Louisiana 2021 2021 Regular Session

Louisiana Senate Bill SB209 Comm Sub / Analysis

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SENATE SUMMARY OF HOUSE AMENDMENTS
SB 209	2021 Regular Session	Smith
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
HORSE RACING. Provides for historical horse racing. (gov sig)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Adds provisions to provide for historical horse racing and provide for
commissions on wagers, purse supplements, and limitation of offtrack
wagering facility locations.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
Proposed law provides for historical horse racing and defines "historical horse racing" as
means a form of horse racing that creates pari-mutuel pools from wagers placed on horse
races previously run at a pari-mutuel facility licensed in the United States; concluded with
official results; and concluded without scratches, disqualifications, or dead-heat finishes
through machines permitted and authorized by the Louisiana State Racing Commission.
Defines "pari-mutuel wagering", "pari-mutuel system of wagering", or "mutuel wagering"
as any method of wagering previously or approved by the commission in which one or more
patrons wager on a horse race or races, whether live, simulcast, or previously run
Authorizes wagers to be placed in one or more wagering pools, and wagers on different races
or sets of races may be pooled together. Authorizes patrons to establish odds or payouts, and
winning patrons share in amounts wagered including any carryover amounts, plus any
amounts provided by an association less any deductions required, as approved by the
commission and permitted by law. Provides that pools may be paid out incrementally over
time as approved by the commission.
Defines "net commission" as the commission retained by a licensee on pari-mutuel wagers
on historical horse races, less breakage, settlements, and taxes applicable to such wagers.
Present law authorizes an association licensed by the commission to accept and transmit
wagers and engage in all activities to establish appropriate offtrack wagering facilities to
conduct activities which include but are not limited to
(1) Live simulcast of races from the host track.
(2) Construction or leasing of offtrack wagering facilities.
(3) Sale of goods and beverages.
(4) Advertising and promotion.
(5) All other related activities.
Proposed law retains these provisions but includes historical horse racing on the premises
of offtrack wagering facilities via dedicated machines or personal mobile devices.
Proposed law provides that no primary licensee may operate more than five offtrack
wagering facilities in which historical horse racing is permitted. However any primary
licensee that operates more than five offtrack wagering facilities as of July 1, 2021, may
conduct historical horse racing at all of its licensed facilities. Provides that historical horse
racing is not be authorized at any future offtrack wagering facility for that primary licensee
if the primary licensee is operating more than five offtrack wagering facilities. 
Provides that if a primary licensee's existing licensed offtrack wagering facilities on July 1,
2021 cease to be a licensed offtrack wagering facility for reasons other than force majeure,
the number of offtrack wagering facilities allowed to conduct historical horse racing for that
primary licensee is to be reduced by the number of its offtrack wagering facilities that cease
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to be licensed until the time that the primary licensee is reduced to no more than five licensed
offtrack wagering facilities allowed to conduct historical horse racing.
Limits each primary licensee or licensed offtrack wagering facility to not more than fifty
historical horse racing machines into service at any given time.
Proposed law provides that application from an eligible facility to conduct historical horse
racing in Orleans Parish may be approved by the commission only after the Amended and
Renegotiated Casino Operating Contract entered into pursuant to R.S. 27:201 et seq, on
October 30, 1998, as amended, is amended to provide that the conducting of historical horse
racing at the eligible facility in Orleans Parish shall not constitute an exclusivity violation
or prohibited land-based gaming as defined in the contract and the amendment to the contract
is approved by the Joint Legislative Committee on the Budget as required by the provisions
of Section B of Act No. 1 of the 2001 First Extraordinary Session.
Proposed law prohibits historical horse racing to be conducted via a machine or website or
mobile application beyond the property of the pari-mutuel facility or offtrack wagering
facility. 
Proposed law requires that historical horse races and wagers are subject to the following
provisions:
(a) Commissions on wagers on historical horse races made at offtrack wagering
facilities shall not exceed 12% of all wagers and shall be set by the licensee and
approved by the commission. The offtrack wagering facility where the wager is made
may either retain the breakage on the wagers or include the breakage in the applicable
historical horse racing pari-mutuel pool or pools. Requires that commissions be
deducted and retained by the licensee of the offtrack wagering facility where the
wager is made.
(b) The licensee shall disburse 20% of the net commission to supplement horsemen's
purses.
(c) R.S. 4:149.3,149.5, 161, 161.1, 161.2, 162, 163.1, 165, 166, 166.1 through 166.7,
167, 177, 183, 218, and 220 shall not apply to historical racing or the licensee with
respect to historical racing.
Proposed law requires that the monies designated for purses from wagers placed at offtrack
wagering facilities on historical hose races be distributed in the same manner as set forth in
R.S. 27:438(B) as in effect at the time of any distribution, and if R.S. 27:438(B)(2)(a)
becomes effective, any quarter horse purse supplements shall be included in the calculation
of the applicable maximum of $1 million dollars per state fiscal year and the settlement
amount as set forth.
Proposed law requires the following relative to offtrack wagering facility locations,
prohibited distances and prohibited structures
(1) No license shall be granted to any offtrack wagering facility located, at the time
application is made for a license to operate offtrack wagering facilities, within one
mile from any property on the National Register of Historic Places, any public
playground, any residential property, or a building used primarily as a church,
synagogue, public library, or school. Measurement of the distance shall be a straight
line from the nearest point of the proposed offtrack wagering facility to the nearest
point of the property on the National Register of Historic Places, the public
playground, residential property, or a building used primarily as a church, synagogue,
public library, or school.
(2) After an application is filed with the commission, the subsequent construction,
erection, development, or movement of a property which causes the location of a
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offtrack wagering facility to be within the prohibited distance shall not be cause for
denial of an initial or renewal application or revocation of a license.
(3) The location limitation does not apply to the location of an offtrack wagering
facility which applied for a license or was issued a license on or before July 1, 2021,
or which applied for or was issued a valid building permit on or before July 1, 2021,
and subsequently issued a license. The location shall be eligible for an offtrack
wagering facility license without reference to the prohibition in Item (1) above unless
after having obtained a license, an offtrack wagering facility has not been licensed
at that location for 36 consecutive months and application for licensing is not made
within that 36 month period.
(4) For locations on which an offtrack wagering facility has not been completely
constructed, if application for licensing  was made on or before July 1, 2021, the
prohibited distance in Item (1) above shall be one mile from any property on the
National Register of Historic Places, any public playground, residential property, or
a building used primarily as a church, synagogue, public library, or school.
school.
(5) If a parish or municipality does not have a zoning ordinance which designates
certain property within its jurisdiction as residential property, the governing authority
of the parish or municipality may designate certain areas of its jurisdiction as
residential.
(6) The location limitation in Item (1) above applies to applications for licensing
made after July 1, 2021.
Proposed law, for purposes of Item (1) above, defines "residential property" as any property
which is wholly or partly used for or intended to be used for living or sleeping by human
occupants and which includes one or more rooms, including a bathroom and complete
kitchen facilities. Residential property not includes a mobile home or manufactured housing,
if it has been in its present location for at least 60 days but does not include any hotel or
motel.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 4:143(7), 148, 149, 166.7, 213 and 214(A)(4); adds R.S. 4:143(17) through
(19), 211(8), 214(K) and (L), 216(E),  217(E) and 228)
______________________
Thomas L. Tyler
Deputy Chief of Staff
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