House Bill hb1573e2

CODING: Words stricken are deletions; words underlined are additions.




                                         HB 1573, Second 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; providing an effective date.

11

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

13

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

15  550.26165, Florida Statutes, are amended to read:

16         550.26165  Breeders' awards.--

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

18  agricultural activity of breeding and training racehorses in

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

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

21  to breeders of registered Florida-bred horses winning

22  horseraces and for similar awards to the owners of stallions

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

24  stallions are registered as Florida stallions standing in this

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

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

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

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

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

30  as determined by the Florida Thoroughbred Breeders'

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


                                  1

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



  1  as breeders' awards and stallion awards for thoroughbreds

  2  shall be returned pro rata to the permitholders that generated

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

  4  permitholders to owners of registered Florida-bred

  5  thoroughbred horses participating winning in prescribed

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

  7  winning or placing in thoroughbred stakes races, all in

  8  accordance with a written agreement establishing the rate,

  9  procedure, and eligibility requirements for such awards

10  entered into plan established annually no later than 120 days

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

12  agreed upon by the permitholder, the Florida Thoroughbred

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

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

15  distribution by any permitholder located in the area described

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

17  the Florida Thoroughbred Breeders' Association, and the

18  association representing a majority of the thoroughbred

19  racehorse owners and trainers at that location. Awards for

20  thoroughbred races are to be paid through the Florida

21  Thoroughbred Breeders' Association, and awards for

22  standardbred races are to be paid through the Florida

23  Standardbred Breeders and Owners Association. Among other

24  sources specified in this chapter, moneys for thoroughbred

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

26  for thoroughbred races conducted, received, broadcast, or

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

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

29  come from the breaks and uncashed tickets on live quarter

30  horse and harness racing performances and 1 percent of handle

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


                                  2

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



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

  2  permitholders conducting the races.

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

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

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

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

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

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

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

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

11  imposing such restrictions in lieu of allowing the uniform

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

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

14  the maximum possible payments within revenues.

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

16  Statutes, is amended to read:

17         550.2625  Horseracing; minimum purse requirement,

18  Florida breeders' and owners' awards.--

19         (3)  Each horseracing permitholder conducting any

20  thoroughbred race under this chapter, including any intertrack

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

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

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

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

25  stallion, or special racing awards as authorized in this

26  chapter section.  This subsection also applies to all

27  Breeder's Cup races conducted outside this state taken

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

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

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

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


                                  3

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



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

  2  stallion, or special racing awards.  The Florida Thoroughbred

  3  Breeders' Association is authorized to receive these payments

  4  from the permitholders and make payments of awards earned.

  5  The Florida Thoroughbred Breeders' Association has the right

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

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

  8  awards and for general promotion of the industry.  The

  9  permitholder shall remit these payments to the Florida

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

11  calendar month for such sums accruing during the preceding

12  calendar month and shall report such payments to the division

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

14  10-percent fee, the moneys paid by the permitholders shall be

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

16  payments together with any interest earned shall be used

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

18  or special racing awards in accordance with the following

19  provisions:

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

21  horse winning a thoroughbred horse race is entitled to an

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

23  gross purse, including nomination fees, eligibility fees,

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

25  sponsor of the race.

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

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

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

29  announced gross purse, including nomination fees, eligibility

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

31  the sponsor of the race.


                                  4

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



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

  2  horses participating winning or placing in thoroughbred stakes

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

  4  an award in accordance with the agreement a plan established

  5  pursuant to in s. 550.26165(1).

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

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

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

  9  thoroughbred horse to be eligible to receive an award under

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

11  Florida-bred horse with the Florida Thoroughbred Breeders'

12  Association, and the Jockey Club certificate for the horse

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

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

15  Florida Thoroughbred Breeders' Association registry.  The

16  Florida Thoroughbred Breeders' Association shall be permitted

17  to charge the registrant a reasonable fee for this

18  verification and registration.

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

20  thoroughbred horse winning a stakes race to be eligible to

21  receive a stallion award, the stallion must have been

22  registered with the Florida Thoroughbred Breeders'

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

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

25  standing permanently in this state during the period of time

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

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

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

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

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

31  any reason, other than exclusively for prescribed medical


                                  5

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



  1  treatment, as approved by the Florida Thoroughbred Breeders'

  2  Association, renders the owner or owners of the stallion

  3  ineligible to receive a stallion award under any circumstances

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

  5  stallion is returned to this state, all offspring sired

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

  7  stallion eligible for the stallion award but only for those

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

  9  Florida Thoroughbred Breeders' Association shall maintain

10  complete records showing the date the stallion arrived in this

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

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

13  whether the stallion is still standing in this state and

14  complete records showing awards earned, received, and

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

16  breeder a reasonable fee for this service.

17         (f)  A permitholder conducting a thoroughbred horse

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

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

20  conducted, certify to the Florida Thoroughbred Breeders'

21  Association such information relating to the thoroughbred

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

23  be required to determine the eligibility for payment of

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

25         (g)  The Florida Thoroughbred Breeders' Association

26  shall maintain complete records showing the starters and

27  winners in all races conducted at thoroughbred tracks in this

28  state; shall maintain complete records showing awards earned,

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

30  or breeder a reasonable fee for this service.

31


                                  6

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



  1         (h)  The Florida Thoroughbred Breeders' Association

  2  shall annually establish a uniform rate and procedure for the

  3  payment of breeders' and stallion awards and shall make

  4  breeders' and stallion award payments in strict compliance

  5  with the established uniform rate and procedure plan.  The

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

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

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

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

10  plan must include proposals for the general promotion of the

11  industry. Priority shall be placed upon imposing such

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

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

14  and procedure plan must be approved by the division before

15  implementation.  In the absence of an approved plan and

16  procedure, the authorized rate for breeders' and stallion

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

18  race.  Such purse must include nomination fees, eligibility

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

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

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

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

23  and stallion owners not receiving payments have first call on

24  any subsequent receipts in that or any subsequent year.

25         (i)  The Florida Thoroughbred Breeders' Association

26  shall keep accurate records showing receipts and disbursements

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

28  report to the division showing such receipts and disbursements

29  and the sums withheld for administration.  The division may

30  audit the records and accounts of the Florida Thoroughbred

31  Breeders' Association to determine that payments have been


                                  7

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



  1  made to eligible breeders and stallion owners in accordance

  2  with this section.

  3         (j)  If the division finds that the Florida

  4  Thoroughbred Breeders' Association has not complied with any

  5  provision of this section, the division may order the

  6  association to cease and desist from receiving funds and

  7  administering funds received under this section.  If the

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

  9  payments authorized in this section to the division for

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

11  funds in the Florida Thoroughbred Breeders' Association

12  account shall be immediately paid to the Division of

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

14  Trust Fund.  The division shall authorize payment from these

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

16  that has not been previously paid by the Florida Thoroughbred

17  Breeders' Association in accordance with the applicable rate.

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

19  550.334, Florida Statutes, is amended to read:

20         550.334  Quarter horse racing; substitutions.--

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

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

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

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

25  permit application is authorized to substitute other races of

26  other breeds of horses which are, respectively, registered

27  with the American Paint Horse Association, Appaloosa Horse

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

29  Horse Breeders of America, or United States Trotting

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

31  races daily.


                                  8

CODING: Words stricken are deletions; words underlined are additions.






                                         HB 1573, Second Engrossed



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

  2  550.01215(4), the license of thoroughbred horserace

  3  permitholder who fails to operate all performances specified

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

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

  6         (2)  Notwithstanding the provisions of s.

  7  550.09515(3)(a), a thoroughbred horse permitholder who does

  8  not pay tax on handle for live thoroughbred performances

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

10  interest in its permit.

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

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

13  horseracing meets the full number of days authorized on each

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

15  precedent to the validity of a thoroughbred racing

16  permitholder's license or permit.

17         Section 5.  This act shall take effect upon becoming a

18  law.

19

20

21

22

23

24

25

26

27

28

29

30

31


                                  9

CODING: Words stricken are deletions; words underlined are additions.