SB 405-1_ Filed 01/28/2010, 11:33 ChairPerson
Adopted 1/28/2010

COMMITTEE REPORT

MADAM PRESIDENT:

    The Senate Committee on Appropriations, to which was referred Senate Bill No. 405, 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 3, line 23; (10)CR040501.3. -->     Page 3, between lines 23 and 24, begin a new paragraph and insert:
SOURCE: IC 4-31-7-1; (10)CR040501.3. -->     "SECTION 3. IC 4-31-7-1, AS AMENDED BY P.L.233-2007, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: 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 permit holder licensed to conduct gambling games under IC 4-35 may permit wagering on slot machines at a racetrack as permitted by IC 4-35.
    (b) Except as provided in section 7 of this chapter, and IC 4-31-5.5, and IC 4-31-7.5, 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 4-31-7-3; (10)CR040501.4. -->     SECTION 4. IC 4-31-7-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 3. (a) The following equipment must be provided and maintained in good working order at each permit holder's racetrack or satellite facility, as applicable:
        (1) A totalizator for win, place, and show wagering. The totalizator must:
            (A) be of a design approved by the commission;
            (B) be capable of registering by automatic mechanical, electric, or electronic means on central aggregators all wagers made on each horse, entry, or the field in each of the win, place, and show pools;
            (C) display the totals wagered in a manner that permits ready tabulation and recording of those totals by the commission's representative before they are cleared from the central aggregators; and
            (D) display to the public on a board running totals of amounts wagered in each of the win, place, and show pools on each entry in each race.
        (2) A telephone system connecting the judges' stand with the office of the pari-mutuel plant and any other stations considered necessary by the commission.
        (3) A system of bells that shall be rung from the judges' stand to signal the close of wagering.
        (4) A button in the judges' stand that, when pressed, will lock ticket-issuing machines and close wagering for each race.
    (b) In addition to the requirements of subsection (a), a permit holder may conduct exotic wagering only by the use of automatic mechanical, electric, or electronic devices that:
        (1) print and issue tickets evidencing individual wagers;
        (2) locally print a permanent record of the tickets issued by each machine or register on central aggregators by automatic mechanical, electric, or electronic means the total dollar value of those tickets; and
        (3) permit ready tabulation and recording of those figures by the commission's representative before they are cleared from the central aggregators.
     (c) The commission may waive the requirements of subsection (b) if the commission determines by rule that other systems or

technologies are available and sufficient to safeguard the public.
    (d) This section does not apply to a licensed SPMO (as defined in IC 4-31-7.5-5).

SOURCE: IC 4-31-7.5; (10)CR040501.5. -->     SECTION 5. IC 4-31-7.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]:
    Chapter 7.5. Advance Deposit Wagering
    Sec. 1. In enacting this chapter, it is the intent of the general assembly to recognize changes in technology for pari-mutuel wagering and to retain for the Indiana horse racing industry a part of revenues generated by Indiana residents on wagers placed with secondary pari-mutuel organizations.
    Sec. 2. As used in this chapter, "account holder" means an Indiana resident who has established an advance deposit wagering account.
    Sec. 3. As used in this chapter, "advance deposit wagering" means a system of pari-mutuel wagering in which wagers, made by an account holder in person, by telephone, or through communication by other electronic means, are debited and payouts are credited to an account.
    Sec. 4. As used in this chapter, "advance deposit wagering account" means an account for advance deposit wagering held by a licensed SPMO.
    Sec. 5. As used in this chapter, "licensed SPMO" means a secondary pari-mutuel organization licensed under this chapter.
    Sec. 6. As used in this chapter, "other electronic means" means communication by any electronic communication device, including personal computers, the Internet, private networks, interactive televisions and wireless communication technologies, an interactive computer service (as defined in IC 35-45-5-1), or other technologies approved by the commission.
    Sec. 7. As used in this chapter, "secondary pari-mutuel organization" means an entity that offers advance deposit wagering.
    Sec. 8. As used in this chapter, "source market fee" refers to the amount of an advance deposit wager made on any race:
        (1) through a licensed SPMO; and
        (2) by an individual whose principal residence is within

Indiana at the time the wager is made;
that a permit holder is entitled to receive from the licensed SPMO under the terms of the contract required by section 10 of this chapter between the licensed SPMO and each permit holder.
    Sec. 9. Advance deposit wagering is permitted in Indiana, subject to this chapter and to rules adopted by the commission.
    Sec. 10. (a) A licensed SPMO may accept wagers for races conducted within or outside Indiana. Wagers made under this chapter are considered to have been made in Indiana.
    (b) A licensed SPMO must have a single written contract signed by each permit holder. The contract must be approved by the commission. The contract must:
        (1) specify the manner in which the amount of the source market fee is determined for each permit holder; and
        (2) govern all other aspects of the business relationship between the licensed SPMO and each permit holder.
    (c) A permit holder may not enter into an exclusive agreement with a licensed SPMO.
    Sec. 11. The commission shall adopt rules under IC 4-22-2, including emergency rules adopted in the manner provided in IC 4-22-2-37.1, to implement this chapter, including but not limited to rules that prescribe:
        (1) procedures for verifying the age of a person opening an advance deposit wagering account or placing a wager with a licensed SPMO;
        (2) requirements for opening and administering advance deposit wagering accounts;
        (3) a guarantee or acceptable surety that the full value of balances in an advance deposit wagering account will be paid;
        (4) record keeping requirements;
        (5) licensure procedures, including investigation of applicants, forms for licensure, and procedures for renewal; and
        (6) civil penalties for violations of this chapter or a rule adopted by the commission.
    Sec. 12. A licensed SPMO shall comply with all applicable federal laws.
    Sec. 13. A secondary pari-mutuel organization applying for a license under this chapter must provide the following to the

commission:
        (1) Written evidence of approval, by the appropriate regulatory authority in each state where the secondary pari-mutuel organization is licensed, to conduct advance deposit wagering.
        (2) A copy of a proposed contract executed by the applicant and each permit holder to satisfy the requirements of section 10 of this chapter.
        (3) A nonrefundable application fee of five thousand dollars ($5,000).
        (4) A complete application on a form prescribed by the commission.
        (5) Any other information required by the commission.
    Sec. 14. The commission may require an applicant to pay any costs incurred by the commission for background checks, investigation, and review of the license application that exceed five thousand dollars ($5,000).
    Sec. 15. (a) The commission may issue to a secondary pari-mutuel organization a license to offer advance deposit wagering to Indiana residents if the commission:
        (1) finds that the applicant satisfies the requirements of this chapter and the rules adopted by the commission under section 11 of this chapter; and
        (2) approves the contract submitted under section 13 of this chapter.
    (b) The term of a license issued under this chapter is one (1) year.
    (c) The annual license renewal fee is one thousand dollars ($1,000).
    Sec. 16. A secondary pari-mutuel organization that is not licensed under this chapter may not accept a wager from a person whose physical location is within Indiana at the time the wager is made.
    Sec. 17. A person less than twenty-one (21) years of age may not open, own, or have access to an advance deposit wagering account.
    Sec. 18. (a) A permit holder has a right of action against a secondary pari-mutuel organization that accepts a wager in violation of section 16 of this chapter.

    (b) If the permit holder prevails in an action filed under this section, the permit holder is entitled to the following:         (1) An injunction to enjoin future violations of this chapter.
        (2) Compensatory damages equal to any actual damage proven by the permit holder. If the permit holder does not prove actual damage, the permit holder is entitled to presumptive damages of five hundred dollars ($500) for each wager placed in violation of this chapter.
        (3) The permit holder's reasonable attorney's fees and other litigation costs reasonably incurred in connection with the action.
    (c) A secondary pari-mutuel organization that accepts a wager in violation of section 16 of this chapter submits to the jurisdiction of Indiana courts for purposes of this chapter.
".

SOURCE: Page 4, line 6; (10)CR040501.4. -->     Page 4, delete lines 6 through 7.
    Page 5, delete lines 11 through 30.
    Page 8, line 39, delete "Not more than two" and insert "Two".
    Page 8, line 40, delete "not more than".
    Page 9, delete lines 34 through 42, begin a new paragraph and insert:
SOURCE: IC 4-33-6-4; (10)CR040501.11. -->     "SECTION 11. IC 4-33-6-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 4. (a) In determining whether to grant an owner's license to an applicant, the commission shall consider the following:
        (1) The character, reputation, experience, and financial integrity of the following:
            (A) The applicant.
            (B) A person that:
                (i) directly or indirectly controls the applicant; or
                (ii) is directly or indirectly controlled by the applicant or by a person that directly or indirectly controls the applicant.
        (2) The facilities or proposed facilities for the conduct of riverboat gambling.
        (3) The highest prospective total revenue to be collected by the state from the conduct of riverboat gambling.
        (4) The good faith affirmative action plan of each applicant to recruit, train, and upgrade minorities in all employment classifications.
        (5) The financial ability of the applicant to purchase and maintain adequate liability and casualty insurance.
        (6) If the applicant has adequate capitalization to provide and maintain a riverboat for the duration of the license.
        (7) The extent to which the applicant exceeds or meets other standards adopted by the commission.
    (b) This subsection does not apply to a person applying for an owner's license to assume control of a riverboat on which gambling games have been conducted under an owner's license issued to another person. In an application for an owner's license, the applicant must submit to the commission a proposed design of the riverboat and the dock. The commission may not grant a license to an applicant if the commission determines that it will be difficult or unlikely for the riverboat to depart from the dock.".
SOURCE: Page 10, line 1; (10)CR040501.10. -->     Page 10, delete lines 1 through 26.
    Page 10, line 36, delete "subsections (c) and" and insert " subsection (c),".
    Page 10, line 37, delete "(d),".
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    Page 13, delete lines 1 through 2.
    Page 13, line 6, after "for" insert " :
        "(1) constructing a permanently moored vessel to replace the licensed owner's self-propelled excursion boat; or
        (2)
".
    Page 13, line 9, delete "remove" and insert " disable".
    Page 13, line 14, delete "operated" and insert " ; and".
    Page 13, delete line 15.
    Page 13, between lines 17 and 18 begin a new line blocked left and insert:
" However, nothing in this subsection requires a licensed owner converting a self-propelled excursion boat into a permanently moored vessel under this section to substantially alter the marine structural and life safety systems of the excursion boat that were required to comply with section 6(a) of this chapter if the excursion boat was in service before January 1, 2010.".
    Page 13, delete lines 22 through 42.
    Delete page 14.
    Page 15, delete lines 1 through 6.
    Page 16, delete lines 27 through 35.
    Page 17, line 36, delete "located or".
    Page 18, line 1, delete "located or".
    Page 18, line 2, delete "located or".
    Page 18, line 9, delete "located or".
    Page 18, line 19, delete "located or".
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    Page 22, line 38, delete "located or".
    Page 23, line 4, delete "located or".
    Page 25, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: IC 4-33-13-5; (10)CR040501.28. -->     "SECTION 28. IC 4-33-13-5, AS AMENDED BY P.L.146-2008, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 5. (a) This subsection does not apply to tax revenue remitted by an operating agent operating a riverboat in a historic hotel district. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue deposited in the state gaming fund under this chapter to the following:
        (1) The first thirty-three million dollars ($33,000,000) of tax revenues collected under this chapter shall be set aside for revenue sharing under subsection (e).
        (2) Subject to subsection (c), twenty-five percent (25%) of the remaining tax revenue remitted by each licensed owner shall be paid:
            (A) to the city that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of:
                (i) a city described in IC 4-33-12-6(b)(1)(A); or
                (ii) a city located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or
            (B) to the county that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of a riverboat whose home dock is not in a city described in clause (A).
        (3) Subject to subsection (d), the remainder of the tax revenue remitted by each licensed owner shall be paid to the state general

fund. In each state fiscal year, the treasurer of state shall make the transfer required by this subdivision not later than the last business day of the month in which the tax revenue is remitted to the state for deposit in the state gaming fund. However, if tax revenue is received by the state on the last business day in a month, the treasurer of state may transfer the tax revenue to the state general fund in the immediately following month.
    (b) This subsection applies only to tax revenue remitted by an operating agent operating a riverboat in a historic hotel district. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue remitted by the operating agent under this chapter as follows:
        (1) Thirty-seven and one-half percent (37.5%) shall be paid to the state general fund.
        (2) Nineteen percent (19%) shall be paid to the West Baden Springs historic hotel preservation and maintenance fund established by IC 36-7-11.5-11(b).
        However, at any time the balance in that fund exceeds twenty million dollars ($20,000,000), the amount described in this subdivision shall be paid to the state general fund.
        (3) Eight percent (8%) shall be paid to the Orange County development commission established under IC 36-7-11.5.
        (4) Sixteen percent (16%) shall be paid in equal amounts to each town that is located in the county in which the riverboat docks is located and contains a historic hotel. The following apply to taxes received by a town under this subdivision:
            (A) At least twenty-five percent (25%) of the taxes must be transferred to the school corporation in which the town is located.
            (B) At least twelve and five-tenths percent (12.5%) of the taxes must be transferred to the Orange County convention and visitors bureau. development commission established by IC 36-7-11.5-3.5.
        (5) Nine percent (9%) shall be paid to the county treasurer of the county in which the riverboat is docked. located. The county treasurer shall distribute the money received under this subdivision as follows:
            (A) Twenty-two and twenty-five hundredths percent (22.25%)

shall be quarterly distributed to the county treasurer of a county having a population of more than thirty-nine thousand six hundred (39,600) but less than forty thousand (40,000) for appropriation by the county fiscal body after receiving a recommendation from the county executive. The county fiscal body for the receiving county shall provide for the distribution of the money received under this clause to one (1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established by the county fiscal body after receiving a recommendation from the county executive.
            (B) Twenty-two and twenty-five hundredths percent (22.25%) shall be quarterly distributed to the county treasurer of a county having a population of more than ten thousand seven hundred (10,700) but less than twelve thousand (12,000) for appropriation by the county fiscal body after receiving a recommendation from the county executive. The county fiscal body for the receiving county shall provide for the distribution of the money received under this clause to one (1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established by the county fiscal body after receiving a recommendation from the county executive.
            (C) Fifty-five and five-tenths percent (55.5%) shall be retained by the county where in which the riverboat is docked located for appropriation by the county fiscal body after receiving a recommendation from the county executive.
        (6) Five percent (5%) shall be paid to a town having a population of more than two thousand two hundred (2,200) but less than three thousand five hundred (3,500) located in a county having a population of more than nineteen thousand three hundred (19,300) but less than twenty thousand (20,000). At least forty percent (40%) of the taxes received by a town under this subdivision must be transferred to the school corporation in which the town is located.
        (7) Five percent (5%) shall be paid to a town having a population of more than three thousand five hundred (3,500) located in a county having a population of more than nineteen thousand three hundred (19,300) but less than twenty thousand (20,000). At least forty percent (40%) of the taxes received by a town under this

subdivision must be transferred to the school corporation in which the town is located.
        (8) Five-tenths percent (0.5%) shall be paid to the Orange County convention and visitors bureau. Indiana economic development corporation established by IC 5-28-3-1.
    (c) For each city and county receiving money under subsection (a)(2), the treasurer of state shall determine the total amount of money paid by the treasurer of state to the city or county during the state fiscal year 2002. The amount determined is the base year revenue for the city or county. The treasurer of state shall certify the base year revenue determined under this subsection to the city or county. The total amount of money distributed to a city or county under this section during a state fiscal year may not exceed the entity's base year revenue. For each state fiscal year, the treasurer of state shall pay that part of the riverboat wagering taxes that:
        (1) exceeds a particular city's or county's base year revenue; and
        (2) would otherwise be due to the city or county under this section;
to the state general fund instead of to the city or county.
    (d) Each state fiscal year the treasurer of state shall transfer from the tax revenue remitted to the state general fund under subsection (a)(3) to the build Indiana fund an amount that when added to the following may not exceed two hundred fifty million dollars ($250,000,000):
        (1) Surplus lottery revenues under IC 4-30-17-3.
        (2) Surplus revenue from the charity gaming enforcement fund under IC 4-32.2-7-7.
        (3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as needed to meet the obligations of the build Indiana fund. If in any state fiscal year insufficient money is transferred to the state general fund under subsection (a)(3) to comply with this subsection, the treasurer of state shall reduce the amount transferred to the build Indiana fund to the amount available in the state general fund from the transfers under subsection (a)(3) for the state fiscal year.
    (e) Before August 15 of each year, the treasurer of state shall distribute the wagering taxes set aside for revenue sharing under subsection (a)(1) to the county treasurer of each county that does not have a riverboat according to the ratio that the county's population

bears to the total population of the counties that do not have a riverboat. Except as provided in subsection (h), the county auditor shall distribute the money received by the county under this subsection as follows:
        (1) To each city located in the county according to the ratio the city's population bears to the total population of the county.
        (2) To each town located in the county according to the ratio the town's population bears to the total population of the county.
        (3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be retained by the county.
    (f) Money received by a city, town, or county under subsection (e) or (h) may be used for any of the following purposes:
        (1) To reduce the property tax levy of the city, town, or county for a particular year (a property tax reduction under this subdivision does not reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5).
        (2) For deposit in a special fund or allocation fund created under IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and IC 36-7-30 to provide funding for debt repayment.
        (3) To fund sewer and water projects, including storm water management projects.
        (4) For police and fire pensions.
        (5) To carry out any governmental purpose for which the money is appropriated by the fiscal body of the city, town, or county. Money used under this subdivision does not reduce the property tax levy of the city, town, or county for a particular year or reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5.
    (g) This subsection does not apply to an entity receiving money under IC 4-33-12-6(c). Before September 15 of each year, the treasurer of state shall determine the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year. If the treasurer of state determines that the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year was less than the entity's base year revenue (as determined under IC 4-33-12-6), the treasurer of state shall make a supplemental distribution to the entity from taxes collected under this chapter and deposited into the state general fund. Except as provided in subsection

(i), the amount of an entity's supplemental distribution is equal to:
        (1) the entity's base year revenue (as determined under IC 4-33-12-6); minus
        (2) the sum of:
            (A) the total amount of money distributed to the entity during the preceding state fiscal year under IC 4-33-12-6; plus
            (B) any amounts deducted under IC 6-3.1-20-7.
    (h) This subsection applies only to a county containing a consolidated city. The county auditor shall distribute the money received by the county under subsection (e) as follows:
        (1) To each city, other than a consolidated city, located in the county according to the ratio that the city's population bears to the total population of the county.
        (2) To each town located in the county according to the ratio that the town's population bears to the total population of the county.
        (3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be paid in equal amounts to the consolidated city and the county.
    (i) This subsection applies only to the Indiana horse racing commission. For each state fiscal year the amount of the Indiana horse racing commission's supplemental distribution under subsection (g) must be reduced by the amount required to comply with IC 4-33-12-7(a).".

SOURCE: Page 26, line 20; (10)CR040501.26. -->     Page 26, line 20, strike "city".
    Page 26, line 20, before "and" insert " municipality".
    Page 26, delete lines 33 through 42, begin a new paragraph and insert:
SOURCE: IC 4-35-7-12; (10)CR040501.31. -->     "SECTION 31. IC 4-35-7-12, AS AMENDED BY P.L.142-2009, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: 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 first two hundred fifty thousand dollars ($250,000) distributed under this section 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, 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 product of:
            (A)
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. multiplied by
             (B) one and three-hundredths (1.03).
If fifteen percent (15%) of a licensee's adjusted gross receipts for the state fiscal year exceeds the amount specified in determined under 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.".
    Delete pages 27 through 28.

SOURCE: Page 29, line 1; (10)CR040501.29. -->     Page 29, delete lines 1 through 40.
    Page 32, between lines 33 and 34, begin a new paragraph and insert:
SOURCE: IC 35-45-5-5; (10)CR040501.40. -->     "SECTION 40. IC 35-45-5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 5. The provisions of this chapter do not apply to:
         (1) pari-mutuel wagering conducted at racetrack locations or satellite facilities licensed for pari-mutuel wagering under IC 4-31; or
        (2) wagering on horse races conducted through advance deposit wagering accounts authorized by IC 4-31-7.5.
".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 405 as introduced.)

and when so amended that said bill do pass.

Committee Vote: Yeas 10, Nays 2.

____________________________________

    Dillon
Ranking Member


CR040502/DI 73    2010