LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6224 NOTE PREPARED: Dec 13, 2023 BILL NUMBER: HB 1147 BILL AMENDED: SUBJECT: Horse Racing and Racetrack Ownership. FIRST AUTHOR: Rep. Cherry BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State DEDICATED FEDERAL Summary of Legislation: The bill specifies that the Horse Racing Commission (IHRC) may adopt rules that incorporate by reference the most current version of the model rules adopted by the Association of Racing Commissioners International (ARCI). It removes certain obsolete references to emergency rules. It requires a permit holder to own the real property, including buildings, structures, and other improvements, on which a horse racing meeting is to be conducted. It prohibits a permit issued for a horse racing meeting from being leased. It provides that judges and stewards may suspend a license for not more than three years on behalf of the IHRC. (Current law allows judges and stewards to suspend a license for not more than one year on behalf of the IHRC.) It provides that the suspension of a license or the imposition of certain civil penalties must occur within 365 days after the date of the violation (instead of 180 days as required by current law). It provides that a horse's veterinary medical records and medical condition must be furnished within five business days without written client authorization to the IHRC as part of an investigation in which a horse under the care, control, or ownership of a licensee has been treated by a veterinarian. Effective Date: January 1, 2024 (retroactive); July 1, 2024. Explanation of State Expenditures: IHRC Rules: The bill defines "ARCI model rules" as the most current version of model rules and standards, including penalties and penalty classifications, that have been adopted by the Association of Racing Commissioners International. ARCI is a not-for-profit corporation composed of the governmental regulators of horse and greyhound racing in the United States and some other countries. HB 1147 1 ARCI does not have any direct regulatory authority. The ARCI model rules of racing and wagering have been used by various jurisdictions as a basis to develop regulations or directly adopted for rule making. The bill allows IHRC to adopt rules that refer to ARCI model rules. These provisions are effective July 1, 2024. Other Provisions: Effective July 1, 2024, the bill changes guidelines related to the release of a horse's veterinary medical records and medical condition. The bill also sets requirements related to ownership of a horse racetrack. This provision is retroactively effective January 1, 2024. These provisions will not have any state fiscal impact. Explanation of State Revenues: Changes to IHRC Disciplinary Guidelines and Actions: The bill changes the guidelines to stewards and judges of racing meetings as they relate to disciplinary actions under horse racing statute. This could have an impact on revenues if there are additional penalties imposed by these officers. Unchanged by the bill, current law allows stewards and judges to impose a civil penalty up to $5,000. The civil penalty revenue collected by IHRC is deposited in the state General Fund. These provisions are effective July 1, 2024. Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Indiana Horse Racing Commission. Local Agencies Affected: Information Sources: https://www.arci.com/model-rules-standards/ Fiscal Analyst: Randhir Jha, 317-232-9556. HB 1147 2