SB 405-3_ Filed 02/22/2010, 11:29 Espich


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 405 be amended to read as follows:

SOURCE: Page 33, line 16; (10)MO040506.33. -->     Page 33, delete lines 16 through 42, begin a new paragraph and insert:
SOURCE: IC 4-35-7-12; (10)MO040506.35. -->     "SECTION 35. IC 4-35-7-12, AS AMENDED BY P.L.142-2009, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 12. (a) The Indiana horse racing commission shall enforce the requirements of this section.
    (b) Except as provided in subsections (j) and (k), a licensee shall before the fifteenth day of each month devote to the gaming integrity fund, horse racing purses, and to horsemen's associations an amount equal to fifteen percent (15%) of the adjusted gross receipts of the slot machine wagering from the previous month at the licensee's racetrack. The Indiana horse racing commission may not use any of this money for any administrative purpose or other purpose of the Indiana horse racing commission, and the entire amount of the money shall be distributed as provided in this section. A licensee shall pay the following amounts from the economic development fee imposed under IC 4-35-8.3-2:
         (1) The first two hundred fifty thousand dollars ($250,000) distributed under this section in of the fee imposed for a particular state fiscal year to the Indiana horse racing commission for deposit in the gaming integrity fund established by IC 4-35-8.7-3. After this money has been distributed to the Indiana horse racing commission, a licensee shall distribute the

remaining money devoted to horse racing purses and to horsemen's associations under this subsection as follows:
        (1) (2) Five-tenths percent (0.5%) of the fees remaining after making the payment required by subdivision (1) shall be transferred to horsemen's associations for equine promotion or welfare according to the ratios specified in subsection (e).
        (2) (3) Two and five-tenths percent (2.5%) of the fees remaining after making the payment required by subdivision (1) shall be transferred to horsemen's associations for backside benevolence according to the ratios specified in subsection (e).
        (3) (4) Except as provided in IC 4-35-8.3-4 through IC 4-35-8.3-6, ninety-seven percent (97%) of the fees remaining after making the payment required by subdivision (1) shall be distributed to promote horses and horse racing as provided in subsection (d).
The payment required under subdivision (1) must be made before August 15 of each year. The payments and distributions required by subdivisions (2) through (4) must be made before the fifteenth day of the month following the month for which the fees were imposed upon the licensee's adjusted gross receipts under IC 4-35-8.3-2.
    (c) A horsemen's association shall expend the amounts distributed to the horsemen's association under subsection (b)(1) (b)(2) through (b)(2) (b)(3) for a purpose promoting the equine industry or equine welfare or for a benevolent purpose that the horsemen's association determines is in the best interests of horse racing in Indiana for the breed represented by the horsemen's association. Expenditures under this subsection are subject to the regulatory requirements of subsection (f).
    (d) A licensee shall distribute the amounts described in subsection (b)(3) (b)(4) as follows:
        (1) Forty-six percent (46%) for thoroughbred purposes as follows:
            (A) Sixty percent (60%) for the following purposes:
                (i) Ninety-seven percent (97%) for thoroughbred purses.
                (ii) Two and four-tenths percent (2.4%) to the horsemen's association representing thoroughbred owners and trainers.
                (iii) Six-tenths percent (0.6%) to the horsemen's association representing thoroughbred owners and breeders.
            (B) Forty percent (40%) to the breed development fund established for thoroughbreds under IC 4-31-11-10.
        (2) Forty-six percent (46%) for standardbred purposes as follows:
            (A) Fifty percent (50%) for the following purposes:
                (i) Ninety-six and five-tenths percent (96.5%) for standardbred purses.
                (ii) Three and five-tenths percent (3.5%) to the horsemen's association representing standardbred owners and trainers.


            (B) Fifty percent (50%) to the breed development fund established for standardbreds under IC 4-31-11-10.
        (3) Eight percent (8%) for quarter horse purposes as follows:
            (A) Seventy percent (70%) for the following purposes:
                (i) Ninety-five percent (95%) for quarter horse purses.
                (ii) Five percent (5%) to the horsemen's association representing quarter horse owners and trainers.
            (B) Thirty percent (30%) to the breed development fund established for quarter horses under IC 4-31-11-10.
Expenditures under this subsection are subject to the regulatory requirements of subsection (f).
    (e) Money distributed under subsection (b)(1) (b)(2) and (b)(2) (b)(3) shall be allocated as follows:
        (1) Forty-six percent (46%) to the horsemen's association representing thoroughbred owners and trainers.
        (2) Forty-six percent (46%) to the horsemen's association representing standardbred owners and trainers.
        (3) Eight percent (8%) to the horsemen's association representing quarter horse owners and trainers.
    (f) The Indiana horse racing commission may not use any of the money received under this section for any administrative purpose or other purpose of the Indiana horse racing commission. Money distributed under this section may not be expended unless the expenditure is for a purpose authorized in this section and is either for a purpose promoting the equine industry or equine welfare or is for a benevolent purpose that is in the best interests of horse racing in Indiana or the necessary expenditures for the operations of the horsemen's association required to implement and fulfill the purposes of this section. The Indiana horse racing commission may review any expenditure of money distributed under this section to ensure that the requirements of this section are satisfied. The Indiana horse racing commission shall adopt rules concerning the review and oversight of money distributed under this section and shall adopt rules concerning the enforcement of this section. The following apply to a horsemen's association receiving a distribution of money under this section:
        (1) The horsemen's association must annually file a report with the Indiana horse racing commission concerning the use of the money by the horsemen's association. The report must include information as required by the commission.
        (2) The horsemen's association must register with the Indiana horse racing commission.
    (g) The commission shall provide the Indiana horse racing commission with the information necessary to enforce this section.
    (h) The Indiana horse racing commission shall investigate any complaint that a licensee has failed to comply with the horse racing purse requirements set forth in this section. If, after notice and a

hearing, the Indiana horse racing commission finds that a licensee has failed to comply with the purse requirements set forth in this section, the Indiana horse racing commission may:
        (1) issue a warning to the licensee;
        (2) impose a civil penalty that may not exceed one million dollars ($1,000,000); or
        (3) suspend a meeting permit issued under IC 4-31-5 to conduct a pari-mutuel wagering horse racing meeting in Indiana.
    (i) A civil penalty collected under this section must be deposited in the state general fund.
    (j) For a state fiscal year beginning after June 30, 2008, and ending before July 1, 2009, the amount of money dedicated to the purposes described in subsection (b) for a particular state fiscal year is equal to the lesser of:
        (1) fifteen percent (15%) of the licensee's adjusted gross receipts for the state fiscal year; or
        (2) eighty-five million dollars ($85,000,000).
If fifteen percent (15%) of a licensee's adjusted gross receipts for the state fiscal year exceeds the amount specified in subdivision (2), the licensee shall transfer the amount of the excess to the commission for deposit in the state general fund. The licensee shall adjust the transfers required under this section in the final month of the state fiscal year to comply with the requirements of this subsection.
    (k) For a state fiscal year beginning after June 30, 2009, the amount of money dedicated to the purposes described in subsection (b) for a particular state fiscal year is equal to the lesser of:
        (1) fifteen percent (15%) of the licensee's adjusted gross receipts for the state fiscal year; or
        (2) the amount dedicated to the purposes described in subsection (b) in the previous state fiscal year increased by a percentage that does not exceed the percent of increase in the United States Department of Labor Consumer Price Index during the year preceding the year in which an increase is established.
If fifteen percent (15%) of a licensee's adjusted gross receipts for the state fiscal year exceeds the amount specified in subdivision (2), the licensee shall transfer the amount of the excess to the commission for deposit in the state general fund. The licensee shall adjust the transfers required under this section in the final month of the state fiscal year to comply with the requirements of this subsection.

SOURCE: IC 4-35-8.3; (10)MO040506.36. -->     SECTION 36. IC 4-35-8.3 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]:
     Chapter 8.3. Economic Development Fee
    Sec. 1. This chapter applies to adjusted gross receipts received by a licensee in a state fiscal year beginning after June 30, 2010.

     Sec. 2. (a) There is imposed upon each licensee that offers slot

machine wagering under this article an economic development fee equal to fifteen percent (15%) of the licensee's adjusted gross receipts received from slot machine wagering.
    (b) Before the tenth day of each month, a licensee shall set aside an amount equal to the fee imposed under subsection (a) upon the adjusted gross receipts received by the licensee during the previous month at the licensee's racetrack. Except as provided in sections 5 and 6 of this chapter, a licensee is not required to remit fees to the commission or the Indiana horse racing commission.
    Sec. 3. (a) A licensee must use the economic development fees set aside for each month of the state fiscal year under section 2 of this chapter as follows:
        (1) To pay the amount specified in IC 4-35-7-12(b)(1) as a single annual payment for deposit in the gaming integrity fund.
        (2) To pay the amounts specified in IC 4-35-7-12(b)(2) for equine promotion and welfare.
        (3) To pay the amounts specified in IC 4-35-7-12(b)(3) for backside benevolence.
        (4) Except as provided in sections 4 through 6 of this chapter, to distribute the amount specified in IC 4-35-7-12(b)(4) to promote horses and horse racing as provided in IC 4-35-7-12(d).
    (b) A licensee shall do the following:
        (1) Make the payments and distributions described in subsection (a) in accordance with the schedule required by IC 4-35-7-12(b).
        (2) Maintain complete records of the economic development fees paid or distributed by the licensee under subsection (a).
        (3) Submit a monthly report of the amounts paid or distributed under subsection (a) to the commission and the Indiana horse racing commission in the manner prescribed by the commission.
    (c) The commission may require a licensee to submit any records maintained under this section for an independent audit by a certified public accountant selected by the commission. A licensee must bear the cost of any audit required under this section.
    Sec. 4. In each state fiscal year, a licensee may not distribute under section 3(a)(4) of this chapter more than thirteen million seven hundred fifty thousand dollars ($13,750,000) of the fees set aside under section 2(b) of this chapter for promoting horses and horse racing as provided in IC 4-35-7-12(d).
    Sec. 5. (a) This section applies to the month in which the amount of fees that a licensee has distributed under section 3(a)(4) of this chapter for a particular state fiscal year reaches thirteen million seven hundred fifty thousand dollars ($13,750,000).
    (b) For a month described in subsection (a), a licensee shall

distribute an amount equal to the result determined under STEP TWO of the following formula for promoting horses and horse racing as provided in IC 4-35-7-12(d):
        STEP ONE: Determine the product of:
            (1) the amount of the fee set aside under section 2(b) of this chapter in that month; multiplied by
            (2) ninety-seven percent (97%).
        STEP TWO: Determine the difference between:
            (1) thirteen million seven hundred fifty thousand dollars ($13,750,000); minus
            (2) the aggregate amount of money distributed under section 3(a)(4) of this chapter for that state fiscal year.
        STEP THREE: Determine the difference between:
            (1) the STEP ONE result; minus
            (2) the STEP TWO result.
    (c) A licensee shall transfer to the commission for transfer and deposit under section 7 of this chapter an amount equal to the result determined under STEP THREE of the formula set forth in subsection (b).
    (d) A licensee shall make any transfer required by subsection (c) before the fifteenth day of the month following the month for which the fees were imposed upon the licensee's adjusted gross receipts under section 2 of this chapter.
    Sec. 6. (a) This section applies to economic development fees imposed for each month remaining in a state fiscal year that follows a month that is subject to section 5 of this chapter.
    (b) For a month described in subsection (a), a licensee shall transfer the product of:
        (1) the amount of the fee set aside under section 2(b) of this chapter for that month; multiplied by
        (2) ninety-seven percent (97%);
to the commission for transfer and deposit under section 7 of this chapter.
    (c) A licensee shall make any transfer required by subsection (b) before the fifteenth day of the month following the month for which the fees were imposed upon the licensee's adjusted gross receipts under section 2 of this chapter.
    Sec. 7. The commission shall transfer any economic development fees received under sections 5 and 6 of this chapter to the treasurer of state for deposit as follows:
        (1) Seventy-five percent (75%) to the capital access account established by the Indiana economic development corporation under IC 5-28-29-35.
        (2) Twenty-five percent (25%) to the state general fund.
".
    Delete pages 34 through 35.

SOURCE: Page 36, line 1; (10)MO040506.36. -->     Page 36, delete lines 1 through 25.
    Page 37, between lines 39 and 40, begin a new paragraph and insert:
SOURCE: IC 5-28-29-35; (10)MO040506.39. -->     "SECTION 39. IC 5-28-29-35, AS ADDED BY P.L.162-2007, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 35. (a) The corporation shall establish a capital access account. The corporation shall use the capital access account to carry out the provisions of the capital access program. The capital access account consists of all money that is:
        (1) appropriated by the general assembly;
        (2) transferred by the corporation from the industrial development guaranty fund; or
        (3) transferred by the corporation from the general funds of the corporation; or
        (4) deposited by the treasurer of state under IC 4-35-8.3-7.

    (b) The expenses of the corporation attributable and allocated by the corporation to the capital access program shall be paid from the capital access account.".
SOURCE: Page 46, line 4; (10)MO040506.46. -->     Page 46, between lines 4 and 5, begin a new paragraph and insert:
SOURCE: ; (10)MO040506.51. -->     "SECTION 51. [EFFECTIVE JULY 1, 2010] (a) IC 4-35-7-12, as amended by this act, applies to adjusted gross receipts received by a licensee in a state fiscal year beginning after June 30, 2010.
    (b) This SECTION expires January 1, 2012.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 405 as printed February 19, 2010.)

________________________________________

Representative Espich


MO040506/DI 92     2010