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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 3936 By: Culver
AS INTRODUCED
An Act relating to amusements and sports; am ending 3A
O.S. 2021, Sections 200.1 and 204, which relate to
the Oklahoma Horse Racing Act; providing definitions;
authorizing the Oklahoma Horse Racing Commission to
promulgate rules for certain purposes; requiring
certain persons or entities to obtain a license under
certain circumstances; providing for codificat ion;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 3A O.S. 2021, Section 200.1, is
amended to read as follows:
Section 200.1 A. As used in the Oklahoma Horse R acing Act:
1. "Advance deposit wagering" means a form of pari-mutuel
wagering by an individual who has established an account with an
advance deposit wagering provider and who uses the account for pari -
mutuel wagering on inter state horse races pursuant to the Interstate
Horseracing Act of 1978 found in Sections 3001 et seq. of Title 15
of the United States Cod e;
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2. "Advance deposit wagering provider" means any person or
entity located outside of Oklahoma that conducts advance deposit
wagering;
3. "Commission" means the Oklahoma Ho rse Racing Commission;
2. 4. "Enclosure" means all buildings, structures and grounds
utilized for the conduct of a race meeting and/or gaming at the race
track and any additional areas designated by the Oklahoma Horse
Racing Commission;
3. 5. "Family" means husband, wife, and any dependent children;
4. 6. "Financial interest" means an interest that could result
in directly or indirectly receiving a pecuni ary gain or sustaining a
pecuniary loss as a result of ownership or intere st in a business
entity, or as a result of salary, gra tuity, or other comp ensation or
remuneration from any person;
5. 7. "Horse racing" means any type of horse racing, including,
but not limited to, Arabian, Appaloosa, Paint, Pinto, Quarter Horse,
and Thoroughbred horse racing.
a. "Arabian horse racing " means the form of horse racing
in which each participating horse is an Arabian horse
registered with the Arabian Horse Club Registry o f
America and approved by the Arabian Horse Racing
Association of Ameri ca or any successor organiz ation,
mounted by a jockey, and engaged in races on the flat
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over a distance of not less than one -quarter (1/4)
mile or more than four (4) miles.
b. "Appaloosa horse racing" means the form of horse
racing in which each participat ing horse is an
Appaloosa horse registered with the Ap paloosa Horse
Club or any successor organization and mounted by a
jockey.
c. "Quarter Horse racing " means the form of horse racing
where each participating horse is a Quarter Horse
registered with the A merican Quarter Horse Assoc iation
or any successor org anization, mounted b y a jockey,
and engaged in a race on the flat.
d. "Paint horse racing" means the form of horse racing in
which each participating horse is a Paint horse
registered with the American Paint Horse Association
or any successor organization and mounted by a joc key.
e. "Pinto horse racing" means the form of horse racing in
which each participating horse is a Pinto horse
registered with the Pinto Horse Association of
America, Inc. or any suc cessor organization and
mounted by a jockey.
f. "Thoroughbred horse racing " means the form of horse
racing in which each participating horse is a
Thoroughbred horse registered with the Jockey Club or
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any successor organization, mounted by a jockey, and
engaged in races on the flat.
"Horse racing" shall not mean the racing of a c loned horse or
offspring of a cloned horse regardless of whether any breed
association has registered the horse ;
6. 8. "Minor" means any individual under eighteen (18) years of
age;
7. 9. "Minus pool" means a pari-mutuel pool in which , after
deducting the take-out, not enough money remains in the pool to pay
the legally prescribed minimum return to those placing winnin g
wagers, and in which the organization licensee would be require d to
pay the remaining amou nt due;
8. 10. "Occupation licensee" means any person who has obtained
an occupation license;
9. 11. "Organization licensee " means any person receiving an
organization license;
10. 12. "Pari-mutuel system of wagering " means a form of
wagering on the outcome of horse races in whic h those who wager
purchase wagers of various denominations on a horse or horses and
all wagers for each race are pooled and held by the organization
licensee for distribution. The pari -mutuel system of wagering uses
an electric totalizator or similar equi pment which automati cally
registers the wagers made on each horse;
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11. 13. "Pari-mutuel pool" means the total money wagered by
individuals on any horse or horses in a particular horse race to
win, place, or show and held by the organization licensee pursu ant
to the pari-mutuel system of wagering. There is a separate pari -
mutuel pool for win, for place, for show, and for each multiple
combination of betti ng approved by the Oklahoma Horse Racing
Commission;
12. 14. "Person" means any individual, partnershi p,
corporation, or other association or entity; and
13. 15. "Race meeting" means the entire period of time not to
exceed twenty (20) calendar days separating an y race days for which
an organization license has been granted to a person by the
Commission to hold horse races at which the pari-mutuel system of
wagering is conducted, to hold non -pari-mutuel horse races or to
conduct accredited work or training races.
B. The Commission may define by rule or regulation any term
which is not defined in the Oklaho ma Horse Racing Act.
SECTION 2. AMENDATORY 3A O.S. 2021, Section 204, is
amended to read as follows:
Section 204. A. The Oklahoma Horse Racing Commission shall:
1. Have supervision of:
a. all race meetings held in this state; provided, for
non-pari-mutuel race meetings and training races held
at non-pari-mutuel tracks jurisdiction of the
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Commission shall be limited to a period of time
beginning twelve (12) hours before the co mmencement of
the first race on a race day and ending four (4) hours
after the finish of the last race on a race day,
b. all occupation and organizatio n licensees in this
state, and
c. all persons on the property of an organization
licensee; provided, for non-pari-mutuel race meetings
and training races held at non -pari-mutuel tracks
supervision of such persons shall be limited to the
period set out in subparagraph a of this paragraph;
2. Have the authority to promulgate rules for the purpose of
administering the provisions of the Oklahoma Horse Racing Act;
3. Administer and en force the provisions of the Oklahoma Horse
Racing Act and the rules of the Co mmission;
4. Adjudicate controversies arising from the enforcement of the
provisions of the Oklahoma Hor se Racing Act and the rules of the
Commission;
5. Allocate racing days of not to exceed six (6) days per
calendar week, dates, and hours which are in the best interests of
the people of this state to organization licensees;
6. Promulgate rules for the gr anting or refusing and the
suspension or revoking of licenses;
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7. Promulgate rules for the holding, conducting, and operating
of all race meetings hel d in this state; provided, the rules of the
American Quarter Horse Association for regulation of the hold ing,
conducting and operating of non-pari-mutuel race meetings and
training races held at non-pari-mutuel tracks shall serve as the
rules for the holding, conducting and operating of non -pari-mutuel
race meetings and training races held at non -pari-mutuel tracks,
except that appeals from decisions of the stewards shall be to the
Commission, until such time as the Commission has promulgated
substantially similar rules for regulation of the holding,
conducting and operating of non -pari-mutuel race meetings an d
training races held at non-pari-mutuel tracks;
8. Promulgate rules to establish the terms and requirements for
obtaining and maintaining an advance deposit wagering license;
9. Have supervision and control of the pari -mutuel machines and
all other equipment at all race meetings held in this state;
9. 10. Check the making of pari-mutuel pools and the
distribution of such pools and shall:
a. contract with the Office of the State Auditor and
Inspector to conduct an annual audit and inspection of
live race meets in this state, and
b. reimburse the Office of the State Auditor and
Inspector for the cost of these services;
10. 11. Promulgate rules governing:
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a. bids on leases,
b. the rate charged by an organization licensee for
admission to races, and
c. the rate charged for the perfor mance of any service or
for the sale of any art icle on the premises of an
organization licensee;
11. 12. Approve all contracts and agreements for the payment of
money and all salaries, fees, and compensations by any organization
licensee;
12. 13. Have the authority to exclude, or compel the exclusion ,
from any race meeting:
a. any person who violates the provisions of any rule or
order of the Commission or any law of this state, any
other state, or the United S tates,
b. any person who has been previously convicted of
violating any law of this state, a ny other state, the
United States, or
c. any other person, licensed or unlicensed, whose
conduct or reputation is such that his or her presence
at the race meeting may, in the opinio n of the
Commission reflect on the honesty and integrity of
horse racing or interfere with the orderly conduct of
the race meeting. No person shall be excluded or
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ejected from a race meeting solely on the grounds of
race, color, creed, sex, national origi n, or ancestry;
13. 14. Have investigatory powers and authority to place
attendants and such other persons as may be deemed necessary by the
Commission in the offices, on the tracks, or in places of business
of any organization licensee for the purpose of determining whether
an organization or occupation licensee is complying w ith the
provisions of the Oklahoma Ho rse Racing Act and the rules of the
Commission;
14. 15. Have authority to acquire or contract with, or
establish, maintain, and operate testing laboratories and related
facilities for the purpose of conducting:
a. human substance abuse testing on occupati on licensees
who may affect the outcome of race results. Human
substance abuse tests and the laboratories performing
such tests must meet the na tionally recognized
standards specified in the Mandatory Guidelines for
Federal Workplace Drug Testing Programs adopted by the
United States Department of Health and Human Services.
The Commission may require any occupation licensee to
submit to a human substance abuse test if the
Commission has probable cause to believe that s uch
licensee is possessing or using a ny controlled
dangerous substance or any other drug in violation of
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any federal or state law. Provided, on and after July
1, 1994, such testing shall be in compliance with the
provisions of the Standards for Workplace Drug and
Alcohol Testing Act, and
b. a saliva test, a blood test, a urine test, or other
tests or combinations of tests on the horses run or to
be run in any race meeting. Prior to the Commission
entering into any contract pursuant to this paragraph,
the Attorney General shall review and app rove the
contract. Any contract entered into pursuant to this
paragraph shall contain the specifications that were
in the request for bid for th e contract;
15. 16. Approve of all proposed con struction on property owne d
or leased by an organization licens ee;
16. 17. Have authority to require that all financial,
employment, or other records of an organization licensee shall be
kept in such manner as prescribed by the Commis sion and shall be
subject to inspection by the Commission. The organization license e
shall submit to the Commission an annual balance sheet, profit -and-
loss statement, and any other information the Commission deems
necessary in order to administer the pro visions of the Oklahoma
Horse Racing Act;
17. 18. Have the authority to suspend or revoke a license or
impose fines in amounts not to exceed Ten Thousand Dollars
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($10,000.00) against individuals for each violation and in amounts
not to exceed Twenty Thous and Dollars ($20,000.00) agai nst
organization licensees for each violation of any pr ovision of the
Oklahoma Horse Racing Act, any rules adopted by the Commission, or
any order of the Commission, or for any other action which, in the
discretion of the Commi ssion, is a detriment or impe diment to horse
racing or both such suspension or revoc ation and fine. Each day
upon which such violation or other action by the organization
licensee occurs shall constitute a separate offense;
18. 19. Have authority to susp end a horse from participating in
races if the horse has been involved in any violat ion of the rules
promulgated by the Commission or the provisions of the Oklahoma
Horse Racing Act; and
19. 20. Prepare and submit an annual repo rt to the Governor,
the Speaker of the House of Representatives, and the President Pro
Tempore of the Senate. The report shall include an account of the
operations, actions, and orders of the Commission, and an accounting
of all revenue received by the Co mmission.
B. 1. The Commission may delegate to stewards or the Executive
Director, those of its powers and du ties as it deems necessary to
fully implement and effectuate the purposes of the Oklahoma Horse
Racing Act.
2. The Commission, upon appeal or du e consideration, may
overrule any decision of a steward except d ecisions regarding
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disqualifications for interf erence during the running of a race if a
preponderance of evidence indicates:
a. the stewards mistakenly interpreted the law,
b. new evidence of a convincing nature is prod uced, or
c. the best interests of rac ing and the state may be
better served.
3. Any decision pertaining to the finish of a race, as used for
purposes of pari-mutuel pool distribution to winning ticket holders,
may not be overruled. Any decision pertainin g to the distribution
of purses may be changed only if a claim is made in writing to the
Commission by one of the involved owners or trainers, and a
preponderance of evidence clearly indicates to the Commission that
one or more of the grounds for protest, as provided for in the rules
prepared by the Commission, has been substantiated.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 205.9 of Title 3A, unless there
is created a duplication in numbering, reads as follows:
Any advance deposit wagering provider that accepts f unds from an
Internet Protocol address within the State of Oklahoma, pursuant to
the Interstate Horseracing Act of 1978, found in Section 3001 et
seq. of Title 15 of the United States Code, must obtain an advance
deposit wagering license from the Oklahoma Hor se Racing Commission.
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SECTION 4. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY - CIVIL, dated
03/01/2022 - DO PASS.