Louisiana 2022 2022 Regular Session

Louisiana House Bill HB1055 Comm Sub / Analysis

                    SSHB1055 506 5253
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 1055	2022 Regular Session	Hughes
RACING/HORSE:  Provides relative to horse racing
Synopsis of Senate Amendments
1.Requires that the rules and regulations to be adopted by the commission relative
to full-time and seasonal employment requirements include food service,
marketing, pari-mutuel windows, and kiosk repair staffing.
2.Requires each association to establish and maintain a facility maintenance and
improvement fund, specifies the fund's purpose, and provides that the fund shall
be subject to audit by the La. State Racing Commission and the legislative
auditor.
3.Defines the terms "gross profits", "state tax", and "taxable net slot machine
proceeds".
4.Requires that, after July 1, 2022, 50% of gross profits are to be deposited into
the facility maintenance and improvement fund until all commission-required
facility maintenance and improvements have been completed.  
5.After initial maintenance and improvements have been completed satisfactorily,
requires each association to maintain a minimum fund balance of ten million
dollars.
6.Requires each licensed eligible facility or licensee to establish a facility
maintenance and improvement fund.
7.Provides that for any new license or license renewal issued on or after July 1,
2022, the establishment of, deposits into, and maintenance of the fund shall be
a condition of licensing and shall be required by the owner of the licensed
eligible facility or licensee in order to maintain continued authority to conduct
slot machines gaming.  
8.Makes technical changes. 
Digest of Bill as Finally Passed by Senate
Present law provides for specific duties of the La. State Racing Commission (commission).
Proposed law provides for the following additional duties of the commission:
(1)Promulgate rules setting forth minimum standards and infrastructure investments
required of each association for facility maintenance and improvements, such as
minimum standards for track surface, barns, grand stands, and paddocks in order for
the association to be eligible to conduct race meets at a particular track.
(2)Promulgate rules setting forth minimum employment requirements, including but not
limited to food service, marketing, pari-mutuel windows, and kiosk repair staffing,
for both full-time and seasonal workers in order for the association to be eligible to
conduct race meets at a particular track.
Present law authorizes the commission to require licensed associations to submit a written
report and sets forth certain guidelines to be included in the report, including a plan of
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operation and a summary of the prior year's plan of operation.  Proposed law changes these
reporting provisions from a regulation the commission is authorized to enforce to a
regulation the commission is required to enforce.
Proposed law requires facility improvements to be included in the plan of operation
guidelines set forth in present law.
Present law  and proposed law provisions define  "facility maintenance" and "facility
improvements".
Proposed law requires each association or licensee as defined in present law (R.S. 4:143) to
submit to the commission, the Senate Committee on Judiciary B, and the House Committee
on Commerce, by certified mail no later than 20 days after the end of each calendar quarter,
a report that provides all of the following:
(1)The names each individual, corporation, firm, partnership, association, or other legal
entity that provides professional services to the association or licensee, including the
name and addresses of each entity and whether the entity providing the services is a
La. registered business, female-owned, or minority-owned.
(2)The demographic information of the association's or licensee's workforce, including
race, gender, and La. residency.
Proposed law defines "professional services".
Proposed law requires the reports set forth in proposed law to be public record and governed
by Public Records Law.
Proposed law provides that the reports required pursuant to proposed law are not required
to contain compensation amounts paid by the association to each individual or legal entity
in exchange for professional services or the compensation paid to each of its employees.
Proposed law authorizes the commission to suspend or withdraw licenses, permits, and other
privileges or to terminate racing privileges for failure to comply with the reporting
requirements in accordance with proposed law.
Proposed law requires the commission to adopt rules for the implementation of proposed law
and requires such rules to be adopted pursuant to the Administrative Procedure Act.
Proposed law requires the first report required pursuant to proposed law to be submitted on
or before October 20, 2022.
Proposed law authorizes the commission to suspend or withdraw licenses, permits, and
privileges or terminate racing privileges for failure to spend necessary funds in order to
maintain minimum facility maintenance and facility improvement criteria established by the
commission.
Proposed law requires each association to establish and maintain a facility maintenance and
improvement fund, specifies the fund's purpose, and provides that the fund shall be subject
to audit by the La. State Racing Commission and the legislative auditor.
Proposed law defines "gross profits", "state tax", and "taxable net slot machine proceeds".
Proposed law requires that, after July 1, 2022, 50% of gross profits are to be deposited into
the facility maintenance and improvement fund until all commission-required facility
maintenance and improvements have been completed.  Requires the deposits to be made at
the same time that the state tax is paid. 
Proposed law  provides that after initial maintenance and improvements have been completed
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satisfactorily, each association is required to maintain a minimum fund balance of
$10,000,000.
Proposed law requires each licensed eligible facility or licensee to establish a facility
maintenance and improvement fund as provided in proposed law. 
Proposed law provides that for any new license or license renewal issued by the board on or
after July 1, 2022, the establishment of, deposits into, and maintenance of the fund shall be
a condition of licensing and shall be required by the owner of the licensed eligible facility
or licensee in order to maintain continued authority to conduct slot machines gaming.  
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 4:158.1 and 160(B); Adds R.S. 4:147(7) and (8), 158.2, 160(C), and 164, and
R.S. 27:391.3)
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