SENATE BILL 406
52nd legislature - STATE OF NEW MEXICO - first session, 2015
INTRODUCED BY
George K. Munoz
AN ACT
RELATING TO HORSE RACING; RENAMING THE RACEHORSE TESTING FUND THE RACEHORSE TESTING AND ENFORCEMENT FUND AND PROVIDING ADDITIONAL PURPOSES OF THE FUND; DISTRIBUTING A PORTION OF THE MONEY WAGERED ON CERTAIN SIMULCAST HORSE RACES TO THE RACEHORSE TESTING AND ENFORCEMENT FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 60-1A-14.1 NMSA 1978 (being Laws 2013, Chapter 102, Section 1) is amended to read:
"60-1A-14.1. RACEHORSE TESTING AND ENFORCEMENT FUND--CREATED--PURPOSE.--
A. The "racehorse testing and enforcement fund" is created in the state treasury. The purpose of the fund is to:
(1) ensure the testing of racehorses at a laboratory that meets or exceeds the current national laboratory standards for the testing of drugs or other foreign substances not naturally occurring in a horse, as established by the association of racing commissioners international, incorporated; and
(2) provide additional resources to the commission to enforce the requirements and prohibitions of the Horse Racing Act and commission rules.
B. The fund consists of:
(1) one-half of the daily capital outlay tax appropriated and transferred pursuant to Paragraph (4) of Subsection A of Section 60-1A-20 NMSA 1978;
(2) one percent of the gross amount wagered on simulcast horse races broadcast to a horse racetrack in New Mexico remitted and deposited pursuant to Subsection F of Section 60-1A-19 NMSA 1978; and
(3) appropriations, gifts, grants and donations made to the fund.
C. Income from investment of the fund shall be credited to the fund.
D. The commission shall administer the racehorse testing and enforcement fund, and money in the fund is appropriated to the commission:
(1) for the handling and testing of blood serum plasma, urine or other appropriate test samples taken from racehorses pursuant to Section 60-1A-14 NMSA 1978; and
(2) to offset enforcement costs.
E. Any unexpended or unencumbered balance remaining in the racehorse testing and enforcement fund at the end of a fiscal year in excess of [six hundred thousand dollars ($600,000)] one million dollars ($1,000,000) shall revert to the general fund.
F. Expenditures from the fund shall be made on warrant of the secretary of finance and administration pursuant to vouchers signed by the executive director of the commission."
SECTION 2. Section 60-1A-19 NMSA 1978 (being Laws 2007, Chapter 39, Section 19) is amended to read:
"60-1A-19. RETAINAGE--NEW MEXICO HORSE BREEDERS' ASSOCIATION AND NEW MEXICO HORSEMEN'S ASSOCIATION--BREAKAGE--DISTRIBUTION OF RETAINED AMOUNTS.--
A. Each racetrack licensee shall notify the commission at least thirty days prior to each race meet of the amount of exotic wager retainage that the racetrack licensee will retain pursuant to Paragraph (1) or (2) of this subsection. There shall be an amount retained by the racetrack licensee equal to:
(1) for a class A racetrack licensee:
(a) nineteen percent of the gross amount wagered on win, place and show, of which: 1) eighteen and three-fourths percent shall be retained by the racetrack licensee; and 2) one-fourth percent shall be remitted to the taxation and revenue department for deposit in the general fund; and
(b) not less than twenty-one percent and not greater than twenty-five percent of the gross amount wagered in exotic wagers; and
(2) for a class B racetrack licensee:
(a) not less than eighteen and three-fourths percent and not greater than twenty-five percent of the gross amount wagered daily on win, place and show; and
(b) not less than twenty-one percent and not greater than thirty percent of the gross amount wagered in exotic wagers.
B. There shall be retained by a racetrack licensee for allocation to the New Mexico horse breeders' association amounts equal to:
(1) five-eighths percent of the gross amount wagered on win, place and show to be allocated weekly to the New Mexico horse breeders' association for further distribution pursuant to the provisions of Subsection D of Section 60-1A-24 NMSA 1978; and
(2) one and three-eighths percent of the gross amount wagered in exotic wagers to be allocated weekly to the New Mexico horse breeders' association for further distribution pursuant to the provisions of Subsection D of Section 60-1A-24 NMSA 1978.
C. The breakage from the gross amount wagered through pari-mutuel wagering shall be retained by the licensee and allocated as follows:
(1) fifty percent of the total breakage shall be retained by the racetrack licensee; and
(2) fifty percent of the total breakage shall be allocated by the racetrack licensee to enhance the race purses of established stakes races that include only New Mexico-bred horses that are registered with the New Mexico horse breeders' association. The New Mexico horse breeders' association shall distribute the percentage designated to purses pursuant to Subsection D of Section [60-1-24] 60-1A-24 NMSA 1978, subject to the approval of the commission.
D. All money resulting from the failure of patrons who purchased winning pari-mutuel tickets during a race meet to redeem their winning tickets before the end of the sixty-day period immediately succeeding the closing day of the race meet or from all money resulting from the failure of patrons who purchased pari-mutuel tickets that were entitled to a refund but were not refunded by the end of the sixty-day period immediately following the race meet shall be apportioned as follows:
(1) thirty-three and thirty-three hundredths percent shall be retained by the racetrack licensee;
(2) thirty-three and thirty-four hundredths percent shall be distributed to the New Mexico horse breeders' association to enhance each racetrack licensee's established overnight purses for races that include only horses registered as New Mexico bred pursuant to Paragraph (3) of Subsection D of Section 60-1A-24 NMSA 1978, subject to the approval of the commission; and
(3) thirty-three and thirty-three hundredths percent shall be allocated to the New Mexico horsemen's association for purses.
E. One-half percent of the gross amount wagered on simulcast horse races broadcast to a horse racetrack in New Mexico shall be distributed by the racetrack licensee to the New Mexico horsemen's association for medical benefits for the members of the New Mexico horsemen's association. The commission shall by rule provide for the timing and manner of the distribution required pursuant to this subsection and shall audit or arrange for an independent audit of the distributions required.
F. One percent of the gross amount wagered on simulcast horse races broadcast to a horse racetrack in New Mexico shall be remitted by the racetrack licensee to the taxation and revenue department for deposit in the racehorse testing and enforcement fund.
[F.] G. Amounts to be deducted from the retainage by the racetrack licensee from any form of wager made on the licensed premises of the racetrack licensee are:
(1) the daily pari-mutuel tax imposed by Section 60-1A-18 NMSA 1978;
(2) money allocated in this section to the New Mexico horse breeders' association;
(3) money allocated by this section to the New Mexico horsemen's association;
(4) expenses incurred to engage in intrastate simulcasting pursuant to the Horse Racing Act; provided that the deduction for a racetrack licensee shall be a portion of five percent of the gross amount wagered at all the sites receiving the same simulcast horse races and:
(a) the deduction for a racetrack licensee shall be an amount allocated to the racetrack licensee by agreement voluntarily reached between all the racetracks sending or receiving the same simulcast horse races; or
(b) the deduction for a racetrack licensee shall be an amount identified by the commission if all the racetracks sending or receiving the same simulcast horse races fail to reach a voluntary agreement on the level at which to set the rate of the deduction for expenses incurred for engaging in intrastate simulcasting; and
(5) fees incurred to receive interstate simulcasts pursuant to the Horse Racing Act.
[G.] H. A racetrack licensee shall allocate to the New Mexico horse breeders' association five percent of the daily retainage on interstate common pools received from a guest state by a racetrack licensee. Of the net retainage from all wagers, after deductions:
(1) fifty percent shall be allocated to purses; and
(2) fifty percent shall be retained by the racetrack licensee."
SECTION 3. Section 60-1A-20 NMSA 1978 (being Laws 2007, Chapter 39, Section 20, as amended) is amended to read:
"60-1A-20. DAILY CAPITAL OUTLAY TAX--CAPITAL OUTLAY OFFSET--STATE FAIR COMMISSION DISTRIBUTION--DAILY LICENSE FEES.--
A. A "daily capital outlay tax" of two and three-sixteenths percent is imposed on the gross amount wagered each day at a racetrack where horse racing is conducted on the premises of a racetrack licensee and also on the gross amount wagered each day when a racetrack licensee is engaged in simulcasting pursuant to the Horse Racing Act. After deducting the amount of offset allowed pursuant to this section, any remaining daily capital outlay tax shall be paid by the commission to the taxation and revenue department from the retainage of a racetrack licensee from on-site wagers made on the licensed premises of the racetrack licensee for deposit in the general fund. Of the daily capital outlay tax imposed pursuant to this subsection:
(1) for a class A racetrack licensee, not more than one-half of the daily capital outlay tax imposed on the first two hundred fifty thousand dollars ($250,000) of the daily handle may be offset by the amount that the class A racetrack licensee expends for capital improvements or for long-term financing of capital improvements at the racetrack licensee's existing facility;
(2) for a class B racetrack licensee, not more than one-half of the daily capital outlay tax imposed on the first two hundred fifty thousand dollars ($250,000) of the daily handle may be offset:
(a) in an amount not to exceed one-half of the offset allowed, the amount expended by the class B racetrack licensee for capital improvements; and
(b) in an amount not to exceed one-half of the offset allowed, the amount expended by the class B racetrack licensee for advertising, marketing and promoting horse racing in the state;
(3) through December 31, 2014, for both class A and class B racetrack licensees, an amount equal to one-half of the daily capital outlay tax is appropriated and transferred to the state fair commission for expenditure on capital improvements at the state fairgrounds and for expenditure on debt service on negotiable bonds issued for the state fairgrounds' capital improvements; and
(4) on and after January 1, 2015, for both class A and class B racetrack licensees, an amount equal to one-half of the daily capital outlay tax is appropriated and transferred to the racehorse testing and enforcement fund.
B. An additional daily license fee of five hundred dollars ($500) shall be paid to the commission by the racetrack licensee for each day of live racing on the premises of the racetrack licensee.
C. Accurate records shall be kept by the racetrack licensee to show gross amounts wagered, retainage, breakage and amounts received from interstate common pools and distributions from gross amounts wagered, retainage, breakage and amounts received from interstate common pools, as well as other information the commission may require. Records shall be open to inspection and shall be audited by the commission, its authorized representatives or an independent auditor selected by the commission. The commission may prescribe the method in which records shall be maintained. A racetrack licensee shall keep records that are accurate, legible and easy to understand.
D. Notwithstanding any other provision of law,
a political subdivision of the state shall not impose an occupational tax on a horse racetrack owned or operated by a racetrack licensee. A political subdivision of the state shall not impose an excise tax on a horse racetrack owned or operated by a racetrack licensee. Local option gross receipts taxes authorized by the state may be imposed to the extent authorized and imposed by a subdivision of the state on a horse racetrack owned or operated by a racetrack licensee."
SECTION 4. TEMPORARY PROVISION--FUND NAME CHANGE.--The racehorse testing and enforcement fund is the new name for the racehorse testing fund and is not a new fund created by this act.
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2015.
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