HASBSB173 TYLERT 2693
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 173 2023 Regular Session Foil
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
HORSE RACING. Provides for the disposition on monies designated for horse
racing purses. (8/1/23)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Makes technical changes.
2. Adds and amends present law to remove that monies are to be distributed by
licensee and add that certain overpayment, once remitted to the HBPA, shall
be carried as an asset. Add that at thoroughbred and quarter horse race
meetings, in the event of certain underpayment, certain monies shall also be
retained by the HBPA in a certain account.
3. Clarifies that in regards to undistributed monies at a race meeting, until all
monies have been distributed, the HBPA or certain groups shall be deemed
to hold a security interest in funds not yet distributed. Add that following
remittance to the HBPA, money not distributed shall be held in trust. Add
that a licensee shall have a fiduciary duty to HBPA until monies are remit to
HBPA and then the licensee shall no longer have a fiduciary duty. Add that
the account containing the monies remit to the HBPA are subject to
legislative audit.
4. Clarifies that the licensed eligible facility shall transfer to the HBPA a fixed
percentage of certain proceeds.
5. Clarifies that in regards to slot machine proceeds, all purse supplements shall
be held in trust for the benefit of HBPA until distributed or transferred to
HBPA. Add that supplements transferred but not distributed shall be held in
trust until distributed. Add that a licensee shall have fiduciary duty to the
HBPA to account for only purse supplements in its control and once the
licensee transfers the supplements to the HBPA, it shall have no fiduciary
duty to HBPA or certain groups. Add that the such an account containing
purse supplements transferred to HBPA shall be subject to legislative audit.
6. Adds that in regards to video draw poker device revenue, the HBPA shall
have a fiduciary duty to certain groups that receive purse supplement and that
the account containing such purse supplements shall be subject to legislative
audits. Add that the licensee shall have no fiduciary duty to the HBPA or
certain groups that received purse supplements.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
SB 173 Reengrossed 2023 Regular Session Foil
Present law provides relative to the conduct of slot machine gaming at race tracks.
Present law designates and recognizes the Horsemen's Benevolent and Protective
Association (HBPA) as an authorized representative that shall represent member and other
horsemen.
Present law states that the monies to be distributed by a licensee as purses to permittees
licensed to race horses in Louisiana and the monies to be distributed by a licensee to the
Horsemen's Benevolent and Protective Association for the use and benefit of such groups.
Proposed law removes that monies be distributed by a licensee. HASBSB173 TYLERT 2693
Present law states that in the event the amount distributed as purses is more than the amount
required, the overpayment shall be carried forward to the next race meeting conducted by
the same association. It shall be carried on the association books as an asset.
Proposed law retains present law and adds that monies shall be carried on the association
books as an asset unless and until the overpayment is remitted to the HBPA. If remit to the
HBPA, the overpayment shall be carried on the HBPA books as an asset.
Present law requires that in the event the amount distributed as purses to persons licensed
to race horses at quarter horse and thoroughbred race meetings conducted in the state is less
than the amount required and more than a certain amount it shall be delivered to the HBPA
for further distribution to certain persons. In the event the underpayment is less than a certain
amount, it shall be retained by the association in an interest bearing account to be used for
purses at the next quarter horse or thoroughbred race meeting conducted by that association.
Interest earned on the account shall be added to the purse paid over and above the amount
required to be paid.
Proposed law retains present law and adds in the event the underpayment is less than a
certain amount, certain monies shall also be retained by the HBPA.
Present law requires monies designated for purses under present law be deposited by the race
track association in a separate interest-bearing account when earned and shall remain in that
account until the first day of the next race meeting of the appropriate breed, with monies
earned as interest being designated for purses.
Proposed law requires monies designated for purses be remitted from the race tracks to the
HBPA within 10 business days to be deposited in a separate interest-bearing account when
earned and shall remain in that account until the first day of the next race meeting of the
appropriate breed, with monies earned as interest being designated for purses.
Present law states that until all monies have been distributed, the Horsemen's Benevolent and
Protective Association or all member shall be deemed to hold a perfected security interest
in and to all funds that are deemed to have been earned and that have not yet been
distributed.
Proposed law retains present law and adds all member and other horsemen in the state and
all other persons or entities that receive purse or purse supplement funds shall be deemed to
hold a perfected security interest.
Present law requires that all earned purse money not yet distributed as purses shall be
deemed to be held in trust for the benefit of the Horsemen's Benevolent and Protective
Association by the licensee until such time as such monies are distributed in accordance with
law. A licensee shall have a fiduciary duty to the Horsemen's Benevolent and Protective
Association to preserve and account for such monies.
Proposed law retains present law and includes following the remittance to the HBPA
by the licensee, all earned purse money not yet distributed shall be deemed to be held in trust
for the benefit certain groups that receive purse funds by the HBPA until such time as the
monies are distributed. It adds that once the licensee remits the monies designated
to the HBPA pursuant to, it shall have no fiduciary duty to the HBPA, or certain groups that
receives purse funds. The HBPA shall have a fiduciary duty to certain groups that receive
purse funds to preserve and account for such monies.
Proposed law requires that the account containing the monies remit to the HBPA shall be
subject to audit at all times by the legislative auditor and shall be included in the annual
audit.
Present law provides that as a condition of licensing and to maintain continued authority for
the conduct of the slot machine gaming at a race track, the owner of the track must comply
with certain requirements, including the requirement that the owner contribute to the support
of pari-mutuel wagering activities and the horse breeding industry by paying a fixed
percentage of 15% of the annual net slot machine proceeds received to supplement horse
race purses. Provides that 4% of that fixed amount shall go to the HBPA. HASBSB173 TYLERT 2693
Proposed law requires the race tracks to transfer to the HBPA by the 20th day of each month
a fixed percentage of 15% of the previous month's net slot machine proceeds received from
slot machine gaming operators at the licensed eligible facility to supplement purses
including any interest earned.
Present law states that the HBPA shall be deemed to hold a perfected security interest in and
to the fifteen percent of the annual net slot machine proceeds received from slot machine
gaming operations licensed eligible facility that is required to supplement purses until such
purse supplements have been distributed as purses or distributed to the HBPA. All such
supplements shall be held in trust for the benefit of HBPA by a licensee until monies are
distributed. A licensee shall have a fiduciary duty to the HBPA to preserve and account for
such purse supplements.
Proposed law retains present law and adds that all purse supplements shall be held in trust
for the benefit of HBPA until distributed or transferred to HBPA. The supplements
transferred but not distributed shall be held in trust until distributed. A licensee shall have
fiduciary duty to the HBPA to account for only purse supplements in its control and once the
licensee transfers the supplements to the HBPA, it shall have no fiduciary duty to HBPA or
certain groups. Such an account containing purse supplements transferred to HBPA shall be
subject to legislative audit.
Present law states that the owner of the licensed establishment shall pay 20% of the net video
draw poker device revenue derived from the operation of video draw poker devices at that
licensed establishment and at its eligible off-track wagering facilities to be used to
supplement purses for horsemen. Such monies shall be made available for use as purses
monthly, prior to the twentieth day of the month following the month in which they are
earned
Proposed law retains present law and adds that the fixed percentage be paid to the
Horsemen's Benevolent Protective Association and that such monies shall be remitted to the
HBPA for use as purses monthly.
Proposed law adds that the HBPA shall have a fiduciary duty to certain groups that receive
purse supplement and that the account containing such purse supplements shall be subject
to legislative audits. The licensee shall have no fiduciary duty to the HBPA or certain groups
that received purse supplements.
Effective August 1, 2023.
(Amends R.S.4:183(A) and (B)(2)-(4),183.2(A) and (B),R.S. 27:361(B)(4)(a)(intro. para),
361(B)(4)(a)(iii), and 438(A): Adds R.S. 4:183.2(B)(3) and (4), and R.S. 27:(B)(4)(a)(iv))
______________________
Alan Miller
Senior Attorney