Bill Text - SB490 (2010)

Allowing historical racing.


Revision: Jan. 28, 2010, midnight

SB 490-FN – AS INTRODUCED

2010 SESSION

10-2709

08/10

SENATE BILL 490-FN

AN ACT allowing historical racing.

SPONSORS: Sen. Sgambati, Dist 4; Sen. Hassan, Dist 23; Sen. Lasky, Dist 13; Rep. DeJoie, Merr 11; Rep. D. Sullivan, Hills 8; Rep. Keans, Straf 1

COMMITTEE: Ways and Means

ANALYSIS

This bill allows historical races approved by the racing and charitable gaming commission on which the licensee sells pari-mutuel pools.

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2709

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT allowing historical racing.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Pari-Mutuel Pools on Simulcast Racing; Historical Races Added. Amend RSA 284:22-a to read as follows:

284:22-a Pari-Mutuel Pools on Simulcast Racing and Historical Races.

I. In this section:

(a) “State” means each state of the United States, the District of Columbia, the Commonwealth of Puerto Rico and any territory or possession of the United States.

(b) “Simulcast” means a licensee’s receipt of the transmission of races conducted at a racetrack other than the licensee’s racetrack and which races are exhibited simultaneously at the licensee’s racetrack by television or other means of electronic reproduction with the conduct of such races at the point of origin and on which races the licensee sells pari-mutuel pools.

(c) “Licensee” means any individual, association, partnership, joint venture, corporation, or other organization or other entity which holds a license under RSA 284 to conduct a race meet, or if the election is made pursuant to RSA 284:22-a,II(c), “licensee” means any individual, association, partnership, joint venture, corporation, or other organization or entity which holds a license under RSA 284 to conduct simulcasting at a facility at which live running or harness horse racing or live dog racing was conducted in 2008.

(d) “Historical races” means those races displayed by electronic means on which the licensee sells pari-mutuel pools and which are approved by the commission.

II.(a) During the calendar years 1941-2029, a licensee may sell pari-mutuel pools on races held at racetracks other than the racetrack at which the licensee conducts its race meet, provided:

(1) Such sales are within the enclosure of the racetrack at which the licensee holds a license for the current year to conduct live racing in this state;

(2) Wagers are made on races which are exhibited by television or other means of electronic reproduction at the licensee’s racetrack either (i) as historical races, or (ii) simultaneously with the conduct of each such race at its point of origin with the agreement or approval of the racetrack which provides the transmission of the races to be simulcast and the racetrack which conducts the races to be simulcast;

(3) The licensee has scheduled at least 50 calendar days of live racing in the calendar year in which the licensee simulcasts or displays historical races, or if the licensee does not have scheduled at least 50 calendar days of live racing in such calendar year, the licensee conducts live racing on the day on which the licensee simulcasts or displays historical races; and

(4) The licensee obtains the consents and approvals set forth in RSA 284:22-a, III.

(b) [Repealed.]

(c) Notwithstanding subparagraph II(a), an individual, association, partnership, joint venture, corporation, or other organization or entity may be issued a license to conduct simulcasting without conducting live racing provided such person or entity makes such election with the approval of the commission and such person or entity either held a license on January 1, 2009 under this chapter to conduct a race meet or seeks to conduct simulcasting without conducting live racing at a facility at which live racing was authorized to be conducted in 2009

III. A licensee may sell pari-mutuel pools on historical races or on races held at other appropriately licensed racetracks, whether such racetracks are in the state of New Hampshire or outside the state of New Hampshire with the agreement or approval of the racetrack which provides the transmission of the races to be simulcast and the racetrack which conducts the races to be simulcast. A licensee may sell pari-mutuel pools under RSA 284:22-a on the same types of races that it conducts live at its racetrack with the approval of the commission. A licensee may sell pari-mutuel pools under RSA 284:22-a on types of races different from the type of races conducted live at the licensee’s racetrack provided:

(a) The licensee obtains the approval of the commission; and

(b) The licensee shall have received city or town approval under RSA 284:17 to conduct the type of racing which is to be simulcast or displayed prior to or subsequent to the effective date of RSA 284:22-a; the type of racing which is to be simulcast or displayed shall have been approved by the city or town in which the licensee’s racetrack is located in accordance with RSA 284:17 prior to or subsequent to the effective date of RSA 284:22-a; or the acceptance of wagers or simulcast races or historical races of a type other than the type of racing which the licensee conducts live at its racetrack shall have been approved by a majority vote at an annual town meeting or special town meeting called for such purpose in the town in which the licensee’s racetrack is located.

IV. A licensee which has scheduled less than 50 calendar days of live racing in a calendar year may simulcast or display historical races on a day on which live racing is scheduled at the licensee’s race track, without conducting live racing, provided that the live racing program is cancelled due to weather or other conditions which produce unsafe conditions at the racetrack of the licensee. The determination to cancel a live program based upon weather or the condition of the racetrack shall be made by the licensee, and notice shall be provided to the commission. Notwithstanding the foregoing, a licensee which has scheduled less than 50 calendar days of live racing shall be limited to no more than 10 such cancellations in a calendar year.

V.(a) A licensee may sell pari-mutuel pools for historical races or simulcast races for races held at racetracks within or outside the state of New Hampshire in accordance with RSA 284:22-a, II, within the enclosure of said licensee’s racetrack or a licensee, with the written agreement with the licensee which conducts or transmits the race which is to be simulcast or displayed, may sell a common pari-mutuel pool in conjunction with the licensee which conducts or transmits the race which is to be simulcast or displayed. In the event of common pools, the licensee which conducts or transmits the race shall pay the tax required under RSA 284:23 for the portion of the common pool actually contributed at said licensee’s racetrack and the licensee which simulcasts or displays historical races shall pay the tax due under RSA 284:23 for the portion of the common pool actually contributed at said licensee’s racetrack.

(b) A licensee may sell pari-mutuel pools for historical races or simulcast races for races held at racetracks outside the state of New Hampshire in accordance with RSA 284:22-a, II, within the enclosure of said licensee’s racetrack or said licensee, with the written agreement with the entity which conducts the race which is to be simulcast or displayed, may sell a common pari-mutuel pool in conjunction with the entity which conducts the race which is to be simulcast or displayed. In the event of such common pools, the commission shall be in the amount established by the law of the state in which the race to be simulcast or displayed is actually conducted, provided, however, the licensee shall pay the tax as provided under RSA 284:23.

VI. Racing officials, as defined in the rules adopted by the commission, any employee or owner of the entity which provides the totalizator system to the licensee, and any person responsible for the operation of the electronic reproduction equipment which receives the simulcast or display of a historical race shall be prohibited from participating in wagering, directly or indirectly, on simulcast races or historical races shown at the licensee’s racetrack.

VII. The provisions of RSA 284:15-c, RSA 284:16-a, RSA 284:16-c, RSA 284:17, RSA 284:17-a, and RSA 284:17-c shall not apply to simulcast, historical races, and pari-mutuel pools under RSA 284:22-a, except as specifically provided in RSA 284:22-a.

VIII. RSA 284:22, I, II, III, and IV shall apply according to the type of race on which the simulcast and historical race wagers are made, excepting, however, interstate common pools as provided in RSA 284:22-a, V(b) and that the provisions made for purses made in RSA 284:22, I shall not apply to simulcast races and historical races. The commission on simulcast race pools shall be available to the simulcasting licensee to satisfy obligations to the racing association originating or transmitting such simulcast races or to the horsemen’s group of such association.

2 Pari-Mutuel Pools; Distribution of Tax. Amend RSA 284:23 to read as follows:

284:23 Tax.

I.(a) Each person, association or corporation licensed to conduct a running horse race or running horse meet under this chapter shall pay to the state treasurer a sum of money equal to one percent of the total contributions to all pari-mutuel pools conducted, made, or sold at any such race or meet licensed under this chapter. The amounts so paid to the state treasurer shall be for the use of the state.

(b) Each person, association, or corporation licensed to display historical races or to simulcast a running horse race or running horse meet under this chapter shall pay to the state treasurer a sum of money equal to 1- 1/4 percent of the total contributions to all such pari-mutuel pools conducted, made, or sold at such historical race, simulcast race, or simulcast race, meet by such person, association, or corporation licensed to simulcast such races or display historical races. The amount so paid to the state treasurer shall be for the use of the state.

II.(a) Each person, association, or corporation licensed to conduct a harness horse race or harness horse race meet under this chapter shall pay to the state treasurer a sum of money equal to one percent of all total contributions to all pari-mutuel pools in a calendar day. The amount so paid to the state treasurer shall be for the use of the state.

(b) Each person, association, or corporation licensed to display historical races or to simulcast a harness horse race or simulcast a harness horse race meet under this chapter shall pay to the state treasurer a sum of money equal to 1-1/4 percent of the total contributions to all such pari-mutuel pools conducted, made, or sold at such historical race, simulcast race, or race meet by such person, association, or corporation licensed to simulcast such races. The amount so paid to the state treasurer shall be for the use of the state.

III.(a) Each person, association, or corporation licensed to conduct a dog race or a dog race meet under this chapter shall pay to the state treasurer a sum of money equal to 1-1/4 percent of so much of the total contributions to all pari-mutuel pools conducted, made, or sold at any dog race or dog race meet licensed under this chapter. The amount so paid to the state treasurer shall be for the use of the state.

(b) Each person, association or corporation licensed to display historical races or to simulcast a dog race or simulcast a dog race meet under this chapter shall pay to the state treasurer a sum of money equal to 1-1/2 percent of all pari-mutuel pools conducted, made, or sold at such historical race, simulcast race, or simulcast race meet by such person, association, or corporation licensed under this chapter. The amount so paid to the state treasurer shall be for the use of the state.

IV. Each person, association, or corporation licensed to conduct a race or race meet under this chapter shall also pay to the city or town treasurer in which the racing plant is located for each day of racing, whether such day includes live racing only, historical races and simulcast racing only, or a combination thereof, the fees assessed in subparagraphs (a) and (b) below, based upon the aggregate pari-mutuel pools conducted, made, or sold by such person, association, or corporation on each such day. This rate is provided if said person, association, or corporation has a license to conduct races or race meets for more than 10 days during the year for which the license is issued. If said person, association, or corporation has a license to conduct races or race meets for 10 days or less, the per diem fee shall be determined by the commission.

(a) Each Weekday including Saturday

Pari-mutuel pool Fee

Under $300,000 $300 per day

$300,000 or more $350 per day

(b) Each Sunday

Pari-mutuel pool Fee

Under $350,000 $400 per day

$350,000 but under $500,000 $800 per day

$500,000 or more $1,200 per day

V. [Repealed.]

VI. During each calendar year, by March 31, each licensee shall make a report to the commission with regard to such licensee’s efforts to enhance live racing at such licensee’s race track. Such report shall include, but not be limited to, licensee’s enhancement of purses, capital improvements, promotion, advertising, and other activities determined by the licensee to enhance live racing. The report shall be in writing and shall be in sufficient detail as determined by the commission. The report shall be distributed to the commission and each member of the fiscal committee.

VII. For the purposes of this chapter, “racing program” means live racing with any number of individual races as determined by the racing and charitable gaming commission. A live race or racing program may include a combined live and simulcast race or historical race where the combination contains at least one more live race to simulcast or display in the same combination. Any such live racing program or combined racing program upon which a separate tax is paid may constitute a live racing performance day.

3 Unclaimed Ticket Money. Amend RSA 284:31 to read as follows:

284:31 Unclaimed Ticket Money. On or before January 31 of each year every person, association or corporation conducting a race or race meet, whether live racing [or], simulcast racing, or display of historical races hereunder shall pay to the state treasurer all moneys collected during the previous year of pari-mutuel pool tickets which have not been redeemed. The books or records of said person, association or corporation, which clearly show the tickets entitled to reimbursement in any given race, live [or], simulcast, or historical, shall be forwarded to the commission. Such moneys shall become a part of the general funds of the state. The state treasurer shall pay the amount due on any ticket to the holder thereof from funds not otherwise appropriated upon an order from the commission. Pari-mutuel tickets which remain unclaimed after 11 months shall not be paid.

4 Effective Date. This act shall take effect 60 days after its passage.

LBAO

10-2709

01/04/10

SB 490-FN - FISCAL NOTE

AN ACT allowing historical racing.

FISCAL IMPACT:

      The Racing and Charitable Gaming Commission states this bill will increase state general fund revenue by $1,022,500 in FY 2011, by $2,039,300 in FY 2012 and each year thereafter, increase state general fund expenditures by $1,600 in FY 2011, by $3,000 in FY 2012 and each year thereafter, and increase local revenue by $114,700 in FY 2011, by $139,450 in FY 2012 and each year thereafter. The Judicial Branch, Judicial Council, and New Hampshire Association of Counties state this bill may increase state and county expenditures by an indeterminable amount in FY 2011 and each year thereafter. There will be no fiscal impact on local expenditures or county revenue.

METHODOLOGY:

    The Racing and Charitable Gaming Commission states this bill will allow historical racing at a facility where a license is held to conduct a race meet or have simulcast racing. The Commission assumes this bill will not take effect until FY 2011. The Commission states only one of the three racetracks is committed to install historical racing machines for horse races if this bill passes. The one racetrack would install 100 machines in the first six months after passage of this bill and an additional 200 machines the second six months, for a total of 300 machines by the end of the first year. The expected pool is $1,164 per machine per day. The Commission estimates state revenue to be $1,022,500 in FY 2011 and $2,039,300 each year thereafter based on the 1.25 percent tax of the total pool, breakage revenue based on half of 0.2 percent of the total pool and unclaimed tickets based on 0.25 percent of the total pool. There will be state expenditures for the payout of unclaimed tickets estimated at 1 percent of unclaimed ticket amount or $1,600 in FY 2011 and $3,000 in FY 2012 and each year thereafter. Lastly, the Commission estimates the local revenue would increase by $114,700 in FY 2011 and $139,450 in FY 2012 and each year thereafter.

    The Judicial Branch states the penalties for violations resulting from this bill would be an unspecified misdemeanor if committed by a natural person and a felony if committed by any other person. Misdemeanor charges can be either a class A or class B with the presumption they will be class B in accordance with RSA 625:9,IV. However, the Branch has no information

                      LBAO

                      10-2709

                      01/04/10

    to estimate how many new misdemeanors or felonies would be brought as a result of this bill nor if the misdemeanors would be class A or class B misdemeanors. The Branch states the cost of a class A misdemeanor case is $51.14 and the cost of a class B misdemeanor case is $36.89 in FY 2010 and each year thereafter. The cost of a routine felony case is $335.98 in FY 2010 and each year thereafter. The possibility of appeals increases the likelihood the fiscal impact on the Branch will exceed $10,000.

    The Judicial Council states to the extent an unspecified misdemeanor results in a misdemeanor offense where the right to counsel exists this bill may result in an indeterminable increase in general fund expenditures. The Council states if an individual is found to be indigent, the flat fee of $275 per misdemeanor is charged by a public defender or contract attorney. If an assigned counsel attorney is used the fee is $60 per hour with a cap of $1,400 for a misdemeanor charge. The Council also states additional costs could be incurred if an appeal is filed. The public defender, contract attorney and assigned counsel rates for Supreme Court appeals is $2,000 per case, with many assigned counsel attorneys seeking permission to exceed the fee cap. Requests to exceed the fee cap are seldom granted. Finally, expenditures would increase if services other than counsel are requested and approved by the court during the defense of a case or during an appeal.

    The New Hampshire Association of Counties states to the extent an individual is prosecuted, convicted, and sentenced to incarceration, the counties may have increased expenditures. The Association is unable to determine the number of individuals who might be detained, prosecuted or incarcerated as a result of this bill. The average cost to incarcerate an individual in a county facility is $35,342 a year.

    The Department of Justice states any fiscal impact to the Department would be absorbed with existing resources.