SB 205-FN – AS INTRODUCED
2007 SESSION
08/10
SENATE BILL 205-FN
AN ACT eliminating an exception to state reimbursement for drug testing for racing dogs and horses.
SPONSORS: Sen. Fuller Clark, Dist 24; Sen. Roberge, Dist 9; Sen. Estabrook, Dist 21; Sen. Barnes, Dist 17; Sen. Reynolds, Dist 2; Sen. Kenney, Dist 3; Rep. B. Richardson, Ches 5; Rep. McLeod, Graf 2; Rep. Almy, Graf 11; Rep. Matthew Quandt, Rock 13; Rep. Crane, Hills 21
COMMITTEE: Executive Departments and Administration
This bill eliminates an exception to state reimbursement for drug testing for racing dogs and horses.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-1231
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT eliminating an exception to state reimbursement for drug testing for racing dogs and horses.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Repeal. RSA 284:20-e, III, relative to maximum reimbursement costs for drug testing of racing dogs and horses, is repealed.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
07-1231
Revised 02/12/07
SB 205 FISCAL NOTE
AN ACT eliminating an exception to state reimbursement for drug testing for racing dogs and horses.
FISCAL IMPACT:
The Pari-mutuel Commission has determined this bill may increase general fund revenue by $510,000 in FY 2008, $530,000 in FY 2009, $550,000 in FY 2010, and $570,000 in FY 2011. There will be no fiscal impact on county and local revenues or state, county, and local expenditures.
METHODOLOGY:
The Pari-mutuel Commission (PMC) states this bill repeals the cap on lab fee reimbursements paid by race tracks. Under current statute, RSA 284:20-e, the race tracks have the option to cap the amount of lab fees they reimburse to the PMC if the track elects to retain an additional 1% in commission from the exotic wagering pool, referred to as the exotic handle or commission. The exotic handle is estimated to be $11 million based on the previous six year average adjusted for a declining trend in live racing. Estimated track payments for lab fee reimbursements are equal to 1% of the estimated handle, or $110,000 per year. This statutory cap prevents the PMC from recovering its full lab costs, as lab costs are estimated to be $620,000 in FY 2008, $640,000 in FY 2009, $660,000 in FY 2010, and $680,000 in FY 2011 based on actual FY 2007 lab costs with 3% annual increases. Repeal of the statute would increase revenue by the difference between estimated PMC lab costs and estimated track payments of $110,000 under the current law. The net increase in recovery to the general fund would be approximately $510,000 in FY 2008, $530,000 in FY 2009, $550,000 in FY 2010, and $570,000 in FY 2011 calculated as follows:
FY 2008 FY 2009 FY 2010 FY 2011
Estimated Handle $11,000,000 $11,000,000 $11,000,000 $11,000,000
Estimated Track Payments
@ 1% of Handle $(110,000) $(110,000) $(110,000) $(110,000)
Estimated Lab Costs $620,000 $640,000 $660,000 $680,000
Estimated Increase
In Revenue $510,000 $530,000 $550,000 $570,000