Michigan Senate Bill SB0414

Michigan 2023-2024 Regular Session

• Introduced: 6/27/23
• Refer: 6/27/23

Caption

Gaming: horse racing; references to horse racing law of 1995 in 1951 PA 90; update. Amends sec. 2 of 1951 PA 90 (MCL 431.252). TIE BAR WITH: SB 0411'23

Impact

If enacted, SB 414 would significantly impact the financial dynamics within Michigan's horse racing industry by directing a percentage of funds from unclaimed winning tickets towards improving facilities and supporting various equine development programs. For standardbred racing, the bill mandates that 50% of retained amounts be deposited into the designated fund, while thoroughbred licensees would find all unclaimed funds earmarked for facility development. This change is intended to bolster the equine industry in Michigan, potentially fostering economic growth and enhancing the infrastructure for horse racing.

Summary

Senate Bill No. 414 aims to amend the 1951 PA 90, specifically focusing on the distribution of funds held by horse racing licensees for outstanding winning tickets that remain unclaimed. The bill modifies section 2, stipulating that funds not claimed within 60 days after a race meeting's conclusion must be retained by the licensee and distributed in specific ways depending on the type of race (standardbred, thoroughbred, or light horse). This provision seeks to clarify the use of unclaimed funds and allocate portions to the Michigan agriculture equine industry development fund to support equine programs.

Contention

Despite its aims to promote economic benefits, there may be concerns from stakeholders regarding the implications of how these funds will be utilized. Critics could argue that the bill does not sufficiently account for the varying needs of different racing segments or the potential loss of revenue for race tracks that rely on these funds. Additionally, the coordination between the racing commissioner and horsemen's organizations in approving the use of funds may lead to disputes regarding priorities and funding allocation as local community needs are assessed against broader industry objectives.