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2020 Regular Session
SENATE BILL NO. 451
BY SENATOR FOIL
HORSE RACING. Provides for purse supplements from video poker devices at OTBs and
live racing dates affected due to force majeure. (8/1/20)
1 AN ACT
2 To amend and reenact R.S. 4:147.1(D) and 214.1(B) and R.S. 27:438(A) and (B)(1) though
3 (3) and (5), and to enact R.S. 4:147.1(E), relative to horse racing; to provide for
4 purse supplements and additional or substitute date racing dates due to force
5 majeure; to provide for transfer of racing dates; to provide for distribution of video
6 draw poker device revenues for supplemental purses; and to provide for related
7 matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 4:147.1(D) and 214.1(B) are hereby amended and reenacted, and
10 R.S. 4:147.1(E) is 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
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1 facility to another licensed eligible facility to supplement thoroughbred purses at a
2 thoroughbred race meet.
3 (2) Notwithstanding any provision of law to the contrary and upon
4 agreement of the Horsemen's Benevolent and Protective Association and the
5 involved licensed eligible facilities, the commission may approve the transfer of
6 slot machine proceeds received for quarter horse race purses from one licensed
7 eligible facility to another licensed eligible facility to supplement quarter horse
8 purses at a quarter horse race meet.
9 (3) Funds transferred pursuant to this Subsection shall be awarded within one
10 year of the date of transfer.
11 E. Notwithstanding any provision of law to the contrary and upon
12 agreement of the Horsemen's Benevolent and Protective Association and the
13 involved licensed eligible facilities, the commission may approve the transfer of
14 a race meet, thoroughbred or quarter horse, from one licensed eligible facility
15 to another licensed eligible facility. The race meet transferred shall be
16 conducted and completed within one year of the commission's approval. The
17 transfer of a race meet includes the transfer of all applicable purses funds that
18 would have been required to be paid at the race meet had the meet not been
19 transferred. All existing law governing payment of purses required at the
20 licensed eligible facility receiving the race meet shall remain in full force and
21 effect as if the race meet had not been moved to the licensed eligible facility
22 receiving the race meet.
23 * * *
24 §214.1. Minimum live racing dates; offtrack and other authorized wagering
25 * * *
26 B. Notwithstanding any provision of law to the contrary, at any facility
27 subject to the provisions of R.S. 27:372.1(A), such facility shall maintain a minimum
28 of eighty thoroughbred horse racing days conducted during twenty consecutive
29 weeks and not less than ten fifteen days of quarter horse racing conducted during
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1 three five consecutive weeks. The racing days provided for in this Subsection shall
2 be conducted within a fifty-two week period. The foregoing minimum racing
3 requirements are mandatory unless the association is prevented from live racing as
4 a result of a natural disaster, an act of God, force majeure, a catastrophe, or such
5 other occurrence over which the association has no control. When a pari-mutuel
6 wagering facility and a related offtrack betting facility are sold, the purchaser shall
7 conduct the minimum number of live racing days, including the minimum quarter
8 horse racing days, required by this Section as a condition of operating the offtrack
9 betting facility.
10 Section 2. R.S. 27:438(A) and (B)(1) though (3) and (5) are hereby amended and
11 reenacted to read as follows:
12 §438. Distribution of video draw poker device revenues; particular licensed
13 establishments; pari-mutuel wagering facilities
14 A. The owner of the licensed establishment shall pay twenty percent of the
15 net video draw poker device revenue derived from the operation of video draw
16 poker devices at that licensed establishment to be used to supplement purses for
17 horsemen as provided in Subsection B of this Section. Such monies shall be made
18 available for use as purses monthly, prior to the twentieth day of the month following
19 the month in which they are earned.
20 B. Revenues earned for purse supplements under Subsection A shall be
21 disbursed, accounted for, and used as follows:
22 (1) Monies earned for purse supplements from video draw poker devices
23 located at a racing facility currently conducting live racing shall be in addition to all
24 other monies currently provided for purses and purse supplements under other
25 provisions of law and shall be used at the current race meeting.
26 (2) Monies earned for purse supplements from video draw poker devices
27 located at an eligible racing facility not currently conducting live racing shall be
28 placed in the appropriate breed account, an interest-bearing account until the first
29 day of the next live race meeting for that breed, conducted at that facility, at which
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1 time the accumulated monies derived from this Paragraph and interest earned on
2 such monies shall be added to all other monies currently provided for purses and
3 purse supplements at that race meeting under other provisions of the law and shall
4 be used at that race meeting.
5 (3) Monies earned for purse supplements from video draw poker devices
6 located at an eligible off-track wagering facility shall be used for purse supplements
7 at the racing facilities of the owners of the off-track wagering facility where the net
8 video draw poker device revenues were earned. Where such facilities are jointly
9 owned, the monies earned for purse supplements at that facility shall be divided in
10 direct proportion to ownership of the facility for use at their respective racing
11 facilities. At the licensed eligible facility subject to R.S. 27:372.1(A), (i) twelve
12 and one-half percent of the net video draw poker device revenues shall be used
13 to supplement purses for quarter horse races at that licensed eligible facility as
14 authorized by R.S. 4:147.1, up to a maximum of one million dollars per state
15 fiscal year of which twenty-five percent for each state fiscal year shall be used
16 to satisfy any judgement or settlement in the lawsuit Soileau v. Churchill Downs
17 La. Horseracing Co., 256 So. 3d283 (La. 2018), up to a total of one million
18 dollars is paid and (ii) the remainder of the net video draw poker device
19 revenues shall be allocated to thoroughbred horse races at that licensed eligible
20 facility as authorized by R.S. 4:147.1 per state fiscal year. For licensed eligible
21 racing facilities required by law to run more than twenty quarter horse racing
22 days, (i) thirty percent of the net video draw poker device revenues shall be used
23 to supplement purses for quarter horse races at that licensed eligible facility as
24 authorized by R.S. 4:147.1 and (ii) seventy percent of net video draw poker
25 device revenues shall be used to supplement purses for thoroughbred races at
26 that licensed eligible facility as authorized by R.S. 4:147.1. Distribution of monies
27 earned for purse supplements in accordance with this Paragraph shall be distributed
28 as provided for in Paragraphs (1) and (2) of this Subsection.
29 * * *
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1 (5) The Horsemen's Benevolent and Protective Association shall be deemed
2 to hold a perfected security interest in and to all revenues earned for purse
3 supplements pursuant to Subsection A of this Section until such revenues have been
4 distributed in accordance with Paragraph (4) of this Subsection. All purse
5 supplements to be distributed to the Horsemen's Benevolent and Protective
6 Association shall be deemed to be held in trust for the Horsemen's Benevolent and
7 Protective Association by the licensee until disbursed in accordance with this
8 Section. All such purse supplements shall be deemed to be held in trust for the
9 benefit of the Horsemen's Benevolent and Protective Association by the licensee
10 until disbursed pursuant to this Section. A licensee shall have a fiduciary duty to the
11 Horsemen's Benevolent and Protective Association to preserve and account for such
12 purse supplements.
13 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
SB 451 Original 2020 Regular Session Foil
Present law authorizes the La. Racing Commission to approve the transfer of slot machine
proceeds received for thoroughbred race purses from one licensed eligible facility to another
licensed eligible facility to supplement thoroughbred purses at a thoroughbred race meet,
upon agreement of the Horsemen's Benevolent and Protective Association (HBPA) and the
involved licensed eligible facilities.
Proposed law extends present law to quarter horse race purses.
Proposed law authorizes the commission to approve the transfer of a race meet,
thoroughbred or quarter horse, from one licensed eligible facility to another licensed eligible
facility, upon agreement of the HBPA and the involved licensed eligible facilities.
Proposed law requires that the race meet transferred be conducted and completed within one
year of the commission's approval. Proposed law provides that the transfer of a race meet
includes the transfer of all applicable purses funds that would have been required to be paid
at the race meet had the meet not been transferred. Proposed law requires all existing law
governing payment of purses required at the licensed eligible facility receiving the race meet
remain in full force and effect as if the race meet had not been moved to the licensed eligible
facility receiving the race meet.
Present law requires the licensed eligible facility to maintain a minimum of 80 thoroughbred
horse racing days conducted during 20 consecutive weeks and not less than 10 days of
quarter horse racing conducted during three consecutive weeks.
Proposed law retains present law relative to racing dates for thoroughbreds, and increases
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racing dates for quarter horses from 10 days over three consecutive weeks to 15 days over
five consecutive weeks.
Present law requires the owner of a race track licensed by the Louisiana State Racing
Commission, a pari-mutual wagering facility, or offtrack wagering (OTB) facility to pay
20% of the net video poker device revenues earned at that facility to supplement purses for
horsemen. Requires that such monies be available to use for purses monthly, prior to the 20
th
day of the month following the month in which the monies were earned.
Present law provides that such revenues earned for purse supplements, be disbursed,
accounted for, and used as follows:
(1)Monies earned for purse supplements from devices located at a racing facility
currently conducting live racing are in addition to all other monies currently
provided for purses and purse supplements under other provisions of present law and
are to be used at the current race meeting.
(2)Monies earned for purse supplements from devices located at a racing facility not
currently conducting live racing are to be placed in an interest-bearing account until
the first day of the next live race meeting conducted at that facility, at which time the
accumulated monies and interest earned on such monies are added to all other
monies currently provided for purses and purse supplements at that race meeting
under other provisions of present law and are to be used at that race meeting.
(3)Monies earned for purse supplements from devices located at an OTB facility are to
be used for purse supplements at the racing facilities of the owners of the OTB
facility where the net device revenues were earned. In instances where the facilities
are jointly owned, the monies earned for purse supplements at that facility shall be
divided in direct proportion to ownership of the facility for use at their respective
racing facilities. Provides that the distribution of monies earned for purse
supplements are to be distributed in accordance with (1) and (2) above.
(4)Four percent of all monies earned or authorized shall be paid the authorized
representative of the horsemen for the use and benefit of such persons and other
horsemen as medical and hospital benefits.
(5)The Horsemen's Benevolent and Protective Association (HBPA) are deemed to hold
a perfected security interest in and to all revenues earned for purse supplements until
such revenues are distributed as provided in (4) above. All purse supplements to be
distributed to the HBPA are deemed to be held in trust for the HBPA by the
licensee/racetrack until disbursed. A licensee/racetrack shall have a fiduciary duty
to the HBPA to preserve and account for such purse supplements.
Proposed law retains present law but provides for HBPA's security interest to extend beyond
payment to the horsemen's representative for horsemen medical and hospital benefits and
provides an exception for horse race distribution on purse supplements from net video draw
poker devices revenues earned at OTBs. For revenue earned from OTB's, provides that:
(1)At the Fair Grounds Race Course and Slots, 12.5% of the net video draw poker
device revenues are to be used to supplement purses for quarter horse races, up to a
maximum of $1M per state fiscal year of which 25% for each state fiscal year shall
be used to satisfy the judgement or settlement in Soileau v. Churchill Downs La.
Horseracing Co. until a total of $1M is paid toward the judgement or settlement.
Provides that the remainder of the net video draw poker device revenues (87.5%) are
to be allocated to thoroughbred horse races.
(2)At Delta Downs, Evangeline Downs and Louisiana Downs, 30% of the net video
draw poker device revenues shall be used to supplement purses for quarter horse
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races and 70% of the net video draw poker device revenues shall be used to
supplement purses for thoroughbred races at that licensed eligible facility.
Effective August 1, 2020.
(Amends R.S. 4:147.1(D) and 214.1(B), R.S. 27:438(A) and (B)(1) - (3) and (5); adds R.S.
4:147.1(E))
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