Bill S.175

SENATE DOCKET, NO. 1877 FILED ON: 1/20/2017

SENATE . . . . . . . . . . . . . . No. 175

By Mr. Boncore, a petition (accompanied by bill, Senate, No. 175) of Joseph A. Boncore for legislation relative to horse racing and wagering. Economic Development and Emerging Technologies.

The Commonwealth of Massachusetts

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In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act relative to horse racing and wagering.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 128A of the General Laws is hereby repealed.

SECTION 2. Said chapter 128C is hereby repealed.

SECTION 3. Section 60 of chapter 23K of the General laws is hereby repealed. All monies presently in the fund shall be transferred to the Race Horse Development Fund established pursuant to this Act.

SECTION 4. Notwithstanding any general or special law or rule or regulation to the contrary, all existing general and special laws, licenses, authorizations, or approvals relative to horse racing or wagering thereon other than those contained in chapter 23K or St. 2011, c. 194 are sunset on July 31, 2017.

SECTION 5. The General Laws are hereby amended by inserting after chapter 128C the following chapter:-

CHAPTER 128D.

HORSE RACING AND WAGERING.

Section 1. Preamble. It is the intent of this chapter to grant the Massachusetts Gaming Commission all necessary authority to oversee and regulate all aspects of horse racing in the Commonwealth with the object of promoting its efficient operation, and the honesty and integrity of the wagering process related to it. It is the further intent of this chapter that the Commission utilize best efforts to ensure that the horse racing industry be preserved and sustained for, amongst other reasons, the preservation of open space, the agricultural benefits associated with horse racing, and the creation and preservation of jobs and businesses associated with horse racing.

Section 2. Terms used in this chapter shall, unless the context otherwise requires, be construed as follows:

“Advance Deposit Wagering”, a form of pari-mutuel wagering in which an individual may deposit money to an account established through an agreement with a holder of a racing license or simulcasting license and use the account balance to make and pay for wagers by the holder of the account which wagers may be made in person, by direct telephone call or by communication through other electronic media by the holder of the account to the licensee.

“Breaks'', in the case of live horse racing conducted in the commonwealth by a racing licensee, the odd cents over any multiple of 10 cents of winnings per $1 wagered. In the case of live horse racing conducted at a race track outside the commonwealth, the amount of the breaks shall be determined in accordance with the laws of the state in which the race track is located.

''Commission'', the Massachusetts gaming commission established in chapter 23K.

“Exotic wager”, is a bet on the speed or ability of a combination of more than 1 horse in a single race.

''Premium'', is the amount paid to a racing licensee in addition to the host track fee for purposes of providing a simulcast signal.

“Racing license”, is an authorization awarded to a person by the commission, under specified conditions, to accept wagers on live horse racing conducted on licensed premises in the Commonwealth.

“Racing licensee”, is a person who holds a racing license.

''Race track'' shall, as determined by the commission, include the track, grounds, auditorium, amphitheater and/or bleachers, if any, and adjacent places used in connection therewith, where live horse racing may be held.

''Rebate'', mean a portion of pari-mutuel wagers, otherwise payable to a racing licensee, that is paid to a holder of a pari-mutuel wagering ticket and that reduces the amount otherwise payable to such licensee, including, but not limited to, refunds to holders of pari-mutuel wagering tickets of any portion or percentage of the full face value of a pari-mutuel wager, paying a bonus on a winning pari-mutuel ticket, awards of merchandise, services such as meals, parking, admission, seating and programs, free or reduced cost pari-mutuel wagers, monetary awards, or any other benefit that the commission deems appropriate to reward horse racing patrons for their patronage.

''Simulcast'', the broadcast, transmission, receipt or exhibition, by any medium or manner, of a live race conducted live at a race track other than the one at which it is being exhibited at, whether inside or outside the Commonwealth, including but not limited to, a system, network, or programmer which transmits, or receives, television or radio signals by wire, satellite, or otherwise.

“Simulcasting license”, is an authorization awarded to a person by the commission pursuant to section 7 of chapter 23K, under specified conditions, to accept simulcast wagers.

“Simulcast licensee”, is a person who holds a simulcasting license.

''Simulcast wager'', a wager taken by a simulcast licensee on a race that is simulcast.

“Takeout”, monies deducted from a pari-mutuel pool at the direction or approval of the commission prior to payment of winnings.

Section 2. The commission shall have all powers necessary or convenient to effectively regulate horse racing and related wagering including, but not limited to, the power to adopt, amend or repeal regulations for the implementation, administration and enforcement of this chapter including all requisite powers afforded in accordance with section 4 of chapter 23K of the General Laws. The power and authority granted to the commission shall be construed as broadly as necessary for the implementation, administration and enforcement of this chapter.

Section 3. (a) The commission shall promulgate regulations for the implementation, administration and enforcement of this chapter including, without limitation, regulations that:

(1)prescribe the application process and criteria for evaluation of the application and renewal for a racing license; in determining whether to award a racing license the commission shall take into consideration the physical locations of the licensed race tracks as they relate to each other and how they maximize benefits to the commonwealth, the support or opposition to each applicant from the public, and any other considerations deemed relevant by the commission;

(2)prescribe the process and criteria for evaluation of the application and renewal of a simulcasting license to a racing licensee licensed under this chapter, a gaming licensee licensed pursuant to chapter 23K at a gaming establishment, or an entity previously licensed pursuant to chapter 128A or chapter 128C; in granting a simulcasting license to a gaming licensee, the commission shall take into consideration the impact on preexisting facilities previously licensed pursuant to said chapters 128A and 128C;

(3)prescribe the minimum number of live racing days required to be held by a racing licensee other than a gaming licensee who holds live racing on the premises of the gaming establishment;

(4) prescribe requirements necessary to the proper governance of the conduct of live horse racing, simulcasting, and wagering thereon;

(5)establish procedures governing the operation of the Racehorse Development Fund established pursuant to section 8 of this chapter;

(6) prescribe grounds and procedures for the revocation, suspension, and discipline of all licenses and registrations;

(7)prescribe the allocation of funds from racing licensees and simulcast licensees for the purpose of funding the activities of the commission relative to racing, which funding, with associated expenditures, shall be reported to the Legislature’s House and Senate Committees on Ways and Means and the Joint Committee on Economic Development and Emerging Technologies and made public annually within 60 days of the end of each fiscal year;

(8)prescribe any other issues related to the honest conduct of horse racing and wagering related to it.

(b)The commission may, pursuant to section 2 of chapter 30A, promulgate, amend or repeal any regulation promulgated under this chapter as an emergency regulation if such regulation is necessary to protect the interests of the commonwealth in regulating horse racing.

Section 4. The commission may inspect and shall have access to the entire race track and premises associated therewith upon which activity is conducted pursuant to a racing license or a simulcasting license issued in accordance with this chapter or chapter 23K including all records, documents, systems, equipment, and supplies on the premises.

Section 5. The commission may audit as often as the commission determines necessary the accounts, programs, activities, and functions of all racing licensees and simulcasting licensees. To conduct the audit, authorized officers and employees of the commission shall have access to such accounts at reasonable times, and the commission may require the production of books, documents, vouchers and other records relating to any matter within the scope of the audit. Further, the commission shall make an annual report of horse racing activity in the Commonwealth to the Legislature’s House and Senate Committees on Ways and Means and the Joint Committee on Economic Development and Emerging Technologies which shall include a full and complete statement of racing revenues.

Section 6. Each racing licensee and simulcasting licensee shall make readily available to the commission all documents, materials, equipment, personnel and any other items requested during an investigation; provided, however, that material that a racing licensee or simulcasting licensee considers a trade secret or detrimental to the licensee if it were made public may, with the commission's approval, be protected from public disclosure and the licensee may require nondisclosure agreements with the commission before disclosing such material.

Section 7. The commission shall establish application fees for all licenses, approvals, and renewals awarded under this chapter which shall include costs incurred for conducting a background investigation into an applicant. The commission may seek reimbursement from an applicant for any costs of investigation in excess of the initial application or renewal fee.

Section 8. (a) There shall be established and set up on the books of the Commonwealth a separate fund known as the Race Horse Development Fund to be administered by the commission at its sole discretion. The fund shall consist of monies deposited under subsection (c) of section 55 of chapter 23K and any monies credited to or transferred to the fund from any other fund or source. The commission may make any distribution from the Fund it determines to be in the best interest of horse racing in the Commonwealth including, but not limited to, the health, safety, and welfare of its participants, and may include provision for capital improvements of race tracks. Not less than 50 per cent of the funds deposited in the Fund shall be used to fund purses for live horse races in the Commonwealth.

(b) The commission shall establish a program, including eligibility requirements, to be funded out of the Fund in which the commission may provide to owners, trainers, breeders, jockeys, drivers, and others associated with horse racing, health, pension, life insurance, and other benefits deemed appropriate.

(c) In the sole discretion of the commission if the purpose of the Fund is no longer being substantially served, the Commission shall transfer all remaining monies in the Fund to a fund to be determined by the Commission.

Section 9. (a) Every racing licensee conducting pari-mutuel betting on horse races run on a licensed race track, shall distribute all sums deposited in any pari-mutuel pool to the holders of winning tickets therein, provided such tickets be presented for payment before April first of the year following the year of their purchase, less any takeouts as determined by the commission. The commission shall require the following takeouts: (i) to Tufts University School of Veterinary Medicine a sum not less than 0.5 per cent of the total amount deposited by the patrons, less the breaks, from the amount withheld from exotic wagers, to be used for equine research scholarships and loans; (ii) a sum to be determined by the commission, but not less than $35,000 annually per racing licensee to the department of public health for assistance with problem gambling research, prevention, and treatment programs; and (iii) a sum to provide and pay local aid to the racing licensees’ and simulcasting licensees’ respective host communities of not less than 0.35 per cent of the total amount deposited by patrons, less the breaks, from all amounts wagered on live horse races conducted at the race track in the host community.

(b) Every simulcasting licensee acting as a guest track shall return to the winning patrons wagering on such simulcast races all sums so deposited as an award or dividend, less any takeouts as determined by the commission. The commission shall require the following takeouts: (1) not less than10 per cent of the wagering received on simulcasting of in-state and out-of-state horse races shall be allocated to the Race Horse Development Fund established in section 8 of this chapter; and (ii) a sum not less than .25 per cent of the total amount deposited on the exotic wagering pool shall be payable to the department of agricultural resources.

Section 10. Notwithstanding the provisions of this chapter or any general or special law to the contrary, no live dog racing or live racing meeting where any form of betting or wagering on the speed or ability of dogs occurs shall be conducted or permitted in this commonwealth and the commission is hereby prohibited from accepting or approving any application or request for racing dates for dog racing.

Any person violating any provision of this section relative to dog racing shall be subject to a civil penalty of not less than twenty thousand dollars which shall be payable to the commission and used for administrative purposes of the commission.

Section 11. Any person who accepts or pays out a wager or bet on the results of any horse race or dog race, or aids or abets any of the foregoing types of wagering or betting, except as permitted by this chapter, shall for a first offence be punished by a fine of not more than two thousand dollars and imprisonment for not more than one year, and for a subsequent offence by a fine of not more than ten thousand dollars and imprisonment for not more than two years.

SECTION 6. Section 7 of chapter 4 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out clause Tenth and inserting in place thereof the following clause:-

Tenth, “Illegal gaming,” a banking or percentage game played with cards, dice, tiles or dominoes, or an electronic, electrical or mechanical device or machine for money, property, checks, credit or any representative of value, but excluding: (i) a lottery game conducted by the state lottery commission, under sections 24, 24A and 27 of chapter 10; (ii) a game conducted under chapter 23K; (iii) pari-mutuel wagering on horse races and greyhound races under chapter 128D; (iv) a game of bingo conducted under chapter 271; and (v) charitable gaming conducted under said chapter 271.”

Name:	District/Address:
Joseph A. Boncore	First Suffolk and Middlesex