SB 333-1_ Filed 01/22/2002, 15:17
COMMITTEE REPORT
MR. PRESIDENT:
The Senate Committee on Commerce and Consumer Affairs, to which was referred Senate Bill No.
333, has had the same under consideration and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
SOURCE: Page 1, line 1; (02)AM033305.1. -->
Page 1, delete lines 1 through 17.
Delete pages 2 through 5.
Page 6, delete lines 1 through 32, begin a new paragraph and insert:
SOURCE: IC 4-31-1-2; (02)AM033305.1. -->
"SECTION 1.
IC 4-31-1-2
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. The purpose
purposes of this article is are:
(1) to permit pari-mutuel wagering on horse races in Indiana;
(2) to permit the sale of pari-mutuel pull tabs at racetracks in
Indiana; and
(3) to ensure that the sale of pari-mutuel pull tabs and
pari-mutuel wagering on horse races in Indiana will be conducted
with the highest of standards and the greatest level of integrity.
SOURCE: IC 4-31-2-1.5; (02)AM033305.2. -->
SECTION 2.
IC 4-31-2-1.5
IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]:
Sec. 1.5. "Adjusted gross receipts" means:
(1) the total of all cash and property (including checks
received by a permit holder whether collected or not)
received by a permit holder from pari-mutuel pull tab sales;
minus
(2) the total of:
(A) all cash paid out as winnings for pari-mutuel pull tabs
to patrons; and
(B) uncollectible pari-mutuel pull tab receivables, not to
exceed the lesser of:
(i) a reasonable provision for uncollectible patron
checks received from pari-mutuel pull tab sales; or
(ii) two percent (2%) of the total of all sums, including
checks, whether collected or not, less the amount paid
out as winnings for pari-mutuel pull tabs to patrons.
For purposes of this section, a counter or personal check that is
invalid or unenforceable under this article is considered cash
received by the permit holder from pari-mutuel pull tab sales.
SOURCE: IC 4-31-2-11.5; (02)AM033305.3. -->
SECTION 3.
IC 4-31-2-11.5
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 11.5. "Pari-mutuel pull tab"
means a game offered to the public in which a person who
purchases a ticket has the opportunity to share in a prize pool,
multiple prize pools, or a shared prize pool consisting of the total
amount wagered in the game minus deductions by the permit
holder selling the pari-mutuel pull tab and other deductions either
permitted or required by law.
SOURCE: IC 4-31-3-9; (02)AM033305.4. -->
SECTION 4.
IC 4-31-3-9
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. The commission
may:
(1) adopt rules under
IC 4-22-2
, including emergency rules under
IC 4-22-2-37.1
, to implement this article, including rules that
prescribe:
(A) the forms of wagering that are permitted;
(B) the number of races;
(C) the procedures for wagering;
(D) the wagering information to be provided to the public;
(E)
the hours during which a racetrack may sell
pari-mutuel pull tabs under
IC 4-31-7.5
;
(F) fees for the issuance and renewal of:
(i) permits under
IC 4-31-5
;
(ii) satellite facility licenses under
IC 4-31-5.5
; and
(iii) licenses for racetrack personnel and racing participants
under
IC 4-31-6
;
(F) (G) investigative fees;
(G) (H) fines and penalties; and
(H) (I) any other regulation that the commission determines
is in the public interest in the conduct of recognized meetings
and wagering on horse racing in Indiana;
(2) appoint employees in the manner provided by
IC 4-15-2
and
fix their compensation, subject to the approval of the budget
agency under
IC 4-12-1-13
;
(3) enter into contracts necessary to implement this article; and
(4) receive and consider recommendations from an advisory
development committee established under
IC 4-31-11.
SOURCE: IC 4-31-5-15; (02)AM033305.5. -->
SECTION 5.
IC 4-31-5-15
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 15. Except as
provided in
IC 4-31-7.5
, any fees or penalties collected by the
commission under IC 4-31-3-9(1)(E)
IC 4-31-3-9
(1)(F) through
IC 4-31-3-9(1)(G)
IC 4-31-3-9
(1)(H) shall be paid into the state
general fund.
SOURCE: IC 4-31-7-1; (02)AM033305.6. -->
SECTION 6.
IC 4-31-7-1
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 1. (a) A person holding a permit to
conduct a horse racing meeting or a license to operate a satellite facility
may provide a place in the racing meeting grounds or enclosure or the
satellite facility at which the person may conduct and supervise the
pari-mutuel system of wagering by patrons of legal age on the horse
races conducted or simulcast by the person. The person may not permit
or use:
(1) another place other than that provided and designated by the
person; or
(2) another method or system of betting or wagering. However,
a person holding a permit to conduct a horse racing meeting
may permit wagering on pari-mutuel pull tabs at the person's
race track as permitted by
IC 4-31-7.5.
(b) Except as provided in section 7 of this chapter and
IC 4-31-5.5
,
the pari-mutuel system of wagering may not be conducted on any races
except the races at the racetrack, grounds, or enclosure for which the
person holds a permit.
SOURCE: IC 4-31-7-2; (02)AM033305.7. -->
SECTION 7.
IC 4-31-7-2
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 2. (a) A person less than eighteen
(18) twenty-one (21) years of age may not wager at a horse racing
meeting.
(b) A person less than seventeen (17) twenty-one (21) years of age
may not enter the grandstand, clubhouse, or similar areas of a racetrack
at which wagering is permitted unless accompanied by a person who
is at least twenty-one (21) years of age.
(c) A person less than eighteen (18) twenty-one (21) years of age
may not enter a satellite facility.
SOURCE: IC 4-31-7.5; (02)AM033305.8. -->
SECTION 8.
IC 4-31-7.5
IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]:
Chapter 7.5. Pari-Mutuel Pull Tabs
Sec. 1. (a) This chapter applies only to the sale of pari-mutuel
pull tabs by a person who holds a permit to conduct a pari-mutuel
horse racing meeting issued under
IC 4-31-5.
(b) This chapter does not apply to the sale of pull tabs by a
qualified organization (as defined in
IC 4-32-6-20
) under IC 4-32.
Sec. 2. A pari-mutuel pull tab game must be conducted in the
following manner:
(1) Each set of tickets must have a predetermined:
(A) total purchase price; and
(B) amount of prizes.
(2) Randomly ordered pari-mutuel pull tab tickets may be
distributed from an approved location or from a distribution
device to:
(A) the permit holder at the permit holder's racetrack or
satellite facility, or both; or
(B) a terminal or device of the permit holder at the permit
holder's racetrack or satellite facility, or both.
(3) A pari-mutuel pull tab ticket must be presented to a player
in the form of a paper ticket or display on a terminal or
device.
(4) Game results must be initially covered or otherwise
concealed from view on the pari-mutuel pull tab ticket,
terminal, or device so that the number, letter, symbol, or set
of numbers, letters, or symbols cannot be seen until the
concealing medium is removed.
(5) A winner is identified after the display of the game results
when a player removes the concealing medium of the
pari-mutuel pull tab ticket or display on a terminal or device.
(6) A winner shall receive the prize or prizes posted or
displayed for the game from the permit holder.
Sec. 3. A person less than twenty-one (21) years of age may not
purchase a pari-mutuel pull tab ticket.
Sec. 4. The sale price of a pari-mutuel pull tab ticket may not
exceed ten dollars ($10).
Sec. 5. (a) The sale, purchase, and redemption of pari-mutuel
pull tab tickets are limited to a live pari-mutuel horse racing
facility operated by a permit holder under a recognized meeting
permit first issued before January 1, 2002.
(b) Pari-mutuel pull tab tickets may not be sold, purchased, or
redeemed at any of the locations described in this section until two
(2) unaffiliated permit holders operate live pari-mutuel horse
racing facilities at two (2) separate locations.
(c) A permit holder may not install more than seven hundred
(700) pull tab terminals or devices on the premises of the permit
holder's live pari-mutuel horse racing facility.
Sec. 6. The number and size of the prizes in a pari-mutuel pull
tab game must be finite but may not be limited.
Sec. 7. A list of prizes for winning pari-mutuel pull tab tickets
must be posted or displayed at a location where the tickets are sold.
Sec. 8. A permit holder may close a pari-mutuel pull tab game
at any time.
Sec. 9. A terminal or device selling pari-mutuel pull tab tickets
may be operated by a player without the assistance of the permit
holder for the sale and redemption of pari-mutuel pull tab tickets.
Sec. 10. A terminal or device selling pari-mutuel pull tab tickets
may not dispense coins or currency as prizes for winning tickets.
Prizes awarded by a terminal or device must be in the form of
credits for additional play or certificates redeemable for cash or
prizes.
Sec. 11. (a) The commission, with input and assistance from the
Indiana gaming commission, shall adopt rules under
IC 4-22-2
,
including emergency rules under
IC 4-22-2-37.1
, to implement this
chapter, including rules that prescribe:
(1) an approval process for pari-mutuel pull tab games that
requires periodic testing of the games and equipment by an
independent entity under the oversight of the commission to
ensure the integrity of the games to the public;
(2) a system of internal audit controls;
(3) a method of payment for pari-mutuel pull tab prizes that
allows a player to transfer credits from one (1) terminal or
device to another;
(4) a method of payment for pari-mutuel pull tab prizes that
allows a player to redeem a winning ticket for additional play
tickets or credit to permit purchase of additional play tickets;
and
(5) any other procedure or requirement necessary for the
efficient and economical operation of the pari-mutuel pull tab
games and the convenience of the public.
(b) The commission may enter into a contract with the Indiana
gaming commission for the provision of services necessary to
administer pari-mutuel pull tab games.
Sec. 12. The commission may assess an administrative fee to a
permit holder offering pari-mutuel pull tab games in an amount
that allows the commission to recover all the commission's costs of
administering the pari-mutuel pull tab games.
Sec. 13. The commission may not permit the sale of pari-mutuel
pull tab tickets in a county where a riverboat is docked.
Sec. 14. All shipments of gambling devices, including
pari-mutuel pull tab machines, to permit holders in Indiana, the
registering, recording, and labeling of which have been completed
by the manufacturer or dealer in accordance with 15 U.S.C. 1171
through 15 U.S.C. 1178, are legal shipments of gambling devices
into Indiana.
Sec. 15. Under 15 U.S.C. 1172, approved January 2, 1951, the
state of Indiana, acting by and through elected and qualified
members of the legislature, declares and proclaims that the state
is exempt from 15 U.S.C. 1172.
SOURCE: IC 4-31-9-1; (02)AM033305.9. -->
SECTION 9.
IC 4-31-9-1
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 1. A person that holds a permit to
conduct a horse racing meeting or a license to operate a satellite facility
shall withhold:
(1) eighteen percent (18%) of the total of money wagered on each
day at the racetrack or satellite facility (including money wagered
on exotic wagering pools, but excluding money wagered on
pari-mutuel pull tabs under
IC 4-31-7.5
); plus
(2) an additional three and one-half percent (3.5%) of the total of
all money wagered on exotic wagering pools on each day at the
racetrack or satellite facility.".
SOURCE: Page 7, line 9; (02)AM033305.7. -->
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Page 13, between lines 40 and 41, begin a new paragraph and insert:
SOURCE: IC 35-45-5-7; (02)AM033305.31. -->
"SECTION 31.
IC 35-45-5-7
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. This chapter does not
apply to the publication or broadcast of an advertisement, a list of
prizes, or other information concerning:
(1) pari-mutuel wagering on horse races or a lottery authorized by
the law of any state; or
(2) a game of chance operated in accordance with IC 4-32; or
(3) a pari-mutuel pull tab game operated in accordance with
IC 4-31-7.5.
SOURCE: IC 35-45-5-11; (02)AM033305.32. -->
SECTION 32.
IC 35-45-5-11
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 11. This chapter does not apply
to the sale of pari-mutuel pull tab tickets authorized by
IC 4-31-7.5.".
SOURCE: Page 13, line 42; (02)AM033305.13. -->
Page 13, after line 42, begin a new paragraph and insert:
SOURCE: ; (02)AM033305.34. -->
"SECTION 34. [EFFECTIVE JULY 1, 2002]
(a) The Indiana
horse racing commission shall adopt the emergency rules required
under
IC 4-31-7.5-11
, as added by this act, before September 1,
2002.
(b) This SECTION expires December 31, 2002.".
Renumber all SECTIONS consecutively.
(Reference is to SB 333 as introduced.)
and when so amended that said bill do pass .
Committee Vote: Yeas 6, Nays 5.
____________________________________
Senator Server, Chairperson
AM 033305/DI 75 2002