Michigan 2025-2026 Regular Session

Michigan House Bill HB4347 Compare Versions

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11 HOUSE BILL NO. 4347 A bill to amend 1995 PA 279, entitled "Horse racing law of 1995," by amending sections 2 and 20 (MCL 431.302 and 431.320), section 2 as amended by 2016 PA 271 and section 20 as amended by 2019 PA 153. the people of the state of michigan enact: Sec. 2. As used in this act: (a) "Affiliate" means a person who, directly or indirectly, controls, is controlled by, or is under common control with; is in a partnership or joint venture relationship with; or is a co-shareholder of a corporation, co-member of a limited liability company, or co-partner in a limited liability partnership with a person who holds or applies for a race meeting or track license under this act. For purposes of this subdivision, a controlling interest is a pecuniary interest of more than 15%. (b) "Breaks" means the cents over any multiple of 10 otherwise payable to a patron on a wager of $1.00. (c) "Certified horsemen's organization" means an organization that is registered with the office of racing commissioner in a manner and form required by the racing commissioner and that can demonstrate all of the following: (i) The organization's capacity to supply horses. (ii) The organization's ability to assist a race meeting licensee in conducting the licensee's racing program. (iii) The organization's ability to monitor and improve physical conditions and controls for individuals and horses participating at licensed race meetings. (iv) The organization's ability to protect the financial interests of the individuals participating at licensed race meetings. (d) "Commissioner" or "racing commissioner" means the executive director of the Michigan gaming control board appointed under section 4 of the Michigan gaming control and revenue Gaming Control and Revenue act, 1996 IL 1, MCL 432.204, who is ordered under Executive Reorganization Order No. 2009-31, MCL 324.99919, to perform all the functions and exercise the powers performed and exercised by the racing commissioner before that position was abolished. (e) "Controlled substance" means that term as defined in section 7104 of the public health code, 1978 PA 368, MCL 333.7104. (f) "Day of operation" means a period of 24 hours beginning at 12 noon and ending at 11:59 a.m. the following day. (g) "Drug" means any of the following: (i) A substance intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals. (ii) A substance, other than food, intended to affect the structure or condition or any function of the body of humans or other animals. (iii) A substance intended for use as a component of a substance specified in subparagraph (i) or (ii). (h) "Eligible recipient" means either of the following: (i) If the recipient is an individual, a resident of this state. (ii) If the recipient is a person comprised of more than 1 individual, a person in which greater than 51% is owned or controlled by residents of this state. (i) (h) "Fair" means a county, district, or community fair or a state fair. (j) (i) "Foreign substance" means a substance, or its metabolites, that does not exist naturally in an untreated horse or, if natural to an untreated horse, exists at an unnaturally high physiological concentration as a result of having been administered to the horse. (k) (j) "Full card simulcast" means an entire simulcast racing program of 1 or more race meeting licensees located in this state, or an entire simulcast racing program of 1 or more races simulcasted from 1 or more racetracks located outside of this state. (l) (k) "Horsemen's simulcast purse account" means an account maintained with a financial institution and managed by a designated agent as described in section 19 to receive and distribute money as provided in this act. (m) "Indexed annually" means the treasurer must adjust the dollar amount by the percentage increase in the Detroit Consumer Price Index for the preceding calendar year and round to the nearest $100.00 increment. As used in this subdivision, "Detroit Consumer Price Index" means the most comprehensive index of consumer prices available for the Detroit-Warren-Dearborn area from the United States Department of Labor, Bureau of Labor Statistics. (n) "Interstate simulcast" means a simulcast to or from a racetrack outside of this state. (o) "Intertrack simulcast" means a simulcast to or from a racetrack in this state. (p) "Live horse race" means a horse race that is held at the licensed track where the race meeting licensee that conducts wagering on the race conducts its race meeting, and that is held immediately after wagering on the race closes. (q) (l) "Member of the immediate family" means the spouse, child, parent, or sibling. (r) (m) "Net commission" means the amount determined under section 17(3), after first deducting from the licensee's statutory commission the applicable state tax on wagering due and payable under section 22 and the actual verified fee paid by the licensee to the sending host track to receive the simulcast signal. (s) (n) "Office of the racing commissioner" means the horse racing section of the horse racing, audit, and gaming technology division of the Michigan gaming control board created by section 4 of the Michigan gaming control and revenue act, Gaming Control and Revenue Act, 1996 IL 1, MCL 432.204, which operates under the direction of the executive director of the Michigan gaming control board, to which Executive Reorganization Order No. 2009-31, MCL 324.99919, transferred all of the authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, or other funds of the office of racing commissioner that previously existed under this act and that was abolished by that executive reorganization order. (t) (o) "Pari-mutuel" and "pari-mutuel wagering" mean the form or system of gambling in which the winner or winners divide the total amount of money bet, after deducting the net commission. (u) (p) "Person" means an individual, firm, partnership, corporation, association, or other legal entity. (v) (q) "Purse pool" means an amount of money allocated or apportioned to pay prizes for horse races and from which payments may be made to certified horsemen's organizations as provided in this act. (w) "Simulcast" means the live transmission of video and audio signals conveying a horse race to or from a licensed race meeting or third-party facilitator in this state. When used as a noun, simulcast means the program of horse races transmitted. (x) (r) "Standardbred" means a horse registered with the United States Trotting Association that races on designated gaits of pace or trot. (y) (s) "Thoroughbred" means a thoroughbred, quarter, paint, Arabian, or other breed horse. Thoroughbred does not include a standardbred. (z) (t) "Veterinarian" means an individual licensed to practice veterinary medicine under part 188 of the public health code, 1978 PA 368, MCL 333.18801 to 333.18838, or under a state or federal law applicable to the individual. Sec. 20. (1) It is the policy of this state to encourage the breeding of horses of all breeds in this state and the ownership of such horses by residents of this state to provide for sufficient numbers of high quality race horses of all breeds to participate in licensed race meetings in this state; to promote the positive growth and development of high quality horse racing and other equine competitions in this state as a business and entertainment activity for residents of this state; and to establish and preserve the substantial agricultural and commercial benefits of the horse racing and breeding industry to this state. It is the intent of the legislature to further this policy by the provisions of this act and annual appropriations to administer this act and adequately fund the agriculture and equine industry programs established by this section. (2) Except for money generated from the tax on wagers processed through licensed third-party facilitators operating under this act under section 22, money received by the racing commissioner and the state treasurer under this act must be paid promptly into the state treasury and placed in the Michigan agriculture equine industry development fund created in subsection (3). (3) The Michigan agriculture equine industry development fund is created in the department of treasury. The Michigan agriculture equine industry development fund must be administered by the director of the department of agriculture and rural development with the assistance and advice of the racing commissioner. (4) Money must not be expended from the Michigan agriculture equine industry development fund except as appropriated by the legislature. Money appropriated by the legislature from the Michigan agriculture equine industry development fund must be expended by the director of the department of agriculture and rural development with the advice and assistance of the racing commissioner to provide funding for agriculture and equine industry development programs only as provided in subsections (5) to (11). (5) The following amounts must be paid to standardbred and fair programs: (a) A sum of not less than $1,500,000.00, indexed annually, not to exceed 75% of the for purses for standardbred harness horse races offered by fairs and races at licensed pari-mutuel racetracks. Purse supplements paid under this subdivision for overnight races at fairs for which Michigan sired, Michigan bred, or Michigan owned harness horses are eligible must be $1,000.00. However, if the average purse offered for maiden overnight races of the same breed at any licensed race meeting in this state during the previous year as calculated by the department of agriculture and rural development was less than $1,000.00, purse supplements for overnight races at fairs paid under this subdivision must not exceed that average purse. (b) A Except for a program under subdivision (f), a sum of not less than $5,000.00 to every county fair in this state to be allocated each year and distributed by the state treasurer. to be allotted on a matching basis, but not to exceed $15,000.00 each year to a single fair, for the purpose of equipment rental during fairs; ground improvement; constructing, maintaining, and repairing buildings; and making the racetrack more suitable and safe for racing at fairs. (c) A sum to be allotted for paying special purses and other associated costs described under subdivision (g) at fairs on in this state for 2-year-old and 3-year-old standardbred harness horses conceived after January 1, 1992, that is are Michigan bred, or that is were sired by a standardbred stallion registered with the department of agriculture and rural development, that was leased or owned by a resident or residents of this state, and that did not serve a mare at a location outside of this state from February 1 through July 31 of the calendar year in which the conception occurred. A foal that is born on or after January 1, 2002 of a mare owned by a nonresident of this state and that is conceived outside of this state from transported semen of a stallion registered with the department of agriculture and rural development is eligible for Michigan tax-supported races only if, in the year that the foal is conceived, the department of agriculture and rural development's agent for receiving funds as the holding agent for stakes and futurities is paid a transport fee as determined by the department of agriculture and rural development and administered by the Michigan Harness Horsemen's Association. (d) A sum to pay not more than 75% of an eligible cash premium paid by a fair or exposition. The commission of agriculture and rural development shall promulgate rules establishing which premiums are eligible for payment and a dollar limit for all eligible payments. (e) A sum to pay breeders' awards in an amount of not less than $500,000.00, indexed annually, but not to exceed 10% 20% of the gross purse to breeders of Michigan bred standardbred harness horses for each time the horse wins a race at a licensed race meeting or fair in or outside of this state. As used in this subdivision, "Michigan bred "Michigan-bred standardbred harness horse" means a horse from a mare owned by a resident or residents of this state at the time of conception, that was conceived after January 1, 1992, and sired by a standardbred stallion registered with the department of agriculture and rural development that was leased or owned by a resident or residents of this state an eligible recipient and that did not serve a mare at a location outside of this state from February 1 through July 31 of the calendar year in which the conception occurred. To be eligible, each mare must be registered with the department of agriculture and rural development. A foal that is born on or after January 1, 2002 of a mare owned by a nonresident of this state and that is conceived outside of this state from transported semen of a stallion registered with the department of agriculture and rural development is eligible for Michigan tax-supported races only if, in the year that the foal is conceived, the department of agriculture and rural development's agent for receiving funds as the holding agent for stakes and futurities is paid a transport fee as determined by the department of agriculture and rural development and administered by the Michigan Harness Horsemen's Association. (f) A sum of not to exceed $4,000.00 each year to be allotted to fairs to provide training and stabling facilities for standardbred harness horses.less than $10,000.00 to be allocated per year and distributed by the state treasurer to each fair that held standardbred harness racing in the previous calendar year and that will hold standardbred harness racing in the current calendar year. (g) A sum to be allotted by the director of the department of agriculture and rural development to pay the presiding judges and clerks of the course at fairs. Presiding judges and clerks of the course must be hired by the fair's administrative body with the advice and approval of the racing commissioner. horse racing advisory commission. The director of the department of agriculture and rural development may allot funds for a photo finish system, and a mobile starting gate, a water truck, track maintenance vehicles, an announcer, an ambulance, an outrider, and advertising. The director of the department of agriculture and rural development may allot funds for an on-site veterinarian to ensure animal health and the soundness of participating horses. The director of the department of agriculture and rural development shall allot funds for the conducting of tests, the collection and laboratory analysis of urine, saliva, blood, and other samples from horses, and the taking of blood alcohol tests on drivers, jockeys, and starting gate employees, for those races described in this subdivision. The department may require a driver, jockey, or starting gate employee to submit to a breathalyzer test, urine test, or other noninvasive fluid test to detect the presence of alcohol or a controlled substance. If the results of a test show that a person an individual has more than .05% of alcohol in his or her the individual's blood, or has present in his or her the individual's body a controlled substance, the person individual is not permitted to continue in his or her the individual's duties on that race day and until he or she the individual can produce, at his or her the individual's own expense, a negative test result. (h) A sum of not less than $200,000.00, indexed annually, to pay purse supplements to licensed pari-mutuel harness race meetings for special 4-year-old filly and colt horse races. (i) A sum of not to exceed 0.25% of all money wagered on live and simulcast horse races in this state less than $800,000.00, indexed annually, must be placed in a special standardbred sire stakes fund each year, 100% of which must be used to provide purses for races run exclusively for 2-year-old and 3-year-old Michigan sired Michigan-sired standardbred horses at licensed harness race meetings in this state. If there is no licensed harness race meeting in this state, or the licensed race meeting is unable to conduct these races, the director of the department of agriculture and rural development may designate a county fair to host these races. As used in this subdivision, "Michigan sired "Michigan-sired standardbred horses" means standardbred horses conceived after January 1, 1992 and sired by a standardbred stallion registered with the department of agriculture and rural development that was leased or owned by a resident or residents of this state and that did not serve a mare at a location outside of this state from February 1 through July 31 of the calendar year in which the conception occurred. A foal that is born on or after January 1, 2002 of a mare owned by a nonresident of this state and that is conceived outside of this state from transported semen of a stallion registered with the department of agriculture and rural development is eligible for Michigan tax-supported races only if, in the year that the foal is conceived, the department of agriculture and rural development's agent for receiving funds as the holding agent for stakes and futurities is paid a transport fee as determined by the department of agriculture and rural development and administered by the Michigan Harness Horsemen's Association. (6) The following amounts must be paid to thoroughbred programs: (a) A sum to be allotted thoroughbred race meeting licensees to supplement the purses for races to be conducted exclusively for Michigan bred Michigan-sired horses. (b) A sum of not less than $100,000.00, indexed annually, to pay awards to owners of Michigan bred Michigan-sired horses that finish first, second, or third in races open to non-Michigan bred non-Michigan sired horses in and outside of this state. Owner awards under this subdivision may be paid only if the owner is an eligible recipient. (c) A sum of not less than $200,000.00, indexed annually, to pay breeders' awards in an amount not to exceed 10% 20% of the gross purse to the breeders of Michigan bred Michigan-sired thoroughbred horses for each time Michigan bred Michigan-sired thoroughbred horses win at a licensed race meeting in and outside of this state. Breeders' awards under this subdivision may be paid only if the owner is an eligible recipient. (d) A sum of not less than $100,000.00, indexed annually, to pay purse supplements to licensed thoroughbred race meetings for special 4-year-old and older, Michigan-sired filly and colt horse races. If there is no thoroughbred race meeting in the state, or the race meeting is unable to conduct the races under this subdivision, the racing commissioner shall allot a special thoroughbred sires stakes fund for 4-year-olds to provide an award to the owners of the top 5 highest earning Michigan-sired 4-year-olds by sex and distribute money as follows: 50% of the fund to the top earning 4-year-old horse and mare; 25% of the fund to the second top earning 4-year-old; 12% of the fund to the third top earning 4-year-old horse and mare; 8% of the fund to the fourth top earning 4-year-old horse and mare; and 5% of the fund to the fifth top earning 4-year-old horse and mare. Awards under this subdivision may be paid only if the owner is an eligible recipient and submits an annual supplemental purse/award eligibility form to the racing commissioner not later than January 15 for the horse's earnings for the previous calendar year. The racing commissioner shall verify eligibility and that the owner is an eligible recipient and submit results to the state treasurer not later than February 15. (e) A sum of not to exceed 0.25% of all money wagered on live and simulcast horse races in this state less than $200,000.00, indexed annually, must be placed in a special thoroughbred sire stakes fund each year, 100% of which must be used to provide purses for races run exclusively for 2-year-old and 3-year-old and older Michigan sired Michigan-sired thoroughbred horses at licensed thoroughbred race meetings in this state and awards for owners of Michigan sired Michigan-sired horses or stallions. As used in this subdivision, "Michigan sired "Michigan-sired thoroughbred horses" means thoroughbred horses sired by a stallion registered with the department of agriculture and rural development that was leased or owned exclusively by a resident or residents of this state an eligible recipient and that did not serve a mare at a location outside of this state during the calendar year in which the service occurred. If there is no thoroughbred race meeting in the state, or the race meeting is unable to conduct the races under this subdivision, the racing commissioner shall allot a special thoroughbred sires stakes fund for 2-year-olds and 3-year-olds to provide an award to the owners of the top 5 highest earning Michigan-sired 2-year-old and 3-year-old colt and philly by age and sex and distribute money as follows: 50% of the fund to the top earning 2-year-old and 3-year-old colt and philly; 25% of the fund to the second top earning 2-year-old and 3-year-old colt and philly; 12% of the fund to the third top earning 2-year-old and 3-year-old colt and philly; 8% of the fund to the fourth top earning 2-year-old and 3-year-old colt and philly; and 5% of the fund to the fifth top earning 2-year-old and 3-year-old colt and philly. Awards under this subdivision may be paid only if the owner is an eligible recipient and submits an annual supplemental purse/award eligibility form to the racing commissioner not later than January 15 for the horse's earnings for the previous calendar year. The racing commissioner shall verify eligibility and that the owner is an eligible recipient and submit results to the state treasurer not later than February 15. (7) The following amounts must be paid for quarter horse programs: (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred quarter horses. (b) A sum to pay not more than 75% of the purses for registered quarter horse races offered by fairs. (c) A sum to pay breeders' awards in an amount not to exceed 10% of a gross purse to breeders of Michigan bred quarter horses for each time a Michigan bred quarter horse wins at a county fair or licensed race meeting in this state. (d) As used in this subsection, "Michigan bred quarter horse" means Michigan bred quarter horse as that term is defined in R 285.817.1 of the Michigan Administrative Code. Each mare and stallion must be registered with the director of the department of agriculture and rural development. (8) The following amounts must be paid for Appaloosa programs: (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred Appaloosa horses. (b) A sum to pay not more than 75% of the purses for registered Appaloosa horse races offered by fairs. (c) A sum to pay breeders' awards in an amount not to exceed 10% of the gross purse to the breeders of Michigan bred Appaloosa horses for each time Michigan bred horses win at a fair or licensed race meeting in this state. (d) As used in this subsection, "Michigan bred Appaloosa horse" means a Michigan bred Appaloosa horse as that term is defined in R 285.819.1 of the Michigan Administrative Code. Each mare and stallion must be registered with the director of the department of agriculture and rural development. (9) The following amounts must be paid for Arabian programs: (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred Arabian horses. (b) A sum to pay not more than 75% of the purses for registered Arabian horse races offered by fairs. (c) A sum to pay breeders' awards in an amount not to exceed 10% of the gross purse to the breeders of Michigan bred Arabian horses for each time Michigan bred horses win at a fair or licensed racetrack in this state. (d) As used in this subsection, "Michigan bred Arabian horse" means a Michigan bred horse as that term is defined in R 285.822.1(i) of the Michigan Administrative Code. Each mare and stallion shall be registered with the director of the department of agriculture and rural development. (10) The following sums must be paid for American paint horse programs: (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred American paint horses. (b) A sum to pay not more than 75% of the purses for registered American paint horse races offered by fairs. (c) A sum to pay breeders' awards in an amount not to exceed 10% of the gross purse to the breeders of Michigan bred American paint horses for each time a Michigan bred American paint horse wins at a county fair or licensed race meeting in this state. (d) As used in this subsection, "Michigan bred American paint horse" means a Michigan bred paint horse as that term is defined in R 285.823.1 of the Michigan Administrative Code. (7) (11) The following amounts must be paid for the equine industry research, planning, and development grant fund program: (a) A sum to fund grants for research projects conducted by persons affiliated with a university or governmental research agency or institution or other private research entity approved by the racing commissioner, which are beneficial to the horse racing and breeding industry in this state. (b) A sum to fund the development, implementation, and administration of new programs that promote the proper growth and development of the horse racing and breeding industry in this state and other valuable equine-related commercial and recreational activities in this state. (8) (12) As used in subsection (11), (7), "equine industry research" means the study, discovery and generation of accurate and reliable information, findings, conclusions, and recommendations that are useful or beneficial to the horse racing and breeding industry in this state through improvement of the health of horses; prevention of equine illness and disease, and performance-related accidents and injuries; improvement of breeding technique and racing performance; and compilation and study of valuable and reliable statistical data regarding the size, organization, and economics of the industry in this state; and strategic planning for the effective promotion, growth, and development of the industry in this state. (9) (13) An amount must be allotted annually to the racing commissioner that is sufficient to pay for the collection and laboratory analysis of urine, saliva, blood, and other samples from horses and licensed individuals involved in horse racing on which pari-mutuel wagers are made and for the conducting of tests described in section 16(4). (10) (14) Money appropriated and allotted to the Michigan agriculture equine industry development fund must not revert to the general fund and must be carried forward from year to year until disbursed to fund grants for research projects beneficial to the industry. (11) (15) A percentage of the Michigan agriculture equine industry development fund that is equal to 1/15 of 1% of the gross wagers made each year in each of the racetracks licensed under this act must be deposited in the compulsive gaming prevention fund created in section 3 of the compulsive gaming prevention act, 1997 PA 70, MCL 432.253. (12) (16) The director of the department of agriculture and rural development shall promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section. The rules promulgated under this subsection must do all of the following: (a) Prescribe the conditions under which the Michigan agriculture equine industry development fund and related programs described in subsections (1) to (14) (10) must be funded. (b) Establish conditions and penalties regarding the programs described in subsections (5) to (12).(8). (c) Develop and maintain informational programs related to this section. (13) (17) Funds under the control of the department of agriculture and rural development in this section must be disbursed under the rules promulgated under subsection (16). (12). All funds under the control of the department of agriculture and rural development approved for purse supplements and breeders' awards must be paid by the state treasurer not later than 45 days from the date of the race. (14) (18) Purses paid under this section must be based on actual purses awarded in a race. If the actual purses awarded are less than the purse supplement amount requested by a fair or licensed pari-mutuel racetrack at the time they applied to the department of agriculture and rural development for the purse supplement, the purse supplement paid must be the lesser amount. (19) If the amount allocated to the Michigan agriculture equine industry development fund under this act or any other source exceeds $8,000,000.00 in a fiscal year, the amount in excess of $8,000,000.00 must be allocated to the pari-mutuel horse racing disbursement account under section 19. Enacting section 1. This amendatory act does not take effect unless Senate Bill No. ____ (request no. S01228'25) or House Bill No. 4346 (request no. H01228'25) of the 103rd Legislature is enacted into law.
22
33 HOUSE BILL NO. 4347
44
55 A bill to amend 1995 PA 279, entitled
66
77 "Horse racing law of 1995,"
88
99 by amending sections 2 and 20 (MCL 431.302 and 431.320), section 2 as amended by 2016 PA 271 and section 20 as amended by 2019 PA 153.
1010
1111 the people of the state of michigan enact:
1212
1313 Sec. 2. As used in this act:
1414
1515 (a) "Affiliate" means a person who, directly or indirectly, controls, is controlled by, or is under common control with; is in a partnership or joint venture relationship with; or is a co-shareholder of a corporation, co-member of a limited liability company, or co-partner in a limited liability partnership with a person who holds or applies for a race meeting or track license under this act. For purposes of this subdivision, a controlling interest is a pecuniary interest of more than 15%.
1616
1717 (b) "Breaks" means the cents over any multiple of 10 otherwise payable to a patron on a wager of $1.00.
1818
1919 (c) "Certified horsemen's organization" means an organization that is registered with the office of racing commissioner in a manner and form required by the racing commissioner and that can demonstrate all of the following:
2020
2121 (i) The organization's capacity to supply horses.
2222
2323 (ii) The organization's ability to assist a race meeting licensee in conducting the licensee's racing program.
2424
2525 (iii) The organization's ability to monitor and improve physical conditions and controls for individuals and horses participating at licensed race meetings.
2626
2727 (iv) The organization's ability to protect the financial interests of the individuals participating at licensed race meetings.
2828
2929 (d) "Commissioner" or "racing commissioner" means the executive director of the Michigan gaming control board appointed under section 4 of the Michigan gaming control and revenue Gaming Control and Revenue act, 1996 IL 1, MCL 432.204, who is ordered under Executive Reorganization Order No. 2009-31, MCL 324.99919, to perform all the functions and exercise the powers performed and exercised by the racing commissioner before that position was abolished.
3030
3131 (e) "Controlled substance" means that term as defined in section 7104 of the public health code, 1978 PA 368, MCL 333.7104.
3232
3333 (f) "Day of operation" means a period of 24 hours beginning at 12 noon and ending at 11:59 a.m. the following day.
3434
3535 (g) "Drug" means any of the following:
3636
3737 (i) A substance intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in humans or other animals.
3838
3939 (ii) A substance, other than food, intended to affect the structure or condition or any function of the body of humans or other animals.
4040
4141 (iii) A substance intended for use as a component of a substance specified in subparagraph (i) or (ii).
4242
4343 (h) "Eligible recipient" means either of the following:
4444
4545 (i) If the recipient is an individual, a resident of this state.
4646
4747 (ii) If the recipient is a person comprised of more than 1 individual, a person in which greater than 51% is owned or controlled by residents of this state.
4848
4949 (i) (h) "Fair" means a county, district, or community fair or a state fair.
5050
5151 (j) (i) "Foreign substance" means a substance, or its metabolites, that does not exist naturally in an untreated horse or, if natural to an untreated horse, exists at an unnaturally high physiological concentration as a result of having been administered to the horse.
5252
5353 (k) (j) "Full card simulcast" means an entire simulcast racing program of 1 or more race meeting licensees located in this state, or an entire simulcast racing program of 1 or more races simulcasted from 1 or more racetracks located outside of this state.
5454
5555 (l) (k) "Horsemen's simulcast purse account" means an account maintained with a financial institution and managed by a designated agent as described in section 19 to receive and distribute money as provided in this act.
5656
5757 (m) "Indexed annually" means the treasurer must adjust the dollar amount by the percentage increase in the Detroit Consumer Price Index for the preceding calendar year and round to the nearest $100.00 increment. As used in this subdivision, "Detroit Consumer Price Index" means the most comprehensive index of consumer prices available for the Detroit-Warren-Dearborn area from the United States Department of Labor, Bureau of Labor Statistics.
5858
5959 (n) "Interstate simulcast" means a simulcast to or from a racetrack outside of this state.
6060
6161 (o) "Intertrack simulcast" means a simulcast to or from a racetrack in this state.
6262
6363 (p) "Live horse race" means a horse race that is held at the licensed track where the race meeting licensee that conducts wagering on the race conducts its race meeting, and that is held immediately after wagering on the race closes.
6464
6565 (q) (l) "Member of the immediate family" means the spouse, child, parent, or sibling.
6666
6767 (r) (m) "Net commission" means the amount determined under section 17(3), after first deducting from the licensee's statutory commission the applicable state tax on wagering due and payable under section 22 and the actual verified fee paid by the licensee to the sending host track to receive the simulcast signal.
6868
6969 (s) (n) "Office of the racing commissioner" means the horse racing section of the horse racing, audit, and gaming technology division of the Michigan gaming control board created by section 4 of the Michigan gaming control and revenue act, Gaming Control and Revenue Act, 1996 IL 1, MCL 432.204, which operates under the direction of the executive director of the Michigan gaming control board, to which Executive Reorganization Order No. 2009-31, MCL 324.99919, transferred all of the authority, powers, duties, functions, records, personnel, property, unexpended balances of appropriations, allocations, or other funds of the office of racing commissioner that previously existed under this act and that was abolished by that executive reorganization order.
7070
7171 (t) (o) "Pari-mutuel" and "pari-mutuel wagering" mean the form or system of gambling in which the winner or winners divide the total amount of money bet, after deducting the net commission.
7272
7373 (u) (p) "Person" means an individual, firm, partnership, corporation, association, or other legal entity.
7474
7575 (v) (q) "Purse pool" means an amount of money allocated or apportioned to pay prizes for horse races and from which payments may be made to certified horsemen's organizations as provided in this act.
7676
7777 (w) "Simulcast" means the live transmission of video and audio signals conveying a horse race to or from a licensed race meeting or third-party facilitator in this state. When used as a noun, simulcast means the program of horse races transmitted.
7878
7979 (x) (r) "Standardbred" means a horse registered with the United States Trotting Association that races on designated gaits of pace or trot.
8080
8181 (y) (s) "Thoroughbred" means a thoroughbred, quarter, paint, Arabian, or other breed horse. Thoroughbred does not include a standardbred.
8282
8383 (z) (t) "Veterinarian" means an individual licensed to practice veterinary medicine under part 188 of the public health code, 1978 PA 368, MCL 333.18801 to 333.18838, or under a state or federal law applicable to the individual.
8484
8585 Sec. 20. (1) It is the policy of this state to encourage the breeding of horses of all breeds in this state and the ownership of such horses by residents of this state to provide for sufficient numbers of high quality race horses of all breeds to participate in licensed race meetings in this state; to promote the positive growth and development of high quality horse racing and other equine competitions in this state as a business and entertainment activity for residents of this state; and to establish and preserve the substantial agricultural and commercial benefits of the horse racing and breeding industry to this state. It is the intent of the legislature to further this policy by the provisions of this act and annual appropriations to administer this act and adequately fund the agriculture and equine industry programs established by this section.
8686
8787 (2) Except for money generated from the tax on wagers processed through licensed third-party facilitators operating under this act under section 22, money received by the racing commissioner and the state treasurer under this act must be paid promptly into the state treasury and placed in the Michigan agriculture equine industry development fund created in subsection (3).
8888
8989 (3) The Michigan agriculture equine industry development fund is created in the department of treasury. The Michigan agriculture equine industry development fund must be administered by the director of the department of agriculture and rural development with the assistance and advice of the racing commissioner.
9090
9191 (4) Money must not be expended from the Michigan agriculture equine industry development fund except as appropriated by the legislature. Money appropriated by the legislature from the Michigan agriculture equine industry development fund must be expended by the director of the department of agriculture and rural development with the advice and assistance of the racing commissioner to provide funding for agriculture and equine industry development programs only as provided in subsections (5) to (11).
9292
9393 (5) The following amounts must be paid to standardbred and fair programs:
9494
9595 (a) A sum of not less than $1,500,000.00, indexed annually, not to exceed 75% of the for purses for standardbred harness horse races offered by fairs and races at licensed pari-mutuel racetracks. Purse supplements paid under this subdivision for overnight races at fairs for which Michigan sired, Michigan bred, or Michigan owned harness horses are eligible must be $1,000.00. However, if the average purse offered for maiden overnight races of the same breed at any licensed race meeting in this state during the previous year as calculated by the department of agriculture and rural development was less than $1,000.00, purse supplements for overnight races at fairs paid under this subdivision must not exceed that average purse.
9696
9797 (b) A Except for a program under subdivision (f), a sum of not less than $5,000.00 to every county fair in this state to be allocated each year and distributed by the state treasurer. to be allotted on a matching basis, but not to exceed $15,000.00 each year to a single fair, for the purpose of equipment rental during fairs; ground improvement; constructing, maintaining, and repairing buildings; and making the racetrack more suitable and safe for racing at fairs.
9898
9999 (c) A sum to be allotted for paying special purses and other associated costs described under subdivision (g) at fairs on in this state for 2-year-old and 3-year-old standardbred harness horses conceived after January 1, 1992, that is are Michigan bred, or that is were sired by a standardbred stallion registered with the department of agriculture and rural development, that was leased or owned by a resident or residents of this state, and that did not serve a mare at a location outside of this state from February 1 through July 31 of the calendar year in which the conception occurred. A foal that is born on or after January 1, 2002 of a mare owned by a nonresident of this state and that is conceived outside of this state from transported semen of a stallion registered with the department of agriculture and rural development is eligible for Michigan tax-supported races only if, in the year that the foal is conceived, the department of agriculture and rural development's agent for receiving funds as the holding agent for stakes and futurities is paid a transport fee as determined by the department of agriculture and rural development and administered by the Michigan Harness Horsemen's Association.
100100
101101 (d) A sum to pay not more than 75% of an eligible cash premium paid by a fair or exposition. The commission of agriculture and rural development shall promulgate rules establishing which premiums are eligible for payment and a dollar limit for all eligible payments.
102102
103103 (e) A sum to pay breeders' awards in an amount of not less than $500,000.00, indexed annually, but not to exceed 10% 20% of the gross purse to breeders of Michigan bred standardbred harness horses for each time the horse wins a race at a licensed race meeting or fair in or outside of this state. As used in this subdivision, "Michigan bred "Michigan-bred standardbred harness horse" means a horse from a mare owned by a resident or residents of this state at the time of conception, that was conceived after January 1, 1992, and sired by a standardbred stallion registered with the department of agriculture and rural development that was leased or owned by a resident or residents of this state an eligible recipient and that did not serve a mare at a location outside of this state from February 1 through July 31 of the calendar year in which the conception occurred. To be eligible, each mare must be registered with the department of agriculture and rural development. A foal that is born on or after January 1, 2002 of a mare owned by a nonresident of this state and that is conceived outside of this state from transported semen of a stallion registered with the department of agriculture and rural development is eligible for Michigan tax-supported races only if, in the year that the foal is conceived, the department of agriculture and rural development's agent for receiving funds as the holding agent for stakes and futurities is paid a transport fee as determined by the department of agriculture and rural development and administered by the Michigan Harness Horsemen's Association.
104104
105105 (f) A sum of not to exceed $4,000.00 each year to be allotted to fairs to provide training and stabling facilities for standardbred harness horses.less than $10,000.00 to be allocated per year and distributed by the state treasurer to each fair that held standardbred harness racing in the previous calendar year and that will hold standardbred harness racing in the current calendar year.
106106
107107 (g) A sum to be allotted by the director of the department of agriculture and rural development to pay the presiding judges and clerks of the course at fairs. Presiding judges and clerks of the course must be hired by the fair's administrative body with the advice and approval of the racing commissioner. horse racing advisory commission. The director of the department of agriculture and rural development may allot funds for a photo finish system, and a mobile starting gate, a water truck, track maintenance vehicles, an announcer, an ambulance, an outrider, and advertising. The director of the department of agriculture and rural development may allot funds for an on-site veterinarian to ensure animal health and the soundness of participating horses. The director of the department of agriculture and rural development shall allot funds for the conducting of tests, the collection and laboratory analysis of urine, saliva, blood, and other samples from horses, and the taking of blood alcohol tests on drivers, jockeys, and starting gate employees, for those races described in this subdivision. The department may require a driver, jockey, or starting gate employee to submit to a breathalyzer test, urine test, or other noninvasive fluid test to detect the presence of alcohol or a controlled substance. If the results of a test show that a person an individual has more than .05% of alcohol in his or her the individual's blood, or has present in his or her the individual's body a controlled substance, the person individual is not permitted to continue in his or her the individual's duties on that race day and until he or she the individual can produce, at his or her the individual's own expense, a negative test result.
108108
109109 (h) A sum of not less than $200,000.00, indexed annually, to pay purse supplements to licensed pari-mutuel harness race meetings for special 4-year-old filly and colt horse races.
110110
111111 (i) A sum of not to exceed 0.25% of all money wagered on live and simulcast horse races in this state less than $800,000.00, indexed annually, must be placed in a special standardbred sire stakes fund each year, 100% of which must be used to provide purses for races run exclusively for 2-year-old and 3-year-old Michigan sired Michigan-sired standardbred horses at licensed harness race meetings in this state. If there is no licensed harness race meeting in this state, or the licensed race meeting is unable to conduct these races, the director of the department of agriculture and rural development may designate a county fair to host these races. As used in this subdivision, "Michigan sired "Michigan-sired standardbred horses" means standardbred horses conceived after January 1, 1992 and sired by a standardbred stallion registered with the department of agriculture and rural development that was leased or owned by a resident or residents of this state and that did not serve a mare at a location outside of this state from February 1 through July 31 of the calendar year in which the conception occurred. A foal that is born on or after January 1, 2002 of a mare owned by a nonresident of this state and that is conceived outside of this state from transported semen of a stallion registered with the department of agriculture and rural development is eligible for Michigan tax-supported races only if, in the year that the foal is conceived, the department of agriculture and rural development's agent for receiving funds as the holding agent for stakes and futurities is paid a transport fee as determined by the department of agriculture and rural development and administered by the Michigan Harness Horsemen's Association.
112112
113113 (6) The following amounts must be paid to thoroughbred programs:
114114
115115 (a) A sum to be allotted thoroughbred race meeting licensees to supplement the purses for races to be conducted exclusively for Michigan bred Michigan-sired horses.
116116
117117 (b) A sum of not less than $100,000.00, indexed annually, to pay awards to owners of Michigan bred Michigan-sired horses that finish first, second, or third in races open to non-Michigan bred non-Michigan sired horses in and outside of this state. Owner awards under this subdivision may be paid only if the owner is an eligible recipient.
118118
119119 (c) A sum of not less than $200,000.00, indexed annually, to pay breeders' awards in an amount not to exceed 10% 20% of the gross purse to the breeders of Michigan bred Michigan-sired thoroughbred horses for each time Michigan bred Michigan-sired thoroughbred horses win at a licensed race meeting in and outside of this state. Breeders' awards under this subdivision may be paid only if the owner is an eligible recipient.
120120
121121 (d) A sum of not less than $100,000.00, indexed annually, to pay purse supplements to licensed thoroughbred race meetings for special 4-year-old and older, Michigan-sired filly and colt horse races. If there is no thoroughbred race meeting in the state, or the race meeting is unable to conduct the races under this subdivision, the racing commissioner shall allot a special thoroughbred sires stakes fund for 4-year-olds to provide an award to the owners of the top 5 highest earning Michigan-sired 4-year-olds by sex and distribute money as follows: 50% of the fund to the top earning 4-year-old horse and mare; 25% of the fund to the second top earning 4-year-old; 12% of the fund to the third top earning 4-year-old horse and mare; 8% of the fund to the fourth top earning 4-year-old horse and mare; and 5% of the fund to the fifth top earning 4-year-old horse and mare. Awards under this subdivision may be paid only if the owner is an eligible recipient and submits an annual supplemental purse/award eligibility form to the racing commissioner not later than January 15 for the horse's earnings for the previous calendar year. The racing commissioner shall verify eligibility and that the owner is an eligible recipient and submit results to the state treasurer not later than February 15.
122122
123123 (e) A sum of not to exceed 0.25% of all money wagered on live and simulcast horse races in this state less than $200,000.00, indexed annually, must be placed in a special thoroughbred sire stakes fund each year, 100% of which must be used to provide purses for races run exclusively for 2-year-old and 3-year-old and older Michigan sired Michigan-sired thoroughbred horses at licensed thoroughbred race meetings in this state and awards for owners of Michigan sired Michigan-sired horses or stallions. As used in this subdivision, "Michigan sired "Michigan-sired thoroughbred horses" means thoroughbred horses sired by a stallion registered with the department of agriculture and rural development that was leased or owned exclusively by a resident or residents of this state an eligible recipient and that did not serve a mare at a location outside of this state during the calendar year in which the service occurred. If there is no thoroughbred race meeting in the state, or the race meeting is unable to conduct the races under this subdivision, the racing commissioner shall allot a special thoroughbred sires stakes fund for 2-year-olds and 3-year-olds to provide an award to the owners of the top 5 highest earning Michigan-sired 2-year-old and 3-year-old colt and philly by age and sex and distribute money as follows: 50% of the fund to the top earning 2-year-old and 3-year-old colt and philly; 25% of the fund to the second top earning 2-year-old and 3-year-old colt and philly; 12% of the fund to the third top earning 2-year-old and 3-year-old colt and philly; 8% of the fund to the fourth top earning 2-year-old and 3-year-old colt and philly; and 5% of the fund to the fifth top earning 2-year-old and 3-year-old colt and philly. Awards under this subdivision may be paid only if the owner is an eligible recipient and submits an annual supplemental purse/award eligibility form to the racing commissioner not later than January 15 for the horse's earnings for the previous calendar year. The racing commissioner shall verify eligibility and that the owner is an eligible recipient and submit results to the state treasurer not later than February 15.
124124
125125 (7) The following amounts must be paid for quarter horse programs:
126126
127127 (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred quarter horses.
128128
129129 (b) A sum to pay not more than 75% of the purses for registered quarter horse races offered by fairs.
130130
131131 (c) A sum to pay breeders' awards in an amount not to exceed 10% of a gross purse to breeders of Michigan bred quarter horses for each time a Michigan bred quarter horse wins at a county fair or licensed race meeting in this state.
132132
133133 (d) As used in this subsection, "Michigan bred quarter horse" means Michigan bred quarter horse as that term is defined in R 285.817.1 of the Michigan Administrative Code. Each mare and stallion must be registered with the director of the department of agriculture and rural development.
134134
135135 (8) The following amounts must be paid for Appaloosa programs:
136136
137137 (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred Appaloosa horses.
138138
139139 (b) A sum to pay not more than 75% of the purses for registered Appaloosa horse races offered by fairs.
140140
141141 (c) A sum to pay breeders' awards in an amount not to exceed 10% of the gross purse to the breeders of Michigan bred Appaloosa horses for each time Michigan bred horses win at a fair or licensed race meeting in this state.
142142
143143 (d) As used in this subsection, "Michigan bred Appaloosa horse" means a Michigan bred Appaloosa horse as that term is defined in R 285.819.1 of the Michigan Administrative Code. Each mare and stallion must be registered with the director of the department of agriculture and rural development.
144144
145145 (9) The following amounts must be paid for Arabian programs:
146146
147147 (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred Arabian horses.
148148
149149 (b) A sum to pay not more than 75% of the purses for registered Arabian horse races offered by fairs.
150150
151151 (c) A sum to pay breeders' awards in an amount not to exceed 10% of the gross purse to the breeders of Michigan bred Arabian horses for each time Michigan bred horses win at a fair or licensed racetrack in this state.
152152
153153 (d) As used in this subsection, "Michigan bred Arabian horse" means a Michigan bred horse as that term is defined in R 285.822.1(i) of the Michigan Administrative Code. Each mare and stallion shall be registered with the director of the department of agriculture and rural development.
154154
155155 (10) The following sums must be paid for American paint horse programs:
156156
157157 (a) A sum to supplement the purses for races to be conducted exclusively for Michigan bred American paint horses.
158158
159159 (b) A sum to pay not more than 75% of the purses for registered American paint horse races offered by fairs.
160160
161161 (c) A sum to pay breeders' awards in an amount not to exceed 10% of the gross purse to the breeders of Michigan bred American paint horses for each time a Michigan bred American paint horse wins at a county fair or licensed race meeting in this state.
162162
163163 (d) As used in this subsection, "Michigan bred American paint horse" means a Michigan bred paint horse as that term is defined in R 285.823.1 of the Michigan Administrative Code.
164164
165165 (7) (11) The following amounts must be paid for the equine industry research, planning, and development grant fund program:
166166
167167 (a) A sum to fund grants for research projects conducted by persons affiliated with a university or governmental research agency or institution or other private research entity approved by the racing commissioner, which are beneficial to the horse racing and breeding industry in this state.
168168
169169 (b) A sum to fund the development, implementation, and administration of new programs that promote the proper growth and development of the horse racing and breeding industry in this state and other valuable equine-related commercial and recreational activities in this state.
170170
171171 (8) (12) As used in subsection (11), (7), "equine industry research" means the study, discovery and generation of accurate and reliable information, findings, conclusions, and recommendations that are useful or beneficial to the horse racing and breeding industry in this state through improvement of the health of horses; prevention of equine illness and disease, and performance-related accidents and injuries; improvement of breeding technique and racing performance; and compilation and study of valuable and reliable statistical data regarding the size, organization, and economics of the industry in this state; and strategic planning for the effective promotion, growth, and development of the industry in this state.
172172
173173 (9) (13) An amount must be allotted annually to the racing commissioner that is sufficient to pay for the collection and laboratory analysis of urine, saliva, blood, and other samples from horses and licensed individuals involved in horse racing on which pari-mutuel wagers are made and for the conducting of tests described in section 16(4).
174174
175175 (10) (14) Money appropriated and allotted to the Michigan agriculture equine industry development fund must not revert to the general fund and must be carried forward from year to year until disbursed to fund grants for research projects beneficial to the industry.
176176
177177 (11) (15) A percentage of the Michigan agriculture equine industry development fund that is equal to 1/15 of 1% of the gross wagers made each year in each of the racetracks licensed under this act must be deposited in the compulsive gaming prevention fund created in section 3 of the compulsive gaming prevention act, 1997 PA 70, MCL 432.253.
178178
179179 (12) (16) The director of the department of agriculture and rural development shall promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section. The rules promulgated under this subsection must do all of the following:
180180
181181 (a) Prescribe the conditions under which the Michigan agriculture equine industry development fund and related programs described in subsections (1) to (14) (10) must be funded.
182182
183183 (b) Establish conditions and penalties regarding the programs described in subsections (5) to (12).(8).
184184
185185 (c) Develop and maintain informational programs related to this section.
186186
187187 (13) (17) Funds under the control of the department of agriculture and rural development in this section must be disbursed under the rules promulgated under subsection (16). (12). All funds under the control of the department of agriculture and rural development approved for purse supplements and breeders' awards must be paid by the state treasurer not later than 45 days from the date of the race.
188188
189189 (14) (18) Purses paid under this section must be based on actual purses awarded in a race. If the actual purses awarded are less than the purse supplement amount requested by a fair or licensed pari-mutuel racetrack at the time they applied to the department of agriculture and rural development for the purse supplement, the purse supplement paid must be the lesser amount.
190190
191191 (19) If the amount allocated to the Michigan agriculture equine industry development fund under this act or any other source exceeds $8,000,000.00 in a fiscal year, the amount in excess of $8,000,000.00 must be allocated to the pari-mutuel horse racing disbursement account under section 19.
192192
193193 Enacting section 1. This amendatory act does not take effect unless Senate Bill No. ____ (request no. S01228'25) or House Bill No. 4346 (request no. H01228'25) of the 103rd Legislature is enacted into law.