SB 405-7_ Filed 02/22/2010, 11:29 Eberhart


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    WITHDRAWN        Noes _______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)MO040517.33. -->     Page 33, delete lines 16 through 42, begin a new paragraph and insert:
SOURCE: IC 4-35-7-12; (10)MO040517.35. -->     "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) This section applies to money transferred to the commission under IC 4-35-8.3-3. 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 shall devote the money transferred to the commission under IC 4-35-8.3-3 to promoting horses and horse racing. 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 transferred to the commission under IC 4-35-8.3-3 shall be distributed as provided in this section. A licensee The commission shall pay deposit the first two hundred fifty thousand dollars ($250,000) distributed under this section received in a 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) Five-tenths percent (0.5%) shall be transferred to horsemen's associations for equine promotion or welfare according to the ratios specified in subsection (e).
        (2) Two and five-tenths percent (2.5%) shall be transferred to horsemen's associations for backside benevolence according to the ratios specified in subsection (e).
        (3) Ninety-seven percent (97%) shall be distributed to promote horses and horse racing as provided in subsection (d).
    (c) A horsemen's association shall expend the amounts distributed to the horsemen's association under subsection (b)(1) through (b)(2) 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) 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) and (b)(2) 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) 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, and ending before July 1, 2010, 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)MO040517.36. -->     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. Horse Industry 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 a horse industry development fee equal to fifteen percent (15%) of the licensee's adjusted gross receipts received from slot machine wagering.
    (b) A licensee shall remit the fee imposed by this section to the department before the close of the business day following the day the wagers are made.
    (c) The department may require payment under this section to be made by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
    (d) If the department requires fees to be remitted under this chapter through electronic funds transfer, the department may allow the licensee to file a monthly report to reconcile the amounts remitted to the department.
    (e) The payment of the fee under this section must be on a form prescribed by the department.
    Sec. 3. The department shall transfer the amount determined in STEP SEVEN of the following formula to the Indiana horse racing commission to be used for the purposes set forth in IC 4-35-7-12:
        STEP ONE: Determine each licensee's slot machine wagering tax liability under IC 4-35-8 for each day that the licensee receives adjusted gross receipts from slot machine wagering.
        STEP TWO: Determine what would have been the licensee's slot machine wagering tax liability for that day if the tax had been calculated on a tax base consisting of the appropriate amount as follows:
            (1) Eighty-one percent (81%) of the licensee's adjusted gross receipts from slot machine wagering if the determination is made for a day that occurs:
                (A) in a state fiscal year ending before July 1, 2012; and
                (B) before the date on which the licensee incurs the maximum amount of liability for the county wagering tax fee required by IC 4-35-8.5-1 for a particular state fiscal year.
            (2) Eighty-two percent (82%) of the licensee's adjusted gross receipts from slot machine wagering if the determination is made for a day that occurs:
                (A) in a state fiscal year beginning after June 30, 2012; and
                (B) before the date on which the licensee incurs the maximum amount of liability for the county wagering tax fee required by IC 4-35-8.5-1 for a particular state fiscal year.
            (3) Eighty-four percent (84%) of the licensee's adjusted gross receipts from slot machine wagering if the determination is made for a day that occurs:
                (A) in a state fiscal year ending before July 1, 2012; and
                (B) on or after the date on which the licensee incurs the maximum amount of liability for the county wagering tax fee required by IC 4-35-8.5-1 for a particular state fiscal year.
            (4) Eighty-five percent (85%) of the licensee's adjusted gross receipts from slot machine wagering if the determination is made for a day that occurs:
                (A) in a state fiscal year beginning after June 30, 2012; and
                (B) on or after the date on which the licensee incurs the maximum amount of liability for the county wagering tax fee required by IC 4-35-8.5-1 for a particular state fiscal year.
        STEP THREE: Determine daily the difference between:
            (1) the STEP ONE result; minus
            (2) the STEP TWO result.

         STEP FOUR: Determine the amount, if any, that the application of IC 4-35-7-12(k) (as in effect on January 1, 2010) would have required the licensee to transfer to the commission for deposit in the state general fund if:
            (1) purses and breed development were funded as if IC 4-35-7-12 (as in effect on January 1, 2010) had not been amended; and
            (2) this chapter did not apply.
        STEP FIVE: Determine the sum of:
            (1) the STEP THREE result; plus
            (2) the STEP FOUR amount.
        STEP SIX: Determine the product of:
            (1) the STEP FIVE result; multiplied by
            (2) the following percentages:
                (A) Eighty-five percent (85%) in a state fiscal year beginning after June 30, 2010, and ending before July 1, 2011.
                (B) Eighty-eight percent (88%) in a state fiscal year beginning after June 30, 2011, and ending before July 1, 2012.
                (C) Ninety-one percent (91%) in a state fiscal year beginning after June 30, 2012, and ending before July 1, 2013.
                (D) Ninety-four percent (94%) in a state fiscal year beginning after June 30, 2013, and ending before July 1, 2014.
                (E) Ninety-seven percent (97%) in a state fiscal year beginning after June 30, 2014, and ending before July 1, 2015.
                (F) One hundred percent (100%) in a state fiscal year beginning after June 30, 2015.
        STEP SEVEN: Determine the amount remitted under section 2 of this chapter.
        STEP EIGHT: Determine the remainder of:
            (1) the STEP SEVEN amount; minus
            (2) the STEP SIX result.

     Sec. 4. The department shall deposit the fees retained under section 3 of this chapter in the state general fund.".
    Delete pages 34 through 35.

SOURCE: Page 36, line 1; (10)MO040517.36. -->     Page 36, delete lines 1 through 25.
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 405 as printed February 19, 2010.)

________________________________________

Representative Eberhart


MO040517/DI 92     2010