HOUSE BILL REPORT

EHB 831

BYRepresentatives Leonard, Madsen and Hankins

Increasing retained percentage for horse racing commission from specified races.

House Committe on Commerce & Labor

Majority Report:     Do pass.  (10)

     Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, R. King, O'Brien, Patrick, Sanders, Sayan and C. Smith.

House Staff:Joan Elgee (786-7166)

Rereferred House Committee on Ways & Means

Majority Report:     Do pass with amendment.  (26)

     Signed by Representatives Grimm, Chair; Bristow, Vice Chair; Appelwick, Basich, Belcher, Braddock, Brekke, Ebersole, Fuhrman, Grant, Hine, Holland, Locke, Madsen, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Schoon, Silver, H. Sommers, Sprenkle, Valle and Winsley.

House Staff:    Susan Kavanaugh (786-7145)

AS PASSED HOUSE APRIL 21, 1987

BACKGROUND:

Parimutuel monies from horse racing are allocated by statute. 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 statute go to the betters 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 receives 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 receives 22 percent and the general fund receives 78 percent.

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

SUMMARY:

The percentage of daily gross receipts on exotic races retained by Horse Racing Commission is raised from 22 percent to 31 percent.

Four nonvoting legislative members are added to the Horse Racing Commission.  Two members shall 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 shall be from the majority party and one member shall be from the minority party.  The legislative members shall 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.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     (Commerce & Labor)  Will Bachofner and Lyle Smith, Horse Racing Commission; Ralph Vacca, Washington Thoroughbred Breeders Association; Bob Dellinger, Washington State Standardbred Association; and Juli McMurray, Breeder.

(Ways & Means)  Will Bachofner, Horse Racing Commission; Margo Smith, Horse Racing Commission.

House Committee - Testified Against: (Commerce & Labor)  None Presented.

(Ways & Means)  None Presented.

House Committee - Testimony For:     (Commerce & Labor)  The Horse Racing Commission needs the additional funds to properly perform its activities.  These include the Washington-bred certification program, drug testing and education, and increased security.

(Ways & Means)  The Horse Racing Commission needs the increase to fulfill its duties.  Costs have risen and revenues have not.  Legislature still appropriates expenditures.

House Committee - Testimony Against: (Commerce & Labor)  None Presented.

(Ways & Means)  None Presented.