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Sub. S. B. No. 125 As Passed by the Senate
As Passed by the Senate
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Senators Clancy, Goodman, Spada, Mason, Schuler, Cates, Cafaro, Smith, Grendell, Mumper, Wilson
A BILL
To amend sections 924.01, 924.04, 924.07, 924.09, 924.10, 3769.03, 3769.08, 3769.083, 3769.085, and 3769.088 and to enact sections 924.011, 924.071, 3769.0811, 3769.0812, and 3769.0813 of the
Revised Code to authorize wagering at a track on horse races that
are telecast via an instant racing system, to levy a tax on amounts wagered in this manner, and to
enable certain persons associated with the equine
industry to establish an equine marketing program.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 924.01, 924.04, 924.07, 924.09, 924.10, 3769.03, 3769.08, 3769.083, 3769.085, and 3769.088 be amended and sections 924.011, 924.071, 3769.0811, 3769.0812, and 3769.0813
of the Revised Code be enacted to read as follows:
Sec. 924.01. As used in
Chapter 924. of the Revised Code
this chapter:
(A)
"Agricultural commodity" means any food, fiber, feed,
animal, or plant, or group of foods, fibers, feeds, animals, or
plants that the director of agriculture determines to be of the
same nature, in either a natural or a processed state.
(B)
"Distributor" means any person who sells, offers for
sale, markets, or distributes an agricultural commodity
which he
that the
person
has purchased or acquired directly from a
producer, or
which he
that the
person
markets on behalf of a
producer.
(C)
"Handler" means any person who is in the business of
packing, grading, selling, offering for sale, or marketing any
agricultural commodity in commercial quantities as defined in a
marketing program.
(D)
"Marketing program" means a program
which
that is
established
by order of the director of agriculture pursuant to
this chapter,
to improve or expand the market for an agricultural
commodity.
(E)
"Operating committee" means a committee established to
administer a marketing program for an agricultural commodity.
(F)
"Person" means any natural person, partnership,
corporation, society, association, or fiduciary.
(G)
"Processor" means any person who is in the business of
grading, packaging, packing, canning, freezing, dehydrating,
fermenting, distilling, extracting, preserving, grinding,
crushing, juicing, or in any other way preserving or changing the
form of any agricultural commodity.
(H)
"Producer" means, except as otherwise provided in this
division, any person who is in the business of
producing, or
causing to be produced, any agricultural commodity
for commercial
sale, except that when. When used in reference to
nursery
stock,
"producer" also means a distributor, processor,
handler, or
retailer of nursery stock.
When used in reference to equines,
"producer" means any person who owns, breeds, or trains equines.
Sec. 924.011. Notwithstanding any language to the contrary,
the provisions of this chapter that concern distributors,
handlers, or processors shall not apply to an equine marketing
program.
Sec. 924.04. (A) Producers of an Ohio agricultural
commodity may present the director of agriculture with a petition
signed by the lesser of one thousand or twenty per cent of all
such producers requesting that the director hold a referendum in
accordance with section 924.06 of the Revised Code to establish a
marketing program for that commodity or to amend an existing
program.
(B) At the time of presentation of the petition to the
director under division (A) of this section, the petitioners also
shall
present the proposed amendment or a proposed program, which
shall include all of the following:
(1)
The
Except in the case of a proposed equine marketing
program or a proposed amendment to an existing equine marketing
program, the rate of assessment to be made on the marketable
agricultural commodity, which shall not exceed two per cent of
the
average market price of that agricultural commodity during
the
preceding marketing year as defined by the United States
department of agriculture or, if there is no such definition, by
the director;. In the case of a proposed equine marketing program
or a proposed amendment to an existing equine marketing program,
the petition shall not provide for an assessment.
(2) Terms, conditions, limitations, and other
qualifications
for assessment;
(3) Procedures to refund the assessment;
(4) Requirements for appointed or elected committees, except that the operating committee of an equine marketing program shall not be elected;
(5) In the case of a proposed equine marketing program or a proposed amendment to an existing equine marketing program, a specification that all money received for the program will be equitably distributed among the equine industries that are represented in the program for the purposes of carrying out the purposes of the program as authorized under section 924.03 of the Revised Code.
(C) Before making a decision under this division to
approve
or disapprove a proposed program or a proposed amendment to an existing program, the director shall
publish in at
least two appropriate periodicals designated by
him
the director a
notice that the program or amendment has been
proposed and
informing interested persons of the procedures for submitting
comments regarding the proposal. After publishing the notice,
the
director shall provide interested persons with a copy of the
proposed program or proposed amendment to an existing program and
an opportunity to comment on the proposed program or amendment
for
thirty days after the publication of the notice. The
petitioners
may make changes to the proposed program or amendment
based upon
the comments received. The director may make
technical changes to
the proposal to ensure compliance with
sections 924.01 to 924.16
of the Revised Code. Subsequent to any
changes made by the
petitioners or any technical changes made by
the director to a
proposed program or amendment to an existing
program, the director
may approve or disapprove the proposed
program or amendment to an
existing program.
(D) If the director approves the proposed program or
amendment, with any changes made under division (C) of this
section,
he
the director shall hold a referendum in accordance
with section
924.06 of the Revised Code to establish a marketing
program for
that commodity or to amend an existing program.
Sec. 924.07. (A) When the producers of an agricultural
commodity who vote in a referendum favor a proposed marketing
program, the director of agriculture shall order the program
established and, if the marketing program does not provide for
the
election of an operating committee, appoint an operating
committee
consisting of
producers of
the
commodity to
administer the
program. Each operating committee
shall consist of
not less than
three nor more than fifteen
producers.
(B) Of the members first appointed to an operating
committee, the director shall appoint approximately one-third for
one-year terms, approximately one-third for two-year terms, and
the remainder for three-year terms. Thereafter,
the director
shall appoint
each member for a three-year term unless the
appointee is to fill
a vacancy in which case
the appointee
shall
be appointed for
the unexpired
term. Each such subsequent
appointment shall be made prior to
the expiration date of the
preceding or vacant term.
(C) The director shall not appoint any member of an
operating committee to serve more than three successive full
three-year terms.
(D) The director shall appoint members of each operating
committee from a list of candidates recommended by the producers
of the agricultural commodity for which the marketing program is
established. Insofar as possible the members shall be equitably
distributed by geographic and production areas. Any list of
candidates recommended to the director by producers shall include
not less than twice as many candidates as the number of members
which that are to be appointed, but in no case shall a list include
fewer than three names.
(E) The director, or
the director's designee, is an ex
officio member
of each operating committee, with the right to
vote.
(F) Each member of an operating committee, except the
director or
the director's designee, is entitled to actual
and
necessary
travel and incidental expenses while attending meetings
of the
committee or while engaged in the performance of official
responsibilities delegated to the committee. No member of such a
committee shall receive in excess of thirty dollars per day, in
addition to such travel and incidental expenses, or for more than
twenty-four days per year for duties performed as a member of
the
committee.
(G) No person is civilly liable for any actions taken in
good faith as a member of an operating committee.
(H) This section does not apply to the operating committee of an equine marketing program established under section 924.071 of the Revised Code.
Sec. 924.071. (A) When the producers who vote in a referendum to create an equine marketing program favor the creation, the director of agriculture shall order the program
established and appoint an operating
committee
consisting of
the
following members to
administer the
program:
(1) Three members representing the horse racing industry, not more than two of whom shall represent the same segment of the industry;
(2) Three members representing the equine show industry, not more than two of whom shall represent the same segment of the industry;
(3) Three members representing recreational users of equines;
(4) Three members representing persons who use equines for agricultural purposes;
(5) One member representing the agribusiness industry;
(6) One member representing the Ohio farm bureau federation.
(B) Of the members first appointed to the operating
committee, the director shall appoint approximately one-third for
one-year terms, approximately one-third for two-year terms, and
the remainder for three-year terms. Thereafter,
the director
shall appoint
each member for a three-year term unless the
appointee is to fill
a vacancy in which case
the appointee
shall
be appointed for
the unexpired
term. Each such subsequent
appointment shall be made prior to
the expiration date of the
preceding or vacant term.
(C) The director shall not appoint any member of the
operating committee to serve more than three successive full
three-year terms.
(D) The director shall appoint members of the operating
committee from a list of candidates recommended by equine producers. Insofar as possible the members shall be equitably
distributed by geographic areas. Any list of
candidates recommended to the director by producers shall include
not less than twice as many candidates as the number of members
that are to be appointed, but in no case shall a list include
fewer than three names.
(E) The director, or
the director's designee, is an ex
officio member
of the operating committee, with the right to
vote.
(F) Each member of the operating committee, except the
director or
the director's designee, is entitled to actual
and
necessary
travel and incidental expenses while attending meetings
of the
committee or while engaged in the performance of official
responsibilities delegated to the committee. No member of the
committee shall receive in excess of thirty dollars per day, in
addition to such travel and incidental expenses, or for more than
twenty-four days per year for duties performed as a member of
the
committee.
(G) No person is civilly liable for any actions taken in
good faith as a member of the operating committee.
Sec. 924.09. (A) Each Except in the case of an equine marketing program, each operating committee may make
assessments upon the marketable agricultural commodity for which
the marketing program was established.
(B) No operating committee shall levy any assessment:
(1)
That was not approved by the producers affected by
the
program;
(2)
That exceeds two cents per bushel of corn,
soybeans,
or
wheat, or two per cent of the average market price of
any
other
agricultural commodity during the preceding marketing
year
as
defined for the commodity by the United States department
of
agriculture or, if there is no such definition, by the
director of agriculture;
(3) Against any producer who is not eligible to vote in a
referendum for the marketing program
that the operating
committee
administers.
(C) The director of agriculture may require a producer,
processor, distributor, or handler of an agricultural commodity
for which a marketing program has been established under sections
924.01 to 924.16 of the Revised Code to withhold assessments from
any amounts that
the producer, processor, distributor, or
handler
owes to producers of the commodity and,
notwithstanding
division
(B)(3) of this section, to remit them to
the director.
Any
processor, distributor, or handler who pays
for any producer
any
assessment
that is levied under authority
of this
section may
deduct the amount of
the assessment from
any
moneys
that the
processor, distributor, or handler owes
to the producer.
(D) No operating committee shall use any assessments
that
it levies or other funds it receives for any political or legislative purpose, or for
preferential treatment of one person to the detriment of any
other
person affected by the marketing program.
(E)
The operating committee of each marketing program
shall
refund
to a producer the
assessments
that it collects
from the
producer not later than
sixty days after receipt
of
a valid
application by
the
producer for a refund, provided
that the
producer complies with
the procedures for a refund that
were
included in the program
under division (B)(3) of section
924.04 of
the Revised Code.
In the case of the state beef marketing program, in lieu of
giving a refund to a producer, the director of the program's
operating committee may forward the refund to the cattlemen's
beef
promotion and research board pursuant to the "Beef Promotion
and
Research Act," 99 Stat. 1597 (1985), 7 U.S.C.A. 2901, and
amendments thereto, and shall credit that amount to the total
amount owed by the producer to the federal beef program. Each
application for a refund of assessments levied for a program
established after April 10, 1985, shall be made on a form provided
by the director of agriculture. Each operating committee for
such
a program shall ensure that refund forms are available where
assessments for its program are withheld.
(F) The operating committee of an equine marketing program may establish a voluntary contribution program for producers who wish to financially support the marketing program.
Sec. 924.10. (A) There is hereby established in the state
treasury a fund for each marketing program that is established
by the director of agriculture pursuant to this chapter. Except as authorized
in division (B) of this section, all moneys collected by the department of
agriculture from each marketing program
pursuant to section 924.09 of the Revised Code shall be paid into
the fund for the marketing program and. The fund for an equine marketing program shall also consist of all moneys paid in accordance with division (C)(3) of section 3769.0813 of the Revised Code. Moneys in each fund shall be disbursed only
pursuant to a voucher approved by the director for use in
defraying
the costs of administration of the marketing program and for
carrying out sections 924.02, 924.03, and 924.13 of the Revised
Code.
(B) In lieu of deposits in the fund established pursuant to division (A) of
this section, the operating committee of any marketing program established
pursuant to this chapter may deposit all moneys collected pursuant to section
924.09 of the Revised Code with a bank or a savings and loan association as
defined in sections 1101.01 and 1151.01 of the Revised Code. All moneys
collected pursuant to section 924.09 of the Revised Code and deposited
pursuant to this division also shall be used only in defraying the costs of
administration of the marketing program and for carrying out sections 924.02,
924.03, and 924.13 of the Revised Code.
(C) Each operating committee shall
establish a fiscal year
for its marketing program and shall publish within sixty days of
the end of each fiscal year an activity and financial report and
make such report available to each producer who pays an
assessment or otherwise contributes to the marketing program
which the committee administers, and to other interested persons.
(D) In addition to the reports required by division (C) of this section, any
marketing program that deposits moneys in accordance with division (B) of this
section shall submit to the director both of the following:
(1) Annually, a financial statement prepared by a certified public accountant
holding a live permit from the accountancy board issued pursuant
to Chapter 4701. of the Revised Code. The marketing program shall file the
financial statement with the director not more than sixty days after the end
of each fiscal year.
(2) Monthly, an unaudited financial statement.
Sec. 3769.03. The state racing commission shall prescribe
the rules and conditions under which horse racing may be
conducted and may issue, deny, suspend, diminish, or revoke
permits to conduct horse racing as authorized by sections 3769.01
to 3769.14 of the Revised Code. The commission may impose, in
addition to any other penalty imposed by the commission, fines in
an amount not to exceed ten thousand dollars on any permit holder
or any other person who violates the rules or orders of the
commission. The commission may prescribe the forms of
wagering
that are permissible, the number of races, the procedures on wagering,
and the wagering information to be provided to the public.
The commission may require totalizator equipment to display
the amount of wagering in each wagering pool. The commission
shall initiate safeguards as necessary to account for the amount
of money wagered at each track in each wagering pool. It may
require permit holders to install equipment that will provide a
complete check and analysis of the functioning of any computers
and require safeguards on their performance. The commission
shall require all permit holders, except those holding state
fair, county fair, or other fair permits, to provide a
photographic recording, approved by the commission, of the entire
running of all races conducted by the permit holder.
The state racing commission may issue, deny, suspend, or
revoke licenses to those persons engaged in racing and to
those
employees of permit holders as is in the public interest for the
purpose of maintaining a proper control over horse-racing
meetings. The commission, as is in the public interest
for the purpose of maintaining proper control over horse-racing
meetings, also may rule any person off a permit holder's premises.
License fees shall include registration fees
and shall
be set by the commission. Each license issued by the
commission, unless revoked for
cause, shall be for the period of one year from the first day of
January of the year in which it is issued, except as otherwise
provided in section 3769.07 of the Revised Code. Applicants for
licenses issued by the commission shall submit their fingerprints
to the commission, and the commission may forward the fingerprints
to the federal bureau of investigation or, to any other agency, or
to both, for examination.
There is hereby created in the state treasury the state
racing commission operating fund. All license fees established
and collected by the commission pursuant to this section, and the
amounts specified in divisions (B) and (C)(E) of section 3769.08 and,
division (A)(6) of section 3769.087, and division (C)(2) of section 3769.0813 of the Revised Code,
shall be
paid into the state treasury to the credit of the fund. Moneys
in the fund shall be expended by the commission to defray its
operating costs, salaries and expenses, and the cost of
administering and enforcing this chapter.
The commission may deny a permit to any permit holder that
has defaulted in payments to the public, employees, or the
horsemen and may deny a permit to any successor
purchaser of a
track for as long as any of those defaults have not been
satisfied by
either the seller or purchaser.
The commission shall deny a permit to any permit holder
that has defaulted in payments to the state or has defaulted in
payments required under section 3769.089 or, 3769.0810, or 3769.0813 of the Revised Code
and shall
deny a permit to any successor purchaser of a track for as long
as those defaults have not been satisfied by either the
seller or
purchaser.
Any violation of this chapter, of any rule of racing
adopted by the commission, or of any law or rule with respect to
racing in any jurisdiction shall be sufficient reason for a
refusal to issue a license, or a suspension or revocation of any
license issued, pursuant to this section.
With respect to the issuance, denial, suspension, or
revocation of a license to a participant in horse racing, the
action of the commission shall be subject to Chapter 119. of the
Revised Code.
The commission may sue and be sued in its own name. Any action against the
commission shall be brought in the court of common pleas of Franklin
county.
Any appeal from a determination or decision of the
commission rendered in the exercise of its powers and duties under this
chapter
shall be brought in the court of common pleas of Franklin county.
The commission, biennially, shall make a full report to
the
governor of its proceedings for the two-year period ending with
the thirty-first day of December preceding the convening of the
general assembly and shall include its
recommendations in the report.
The commission, semiannually, on the thirtieth day of June
and on the thirty-first day of December of each year, shall make a
report and accounting to the governor.
Sec. 3769.08. (A) Any person holding a permit to conduct
a
horse-racing meeting may provide a place in the race meeting
grounds or enclosure at which the permit holder may conduct and
supervise the pari-mutuel system of wagering by patrons of legal
age on the live racing programs and simulcast racing
programs
conducted by
the permit holder.
The pari-mutuel method of wagering upon the live racing
programs and simulcast racing programs
held at or conducted within
such race track, and at the time of such
horse-racing meeting, or
at other times authorized by the state
racing commission, shall
not be unlawful. No other place,
except that provided and
designated by the permit holder and except as
provided in section
3769.26 of the Revised Code, nor any
other method or system of
betting or wagering, except the
pari-mutuel system, shall be used
or permitted by the permit
holder; nor, except as provided in
section 3769.089, 3769.0812, or 3769.26 of the
Revised Code, shall the
pari-mutuel system of wagering be
conducted by the permit holder
on any races except the races at
the race track, grounds, or
enclosure for which the person holds
a permit. Each Except as provided in section 3769.0813 of the Revised Code, each permit holder
may retain as
a commission an amount
not to exceed eighteen per
cent of the total of all moneys
wagered.
The pari-mutuel wagering authorized by this section is
subject to sections
3769.25 to
3769.28 of the Revised
Code, with the exception that pari-mutuel wagering conducted under section 3769.0812 of the Revised Code is not subject to those sections.
(B) At the close of each racing day, each permit holder
authorized to conduct thoroughbred racing, out of the amount
retained on that day by the permit holder, shall pay by check,
draft, or money order to the tax commissioner, as a tax, a sum
equal to the following percentages of the total of all moneys
wagered on live racing programs on that day and shall separately
compute and pay by check, draft, or money order to the tax
commissioner, as a
tax, a sum equal to the following percentages
of the total of all money
wagered on simulcast racing programs on
that day:
(1) One per cent of the first two hundred thousand dollars
wagered, or any part
of that amount;
(2) Two per cent of the next one hundred thousand dollars
wagered, or any part
of that amount;
(3) Three per cent of the next one hundred thousand
dollars
wagered, or any part
of that amount;
(4) Four per cent of all sums over four hundred thousand
dollars wagered.
Except as otherwise provided in section 3769.089 of the
Revised Code, each
permit holder authorized to conduct
thoroughbred
racing shall use for purse money a sum equal to fifty
per cent of
the pari-mutuel revenues retained by the permit holder
as a
commission after payment of the state tax under this division. This fifty per
cent
payment shall be in addition to the purse distribution from
breakage specified in this section.
Subject to division
(M) of this section, from the moneys paid
to the tax
commissioner by
thoroughbred racing
permit holders,
one-half
of one per cent of
the total of all
moneys so wagered on
a racing day shall be paid
into the Ohio
fairs fund created by
section 3769.082 of the
Revised Code, one
and one-eighth per cent
of the total of all
moneys so
wagered
on a
racing day shall be
paid into the Ohio thoroughbred race
fund
created by section
3769.083 of the Revised Code, and one-quarter
of one
per cent of
the total of all
moneys wagered on a racing day
by each permit
holder shall be
paid into the state racing
commission operating
fund created by
section 3769.03 of the
Revised Code. The required
payment to the state
racing commission
operating fund does not
apply to county and
independent fairs and
agricultural societies.
The
remaining moneys may be retained by
the permit holder, except
as
provided in this section with respect
to the odd cents
redistribution. Amounts paid into the PASSPORT
fund shall be used
solely for
the support of the PASSPORT program
as determined in
appropriations
made by
the general assembly. If
the PASSPORT
program is abolished, the
amount that
would have been
paid to the
PASSPORT fund under this chapter shall be
paid to
the
general
revenue fund of the state. As used in this chapter,
"PASSPORT
program" means the PASSPORT program created under
section 173.40
of
the Revised Code.
The total amount paid to the
Ohio
thoroughbred race
fund
under this section and
division (A) of
section
3769.087 of the
Revised Code
shall not exceed by more than
six
per cent the
total
amount paid to this fund under this section
and
that section
during the
immediately preceding calendar year.
Each year, the total amount calculated for payment into the
Ohio fairs
fund
under this division, division (C) of this section,
and
division (A) of section 3769.087 of the
Revised Code shall be
an amount
calculated using the percentages specified in
this
division,
division (C) of this section, and
division (A) of
section 3769.087 of the
Revised
Code.
A permit holder may contract with a thoroughbred horsemen's
organization for the organization to act as a representative of
all thoroughbred owners and trainers participating in a
horse-racing meeting conducted by the permit holder. A
"thoroughbred horsemen's organization" is any corporation or
association that represents, through membership or
otherwise,
more
than one-half of the aggregate of all thoroughbred owners
and
trainers who were licensed and actively participated in
racing
within this state during the preceding calendar year.
Except as
otherwise provided in this paragraph, any moneys
received by a
thoroughbred horsemen's organization shall be used
exclusively for
the benefit of thoroughbred owners and trainers
racing in this
state through the administrative purposes of the
organization,
benevolent activities on behalf of the horsemen,
promotion of the
horsemen's rights and interests, and promotion
of equine research.
A thoroughbred horsemen's organization may
expend not more than an
aggregate of five per cent of its annual
gross receipts, or a
larger amount as approved by the
organization, for dues,
assessments, and other payments to all
other local, national, or
international organizations having as
their primary purposes the
promotion of thoroughbred horse
racing, thoroughbred horsemen's
rights, and equine research.
(C) Except as otherwise provided in division (B) of this
section, at the
close of each racing day, each permit holder
authorized to conduct harness or quarter horse racing, out of the
amount retained that day by the permit holder, shall pay by
check,
draft, or money order to the tax commissioner, as a tax, a
sum
equal to the following percentages of the total of all moneys
wagered on
live racing programs and shall separately compute and
pay by check, draft, or
money order to the tax commissioner, as a
tax, a sum equal to the following
percentages of the total of all
money wagered on simulcast racing programs on
that day:
(1) One per cent of the first two hundred thousand dollars
wagered, or any part
of that amount;
(2) Two per cent of the next one hundred thousand dollars
wagered, or any part
of that amount;
(3) Three per cent of the next one hundred thousand
dollars
wagered, or any part
of that amount;
(4) Four per cent of all sums over four hundred thousand
dollars wagered.
Except as otherwise provided in division (B) and subject to
division
(M) of this section, from the moneys
paid to the tax
commissioner by permit holders authorized to conduct harness
or
quarter horse racing, one-half of one per cent of all moneys
wagered on
that racing day shall be paid into the Ohio fairs fund;
from the moneys
paid to the tax
commissioner by
permit holders
authorized to conduct harness racing, five-eighths of one per
cent
of all moneys wagered on that racing day shall be paid into the
Ohio
standardbred development fund; and
from the moneys paid to
the tax commissioner by permit holders authorized to
conduct
quarter horse racing, five-eighths of one per cent of all moneys
wagered on that racing day shall be paid into the Ohio quarter
horse
development fund.
(D) In addition, subject to division
(M) of this section,
beginning on January 1,
1996, from the money paid to the tax
commissioner as a tax under this section
and
division (A) of
section 3769.087 of
the Revised Code by harness horse permit
holders,
one-half of one
per cent of the amount wagered on a
racing day shall be paid
into
the Ohio standardbred development
fund. Beginning January 1,
1998, the The payment to the Ohio
standardbred development fund
required
under
this division
does
not apply to
county
agricultural societies or
independent
agricultural
societies.
The total amount paid to the
Ohio
standardbred
development
fund under this division, division
(C) of this
section, and
division (A) of section 3769.087 of the
Revised Code
and
the total
amount paid to the Ohio quarter horse
development fund
under
this
division and
division (A) of that
section
shall not exceed by
more
than six per cent
the total amount
paid into the fund under
this
division, division
(C) of this
section, and
division (A) of
section 3769.087 of the Revised Code
in
the immediately preceding
calendar year.
(E) Subject to division (M) of this section,
from the money
paid as a tax under this chapter by harness
and quarter horse
permit holders, one-quarter of one per cent
of the total of all
moneys wagered on a racing day by each permit
holder shall be paid
into the state racing commission operating
fund created by section
3769.03 of the Revised Code. This
division does not apply to
county and independent fairs and agricultural
societies.
(F) Except as otherwise provided in section 3769.089
of the
Revised Code, each
permit holder authorized to conduct harness
racing
shall
pay to the harness horsemen's purse pool a sum
equal
to
fifty per cent of the pari-mutuel revenues retained by
the
permit
holder as a commission after payment of the state tax under division (C) of this section.
This
fifty per cent payment is to be in addition to the purse
distribution from breakage specified in this section.
(G) In addition, each permit holder authorized to conduct
harness racing shall be allowed to retain the odd cents of all
redistribution to be made on all mutual mutuel contributions exceeding a
sum equal to the next lowest multiple of ten.
Forty per cent of that portion of that total sum of such
odd
cents shall be used by the permit holder for purse money for
Ohio
sired, bred, and owned colts, for purse money for Ohio bred
horses, and for increased purse money for horse races. Upon the
formation of the corporation described in section 3769.21 of the
Revised Code to establish a harness horsemen's health and
retirement fund, twenty-five per cent of that portion of that
total sum of odd cents shall be paid at the close of each racing
day by the permit holder to
that corporation to establish
and
fund the health and retirement fund. Until
that
corporation
is
formed,
that twenty-five per cent shall be paid at the
close of
each racing day by the permit holder to the tax
commissioner or
the tax commissioner's agent in the county seat of
the
county in
which the permit
holder operates race meetings. The
remaining
thirty-five per
cent of that portion of that total sum
of odd
cents shall be
retained by the permit holder.
(H) In addition, each permit holder authorized to conduct
thoroughbred racing shall be allowed to retain the odd cents of
all redistribution to be made on all mutuel contributions
exceeding a sum equal to the next lowest multiple of ten.
Twenty
per cent of that portion of that total sum of such odd cents
shall
be used by the permit holder for increased purse money for
horse
races. Upon the formation of the corporation described in
section
3769.21 of the Revised Code to establish a thoroughbred
horsemen's
health and retirement fund, forty-five
per cent of
that portion of
that total sum of odd cents shall be paid at the
close of each
racing day by the permit holder to
that
corporation
to
establish
and fund the health and retirement fund. Until
that
corporation
is formed,
that forty-five per cent
shall be
paid by
the permit
holder to the tax commissioner or the tax
commissioner's agent in
the
county seat of the county in which the
permit holder operates
race meetings, at the close of each racing
day. The remaining
thirty-five per cent of that portion of that
total sum of odd
cents shall be retained by the permit holder.
(I) In addition, each permit holder authorized to conduct
quarter horse racing shall be allowed to retain the odd cents of
all redistribution to be made on all mutuel contributions
exceeding a sum equal to the next lowest multiple of ten, subject
to a tax of twenty-five per cent on that portion of the total sum
of such odd cents that is in excess of two thousand
dollars
during
a calendar year, which tax shall be paid at the close of
each
racing day by the permit holder to the tax commissioner or
the tax
commissioner's agent in the county seat of the
county within which
the
permit holder operates race meetings. Forty per cent of that
portion of that total sum of such odd cents shall be used by the
permit holder for increased purse money for horse races. The
remaining thirty-five per cent of that portion of that total sum
of odd cents shall be retained by the permit holder.
(J)(1) To encourage the improvement of racing facilities for
the benefit of the public, breeders, and horse owners, and to
increase the revenue to the state from the increase in
pari-mutuel
wagering resulting from
those improvements, the
taxes
paid by
a
permit holder to the state as provided for in this
chapter shall
be reduced by
three-fourths of
one per cent of
the
total amount
wagered
for those permit holders who make capital
improvements to
existing
race tracks or construct new race
tracks. The percentage
of the
reduction that may be taken each racing day
shall equal
seventy-five per cent of the
taxes levied
under divisions
(B)
and
(C) of this section and section 3769.087
of the Revised
Code,
and
division (F)(2) of section 3769.26 of the Revised Code,
as
applicable, divided
by
the
calculated amount each fund should
receive under divisions (B)
and
(C) of this section and section
3769.087
of the Revised Code, and
division
(F)(2) of section
3769.26 of the Revised Code
and the
reduction provided for
in this
division. If the resulting
percentage is less than one, that
percentage shall be multiplied
by the amount of the reduction
provided for in
this division.
Otherwise, the permit holder shall
receive the full reduction
provided for in this division. The
amount of the allowable
reduction not
received shall be carried
forward and applied
against future tax liability.
After any
reductions expire, any
reduction carried forward shall be treated
as
a reduction as
provided for in this division.
If more than one permit holder is
authorized to conduct
racing at the facility that is being built or improved,
the cost
of the
new race track or capital improvement shall be allocated
between
or among
all the permit holders in the ratio that the
permit holders'
number of racing days bears to the total number of
racing days
conducted at the facility.
A reduction
for a new race track or a capital improvement
shall
start from the
day racing is first conducted following the
date actual
construction of the new race track or each capital
improvement is
completed and the construction cost has been
approved
by the state
racing commission, unless otherwise
provided in
this section.
A reduction
for a new race track
or
a capital
improvement shall continue for a period of
twenty-five
years
for
new race tracks and for fifteen years for
capital
improvements if
the construction of the
capital
improvement or new
race
track
commenced prior to March 29, 1988,
and for a period of
ten years
for new
race tracks or
capital
improvements if the
construction
of the
capital improvement
or new
race track
commenced on or after
March 29, 1988,
but before
the effective
date of this amendment
June 6, 2001,
or until the total tax
reduction
reaches
seventy per
cent of the
approved cost of the new
race
track or
capital
improvement, as
allocated to each permit
holder,
whichever
occurs
first.
A
reduction for a new race track or a
capital improvement
approved
after
the effective date of this
amendment
June 6, 2001,
shall continue until
the total tax reduction reaches one
hundred
per cent of the
approved cost of the new race track or
capital
improvement, as
allocated to each permit holder.
A reduction granted for
a new race track or a capital
improvement, the
application
for which was approved by the racing
commission after March
29, 1988,
but before
the effective date of
this amendment
June 6, 2001, shall not
commence nor
shall the
ten-year period
begin to run until all prior tax
reductions with
respect to the
same race track have ended. The
total tax
reduction because of
capital improvements shall not,
during any one
year, exceed for all
permit holders using any one
track
three-fourths of one
per cent
of the total amount
wagered,
regardless of the number of
capital
improvements made. Several
capital improvements to a race track
may be consolidated in an
application if the state
racing commission
approved the application
prior to
March 29, 1988. No permit
holder may receive a tax
reduction for a capital improvement
approved by the racing
commission on or after March 29, 1988, at a
race track
until all
tax
reductions have ended for all prior
capital improvements
approved
by the racing commission under this
section or section
3769.20 of
the Revised Code at that race track.
If there are two
or more
permit holders operating meetings at the
same track, they
may
consolidate their applications. The racing
commission shall
notify the tax commissioner when the
reduction
of tax
begins and
when it ends.
Each fiscal year the state
racing commission shall submit a
report
to the tax commissioner, the office of budget and
management, and
the
legislative
service
commission. The report shall identify
each capital
improvement
project undertaken under this division
and in
progress at each
race track, indicate the total cost of
each
project, state
the tax reduction that resulted from each
project during the
immediately preceding fiscal year, estimate
the
tax reduction that
will result from each
project during
the
current fiscal year,
state the total tax reduction that
resulted
from all such projects
at all race tracks during the
immediately
preceding fiscal year,
and estimate the total tax
reduction that
will result from all
such projects at all race
tracks during the
current fiscal year.
(2) In order to qualify for the reduction in tax, a permit
holder shall apply to the state racing commission in such form as the
commission may require and shall provide full details of the new
race track or capital improvement, including a schedule
for
its
construction and completion, and set forth the costs and
expenses
incurred in connection
with it. The
racing
commission shall
not
approve an application unless the permit
holder shows that a
contract for the new race track or capital
improvement has been
let under an unrestricted competitive bidding
procedure, unless
the contract is exempted by the controlling
board because of its
unusual nature. In determining whether to
approve an
application,
the
racing commission shall consider
whether the new
race track
or
capital improvement will promote the
safety, convenience, and
comfort of the racing public and horse
owners and generally tend
towards the improvement of racing in
this state.
(3) If a new
race track or capital improvement is approved
by
the state
racing
commission and construction has started, the tax
reduction may
be authorized by the commission upon
presentation of
copies of
paid bills in excess of one hundred
thousand dollars or
ten per
cent of the approved cost, whichever
is greater. After the
initial authorization, the permit holder
shall present copies of
paid bills. If the permit holder is in
substantial compliance
with the schedule for construction and
completion of the
new race
track
or
capital improvement, the
racing commission may authorize
the
continuation of the tax
reduction upon the
presentation of
the additional
paid bills. The total amount of the tax
reduction
authorized shall not exceed
the percentage of
the
approved cost
of the new
race track or capital improvement
specified in division
(J)(1) of this section. The
racing
commission
may
terminate any
tax
reduction immediately
if a permit
holder fails
to
complete
the
new race track or capital
improvement, or to
substantially
comply with the schedule for
construction and
completion of the
new
race
track or capital
improvement. If a
permit holder fails
to
complete a new
race
track or capital
improvement, the
racing
commission shall
order
the permit holder
to repay to the state the
total amount of
tax
reduced. The normal
tax paid by the permit
holder shall be
increased by three-fourths
of one per cent of the
total
amount
wagered until
the total amount
of the additional tax
collected
equals
the total amount of tax
reduced.
(4) As used in this section division:
(a)
"Capital improvement" means an
addition, replacement, or
remodeling of a structural unit of a
race track facility costing
at least one hundred thousand
dollars, including, but not
limited
to, the construction of barns
used exclusively for
the race
track
facility, backstretch
facilities for horsemen,
paddock
facilities,
new pari-mutuel and
totalizator equipment and
appurtenances
to
that
equipment purchased by the
track,
new access roads, new
parking areas, the complete
reconstruction,
reshaping, and
leveling of the
racing
surface and
appurtenances, the
installation of permanent new heating or air
conditioning,
roof
replacement or restoration, installations
of a
permanent
nature
forming a
part of the track structure, and
construction of
buildings that are located on a permit holder's
premises.
"Capital
improvement" does not
include the cost of
replacement of equipment
that is not
permanently installed,
ordinary repairs, painting, and
maintenance
required to keep a
race track facility in ordinary
operating
condition.
(b)
"New race track"
includes the
reconstruction of a race
track damaged by fire or
other cause that
has been declared by the state
racing
commission, as
a result of the
damage, to be an inadequate
facility for the safe
operation of
horse racing.
(c) "Approved cost" includes all debt service and interest
costs that are associated with a capital improvement or new race
track and that the state racing commission approves for a tax reduction
under division (J) of this section.
(5) The state
racing commission shall not approve an application
for a tax
reduction under this section if it has reasonable cause
to
believe that the actions or negligence of the permit holder
substantially contributed to the damage suffered by the track due
to fire or other cause. The
racing commission shall obtain any
data or
information available from a fire marshal, law enforcement
official, or insurance company concerning any fire or other
damage
suffered by a track, prior to approving an application for
a tax
reduction.
(6) The
approved cost
to which a tax
reduction
applies
shall be determined by generally accepted accounting
principles
and verified by an audit of the permit holder's records
upon
completion of the project by the state
racing commission, or by an
independent
certified public accountant selected by the permit
holder and
approved by the commission.
(K) No other license or excise tax or fee, except as
provided in sections 3769.01 to 3769.14 of the Revised Code,
shall
be assessed or collected from such licensee by any county,
township, district, municipal corporation, or other body having
power to assess or collect a tax or fee. That portion of the tax
paid under this section by permit holders for racing conducted at
and during the course of an agricultural exposition or
fair, and
that portion of the tax that would have been paid by
eligible
permit holders into the PASSPORT fund as a result of
racing
conducted at and during the course of an agricultural exposition
or
fair, shall be deposited
into the state treasury to the credit
of the horse
racing tax fund, which is hereby created for the use
of the
agricultural societies of the several counties in which the
taxes
originate. The state racing commission shall determine
eligible permit
holders for purposes of the preceding sentence,
taking into account the breed
of horse, the racing dates, the
geographic proximity to the fair, and the best
interests of Ohio
racing. On the first day of any month on
which there
is money in
the fund, the
tax commissioner
shall provide
for
payment to the
treasurer of each agricultural
society the
amount
of the taxes
collected under this section upon
racing
conducted at
and during
the course of any exposition or
fair
conducted by
the society.
(L) From the tax paid under this section by harness track
permit holders, the tax commissioner shall pay into the Ohio
thoroughbred race fund a sum equal to a percentage of the amount
wagered upon which
the tax is paid. The percentage shall
be
determined by the tax commissioner and shall be rounded to the
nearest one-hundredth. The percentage shall be such that, when
multiplied by the amount wagered upon which tax was paid by the
harness track permit holders in the most recent year for which
final figures are available, it results in a sum that
substantially equals the same amount of tax paid by the tax
commissioner during that year into the Ohio fairs fund from taxes
paid by thoroughbred permit holders. This division does not apply
to county
and independent fairs and agricultural societies.
(M) Twenty-five per cent of the taxes levied on
thoroughbred racing permit
holders,
harness racing permit
holders,
and quarter horse
racing permit
holders under this
section,
division (A) of
section
3769.087
of the
Revised Code, and
division (F)(2)
of
section
3769.26 of the
Revised
Code shall be
paid
into the
PASSPORT
fund.
The tax
commissioner shall
pay
any
money
remaining, after
the
payment
into the
PASSPORT fund
and the
reductions provided
for in division
(J) of this section
and in
section 3769.20 of the
Revised Code,
into the
Ohio fairs
fund,
Ohio thoroughbred race
fund, Ohio
standardbred
development
fund,
Ohio quarter horse fund,
and state
racing
commission
operating
fund as prescribed in this
section and
division (A) of
section
3769.087
of the Revised Code. The tax
commissioner shall
thereafter use and
apply
the balance of the
money paid as a tax by
any permit holder
to cover any
shortage in
the accounts of such
funds resulting from
an insufficient payment
as a tax by any other
permit holder. The
moneys received by the
tax
commissioner shall
be deposited weekly
and paid by the tax
commissioner into
the
funds
to cover the total
aggregate amount
due from all permit
holders to the funds,
as
calculated under this
section and
division (A) of section 3769.087
of the Revised
Code, as
applicable.
If, after
the payment
into
the
PASSPORT
fund,
sufficient funds
are not
available from the tax
deposited by
the
tax commissioner
to pay
the required
amounts into the
Ohio fairs
fund, Ohio
standardbred development
fund, Ohio thoroughbred
race
fund,
Ohio
quarter horse fund,
and
the state racing
commission
operating
fund, the tax commissioner
shall
prorate on a
proportional basis
the amount paid to each of
the funds. Any
shortage to the funds
as a result of a proration
shall be applied
against
future
deposits for the same calendar
year when funds are
available.
After
this application, the tax
commissioner shall pay
any
remaining money paid as a tax by all
permit holders
into the
PASSPORT fund.
This division does not apply to
permit
holders
conducting
racing
at and during the course of an agricultural
exposition
or
fair as
described
in division (K) of this section.
Sec. 3769.083. (A) As used in this section:
(1) An "accredited Ohio thoroughbred horse" means a horse
conceived in this state and born in this state which is both of the following:
(a) Born of a mare that is domiciled in this state at the
time of the horse's conception, that remains continuously in the state
through the date on which the horse is born, and that is
registered as required by the rules of the state racing
commission;
(b) By a stallion that stands for breeding purposes only
in this state in the year in which the horse is conceived, and
that is registered as required by the rules of the
commission.
(2) An "Ohio foaled horse" means a horse registered as
required by the rules of the state racing commission which is either of
the following:
(a) A horse born of a mare that enters this state
before foaling and remains continuously in this state until the
horse is born;
(b) A thoroughbred foal produced within the state by any
broodmare shipped into the state to foal and be bred to a
registered Ohio stallion. To qualify this foal as an Ohio foaled
horse, the broodmare shall remain in this state one year continuously
after foaling or continuously through foaling to the cover of the
Ohio stallion, whichever is sooner. All horses previously
registered as Ohio conceived and foaled shall be considered as
Ohio foaled horses effective January 1, 1976.
Any thoroughbred mare may leave this state for periods of
time for purposes of activities such as veterinary treatment or
surgery, sales purposes, breeding purposes, racing purposes, and similar activities
if permission is granted by the state racing commission and the mare is
returned to this state immediately upon the conclusion of the requested
activity.
(3) "Horse," "stallion," "mare," or "foal" means a horse
of the thoroughbred breed as distinguished from a horse of the
standard breed or any other breed, and "race" means a race for
thoroughbred horses conducted by a permit holder of the state racing
commission.
(4) "Horse" includes animals of all ages and of both
sexes.
(B) There is hereby created in the state treasury the Ohio
thoroughbred race fund, to consist of moneys paid into it
pursuant to sections 3769.08 and, 3769.087, and 3769.0813 of the Revised Code. All investment earnings on the cash balances in the fund shall be credited to it.
Moneys to the credit of the fund shall be distributed on order of
the state racing commission. The commission, with the
advice and assistance of the Ohio thoroughbred racing advisory
committee, shall use the fund, except as provided in divisions (C)(2) and
(3) and (D) of this section, to promote races and provide purses
for races for horses in the following classes:
(1) Accredited Ohio thoroughbred horses;
Not less than ten nor more than twenty-five per cent of the
total money to be paid from the fund for all types of races shall
be allocated to races restricted to accredited Ohio thoroughbred
horses. The commission may combine the classes of horses
described in divisions (B)(1) and (2) of this section in one
race, except in stakes races.
(C)(1) Each permit holder conducting thoroughbred races
shall schedule races each week for horses in the classes named in
division (B) of this section; the number of the races shall be
prescribed by the state racing commission. The commission, pursuant to
division (B) of this section, shall prescribe the class or classes of
the races to be held by each permit holder and, with the
advice of the Ohio thoroughbred racing advisory committee, shall fix
the dates and conditions of the races and the amount of moneys
to be paid from the Ohio thoroughbred race fund to be added in
each race to the minimum purse established by the permit
holder for the class of race held.
(2) The commission, with the advice of the Ohio
thoroughbred racing advisory committee, may provide for stakes races
to be run each year, and fix the number of stakes races and the
time, place, and conditions under which each shall be run. The
commission shall fix the amount of moneys to be paid from the Ohio thoroughbred race
fund to be added to the purse provided for each stakes race by the
permit holder, except that, in at least four stakes races each
year, the commission shall require, if four stakes races can be arranged,
that the permit holder conducting the stakes race provide
no less than fifteen thousand dollars for the purse for the stakes
race, and the commission shall provide moneys from the fund
to be added to the purse in an amount equal to or greater than
the amount provided by the permit holder. The commission may
require a nominating, sustaining, and entry fee not to exceed one
per cent of the money added from the fund for each horse in any
stakes race, which fee shall be added to the purse for the
race.
Stakes races where money is added from the Ohio thoroughbred race fund shall be
open only to accredited Ohio thoroughbred horses and Ohio foaled
horses. Twenty-five per cent of the total moneys to be paid from
the fund for stakes races shall be allocated to races for only
accredited Ohio thoroughbred horses. The commission may require
a nominating, sustaining, and entry fee, not to exceed one per
cent of the money added from the fund, for each horse in any of these stakes races. These fees shall be accumulated by the commission
and shall be paid out by the commission at its discretion as part
of the purse money for additional races.
(3) The commission may pay from the Ohio thoroughbred race fund to the breeder of
a horse of class (1) or (2) of division (B) of this section
winning first, second, or third prize money of a purse for a
thoroughbred race an amount not to exceed fifteen per cent of the
first, second, or third prize money of the purse. For the
purposes of this division, the term "breeder" shall be defined by
rule of the commission.
The commission also may provide for stallion owners' awards
in an amount equal to not less than three nor more than ten per
cent of the first, second, or third place share of the purse.
The award shall be paid to the owner of the stallion, provided that
the stallion was standing in this state as provided in division (A)(1)(b) of this section at the time the horse placing first, second,
or third was conceived.
(D) The state racing commission may provide for the expenditure of
moneys from the Ohio thoroughbred race fund in an amount not to exceed in any one
calendar year ten per cent of the total amount received in the
account that year to provide for research projects directed
toward improving the breeding, raising, racing, and health and
soundness of thoroughbred horses in the state and toward
education or promotion of the industry. Research for which the moneys from the fund may be used may include, but shall not be limited to,
studies of pre-race blood testing, post-race testing, improvement
of the breed, and nutrition.
(E) The state racing commission shall appoint qualified personnel
as may be required to supervise registration of horses under the
terms of this section, to determine the eligibility of horses for
accredited Ohio thoroughbred races, Ohio foaled races, and the
stakes races authorized by division (C)(2) of this section, and to
assist the Ohio thoroughbred racing advisory committee and the commission in determining
the conditions, class, and quality of the race program to be
established under this section so as to carry out the purposes of
this section. The personnel shall serve at the pleasure of the
commission, and compensation shall be fixed by the commission.
The compensation of the personnel and necessary expenses shall
be paid out of the Ohio thoroughbred race fund.
The commission shall adopt rules as are necessary to
carry out this section and shall administer the stakes race
program and other races supported by the Ohio thoroughbred race
fund in a manner best designed to aid in the
development of the thoroughbred horse industry in the state, to
upgrade the quality of horse racing in the state, and to improve
the quality of horses conceived and foaled in the state.
Sec. 3769.085. (A) There is hereby created in the state
treasury
the Ohio standardbred development fund, to consist of
moneys paid
into it pursuant to section sections 3769.08 and 3769.0813 of the Revised
Code
and any
fees assessed for or on behalf of the Ohio sires
stakes races.
All
fees so assessed shall be exempt from the requirements of
divisions (D) and (M) of that section 3769.08 of the Revised Code. All
investment earnings on the cash balance in the
fund shall be
credited to the fund. Moneys to the credit of the
fund shall be
distributed on order
of the
state racing commission
with the
approval of the Ohio
standardbred
development
commission.
(B) The Ohio standardbred development commission shall consist of three
members,
all to be
residents of this state knowledgeable in breeding and
racing, to
be appointed by the governor with the advice and
consent of the
senate. One member shall be a standardbred
breeder, and one member
shall be a
standardbred owner. Of the initial
appointments, one member shall
be appointed for a term ending June
30, 1977, and two members
shall be appointed for terms ending June
30, 1979. Thereafter,
appointments for other than unexpired terms
shall be for four
years. Terms shall begin the first day of July
and end the
thirtieth day of June. Any member appointed to fill a
vacancy
occurring prior to the expiration of the term for which
the
member's
predecessor was appointed shall hold office for the
remainder of
that term. Any member shall continue in office
subsequent to the
expiration date of the member's term until
a
successor takes office. Members shall receive no compensation,
except that they shall be paid
actual and necessary expenses from the
Ohio standardbred
development fund. The state racing commission also
shall be reimbursed from the fund
for
actual expenses approved by the
development commission.
The development commission may
elect one
member to serve as secretary.
(C) Upon application not later than the first day of December
from the harness tracks conducting races with pari-mutuel
wagering, other than agricultural expositions and fairs, the Ohio standardbred
development commission, after a hearing and not
later than
the twentieth
day of January, shall allocate and approve all available
moneys for
colt races for two-year-old and three-year-old colts
and fillies,
both trotting and pacing. Separate races for fillies
shall be
provided at each age and gait. Up to five races and a
championship race shall be scheduled for each of the eight
categories of age, sex, and gait. The allocations shall take
into
account the time of year that racing colts is feasible, the
equity
and continuity of the proposed dates for racing
events, and
the amounts to be added by the tracks, looking to the
maximum
benefit for those participating in the races.
Representatives of
the tracks and the Ohio harness
horsemen's association shall
be
given an opportunity to be heard before the allocations are
made.
No races shall be contested earlier than the first day of
May or
later than the first day of November; all permit holders
operating
extended pari-mutuel meetings between
those dates shall
be
entitled to at least three races. No funds for a race shall
be
allocated to and paid to a permit holder by the
development
commission
unless the permit holder adds at least twenty-five per
cent to
the amount allocated by the development commission,
and
not less than five
thousand dollars to each race.
Colts and fillies eligible to the races shall be only those
sired by a standardbred stallion that was registered with the
state racing commission and stood in
the state the entire
breeding season of
the
year the colt or filly was conceived.
If the development commission concludes that
sufficient funds
are
available to add aged races without reducing purse levels of
the
colt and filly races, the development commission may
allocate
funds to
four-year-old and up races of each sex and
gait with Ohio
eligibility required as set forth in this section.
(D) The state racing commission may allocate an amount not to
exceed five
per cent of the total Ohio standardbred development
fund
available in any one calendar year to research projects
directed
toward improving the breeding, raising, racing, and
health and
soundness of horses in the state and toward education
or
promotion of the industry.
Sec. 3769.088. (A) If any permit holder required by this
chapter to pay the taxes levied by sections 3769.08, 3769.087,
3769.0813, 3769.26, and 3769.28 of the Revised Code fails to pay the
taxes,
the tax commissioner may make an assessment against the
permit
holder based upon any information in the commissioner's
possession.
A penalty of up to fifteen per cent may be added to
the
amount
of every assessment made under this section. The
commissioner
may adopt rules providing for the imposition and
remission of penalties
added to
assessments made under this
section.
The commissioner shall give the party assessed written
notice
of the assessment
in the manner
provided in section 5703.37 of
the Revised
Code.
With the notice, the commissioner shall provide
instructions on how to petition for reassessment and request a
hearing on the petition.
(B) Unless the party
assessed files with the
tax
commissioner within sixty
days
after
service of the notice of
assessment, either personally
or by
certified mail, a
written
petition for reassessment
signed by
the party
assessed or
that
party's
authorized agent
having
knowledge
of the facts, the
assessment
becomes final, and
the
amount of the assessment
is due
and payable from the
party
assessed to the
commissioner. The
petition shall
indicate
the
objections of the
party assessed, but
additional
objections
may be
raised in writing
if received
by the
commissioner prior to the date shown on
the
final
determination.
If the petition has been properly filed, the
commissioner
shall
proceed under section 5703.60 of the Revised
Code.
(C) After an assessment becomes final, if any portion of
the
assessment remains unpaid, including accrued interest, a
certified
copy of the
tax
commissioner's entry making the assessment final
may
be filed in
the office of the clerk of the court of common
pleas
in the
county in which the place, track, or enclosure for
which
the
permit was issued is located or the county in which the
party
assessed resides or has its principal place of business. If
the
party assessed maintains no place of business in this state
and
is
not a resident of this state, the certified copy of the
entry
may
be filed in the office of the clerk of the court of
common
pleas
of Franklin county.
Immediately upon the filing of
the entry,
the clerk
shall
enter a judgment for the state against
the party assessed in
the
amount shown on the entry. The judgment
may be filed by the
clerk
in a loose-leaf book entitled
"special
judgments for state
horse
racing tax," and shall have the same
effect as
other
judgments.
Execution shall issue upon the judgment
upon
the
request of the
tax commissioner, and all laws applicable
to
sales
on execution
shall apply to sales made under the
judgment.
The portion of the assessment not paid within
sixty days
after the day the assessment was issued shall
bear interest
at the
rate per annum prescribed by section 5703.47 of the
Revised Code
from the day the tax
commissioner issues the assessment until the
day the assessment is paid.
Interest shall be paid in the same
manner as the tax
and may be collected by the issuance of an
assessment under this
section.
(D) All money collected by the
tax commissioner under this
section shall be treated as revenue arising from the taxes
imposed
by sections 3769.08, 3769.087, 3769.0813, 3769.26, and 3769.28
of the Revised
Code.
Sec. 3769.0811. As used in sections 3769.0811 to 3769.0813 of the Revised Code:
(A) "Instant racing system" means a telecast, for pari-mutuel wagering
purposes, of audio and visual signals of horse races previously conducted at
facilities inside or outside this state, that is to a place, track, or enclosure for which a permit is issued under section 3769.06 of the Revised Code, and that is displayed on individual viewing
terminals.
(B) "Permit holder" has the same meaning as in section 3769.25 of the Revised Code.
(C) "Permit holder's commission" means an amount that does not
exceed twelve per cent of the total of all moneys wagered on a racing
day on horse races telecast via an instant racing system to a
permit holder's place, track, or enclosure for which a permit is issued under section 3769.06 of the Revised Code.
Sec. 3769.0812. (A) Upon written request by any permit
holder, the state racing commission shall authorize the permit holder to operate on racing days an instant
racing system at the permit holder's place, track, or enclosure for which the permit is issued under section 3769.06 of the Revised Code.
(B) Each permit holder that receives an authorization may
install and operate individual viewing terminals at the permit holder's
place, track, or enclosure to
implement an instant racing system. A permit holder shall design and operate the instant racing system so that a person is not able to fast-forward the last ten seconds of any telecast.
Sec. 3769.0813. (A) The moneys wagered on
horse races telecast via an instant racing system on a
racing day shall be separated from the moneys wagered on live
horse races conducted at, and on other horse races simulcast to,
the permit holder's place, track, or enclosure on that
racing day. Each permit holder shall retain a permit holder's
commission from the former moneys.
(B) At the close of each racing day, the permit holder shall pay
by check, draft, or money order to the state tax commissioner, as a tax,
an amount equal to twenty per cent of the permit holder's
commission. The moneys wagered on horse races telecast via an
instant racing system are subject only to this tax and not to any tax levied under section
3769.08 or 3769.087 or division (E) of section 3769.089 of the
Revised Code.
(C) The amount of the permit holder's commission that remains
after the payment to the state tax commissioner of the tax levied under division (B) of this
section is the permit holder's net commission. The net commission shall be allocated in the following
manner:
(1)(a) The permit holder shall pay an amount equal to nineteen per cent of the net commission to the permit holder's purse account.
(b) The Ohio division of the horsemen's benevolent and protective association may direct that up to fifty per cent of the net commission that is paid to the permit holder's purse account under division (C)(1)(a) of this section be designated for either of the following:
(i) Horsemen's health and benevolence programs;
(ii) Payment into the Ohio thoroughbred race fund created by section 3769.083 of the Revised Code.
(c) The Ohio harness horsemen's association may direct that up to fifty per cent of the net commission that is paid to the permit holder's purse account under division (C)(1)(a) of this section be designated for any of the following:
(i) Horsemen's health and benevolence programs;
(ii) Payment into the Ohio standardbred development fund created by section 3769.085 of the Revised Code;
(iii) Payment into the Ohio fairs fund created by section 3769.082 of the Revised Code.
(2) The permit holder shall pay an amount not to exceed one per
cent of the net commission, as determined by rule of the
state racing commission, into the state racing commission operating fund created by section 3769.03 of the Revised Code, as an
administrative fee.
(3) Subject to division (D) of this section, the permit holder shall pay an amount equal to one per cent of the net commission as follows:
(a) Three-fourths of the amount to the director of agriculture for deposit in the state treasury to the credit of the fund established under section 924.10 of the Revised Code for the equine marketing program;
(b) One-fourth of the amount to horse power Ohio, a nonprofit corporation, which shall use the money to support equine programs in Ohio, including therapeutic riding programs, programs that promote the preservation and expansion of public bridle trails and facilities, and rider education and public equine awareness programs.
(4)
The permit holder shall retain the balance of the net commission that remains after paying the amounts described in
divisions (C)(1), (2), and (3) of this section.
(D)(1) When the aggregate amount paid by permit holders under division (C)(3) of this section for a calendar year equals six hundred thousand dollars, the permit holder shall, for the remainder of that calendar year, retain the amount that otherwise would be required to be paid under that division.
(2) Beginning in calendar year 2009, the dollar amount specified in division (D)(1) of this section shall be increased by two per cent annually until it equals one million dollars.
(E)
The tax commissioner shall distribute the tax collected under division (B) of this section in the manner required for the tax collected under section 3769.08 of the Revised Code, as applicable.
Section 2. That existing sections 924.01, 924.04, 924.07, 924.09, 924.10, 3769.03, 3769.08, 3769.083, 3769.085, and 3769.088 of the Revised Code are
hereby repealed.
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