LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6212 NOTE PREPARED: Nov 18, 2024 BILL NUMBER: HB 1053 BILL AMENDED: SUBJECT: Horse Racing. FIRST AUTHOR: Rep. Manning 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: (1) model rules; and (2) model rules concerning foreign substances; adopted by the Association of Racing Commissioners International. It removes the requirement that the IHRC appoint an assistant director and provides that the director shall hire an assistant director. It changes references to the horse racing tracks. 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 (instead of 180 days) after the date of the violation. 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: July 1, 2025. Explanation of State Expenditures: IHRC Rules: The bill allows the IHRC to adopt rules that refer to ARCI model 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. It makes some exceptions and separately defines “ARCI uniform classification guidelines for foreign substances and recommended penalties model rules.” The 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. It 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. HB 1053 1 IHRC Assistant Director Position: The provision in the bill removing the requirement that the IHRC appoint an assistant director and instead providing that the director shall hire an assistant director will not change the staffing requirements at IHRC. It will not have any fiscal impact. Other Provisions: Effective July 1, 2025, the bill changes guidelines related to the release of a horse's veterinary medical records and medical condition. It also provides more information related to horsetracks’ locations in reference to the tracks. 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 beginning in FY 2026 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. Civil penalty revenue collected by the IHRC is deposited in the state General Fund. 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 1053 2