FINAL BILL REPORT

HB 831

                                  C 453 L 87

BYRepresentatives Leonard, Madsen and Hankins

Increasing retained percentage for horse racing commission from specified races.

House Committe on Commerce & Labor

House Committe on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Parimutuel monies from horse racing are allocated by law. Percentages of the daily gross receipts are designated for the state, the licensed race meets, and trade and agricultural fair funds.  The amounts not specifically designated by law go to the bettors at the race meets.

The state's share is 0.5 percent on daily gross receipts of $200,000 or less, 1.0 percent on daily gross receipts from $200,001 to $400,000, and 4.0 percent on daily gross receipts over $400,000.  Of the state's share, the Horse Racing Commission retains 22 percent and the General Fund receives 40 percent.  For exotic races, which are those involving multiple wagers, the state receives an additional 2.5 percent on races with two selections and 3.5 percent on races with three or more selections.  Of the additional amounts, the commission retains 22 percent and the General Fund receives 78 percent.

The Horse Racing Commission is composed of three members appointed for six-year terms by the governor, with the consent of the Senate.  One of the commissioners must be a race horse breeder of at least one year's standing.

SUMMARY:

The percentage of the state's additional share of daily gross receipts on exotic races retained by the Horse Racing Commission is raised from 22 percent to 31 percent.  Therefore, the percentage received by the General Fund is reduced from 78 percent to 69 percent.

Four nonvoting legislative members are added to the Horse Racing Commission.  Two members must be from the Senate and two from the House, respectively appointed by the President of the Senate and the Speaker of the House.  One member from each house must be from the majority party and one member from the minority party.  The legislative members will assist in the policy making, rather than administrative functions of the commission.  The provision adding the legislative members has an expiration date of October 31, 1991.

VOTES ON FINAL PASSAGE:

      House 94   2

      Senate    36    12

EFFECTIVE:July 26, 1987