SENATE BILL 24

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Carlos R. Cisneros

 

 

 

 

 

AN ACT

RELATING TO RACING; ALLOWING FOR DOG RACE SIMULCASTING AT LICENSED RACETRACKS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 60-1A-2 NMSA 1978 (being Laws 2007, Chapter 39, Section 2) is amended to read:

     "60-1A-2. DEFINITIONS.--As used in the Horse Racing Act:

          A. "board" means the gaming control board;

          B. "breakage" means the odd cents by which the amount payable on each dollar wagered exceeds a multiple of ten;

          C. "commission" means the state racing commission;

          D. "exotic wagering" means all wagering other than on win, place or show, through pari-mutuel wagering;

          E. "export" means to send a live audiovisual broadcast of a horse or dog race in the process of being run at a horse racetrack from the originating horse racetrack to another location;

          F. "guest state" means a jurisdiction, other than the jurisdiction in which a horse race is run, in which a horse racetrack, off-track wagering facility or other facility that is a member of and subject to an interstate common pool is located;

          G. "guest track" means a horse racetrack, off-track wagering facility or other licensed facility in a location other than the state in which a horse race is run that is a member of and subject to an interstate common pool;

          H. "handle" means the total of all pari-mutuel wagering sales, excluding refunds and cancellations;

          I. "horse race" means a competition among racehorses on a predetermined course in which the horse completing the course in the least amount of time generally wins;

          J. "host state" means the jurisdiction within which a sending track is located, also known as a "sending state";

          K. "host track" means the horse racetrack from which a horse or dog race subject to an interstate common pool is transmitted to members of that interstate common pool, also known as a "sending track";

          L. "import" means to receive a live audiovisual broadcast of a horse or dog race;

          M. "interstate common pool" means a pari-mutuel pool that combines comparable pari-mutuel pools from one or more locations that accept wagers on a horse or dog race run at a sending track for purposes of establishing payoff prices at the pool members' locations, including pools in which pool members from more than one state simultaneously combine pari-mutuel pools to form an interstate common pool;

          N. "jockey club" means an organization that administers thoroughbred registration records and registers thoroughbreds;

          O. "licensed premises" means land, together with all buildings, other improvements and personal property located on the land, that is under the direct control of a racetrack licensee, including the restricted areas, grandstand and public parking areas;

          P. "licensee" means a person licensed by the commission and includes a holder of an occupational, secondary or racetrack license;

          Q. "occupational license" means a license issued by the commission to a vendor or to a person having access to a restricted area on the licensed premises, including a horse owner, trainer, jockey, agent, apprentice, groom, exercise person, veterinarian, valet, farrier, starter, clocker, racing secretary, pari-mutuel clerk and other personnel designated by the commission whose work, in whole or in part, is conducted around racehorses or pari-mutuel betting windows;

          R. "pari-mutuel wagering" means a system of wagering in which bets on a live horse race or simulcast horse or dog race are pooled and held by the racetrack licensee for distribution of the total amount, less the deductions authorized by law, to holders of winning tickets; "pari-mutuel wagering" does not include bookmaking or pool selling;

          S. "pari-mutuel wagering pool" means the money wagered on a specific horse or dog race through pari-mutuel wagering;

          T. "practical breeder" means a person who has practical experience in breeding horses, although the person may not be actively involved in breeding horses;

          U. "primary residence" means the domicile where a person resides for most of the year, and, if the person is temporarily out of state, the address where a person will return when the person returns to New Mexico or the address that a person uses for purposes of a driver's license, passport or voting;

          V. "quarter horse" means a racehorse that is registered with the American quarter horse association or any successor association;

          W. "race meet" means a period of time within dates specified by the commission in which a racetrack licensee is authorized to conduct live racing on the racing grounds;

          X. "racehorse" means a quarter horse or thoroughbred that is bred and trained to compete in horse races;

          Y. "racetrack license" means a license to conduct horse races issued by the commission;

          Z. "racetrack licensee" means a person who has been issued a racetrack license;

          AA. "racing grounds" means the area of the restricted area of licensed premises used for the purpose of conducting horse races and all activities ancillary to the conduct of horse races, including the track, stable area, jockey's quarters and horse training areas;

          BB. "retainage" means money that is retained from wagers on win, place and show and on exotic wagers by a racetrack licensee pursuant to the Horse Racing Act;

          CC. "restricted areas" means the stable area, the area behind the pari-mutuel betting windows and anywhere on the racing grounds;

          DD. "secondary licensee" means all officers, directors, shareholders, lenders or holders of evidence of indebtedness of a corporation or legal entity owning a horse racetrack, and all persons holding a direct or indirect interest of any nature whatsoever in the horse racetrack, including interests or positions that deal with the funds of the racetrack or that are administrative, policymaking or supervisory;

          EE. "simulcast" means a transmission of a live audiovisual broadcast of a horse race or dog being run at a horse racetrack other than the horse racetrack or other licensed facility at which the broadcast is being received for viewing pursuant to a simulcasting contract;

          FF. "stakes race" means a horse race in which nominations or entry or starting fees contribute to the purse; an overnight race is not a stakes race;

          GG. "steward" means an employee of the commission who supervises horse races and oversees a race meet while in progress, including holding hearings regarding licensees and enforcing the rules of the commission and the horse racetrack;

          HH. "takeout" means amounts authorized by statute to be deducted from the pari-mutuel wagers;

          II. "thoroughbred" means a racehorse that is registered with the jockey club;

          JJ. "track" means the surfaced oval area on which horse races are conducted; and

          KK. "vendor" means a person who provides goods or services to or in the racing grounds or restricted area of the licensed premises of a horse racetrack."

     Section 2. Section 60-1A-15 NMSA 1978 (being Laws 2007, Chapter 39, Section 15) is amended to read:

     "60-1A-15. PARI-MUTUEL WAGERING AUTHORIZED--GAMBLING STATUTES DO NOT APPLY.--

          A. A racetrack licensee may conduct pari-mutuel wagering on live horse races or on simulcasted horse or dog races.

          B. Pari-mutuel wagering may be conducted only on the licensed premises where a live horse race is conducted or where a simulcast horse or dog race is televised or projected on the racing grounds of the licensed premises of a racetrack licensee.

          C. The sale to patrons present on the licensed premises of a racetrack licensee of pari-mutuel tickets or certificates is not gambling as defined in Section 30-19-2 or 30-19-3 NMSA 1978.

          D. Placing a wager while on the licensed premises of a racetrack licensee is not placing a bet pursuant to Section 30-19-1 NMSA 1978.

          E. The licensed premises of a horse racetrack is not a gambling place as defined in Section 30-19-1 NMSA 1978."

     Section 3. Section 60-1A-16 NMSA 1978 (being Laws 2007, Chapter 39, Section 16) is amended to read:

     "60-1A-16. SIMULCASTING.--

          A. All simulcasting of horse or dog races shall have prior approval of the commission, and the commission shall adopt rules concerning the simulcasting of horse and dog races as provided in this section.

          B. A racetrack licensee shall not be allowed to simulcast horse or dog races unless that racetrack licensee offers at least seventeen days per year of pari-mutuel wagering on live horse races run on the premises of the racetrack licensee.

          C. The commission may permit exporting of a horse race being run by a racetrack licensee to another racetrack licensee within New Mexico or exporting of a horse race from a racetrack licensee to another location holding a pari-mutuel or gaming license that allows simulcasting of a horse race from outside of the state or jurisdiction that licenses that out-of-state facility.

          D. The commission may permit importing by a racetrack licensee of horse or dog races that are being run at racetracks outside of the state licensed by a host state.

          E. Pari-mutuel wagering on simulcast horse or dog races shall be prohibited except on the licensed premises of a racetrack licensee during the licensee's race meet at the horse racetrack or when the racetrack licensee is importing a race meet from another New Mexico-licensed horse racetrack.

           F. A New Mexico-licensed horse racetrack that is within a radius of eighty miles of any other New Mexico- licensed horse racetrack with a race meet in progress may only conduct pari-mutuel wagering on imported horse or dog races if there is a written agreement between the two racetrack licensees allowing pari-mutuel wagering on imported horse or dog races during the period of time that the live horse races are taking place."

     Section 4. Section 60-1A-17 NMSA 1978 (being Laws 2007, Chapter 39, Section 17) is amended to read:

     "60-1A-17. INTERSTATE COMMON POOL WAGERING--AUTHORIZED.--

          A. Subject to the federal Interstate Horseracing Act of 1978, the commission may permit a racetrack licensee to participate in interstate common pools. All provisions of the Horse Racing Act that govern pari-mutuel wagering apply to pari-mutuel wagering in interstate common pools except as otherwise provided in this section.

          B. Daily pari-mutuel tax and daily capital outlay tax shall not be imposed upon amounts wagered in an interstate common pool other than upon amounts wagered within New Mexico.

          C. Subject to prior approval of the commission, the following provisions apply when a racetrack licensee participates in interstate common pools on a horse or dog race that originates outside of New Mexico:

                (1) a racetrack licensee may combine its pari-mutuel pools at the host track and other locations. The types of wagering, takeout, distribution of winnings and rules of racing in effect for pari-mutuel pools at the host track shall govern wagers placed in New Mexico and merged into the interstate common pool. Breakage for interstate common pools shall be calculated in accordance with the rules governing the host track and shall be distributed in a manner agreed upon by the racetrack licensee in New Mexico and the host track;

                (2) with the concurrence of the host track, an interstate common pool that excludes the host track may be formed with the racetrack licensee in New Mexico and other locations outside of the host state. When an interstate common pool is formed pursuant to this paragraph, the commission may approve types of wagering, takeout, distribution of winnings, rules of racing and calculation of breakage that are different from those that are in effect in New Mexico; provided that the rules are applied consistently to all persons in the interstate common pool;

                (3) the racetrack licensee may deduct from retainage resulting from an interstate common pool a reasonable fee to be paid to the person conducting the horse or dog race at the host track for the privilege of conducting pari-mutuel wagering on the race and participating in the interstate common pool and for payment of costs incurred to transmit the simulcast horse or dog race; and

                (4) provisions of New Mexico law or contracts governing the distribution of daily pari-mutuel tax and daily capital outlay tax and breeders' or other awards and purses from the takeout from wagers placed in New Mexico shall remain in effect for wagers placed in an interstate common pool; provided that if the commission approves an adjustment in the takeout rate, the distribution of the takeout within New Mexico shall be adjusted proportionately to reflect the adjustment in the takeout rate; and provided further that with the concurrence of the racetrack licensee and the organization representing a majority of the breeders, horsemen or other persons entitled to shares of the distribution and subject to approval of the commission, the respective shares to breeders' or other awards or purses may be modified.

          D. Subject to prior approval of the commission, the following provisions apply when a racetrack licensee in New Mexico participates in interstate common pools as a host track:

                (1) a racetrack licensee may permit one or more of its horse races to be used for pari-mutuel wagering at, and may export a horse race to, one or more licensed sites outside of New Mexico. The racetrack licensee may also permit pari-mutuel pools in other locations to be combined with the racetrack licensee's comparable pari-mutuel wagering pools or with wagering pools established in other jurisdictions. The commission may modify its rules and adopt separate rules for the interstate common pools and their calculation of breakage; and

                (2) except as otherwise provided in this section, New Mexico law or contracts governing the distribution of shares of the takeout for daily pari-mutuel tax or daily capital outlay tax and breeders' or other awards and purses shall remain in effect for amounts wagered within New Mexico in interstate common pools; provided that with the concurrence of the racetrack licensee of the host track and the organization representing a majority of the breeders, horsemen or other persons entitled to shares of the distribution, and subject to approval of the commission, the respective shares to breeders' or other awards or purses may be modified.

          E. When the laws and rules of the host state and guest states permit, an interstate common pool may be established on a regional or other basis between two or more guest states and not include a merger into the host state's pari-mutuel wagering pool, in which case, one of the guest state's tracks shall serve as if it were the host track for the purposes of calculating the pari-mutuel wagering pool. An interstate common pool may include members located outside of the United States. Except as otherwise set forth in commission rules, participation by a person in an interstate common pool with wagering facilities in one or more states or jurisdictions shall not cause the participating person to be deemed to be doing business in a jurisdiction other than the jurisdiction in which that person is physically located.

          F. The commission may adopt rules necessary to implement this section."

     Section 5. Section 60-1A-18 NMSA 1978 (being Laws 2007, Chapter 39, Section 18) is amended to read:

     "60-1A-18. DAILY PARI-MUTUEL TAX--IMPOSED--RATE.--

          A. The "daily pari-mutuel tax" is imposed on a racetrack licensee that offers pari-mutuel wagering at the racetrack licensee's licensed premises and shall be remitted to the taxation and revenue department for deposit in the general fund.

          B. The daily pari-mutuel tax imposed on class A racetrack licensees pursuant to this section shall be:

                (1) for each racing day a class A racetrack licensee offers pari-mutuel wagering on live on-track horse races, six hundred fifty dollars ($650); provided, however, that a class A racetrack licensee shall deduct from the six hundred fifty dollars ($650) and remit to the municipality in which the racetrack licensee is located one hundred fifty dollars ($150) if the racetrack licensee is located in a municipality having a population according to the 2000 federal decennial census of:

                     (a) less than six thousand located in a county with a population of more than ten thousand but less than fifteen thousand; or

                     (b) more than eight thousand but less than ten thousand located in a county with a population of more than one hundred thousand but less than one hundred fifty thousand; and

                (2) for each day a class A racetrack licensee offers no pari-mutuel wagering on live on-track horse races and offers solely pari-mutuel wagering on simulcast races pursuant to the Horse Racing Act, one-eighth percent of the racetrack licensee's gross daily handle, not to exceed [three hundred dollars ($300)] six hundred dollars ($600) per racing day.

          C. The daily pari-mutuel tax imposed on a class B racetrack licensee pursuant to this section shall be:

                (1) for each racing day a class B racetrack licensee offers pari-mutuel wagering on live on-track horse races, one-eighth percent of the racetrack licensee's gross daily handle, not to exceed three hundred dollars ($300) per racing day; and

                (2) for each day a class B racetrack licensee offers no pari-mutuel wagering on live on-track horse races and offers solely pari-mutuel wagering on simulcast races pursuant to the Horse Racing Act, one-eighth percent of the class B racetrack licensee's gross daily handle, not to exceed [three hundred dollars ($300)] six hundred dollars ($600) per racing day."

     Section 6. 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 or dog 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. 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 or dog 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 or dog 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 or dog 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. 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 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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