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S.F. No. 3702 - Pari-Mutuel Horse Racing Licensing and Regulation Provisions Modifications - First Engrossment
Author: Senator Eric R. Pratt
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
Date: March 29, 2018


Section 1 [Racing or Gaming-Related Vendor] defines “racing or gaming-related vendor.”  This definition is not used in statute.

Section 2 [Annual Report] changes a reporting requirement from annual to biennial for a report by the Racing Commission to the governor and legislature.

Section 3 [Revocation and Suspension] changes the process for consideration by the commission of a revoked or suspended license.

Under current law when the commission revokes or suspends a license, the licensee appeals first to the commission.  Revocations or suspensions of more than 90 days afford the licensee a contested case hearing.  The commission can summarily suspend a license of more than 90 days when it is necessary to ensure the integrity of racing or to protect the public health, welfare, or safety. A licensee whose license has been summarily suspended can request a contested case hearing before an administrative law judge (ALJ), and the commission must issue a final decision within 30 days from receipt of the ALJ’s report.

Under the new process under this section, a licensee whose license has been revoked or suspended for more than 180 days has the option to request a contested case hearing or may appeal to the commission. The commission may summarily suspend a license for up to 90 days where it is necessary to ensure the integrity of racing or to protect the public health, welfare, or safety. The licensee may appeal a summary suspension to the commission.  The commission must hold a hearing to determine whether the license should remain suspended.

Section 4 [Payments to State] extends the time from seven to 15 days for an advanced deposit wager provider after the end of a month to pay the breeders' fund fee to the Racing Commission.

Section 5 [Card Club Revenue] specifies that money set aside by a card club licensee for purses is for races conducted at licensed racetracks.

Section 6 [Fines] clarifies that the Racing Commission may distribute certain money appropriated to it to support racehorse adoption, retirement, and repurposing through grants, contracts, or expenditures.

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