Sub.
H.B. 546
126th General Assembly
(As Passed by the General Assembly)
Reps. Dolan, Boccieri, Trakas, D. Evans, Seitz, Setzer, Hartnett, Allen, Yuko, Walcher, Chandler, Collier, Cassell, Aslanides, Schlichter, Willamowski, Combs, Widener, J. McGregor, T. Patton, Book, D. Stewart, Beatty, Blessing, Brown, Carano, Carmichael, Coley, Daniels, DeBose, Domenick, Driehaus, Gibbs, Harwood, Hoops, Key, Luckie, Martin, R. McGregor, Otterman, S. Patton, Perry, Sayre, Schneider, J. Stewart, Uecker, Wagoner, Webster, J. White
Sens. Cates, D. Miller, Fedor, Kearney, Carey, Clancy, Grendell, Harris, Mumper, Niehaus, Schuler, Stivers, Armbruster, Spada, Amstutz
Effective date: *
ACT SUMMARY
· Authorizes the State Racing Commission to enter into the National Racing Compact to provide for the licensure and regulation of individuals involved in the horse racing industry in the compact states in a specified manner.
· Requires that all investment earnings on cash balances in the Ohio Thoroughbred Race Fund be credited to the fund.
· Changes the definition of an "Ohio foaled horse" for purposes of the fund.
· Specifies for purposes of the fund that a thoroughbred mare may leave Ohio for breeding purposes with the commission's permission and if the mare returns to Ohio immediately after that activity.
· Changes the number of harness horse races that may receive allocations from the Ohio Standardbred Development Fund.
CONTENT AND OPERATION
The General Assembly finds all of the following in the act (R.C. § 3769.22(A)(1), (2), and (3)):
·
That a National Racing Compact, comprised of states
that are parties to the compact, exists to provide for the licensure and
regulation of individuals involved in the horse racing industry.
· That the intent of the compact is to prevent individual owners, trainers, jockeys, drivers, backstretch employees, totalizator employees, farriers, concessionaires, veterinarians, and other persons involved in live horse racing upon which pari-mutuel wagering is conducted from having to be licensed in each state in which they may conduct business.
·
That the compact authorizes the individuals listed
above to be licensed in occupational categories established by the compact
committee that oversees the compact
(see below) and, thus, to be able to practice their occupation in all states
that are parties to the compact.
The General Assembly also declares that the compact's purposes are to do all of the following (R.C. § 3769.22(A)(4)):
· To establish uniform requirements among the party states for the licensure of the individuals listed above and to ensure that all individuals licensed pursuant to the compact meet a uniform minimum standard of honesty and integrity.
· To facilitate the growth of the horse racing industry in each party state and throughout the country by simplifying the licensing process for the individuals listed above by reducing the duplicative and costly process of separate licensing by the applicable agency in each party state.
· To provide for participation in the compact by officials of the party states and to permit those officials, through the compact committee, to enter into contracts with governmental agencies and nongovernmental persons and entities to carry out the purposes of the compact.
· To establish the compact committee as an interstate governmental entity that is authorized to request and receive criminal record history information from the Federal Bureau of Investigation, other federal law enforcement agencies, the Royal Canadian Mounted Police, law enforcement agencies of other nations, and state and local law enforcement agencies.
The General Assembly further declares in the act that the following debt and tort liability provisions apply under the compact (R.C. § 3769.22(A)(5)):
· No party state, including its racing commission or equivalent agency, is liable for the debts or other financial obligations incurred by the compact committee.
· No official of a party state or employee of the compact committee is personally liable for any act the official or employee performs or omits to perform in good faith while carrying out the official's or employee's responsibilities and duties under the compact.
The act authorizes the State Racing Commission to enter into and participate in the National Racing Compact for the purposes described above (R.C. § 3769.22(B)(1)). Participation of the state and the commission in the compact cannot have any of the following consequences (R.C. § 3769.22(B)(2)):
--Result in the diminution of any applicable existing standards governing the issuance, denial, suspension, or revocation of a license issued under the State Racing Act.
--Prevent the enforcement of any statute or rule affecting the holder of any such license.
--Relieve any individual or entity of its duty to obtain any such license or to pay any license fee.
--Make the state or
the commission liable for the debts or other financial obligations incurred by
the compact committee.
--Make any officer or employee of the state personally liable for any act or omission the official or employee performs or omits to perform in good faith while carrying out the official's or employee's responsibilities and duties under the compact.
The State Racing Commission is required to designate an individual to represent Ohio and the commission on the compact committee in the administration of the compact (R.C. § 3769.22(B)(3)).
Ongoing law creates the Ohio Thoroughbred Race Fund in the state treasury. The fund consists of moneys paid into it from a portion of the taxes levied on pari-mutuel wagering on thoroughbred horse races. Moneys to the fund's credit generally must be used to promote races and to provide purses for races of horses that are accredited Ohio thoroughbred horses or Ohio foaled horses. (R.C. § 3769.083(B).) The act requires that all investment earnings on the fund's cash balances also be credited to the fund (R.C. § 3769.083(B)).[1]
Law changed by the act defined an "Ohio foaled horse" as a horse that is registered as required by the rules of the State Racing Commission and that is either (1) a horse born of a mare that enters Ohio on or before July 15 of the year in which the horse is conceived and remains continuously in Ohio until the horse is born or (2) a thoroughbred foal produced within Ohio by any broodmare shipped into Ohio to foal and be bred to a registered Ohio stallion. The act alters (1) so that an "Ohio foaled horse" may be a horse born of a mare that enters Ohio before foaling and remains continuously in Ohio until the horse is born. (R.C. § 3769.083(A)(2).)
Background. Under continuing law, for a horse to qualify as an "Ohio foaled horse" under (2) above, the broodmare must remain in Ohio one year continuously after foaling or continuously through foaling to the cover of the Ohio stallion, whichever is sooner, and, as noted above, the mare described in (1) above must remain continuously in Ohio until the horse is born for it to be an "Ohio foaled horse." Further, for a horse to be an "accredited Ohio thoroughbred horse," the horse must be born of a mare that is domiciled in Ohio at the time of the horse's conception, that remains continuously in Ohio through the date on which the horse is born, and that is registered as required by the commission's rules.
Exception. Under continuing law, any thoroughbred mare may leave Ohio, despite any requirements for continuous Ohio presence, for periods of time for veterinary treatment or surgery, sales purposes, racing purposes, and similar activities if the commission grants permission and the mare is returned to Ohio immediately upon conclusion of the requested activity. The act adds breeding purposes to those authorized to occur outside Ohio. (R.C. § 3769.083(A).)
Continuing law creates the Ohio Standardbred Development Fund in the state treasury. The fund consists of money paid into it from a portion of the taxes levied on pari-mutuel wagering on standardbred (harness) horse races and any fees assessed for or on behalf of the Ohio sires stakes races (R.C. § 3769.085(A)). Continuing law also requires the Ohio Standardbred Development Commission (1) to receive applications from harness tracks (other than agricultural expositions and fairs) conducting races with pari-mutuel wagering, (2) to conduct hearings on the applications and the allocation of Fund moneys, and (3) to allocate (subject to certain criteria) and approve all available Fund moneys for colt races for two-year old and three-year old colts and fillies, both trotting and pacing, with separate races for fillies being required at each age and gait. Under prior law, at least five races and a championship race had to be scheduled for each of the eight categories of age, sex, and gait. The act provides instead that up to five races and a championship race must be scheduled for each of the eight categories of age, sex, and gait. (R.C. § 3769.085(C).)
Continuing law amended by the act provides that, if the Ohio Standardbred Development Commission concludes that sufficient funds are available to add aged races without reducing purse levels of the colt and filly races, the Commission may allocate funds to four-year old and five-year old races of each sex and gait. The act instead authorizes the Commission to allocate funds to four-year old and up races of each sex and gait. (R.C. § 3769.085(C).)
Law retained in part by the act provides that the colts and fillies eligible for the races described above are (1) only those sired by a standardbred stallion that was registered with the State Racing Commission and that stood in Ohio the entire breeding season the colt or filly was conceived and (2) fillies foaled before November 1, 1979, that do not meet the qualifications described in (1) but that are wholly owned by a resident or residents of Ohio (a) on January 1 of the year the filly would be eligible to race as a two-year old and (b) on the date the race is contested. The act eliminates the eligibility requirement described in (2). (R.C. § 3769.085(C).)
HISTORY
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ACTION |
DATE |
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Introduced |
03-23-06 |
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Reported, H. State Gov't |
05-30-06 |
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Passed House (92-0) |
11-29-06 |
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Reported,
S. State & Local Gov't & |
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Passed Senate (31-0) |
12-14-06 |
06-hb546-126.doc/kl
* The Legislative Service Commission had not received formal notification of the effective date at the time this analysis was prepared. Additionally, the analysis may not reflect action taken by the Governor.
[1] Section 312.06 of Am. Sub. H.B. 66 of the 126th General Assembly, however, generally authorizes the Director of Budget and Management, through June 30, 2007, to transfer interest earned by any fund to the General Revenue Fund, notwithstanding any provision of law to the contrary.