HCS HB 610 -- HORSE RACING AND PARI-MUTUEL WAGERING

SPONSOR:  O'Toole (Crump)

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Miscellaneous Bills and Resolutions by a vote of 9 to 5.

This substitute makes several changes to the Missouri Horse
Racing Commission and its duties.  The substitute:

(1)  Specifies that members of the commission must be residents
of Missouri, cannot be convicted felons, and no 2 commissioners
can be from the same county.  Current law does not list any
requirements;

(2)  Removes the commission from assignment to the Missouri
Gaming Commission;

(3)  Allows the commission to hire employees and impose certain
restrictions on them.  Current law does not allow the commission
to hire employees;

(4)  Removes the requirement that pari-mutuel wagering only be
conducted within the grounds of a licensed race track for
authorized race meetings.  The substitute authorizes pari-mutuel
wagering on simulcast races at licensed facilities;

(5)  Requires all licensing revenues to be deposited into the
Missouri Horse Racing Fund, except for amounts designated for
the Missouri Breeders Fund.  The funds in the Missouri Horse
Racing Fund will pay the expenses of the commission, and any
surplus will be deposited into the Horse Racing for Education
Fund, subject to appropriation.  Current law requires all moneys
received to be deposited into the Missouri Horse Racing Fund,
subject to appropriation;

(6)  Requires that the 3 stewards appointed by the commission
and required to be at each horse race meeting be certified by
the Association of Racing Commissioners International;

(7)  Allows the commission to license applicants for tracks and
pari-mutuel wagering facilities and to impose penalties on non--
compliant licensees;

(8)  Requires applicants for race track licenses to be Missouri
residents or businesses incorporated in Missouri;

(9)  Allows the commission to license an applicant to operate up
to 4 pari-mutuel wagering facilities, after meeting certain
requirements;

(10)  Makes licenses valid until revoked for cause, and allows
the commission to reopen licensing hearings at any time;

(11)  Establishes a license application fee of $50,000 to be
submitted with the application;

(12)  Requires an applicant to demonstrate that the meetings
will be held at a permanent facility built for that purpose on
private property and that the total investment will exceed $50
million;

(13)  Requires that an applicant for a pari-mutuel wagering
license be licensed to own and operate a live race track that
will run at least 21 days of live racing in Missouri at the end
of the second year;

(14)  Requires that the associated pari-mutuel system be
approved by the commission, and establishes certain system
requirements;

(15) Requires licensees to collect a $2 admission fee for each
person entering an pari-mutuel facility;

(16)  Repeals the requirement that all contracts and agreements
of the licensee for the payment of money, salaries, fees,
compensation, and improvements to buildings, stables, and tracks
are subject to approval by the commission;

(17)  Repeals fees for registration of stable names, which under
current law are deposited into the General Revenue Fund;

(18)  Requires at least 80% of the licensee's permanent
employees to be Missouri residents during employment;

(19)  Designates certain percentages of wagers to be paid to the
commission, the Missouri Horse Racing Fund, the Missouri
Breeders Fund, and the remainder will be retained by the
licensee;

(20)  Prohibits individuals from taking wagers for a fee outside
of the race meeting grounds or the licensed pari-mutuel
facility.  Any violation is a class C felony;

(21)  Operating pari-mutuel wagering without a license and
operating pari-mutuel wagering in a manner other than authorized
constitute are class A misdemeanors; and

(22)  Allows patrons to cash an outstanding associated pari--
mutuel ticket for a race for up to 180 days from the date on
which the race is made official.  Tickets not redeemed within
180 days have no value.

This substitute has penalty provisions.

FISCAL NOTE:  Estimated Net Loss to General Revenue Fund of $0
in FY 2000, $36,400 to $91,000 in FY 2001, and $72,800 to
$182,000 in FY 2002.  Estimated Net Effect on Missouri Horse
Racing Fund of $0 in FY 2000, FY 2001, and FY 2002.  Estimated
Net Income to Missouri Breeders Fund of $0 in FY 2000, $91,000
in FY 2001, and $182,000 in FY 2002.  Estimated Net Increase to
Horse Racing for Education Fund of $0 in FY 2000, $848,991 to
$994,591 in FY 2001, and $1,824,832 to $1,934,032 in FY 2002.

PROPONENTS:  Supporters say that allowing pari-mutuel wagering
on simulcast races is necessary to generate money for jockeys
and horse owners.  A live race track generates a lot of money,
but without simulcasting, the track will lose money.  They also
say that there are agricultural benefits for Missourians.

Testifying for the bill were Representative Crump; and Southern
Real Estate Corporation.

OPPONENTS:  Those who oppose the bill say that the Missouri
Constitution only allows on-track wagering on horse races.  They
also say that the availability of gambling correlates directly
with the number of compulsive gamblers.

Testifying against the bill was Casino Watch.

Donna Schlosser, Legislative Analyst

HB 610 -- Horse Racing and Pari-mutuel Racing

Co-Sponsors:  Crump, Foley, Green

This bill makes several changes to the Missouri Horse Racing
Commission and its duties.  The bill:

(1)  Specifies that members of the commission must be residents
of Missouri, cannot be convicted felons, and no 2 commissioners
can be from the same county;

(2)  Removes the commission from assignment to the Missouri
Gaming Commission;

(3)  Allows the commission to hire employees and impose certain
restrictions on them.  Current law does not allow the commission
to hire employees;

(4)  Removes the requirement that pari-mutuel wagering only be
conducted within the grounds of a licensed race track for
authorized race meetings.  The bill authorizes pari-mutuel
wagering on simulcast races at licensed facilities;

(5)  Requires all revenues generated from licensing to be
deposited into the Missouri Horse Racing Fund, except for the
amounts designated for the Missouri Breeders Fund.  The funds in
the Missouri Horse Racing Fund will pay the expenses of the
commission, and any surplus will be deposited into the Horse
Racing for Education Fund which is created by the bill.  Current
law requires all moneys received to be deposited into the
Missouri Horse Racing Fund, subject to appropriation;

(6)  Requires that the 3 stewards appointed by the commission
and required to be at each horse race meeting be certified by
the Association of Racing Commissioners International;

(7)  Allows the commission to license applicants for tracks and
pari-mutuel wagering facilities and to impose penalties on non--
compliant licensees;

(8)  Requires that pari-mutuel wagering be conducted by
individuals licensed by the commission;

(9)  Requires an applicant for race track licensure to be a
Missouri resident or a business incorporated in Missouri;

(10)  Allows the commission to license an applicant to operate
at least one race track and no more than 4 associated pari--
mutuel facilities, as long as they are in the public interest
and economically feasible;

(11)  Makes licenses valid until revoked for cause.  The
commission may reopen licensing hearings at any time;

(12)  Establishes a license application fee of $50,000 to be
submitted with the application, which must fully identify the
applicant, demonstrate financial responsibility, identify the
wagering supervisors, and describe the general layout of the
track and of each associated pari-mutuel wagering facility and
its location;

(13)  Requires an applicant to conduct race meetings to
demonstrate that the meetings will be held at a permanent
facility built for that purpose on private property and that the
initial investment will exceed $50 million;

(14)  Requires that an applicant for a pari-mutuel wagering
license be licensed to own and operate a live race track that
will run at least 21 days of live racing in Missouri within 3
years from licensure and every year thereafter;

(15)  Requires that licensees use an associated pari-mutuel
system that has been approved by the commission, and establishes
system and system operator requirements;

(16)  Requires licensees to pay to the Missouri Horse Racing
Fund a $2 admission fee for each person entering an associated
pari-mutuel facility;

(17)  Repeals the requirement that all contracts and agreements
of the licensee for the payment of money, salaries, fees,
compensation, and improvements to buildings, stables, and tracks
are subject to approval by the commission;

(18)  Repeals fees for registration of stable names, which under
current law are deposited into the General Revenue Fund;

(19)  Requires at least 80% of the licensee's permanent
employees to be Missouri residents during employment;

(20)  Designates a certain percentage of the multiple mutuel
pools to be paid to the Missouri Breeders Fund;

(21)  Designates certain percentages of wagers to be paid to the
Missouri Horse Racing Fund, the Missouri Breeders Fund, and the
remainder will be retained by the licensee;

(22)  Prohibits operating pari-mutuel wagering without a license
or in a manner not permitted by the provisions of the bill; and

(23)  Allows patrons to cash an outstanding associated pari--
mutuel ticket for a race for up to 180 days from the date on
which the race is made official.  Tickets not redeemed within
180 days are valueless.

This bill has penalty provisions.