LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6212 NOTE PREPARED: Apr 1, 2025 BILL NUMBER: HB 1053 BILL AMENDED: Mar 31, 2025 SUBJECT: Gaming Matters. FIRST AUTHOR: Rep. Manning BILL STATUS: As Passed Senate FIRST SPONSOR: Sen. Alting FUNDS AFFECTED:XGENERAL IMPACT: State XDEDICATED 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 provides that, after June 30, 2025, the Governor shall appoint the director of the IHRC, and the director of the IHRC shall serve at the pleasure of the Governor. It removes the requirement that the IHRC appoint an assistant director and provides that the director shall hire an assistant director. It provides that a contracted steward or judge is considered an employee of the IHRC for the purpose of receiving representation by the Attorney General in certain suits. 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 the Indiana Gaming Commission (IGC) shall require an occupational license applicant and occupational licensee to submit fingerprints for review by the State Police Department (ISP) and the Federal Bureau of Investigation (FBI): (1) for a criminal history record check; and (2) in the form and manner required by the department and the FBI. It requires the ISP to provide the results of each requested criminal history record check to the IGC. It allows the ISP to charge a fee for a criminal history record check and requires the IGC to pay the fee from money received from fees collected from occupational license applicants or licensees. It provides a list of the individuals required to hold an occupational license. HB 1053 1 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: Upon passage; 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. IHRC Staffing: 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, and the provision requiring the Governor and not the IHRC to appoint the director will not change the staffing requirements at IHRC. These provisions will not have any fiscal impact. Indiana Gaming Commission (IGC): The bill requires that the IGC must conduct criminal history investigations and fingerprint for occupational licensees. It provides a list of the individuals required to hold an occupational license. The cost of these requirements will be paid from the money received from fees collected from occupational license applicants or licensees. State Police Department (ISP): The bill requires the ISP to review the fingerprints and conduct criminal history record checks and provides that the ISP may charge the IGC for the services. 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. It provides that the judges or stewards contracted by the IHRC shall be considered as an employee of the IHRC for purposes of representation by the Attorney General to the extent allowed for a state official or employee. 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; Indiana Gaming Commission; State Police Department; Attorney General. HB 1053 2 Local Agencies Affected: Information Sources: https://www.arci.com/model-rules-standards/ Fiscal Analyst: Randhir Jha, 317-232-9556. HB 1053 3