one-tenth of one percent of the
daily gross receipts of all its in-state parimutuel machines to the
commission ((daily)) for payment to those nonprofit race meets as set
forth in RCW 67.16.130 and subsection (1) of this section, but said percentage
shall not be charged against the licensee((s. The total of such payments
shall not exceed one hundred fifty thousand dollars in any one year and any
amount in excess of one hundred fifty thousand dollars shall be remitted to the
general fund)). Payments to nonprofit race meets under this subsection
shall be distributed on a pro rata per-race-day basis and used only for purses
at race tracks that have been operating under RCW 67.16.130 and subsection (1)
of this section for the five consecutive years immediately preceding the year
of payment.
(((4)
In addition to those sums paid to the commission in subsection (2) of this
section, licensees who are nonprofit corporations and have race meets of thirty
days or more shall retain and dedicate: (a) An amount equal to one and
one-quarter percent of the daily gross receipts of all parimutuel machines at
each race meet to be used solely for the purpose of increasing purses; and (b)
an amount equal to one and one-quarter percent of the daily gross receipts of
all parimutuel machines at each race meet to be deposited in an escrow or trust
account and used solely for construction of a new thoroughbred race track
facility in western Washington. Said percentages shall come from that amount
the licensee is authorized to retain under RCW 67.16.170(2). The commission
shall adopt such rules as may be necessary to enforce this subsection.
(5)
In the event the new race track is not constructed before January 1, 2001, all
funds including interest, remaining in the escrow or trust account established
in subsection (4) of this section, shall revert to the state general fund.))
Sec.
4. RCW
67.16.200 and 1991 c 270 s 10 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 live 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 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 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 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 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
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 ground miles)). A satellite location
shall not be operated within twenty driving miles of any class 1 racing
facility. For the purposes of this section, "driving miles" means
miles measured by the most direct route as determined by the commission; and
(b)
A licensee shall not conduct satellite wagering at any satellite location
within sixty driving miles of any other racing facility conducting a live race
meet.
(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, 67.16.170,
and 67.16.175. 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.
(4)
Upon written application to the commission, a class 1 racing association may be
authorized to transmit simulcasts of live horse races conducted at its
racetrack to locations outside of the state of Washington approved by the
commission and in accordance with the interstate horse racing act of 1978 (15
U.S.C. Sec. 3001 to 3007) or any other applicable laws. The commission may
permit parimutuel pools on the simulcast races to be combined in a common pool.
A racing association that transmits simulcasts of its races to locations
outside this state shall pay at least fifty percent of the fee that it receives
for sale of the simulcast signal to the horsemen's purse account for its live
races after first deducting the actual cost of sending the signal out of state.
(5)
Upon written application to the commission, a class 1 racing association may be
authorized to transmit simulcasts of live horse races conducted at its
racetrack to licensed racing associations located within the state of
Washington and approved by the commission for the receipt of the simulcasts.
The commission shall permit parimutuel pools on the simulcast races to be
combined in a common pool. The fee for in-state, track-to-track simulcasts
shall be five and one-half percent of the gross parimutuel receipts generated
at the receiving location and payable to the sending racing association. A
racing association that transmits simulcasts of its races to other licensed
racing associations shall pay at least fifty percent of the fee that it
receives for the simulcast signal to the horsemen's purse account for its live
race meet after first deducting the actual cost of sending the simulcast
signal. A racing association that receives races simulcast from class 1 racing
associations within the state shall pay at least fifty percent of its share of
the parimutuel receipts to the horsemen's purse account for its live race meet
after first deducting the purchase price and the actual direct costs of importing
the race.
(6)
A class 1 racing association may be allowed to import simulcasts of horse races
from out-of-state racing facilities. With the prior approval of the
commission, the class 1 racing association may participate in an interstate
common pool and may change its commission and breakage rates to achieve a
common rate with other participants in the common pool.
(a)
The class 1 racing association shall make written application with the
commission for permission to import simulcast horse races for the purpose of
parimutuel wagering. Subject to the terms of this section, the commission is
the sole authority in determining whether to grant approval for an imported
simulcast race.
(b)
During the conduct of its race meeting, a class 1 racing association may be
allowed to import no more than one simulcast race card program during each live
race day. A licensed racing association may also be approved to import one
simulcast race of regional or national interest on each live race day. A class
1 racing association may be permitted to import two simulcast programs on two
nonlive race days per each week during its live meet. A licensee shall not
operate parimutuel wagering on more than five days per week. Parimutuel
wagering on imported simulcast programs shall only be conducted at the live
racing facility of a class 1 racing association.
(c)
The commission may allow simulcast races of regional or national interest to be
sent to satellite locations. The simulcasts shall be limited to one per day
except for Breeder's Cup special events day.
(d)
When open for parimutuel wagering, a class 1 racing association which imports
simulcast races shall also conduct simulcast parimutuel wagering within its
licensed racing enclosure on all races simulcast from other class 1 racing
associations within the state of Washington.
(e)
When not conducting a live race meeting, a class 1 racing association may be
approved to conduct simulcast parimutuel wagering on imported simulcast races.
The conduct of simulcast parimutuel wagering on the simulcast races shall be
for not more than twelve hours during any twenty-four hour period, for not more
than five days per week and only at its live racing facility.
(f)
On any imported simulcast race, the class 1 racing association shall pay fifty
percent of its share of the parimutuel receipts to the horsemen's purse account
for its live race meet after first deducting the purchase price of the imported
race and the actual costs of importing the race.
(7)
For purposes of this section, a class 1 racing association is defined as a
licensee approved by the commission which conducts during each twelve-month
period at least forty days of live racing within four successive calendar
months. The commission may by rule increase the number of live racing days
required to maintain class 1 racing association status.
(8)
This section does not establish a new form of gaming in Washington or allow
expanded gaming within the state beyond what has been previously authorized.
Simulcast wagering has been allowed in Washington before the effective date of
this act. Therefore, this section does not allow gaming of any nature or scope
that was prohibited before the effective date of this act. This section is
necessary to protect the Washington equine breeding and racing industries, and
in particular those sectors of these industries that are dependent upon live
horse racing. The purpose of this section is to protect these industries from
adverse economic impacts and to promote fan attendance at class 1 racing
facilities. Therefore, imported simulcast race card programs shall not be
disseminated to any location outside the live racing facility of the class 1
racing association and a class 1 racing association is strictly prohibited from
simulcasting imported race card programs to any location outside its live
racing facility.
NEW
SECTION. Sec. 5. (1)
The joint legislative audit and review committee shall conduct an evaluation to
determine the extent to which this act has achieved the following outcomes:
(a)
The extent to which purses at Emerald Downs, Playfair, and Yakima Meadows have
increased as a result of the provisions of this act;
(b)
The extent to which attendance at Emerald Downs, Playfair, and Yakima Meadows
has increased specifically as a result of the provisions of this act;
(c)
The extent to which the breeding of horses in this state has increased
specifically related to the provisions of this act;
(d)
The extent to which the number of horses running at Emerald Downs, Playfair,
and Yakima Meadows has increased specifically as a result of the provisions of
this act;
(e)
The extent to which nonprofit racetracks in this state have benefitted from
this act including the removal of the cap on the nonprofit race meet purse
fund; and
(f)
The extent to which Emerald Downs, Playfair, and Yakima Meadows are capable of
remaining economically viable given the provisions of this act and the increase
in competition for gambling or entertainment dollars.
(2)
The joint legislative audit and review committee may provide recommendations to
the legislature concerning modifications that could be made to existing state
laws to improve the ability of this act to meet the above intended goals.
(3)
The joint legislative audit and review committee shall complete a report on its
finding by June 30, 2000. The report shall be provided to the appropriate
committees of the legislature by December 1, 2000.
NEW
SECTION. Sec. 6. The
following acts or parts of acts are each repealed:
(1) RCW
67.16.190 and 1985 c 146 s 12 & 1981 c 70 s 3; and
(2) RCW
67.16.250 and 1994 c 159 s 3 & 1991 c 270 s 12.
NEW
SECTION. Sec. 7. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW
SECTION. Sec. 8. 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 takes effect immediately.
