HOUSE BILL REPORT

HB 2125

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by House Committee On:

Appropriations Subcommittee on General Government & Information Technology

Title: An act relating to removing the requirements that all fines collected be credited to the Washington horse racing commission class C purse fund account.

Brief Description: Removing the requirements that all fines collected be credited to the Washington horse racing commission class C purse fund account.

Brief History:

Committee Activity:

Appropriations Subcommittee on General Government & Information Technology: 1/29/14 [DPS].

Brief Summary of Substitute Bill

Removes the requirement that fines collected by the Washington Horse Racing Commission be deposited into the Class C Purse Fund Account.
Specifies that fine receipts must be credited to the Horse Racing Commission Operating Account and used to support nonprofit racing.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Hudgins, Chair; Parker, Ranking Minority Member; Buys, Christian, Dunshee, S. Hunt, Jinkins, Springer and Taylor.

Background:

The Washington Horse Racing Commission (Commission) is responsible for licensing, regulating, and supervising horse racing in the state.

The Commission may collect fines from licensees who violate Commission rules. Receipts from these fines must be credited to the Class C Purse Fund. The Class C Purse Fund also receives one-tenth of 1 percent of daily gross receipts of in-state pari-mutuel machines and is used for purse awards for qualifying nonprofit race meets.

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Summary of Substitute Bill:

Receipts from fines must be deposited and retained in the Horse Racing Commission Operating Account and used to support nonprofit racing.

Substitute Bill Compared to Original Bill:

The original bill removed the requirement that fines be credited to the Class C Purse Fund, but did not specify a new destination fund for these receipts. The substitute bill specifies that fine receipts must be credited to the Horse Racing Commission Operating Account.

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Appropriation: None.

Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of the session in which the bill is passed.

Staff Summary of Public Testimony:

(In support) There is a drafting error in the original bill; money from fines is intended to be for the Horse Racing Commission Operating Account, not the State General Fund.

This is a "housekeeping bill" that cleans up statute to align with the intent of legislation passed in 2011. The money will still be used to support Class C (nonprofit) racing, but stakeholders have expressed that operational support is more important to that end than purse money.

(Opposed) None.