SENATE BILL REPORT

                  ESHB 3045

              As Reported By Senate Committee On:

Commerce, Trade, Housing & Financial Institutions, February 24, 2000

Title:  An act relating to class 1 racing licenses.

Brief Description:  Clarifying the requirements for a class 1 racing license.

Sponsors:  House Committee on Commerce & Labor (originally sponsored by Representatives Wood and Clements).

Brief History:

Committee Activity:  Commerce, Trade, Housing & Financial Institutions:  2/22/2000, 2/24/2000 [DP].

SENATE COMMITTEE ON COMMERCE, TRADE, HOUSING & FINANCIAL INSTITUTIONS

Majority Report:  Do pass.

  Signed by Senators Prentice, Chair; Shin, Vice Chair; Benton, Deccio, Gardner, Hale, Heavey, Rasmussen, T. Sheldon, West and Winsley.

Staff:  Catherine Mele (786-7470)

Background:  A class 1 racing association is a racing association licensed by the Horse Racing Commission, that conducts live racing for at least 40 days during a consecutive four-month period in any 12-month period.  The commission may increase the number of live racing days required to maintain an association's class 1 racing status.

Only class 1 racing associations may simulcast out-of-state horse races to an in-state facility.  When a racing association is conducting a live race meet, it may simulcast a limited number of out-of-state races on live race days and on two nonlive race days each week.  When no live race meet is being conducted at a race track, the racing association may simulcast racing for up to 12 hours a day, five days a week.  A class 1 racing association may also export the signal from its own live races to out-of-state locations.

A class 1 racing association generates revenue from parimutuel wagering on races conducted live at its own racing facility and from races run in other states and simulcasted to the live in-state race track facility.

Summary of Bill:  A class 1 racing association is a horse racing licensee approved to conduct live racing at least 40 days during a 12-month period.

A racing association may simulcast races to the live track facility for up to 14 hours a day, five days a week during the nonrace meet period where no live racing is being conducted.

If a live race is canceled due to acts of God, labor disruptions not involving the licensees or employees, or other circumstances beyond the control of the class 1 racing association, the canceled day counts toward the 40-day requirement for class 1 racing association status.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This is an industry that is trying to get back on its feet.  Lilac City Racing Association in Spokane is licensed this year to race 43 days from September 18 through December 20.  There is concern that the weather or other occurrences beyond the control of the association may cause cancellation of race days that may risk its class 1 racing status.  Simulcasting helps support the industry and without it the track may not be able to stay in business.  An increase from 12 hours to 14 hours allows races taking place on the east coast to be scheduled with races from the west coast during the same day.  The Horse Racing Commission supports this legislation.

Testimony Against:  None.

Testified:  Rep. Wood, prime sponsor.