House Bill hb1573e1

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                                          HB 1573, First Engrossed



  1                      A bill to be entitled

  2         An act relating to pari-mutuel wagering;

  3         amending s. 550.26165, F.S.; revising criteria

  4         for making breeders' awards for racehorses;

  5         amending s. 550.2625, F.S.; providing for

  6         payment of special racing awards; amending s.

  7         550.334, F.S.; revising provisions relating to

  8         quarter horse races; specifying certain

  9         conditions of operation for permitholders shall

10         not be applicable; amending s. 550.002, F.S.;

11         revising a definition for "full schedule of

12         live racing or games"; providing an effective

13         date.

14

15  Be It Enacted by the Legislature of the State of Florida:

16

17         Section 1.  Subsections (1) and (2) of section

18  550.26165, Florida Statutes, are amended to read:

19         550.26165  Breeders' awards.--

20         (1)  The purpose of this section is to encourage the

21  agricultural activity of breeding and training racehorses in

22  this state.  Moneys dedicated in this chapter for use as

23  breeders' awards and stallion awards are to be used for awards

24  to breeders of registered Florida-bred horses winning

25  horseraces and for similar awards to the owners of stallions

26  who sired Florida-bred horses winning stakes races, if the

27  stallions are registered as Florida stallions standing in this

28  state. Such awards shall be given at a uniform rate to all

29  winners of the awards, shall not be greater than 20 percent of

30  the announced gross purse, and shall not be less than 15

31  percent of the announced gross purse if funds are available.


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                                          HB 1573, First Engrossed



  1  In addition, no less than 17 percent nor more than 40 percent,

  2  as determined by the Florida Thoroughbred Breeders'

  3  Association, of the moneys dedicated in this chapter for use

  4  as breeders' awards and stallion awards for thoroughbreds

  5  shall be returned pro rata to the permitholders that generated

  6  the moneys for special racing awards to be distributed by the

  7  permitholders to owners of registered Florida-bred

  8  thoroughbred horses participating winning in prescribed

  9  thoroughbred stakes races, non-stakes races, or both and

10  winning or placing in thoroughbred stakes races, all in

11  accordance with a written agreement establishing the rate,

12  procedure, and eligibility requirements for such awards

13  entered into plan established annually no later than 120 days

14  before the first day of the permitholders' racing meet and

15  agreed upon by the permitholder, the Florida Thoroughbred

16  Breeders' Association, and the Florida Horsemen's Benevolent

17  and Protective Association, Inc., except that the plan for the

18  distribution by any permitholder located in the area described

19  in s. 550.615(9) shall be agreed upon by that permitholder,

20  the Florida Thoroughbred Breeders' Association, and the

21  association representing a majority of the thoroughbred

22  racehorse owners and trainers at that location. Awards for

23  thoroughbred races are to be paid through the Florida

24  Thoroughbred Breeders' Association, and awards for

25  standardbred races are to be paid through the Florida

26  Standardbred Breeders and Owners Association. Among other

27  sources specified in this chapter, moneys for thoroughbred

28  breeders' awards will come from the 0.955 percent of handle

29  for thoroughbred races conducted, received, broadcast, or

30  simulcast under this chapter as provided in s. 550.2625(3).

31  The moneys for quarter horse and harness breeders' awards will


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                                          HB 1573, First Engrossed



  1  come from the breaks and uncashed tickets on live quarter

  2  horse and harness racing performances and 1 percent of handle

  3  on intertrack wagering. The funds for these breeders' awards

  4  shall be paid to the respective breeders' associations by the

  5  permitholders conducting the races.

  6         (2)  Each breeders' association shall develop a plan

  7  each year that will provide for a uniform rate of payment and

  8  procedure for breeders' and stallion awards payment. The plan

  9  for payment of breeders' and stallion awards may set a cap on

10  winnings and may limit, exclude, or defer payments on to

11  certain classes of races, such as the Florida stallion stakes

12  races, in order to assure that there are adequate revenues to

13  meet the proposed uniform rate. Priority shall be placed on

14  imposing such restrictions in lieu of allowing the uniform

15  rate for breeders' and stallion awards to be less than 15

16  percent of the total purse payment.  The plan must provide for

17  the maximum possible payments within revenues.

18         Section 2.  Subsection (3) of section 550.2625, Florida

19  Statutes, is amended to read:

20         550.2625  Horseracing; minimum purse requirement,

21  Florida breeders' and owners' awards.--

22         (3)  Each horseracing permitholder conducting any

23  thoroughbred race under this chapter, including any intertrack

24  race taken pursuant to ss. 550.615-550.6305 or any interstate

25  simulcast taken pursuant to s. 550.3551(3) shall pay a sum

26  equal to 0.955 percent on all pari-mutuel pools conducted

27  during any such race for the payment of breeders', and

28  stallion, or special racing awards as authorized in this

29  chapter section.  This subsection also applies to all

30  Breeder's Cup races conducted outside this state taken

31  pursuant to s. 550.3551(3).  On any race originating live in


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                                          HB 1573, First Engrossed



  1  this state which is broadcast out-of-state to any location at

  2  which wagers are accepted pursuant to s. 550.3551(2), the host

  3  track is required to pay 3.475 percent of the gross revenue

  4  derived from such out-of-state broadcasts as breeders', and

  5  stallion, or special racing awards.  The Florida Thoroughbred

  6  Breeders' Association is authorized to receive these payments

  7  from the permitholders and make payments of awards earned.

  8  The Florida Thoroughbred Breeders' Association has the right

  9  to withhold up to 10 percent of the permitholder's payments

10  under this section as a fee for administering the payments of

11  awards and for general promotion of the industry.  The

12  permitholder shall remit these payments to the Florida

13  Thoroughbred Breeders' Association by the 5th day of each

14  calendar month for such sums accruing during the preceding

15  calendar month and shall report such payments to the division

16  as prescribed by the division.  With the exception of the

17  10-percent fee, the moneys paid by the permitholders shall be

18  maintained in a separate, interest-bearing account, and such

19  payments together with any interest earned shall be used

20  exclusively for the payment of breeders', awards and stallion,

21  or special racing awards in accordance with the following

22  provisions:

23         (a)  The breeder of each Florida-bred thoroughbred

24  horse winning a thoroughbred horse race is entitled to an

25  award of up to, but not exceeding, 20 percent of the announced

26  gross purse, including nomination fees, eligibility fees,

27  starting fees, supplementary fees, and moneys added by the

28  sponsor of the race.

29         (b)  The owner or owners of the sire of a Florida-bred

30  thoroughbred horse that wins a stakes race is entitled to a

31  stallion award of up to, but not exceeding, 20 percent of the


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                                          HB 1573, First Engrossed



  1  announced gross purse, including nomination fees, eligibility

  2  fees, starting fees, supplementary fees, and moneys added by

  3  the sponsor of the race.

  4         (c)  The owners of registered Florida-bred thoroughbred

  5  horses participating winning or placing in thoroughbred stakes

  6  races, non-stakes races, or both may receive a special racing

  7  an award in accordance with the agreement a plan established

  8  pursuant to in s. 550.26165(1).

  9         (d)  In order for a breeder of a Florida-bred

10  thoroughbred horse to be eligible to receive a breeder's

11  award, or for the owners of a registered Florida-bred

12  thoroughbred horse to be eligible to receive an award under

13  paragraph (c), the horse must have been registered as a

14  Florida-bred horse with the Florida Thoroughbred Breeders'

15  Association, and the Jockey Club certificate for the horse

16  must show that it has been duly registered as a Florida-bred

17  horse as evidenced by the seal and proper serial number of the

18  Florida Thoroughbred Breeders' Association registry.  The

19  Florida Thoroughbred Breeders' Association shall be permitted

20  to charge the registrant a reasonable fee for this

21  verification and registration.

22         (e)  In order for an owner of the sire of a

23  thoroughbred horse winning a stakes race to be eligible to

24  receive a stallion award, the stallion must have been

25  registered with the Florida Thoroughbred Breeders'

26  Association, and the breeding of the registered Florida-bred

27  horse must have occurred in this state. The stallion must be

28  standing permanently in this state during the period of time

29  between February 1 and June 15 of each year or, if the

30  stallion is dead, must have stood permanently in this state

31  for a period of not less than 1 year immediately prior to its


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                                          HB 1573, First Engrossed



  1  death. The removal of a stallion from this state during the

  2  period of time between February 1 and June 15 of any year for

  3  any reason, other than exclusively for prescribed medical

  4  treatment, as approved by the Florida Thoroughbred Breeders'

  5  Association, renders the owner or owners of the stallion

  6  ineligible to receive a stallion award under any circumstances

  7  for offspring sired prior to removal; however, if a removed

  8  stallion is returned to this state, all offspring sired

  9  subsequent to the return make the owner or owners of the

10  stallion eligible for the stallion award but only for those

11  offspring sired subsequent to such return to this state. The

12  Florida Thoroughbred Breeders' Association shall maintain

13  complete records showing the date the stallion arrived in this

14  state for the first time, whether or not the stallion remained

15  in the state permanently, the location of the stallion, and

16  whether the stallion is still standing in this state and

17  complete records showing awards earned, received, and

18  distributed. The association may charge the owner, owners, or

19  breeder a reasonable fee for this service.

20         (f)  A permitholder conducting a thoroughbred horse

21  race under the provisions of this chapter shall, within 30

22  days after the end of the race meet during which the race is

23  conducted, certify to the Florida Thoroughbred Breeders'

24  Association such information relating to the thoroughbred

25  horses winning a stakes or other horserace at the meet as may

26  be required to determine the eligibility for payment of

27  breeders', awards and stallion, and special racing awards.

28         (g)  The Florida Thoroughbred Breeders' Association

29  shall maintain complete records showing the starters and

30  winners in all races conducted at thoroughbred tracks in this

31  state; shall maintain complete records showing awards earned,


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                                          HB 1573, First Engrossed



  1  received, and distributed; and may charge the owner, owners,

  2  or breeder a reasonable fee for this service.

  3         (h)  The Florida Thoroughbred Breeders' Association

  4  shall annually establish a uniform rate and procedure for the

  5  payment of breeders' and stallion awards and shall make

  6  breeders' and stallion award payments in strict compliance

  7  with the established uniform rate and procedure plan.  The

  8  plan may set a cap on winnings and may limit, exclude, or

  9  defer payments to certain classes of races, such as the

10  Florida stallion stakes races, in order to assure that there

11  are adequate revenues to meet the proposed uniform rate. Such

12  plan must include proposals for the general promotion of the

13  industry. Priority shall be placed upon imposing such

14  restrictions in lieu of allowing the uniform rate to be less

15  than 15 percent of the total purse payment.  The uniform rate

16  and procedure plan must be approved by the division before

17  implementation.  In the absence of an approved plan and

18  procedure, the authorized rate for breeders' and stallion

19  awards is 15 percent of the announced gross purse for each

20  race.  Such purse must include nomination fees, eligibility

21  fees, starting fees, supplementary fees, and moneys added by

22  the sponsor of the race. If the funds in the account for

23  payment of breeders' and stallion awards are not sufficient to

24  meet all earned breeders' and stallion awards, those breeders

25  and stallion owners not receiving payments have first call on

26  any subsequent receipts in that or any subsequent year.

27         (i)  The Florida Thoroughbred Breeders' Association

28  shall keep accurate records showing receipts and disbursements

29  of such payments and shall annually file a full and complete

30  report to the division showing such receipts and disbursements

31  and the sums withheld for administration.  The division may


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                                          HB 1573, First Engrossed



  1  audit the records and accounts of the Florida Thoroughbred

  2  Breeders' Association to determine that payments have been

  3  made to eligible breeders and stallion owners in accordance

  4  with this section.

  5         (j)  If the division finds that the Florida

  6  Thoroughbred Breeders' Association has not complied with any

  7  provision of this section, the division may order the

  8  association to cease and desist from receiving funds and

  9  administering funds received under this section.  If the

10  division enters such an order, the permitholder shall make the

11  payments authorized in this section to the division for

12  deposit into the Pari-mutuel Wagering Trust Fund; and any

13  funds in the Florida Thoroughbred Breeders' Association

14  account shall be immediately paid to the Division of

15  Pari-mutuel Wagering for deposit to the Pari-mutuel Wagering

16  Trust Fund.  The division shall authorize payment from these

17  funds to any breeder or stallion owner entitled to an award

18  that has not been previously paid by the Florida Thoroughbred

19  Breeders' Association in accordance with the applicable rate.

20         Section 3.  Paragraph (a) of subsection (7) of section

21  550.334, Florida Statutes, is amended to read:

22         550.334  Quarter horse racing; substitutions.--

23         (7)(a)  Any quarter horse racing permitholder operating

24  under a valid permit issued prior to January 1, 2002, by the

25  division that has not been relocated after December 31, 2001,

26  to a county other than the county that appears on the original

27  permit application is authorized to substitute other races of

28  other breeds of horses which are, respectively, registered

29  with the American Paint Horse Association, Appaloosa Horse

30  Club, Arabian Horse Registry of America, Jockey Club, Palomino

31  Horse Breeders of America, or United States Trotting


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                                          HB 1573, First Engrossed



  1  Association, for no more than 50 percent of the quarter horse

  2  races daily.

  3         Section 4.  (1)  Notwithstanding the provisions of s.

  4  550.01215(4), the license of thoroughbred horserace

  5  permitholder who fails to operate all performances specified

  6  on its license that are scheduled prior to July 1, 2004 will

  7  not be subject to fine or suspension by the division.

  8         (2)  Notwithstanding the provisions of s.

  9  550.09515(3)(a), a thoroughbred horse permitholder who does

10  not pay tax on handle for live thoroughbred performances

11  through the period ending July 1, 2004, does not abandon its

12  interest in its permit.

13         (3)  Notwithstanding the provision of s. 550.5251(2),

14  though the period ending July 1, 2004, the ability to operate

15  horseracing meets the full number of days authorized on each

16  of the dates set forth in its license shall not be a condition

17  precedent to the validity of a thoroughbred racing

18  permitholder's license or permit.

19         Section 5.  Subsection (11) of section 550.002, Florida

20  Statutes, is amended to read:

21         550.002  Definitions.--As used in this chapter, the

22  term:

23         (11)  "Full schedule of live racing or games" means,

24  for a greyhound or jai alai permitholder, the conduct of a

25  combination of at least 100 live evening or matinee

26  performances during the preceding year; for a permitholder who

27  has a converted permit or filed an application on or before

28  June 1, 1990, for a converted permit, the conduct of a

29  combination of at least 100 live evening and matinee wagering

30  performances during either of the 2 preceding years; for a

31  harness permitholder, the conduct of at least 100 live regular


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                                          HB 1573, First Engrossed



  1  wagering performances during the preceding year; for a quarter

  2  horse or jai alai permitholder, the conduct of at least 40

  3  live regular wagering performances during the preceding year;

  4  and for a thoroughbred permitholder, the conduct of at least

  5  40 live regular wagering performances during the preceding

  6  year. For a permitholder which is restricted by statute to

  7  certain operating periods within the year when other members

  8  of its same class of permit are authorized to operate

  9  throughout the year, the specified number of live performances

10  which constitute a full schedule of live racing or games shall

11  be adjusted pro rata in accordance with the relationship

12  between its authorized operating period and the full calendar

13  year and the resulting specified number of live performances

14  shall constitute the full schedule of live games for such

15  permitholder and all other permitholders of the same class

16  within 100 air miles of such permitholder. A live performance

17  must consist of no fewer than eight races or games conducted

18  live for each of a minimum of three performances each week at

19  the permitholder's licensed facility under a single admission

20  charge.

21         Section 6.  This act shall take effect upon becoming a

22  law.

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