wa-law.org > bill > 2023-24 > SB 5598 > Substitute Bill
The commission may impose fees, as the commission deems reasonable and appropriate, in compliance with the horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et seq., as amended. The commission may adopt rules to implement this section.
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 include not less than six nor more than 11 live races per day, and for which a fee shall be paid daily in advance of $200; in addition any newly authorized live race meets shall pay $200 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.
The Washington horse racing commission operating account is created in the custody of the state treasurer. All receipts collected by the commission under RCW 67.16.105(2) must be deposited into the account. Beginning July 1, 2023, through July 1, 2029, the legislature must annually appropriate $6,000,000 from the general fund to this account. Expenditures from the account may be used only for the operating expenses of the commission and for purposes set forth in subsection (3) of this section. Only the commission or the commission's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
The commission has the authority to receive such gifts, grants, and endowments from public or private sources as may be made from time to time in trust or otherwise for the use and purpose of regulating or supporting nonprofit race meets as set forth in RCW 67.16.130 and 67.16.105(1); such gifts, grants, and endowments must also be deposited into the horse racing commission operating account and expended according to the terms of such gift, grant, or endowment.
Expenditures from the account must be used for the operating expenses of the commission, with the remaining amount distributed annually as follows:
10 percent for grants to nonprofit entities involved with equine shows, fairs, competitions, performances, parades, youth programs, or educational programs related to equines;
20 percent to nonprofit entities with programs to improve working conditions for employees and families working in the stable areas at covered tracks. The programs may include, but are not limited to, low-fee dental care, medical and burial assistance, educational and recreational programs, disaster relief, and assistance for department of labor and industries claim monitoring programs;
10 percent for grants to class C race meets under RCW 67.16.130. Grants for the nonprofit race meets must not exceed 10 percent of the funds. If there are less than 10 nonprofit race days awarded, the remainder may be distributed by grant to other approved allocations under this subsection (3) based on greatest need; and
60 percent to the class 1 racing associations allocated by grant by the Washington horse racing commission. Most of the grant funding must be used for equine health and safety programs, research, racetrack surface improvements, and long-term maintenance of the racing surface. Additional allocations may be made for veterinary staff, track security, on-duty paramedics, emergency medical technicians, starting gate personnel, race-day outriders, purchase of track surface materials, and track safety maintenance equipment.
On December 1, 2023, and annually thereafter, the commission must report to the appropriate committees of the legislature on the use of grant funds and criteria used to determine grant awards established in subsection (3) of this section.
Licensees of race meets that are nonprofit in nature and are of ten days or less are exempt from payment of a parimutuel tax.
Licensees that do not fall under subsection (1) of this section must withhold and pay to the commission daily for each authorized day of parimutuel wagering the following applicable percentage of all daily gross receipts from its in-state parimutuel machines:
If the gross receipts of all its in-state parimutuel machines are more than fifty million dollars in the previous calendar year, the licensee must withhold and pay to the commission daily 1.30 percent of the daily gross receipts; and
If the gross receipts of all its in-state parimutuel machines are fifty million dollars or less in the previous calendar year, the licensee must withhold and pay to the commission daily 1.803 percent of the daily gross receipts.
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In addition to those amounts in subsection (2) of this section, a licensee must forward one-tenth of one percent of the daily gross receipts of all its in-state parimutuel machines to the commission for payment to those nonprofit race meets as set forth in RCW 67.16.130 and subsection (1) of this section, but the percentage may not be charged against the licensee.
Payments to nonprofit race meets under this subsection must be distributed on a per-race-day basis and used only for purses at racetracks that have been operating under RCW 67.16.130 and subsection (1) of this section in 2010 or for the five consecutive years immediately preceding the year of payment.
As provided in this subsection, the commission must distribute funds up to fifteen thousand eight hundred dollars per race day from funds generated under this subsection (3).
Beginning July 1, 1999, at the conclusion of each authorized race meet, the commission must calculate the mathematical average daily gross receipts of parimutuel wagering that is conducted only at the physical location of the live race meet at those race meets of licensees with gross receipts of all their in-state parimutuel machines of more than fifty million dollars. Such calculation shall include only the gross parimutuel receipts from wagering occurring on live racing dates, including live racing receipts and receipts derived from one simulcast race card that is conducted only at the physical location of the live racing meet, which, for the purposes of this subsection, is "the handle." If the calculation exceeds eight hundred eighty-six thousand dollars, the licensee must within ten days of receipt of written notification by the commission forward to the commission a sum equal to the product obtained by multiplying 0.6 percent by the handle. Sums collected by the commission under this subsection must be forwarded on the next business day following receipt thereof to the state treasurer to be deposited in the fair fund created in RCW 15.76.115.
Until July 1, 2030, licensees subject to the parimutuel tax in this section are exempt from paying the tax as well as the other requirements in subsections (2) through (4) of this section. As of July 1, 2030, licensees subject to the parimutuel tax must withhold and pay the tax to the commission daily, in addition to other requirements, as set forth in subsections (2) through (4) of this section.
If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2023, in the omnibus appropriations act, this act is null and void.
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 July 1, 2023.