ENROLLED
ACT No. 342
2020 Regular Session
HOUSE BILL NO. 738
BY REPRESENTATIVES DUSTIN MILLER AND SCHEXNAYDER AND SENATOR
FOIL
1 AN ACT
2 To amend and reenact R.S. 4:147.1(D) and R.S. 27:438(A) and (B) and to enact R.S.
3 4:147.1(E), relative to horse racing; to provide relative to monies earned for purse
4 supplements from video draw poker device revenues; to provide relative to the
5 distribution of video draw poker device revenues at licensed eligible facilities; to
6 provide relative to purse supplements for quarter horse and thoroughbred races; to
7 provide for a contingent effective date; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 4:147.1(D) is hereby amended and reenacted and R.S. 4:147.1(E) is
10 hereby enacted to read as follows:
11 §147.1. Commission; purse supplements; additional or substitute races and race
12 days; force majeure
13 * * *
14 D.(1) Notwithstanding any provision of law to the contrary and upon
15 agreement of the Horsemen's Benevolent and Protective Association and the
16 involved licensed eligible facilities, the commission may approve the transfer of slot
17 machine proceeds received for thoroughbred race purses from one licensed eligible
18 facility to another licensed eligible facility to supplement thoroughbred purses at a
19 thoroughbred race meet. Funds transferred pursuant to this Subsection Paragraph
20 shall be awarded within one year of the date of transfer.
21 (2) Notwithstanding any provision of law to the contrary and upon
22 agreement of the Horsemen's Benevolent and Protective Association and the
23 involved licensed eligible facilities, the commission may approve the transfer of slot
24 machine proceeds received for quarter horse race purses from one licensed eligible
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1 facility to another licensed eligible facility to supplement quarter horse purses at a
2 quarter horse race meet. Funds transferred pursuant to this Paragraph shall be
3 awarded within one year of the date of transfer.
4 E. Notwithstanding any provision of law to the contrary and upon agreement
5 of the Horsemen's Benevolent and Protective Association and the involved licensed
6 eligible facilities, the commission may approve the transfer of a race meet, for either
7 or both thoroughbred races and quarter horse races, from one licensed eligible
8 facility to another licensed eligible facility. The transfer of a race meet pursuant to
9 the provisions of this Subsection includes the transfer of all applicable purse funds
10 that would have been required to be paid at the race meet. All existing statutes
11 governing the payment of purses required at the licensed eligible facility receiving
12 the race meet shall remain in full force and effect as if the race meet had not been
13 moved to the licensed eligible facility receiving the race meet.
14 Section 2. R.S. 27:438(A) and (B) are hereby amended and reenacted to read as
15 follows:
16 §438. Distribution of video draw poker device revenues; particular licensed
17 establishments; pari-mutuel wagering facilities
18 A. The owner of the licensed establishment shall pay twenty percent of the
19 net video draw poker device revenue derived from the operation of video draw poker
20 devices at that licensed establishment and at its eligible off-track wagering facilities
21 to be used to supplement purses for horsemen as provided in Subsection B of this
22 Section. Such monies shall be made available for use as purses monthly, prior to the
23 twentieth day of the month following the month in which they are earned.
24 B. Revenues earned for purse supplements under Subsection A shall be
25 disbursed, accounted for, and used as follows:
26 (1) Monies earned for purse supplements from devices located at a racing
27 facility currently conducting live racing shall be in addition to all other monies
28 currently provided for purses and purse supplements under other provisions of law
29 and shall be used at the current race meeting.
30 (2) Monies earned for purse supplements from devices located at an eligible
31 racing facility not currently conducting live racing shall be placed in an interest-
32 bearing account until the first day of the next live race meeting conducted at that
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1 facility, at which time the accumulated monies derived from this Paragraph and
2 interest earned on such monies shall be added to all other monies currently provided
3 for purses and purse supplements at that race meeting under other provisions of the
4 law and shall be used at that race meeting.
5 (3) Monies earned for purse supplements from video draw poker devices
6 located at an eligible racing facility or at an eligible off-track wagering facility shall
7 be used for purse supplements at the racing facilities of the owners of the off-track
8 wagering such facility where the net video draw poker device revenues were earned.
9 Where such facilities are an eligible off-track wagering facility is jointly owned, the
10 monies earned for purse supplements at that facility shall be divided in direct
11 proportion to ownership of the facility for use at their respective racing facilities.
12 Distribution of monies earned for purse supplements in accordance with this
13 Paragraph shall be distributed as provided for in Paragraphs (1) and (2) of this
14 Subsection.
15 (2) At the licensed eligible facility located in Orleans Parish:
16 (a) Twelve and one-half percent of the monies earned for such purse
17 supplements shall be used to supplement purses for quarter horse races at that
18 licensed eligible facility, or as authorized by R.S. 4:147.1, up to a maximum of one
19 million dollars per state fiscal year, of which twenty-five percent for each state fiscal
20 year shall be distributed to the Horsemen's Benevolent and Protective Association,
21 1993 Inc., to be used to satisfy the 'Settlement Amount' of $1,000,000, as defined in
22 and pursuant to the Class Action Settlement Agreement approved by the court in the
23 lawsuit Soileau v. Churchill Downs La. Horseracing Co., et al, Parish of Orleans,
24 Civil District Court, Division G, No. 2014-3873.
25 (b) The remainder of the monies earned for such purse supplements shall be
26 allocated to purse supplements for thoroughbred horse races at that licensed eligible
27 facility, or as authorized by R.S. 4:147.1 per state fiscal year.
28 (3) For licensed eligible racing facilities required by law to run more than
29 twenty quarter horse racing days:
30 (a) Thirty percent of the monies earned for such purse supplements shall be
31 used to supplement purses for quarter horse races at that licensed eligible facility, or
32 as authorized by R.S. 4:147.1.
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1 (b) Seventy percent of the monies earned for such purse supplements shall
2 be used to supplement purses for thoroughbred races as that licensed eligible facility,
3 or as authorized by R.S. 4:147.1.
4 (4) Four percent of all monies earned or authorized in accordance with the
5 provisions of this Section for purse supplements shall be paid the authorized
6 representative of the horsemen for the use and benefit of such persons and other
7 horsemen as medical and hospital benefits. However, provisions of this Paragraph
8 shall not apply if provisions of R.S. 4:183 as currently in effect require such a
9 deduction from monies earned for purse supplements under this Section, and
10 provisions of this Paragraph would result in duplication of designated funds for
11 hospitalization for horsemen. Monies earned for purse supplements in accordance
12 with this Subsection shall be in addition to all other monies currently provided for
13 purses and purse supplements under other provisions of law, shall be the net of sums
14 payable to the Horsemen's Benevolent and Protective Association, 1993 Inc., from
15 purses and purse supplements in accordance with the law, and shall be placed in the
16 appropriate breed account, an interest bearing account, until distributed in
17 accordance with this Section.
18 (5) The Horsemen's Benevolent and Protective Association shall be deemed
19 to hold a perfected security interest in and to all revenues earned for purse
20 supplements pursuant to Subsection A of this Section until such revenues have been
21 distributed in accordance with Paragraph (4) of this Subsection. All purse
22 supplements to be distributed to the Horsemen's Benevolent and Protective
23 Association shall be deemed to be held in trust for the Horsemen's Benevolent and
24 Protective Association by the licensee until disbursed in accordance with this
25 Section. All such purse supplements shall be deemed to be held in trust for the
26 benefit of the Horsemen's Benevolent and Protective Association by the licensee
27 until disbursed pursuant to this Section. A licensee shall have a fiduciary duty to the
28 Horsemen's Benevolent and Protective Association to preserve and account for such
29 purse supplements. Monies earned for purse supplements from video draw poker
30 devices, and interest earned on such monies, shall be added to all other monies
31 currently provided for purses and purse supplements under other provisions of law,
32 and distributed as follows:
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1 (a) The purses and purse supplements for thoroughbred races shall be used
2 at the eligible facility's current live thoroughbred race meet, or if live thoroughbred
3 racing is not being conducted, used at the eligible facility's next live thoroughbred
4 race meet.
5 (b) The purses and purse supplements for quarter horse races shall be used
6 at the eligible facility's current live quarter horse race meet, or if live quarter horse
7 racing is not being conducted, used at the eligible facility's next live quarter horse
8 race meet.
9 * * *
10 Section 3. This Act shall become effective if and when the Class Action Settlement
11 Agreement in the lawsuit Soileau v. Churchill Downs La. Horseracing Co., et al., Parish of
12 Orleans, Civil District Court, Division G, No. 2014-3873, is approved by the court and
13 becomes final and non-appealable. Contingent upon this approval, as confirmed by a final
14 and non-appealable judgment, any amounts of purses from net video draw poker device
15 revenue collected but not yet distributed on the date the amended statute is made effective
16 shall be allocated and distributed according to the amended statute, using the same formula
17 provided therein.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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