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ENGROSSED HOUSE
BILL NO. 1395 By: Luttrell of the House
and
Coleman of the Senate
An Act relating to amusements and sports; amending 3A
O.S. 2021, Sections 203.1 and 205.2, which relate to
the Oklahoma Horse Racing Commission; modifying who
is prohibited from receiving certai n funds; modifying
provision related to starting gates; repealing 3A
O.S. 2021, Section 202, which relates t o the Oklahoma
Horse Racing Commission; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 3A O.S. 2021, Section 203.1, is
amended to read as follows:
Section 203.1 A. A member of the Oklahoma Horse Racing
Commission shall not accept any gift, loan, entertainment or favor
from any occupation or organiz ation licensee, except such suitable
facilities and services within the enclosure of an organization
licensee as may be required by the member to facilitate the proper
performance of his or her duties. A member of the Oklahoma Horse
Racing Commission, oth er than a member required by the provis ions of
Section 201 of this title to be experienced in the horse indust ry,
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shall not accept any compensation or service from any occupation or
organization licensee, except such suitable facilities and services
within the enclosure of an organization licen see as may be required
by the member to facilitate the proper performan ce of his or her
duties.
B. No member of the Commission or Commission emplo yee shall
place any wagers on any horse race over which the Commission has
jurisdiction.
C. Members of the Commission and members of their immediate
families, and Commission employees and members of their immediate
families are prohibited from receiving p urse supplements, stakes,
rewards, stallion awards, broodmare awards, or breeders awards of
any kind, or marketing, promotion, or advertising monies of any kind
from the Oklahoma Breeding Development Fund Special Account
administered by the Commission purs uant to Section 208.3 of this
title. "Immediate family" has the meaning provided by Rule 257:1 -1-
2 of the Rules of the Ethics Commission, Chapter 62 , App. of Title
74 of the Oklahoma Statutes.
D. Nothing in this section shall prohibit members of the
Commission, who are required by the provisions of Section 201 of
this title to be experienced in the horse indust ry, from receiving
purses for participating horses from an organization licensee.
E. Provided, any member of the Commission who has an ownership
interest in any horse shall be prohibited from participating in the
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discussion on, voting on, influencing or a ttempting to influence the
official action of the Commission in any mat ter affecting the
eligibility of such horse to participate in any race or wh ich
determines the amount or receipt of any purse by the Commission
member or any member of the family of the Commission member. A
commissioner shall be eligible to participate in the discussion on,
vote on, influence or attempt to influence the official a ction of
the Commission if the only benefit to accrue to the Commissio ner or
any member of the Commissioner 's family is a benefit which accrues
to the Commissioner or a member of t he Commissioner's family as a
result of being a member of a large class to n o greater extent than
could reasonably be foreseen to accrue to all ot her members of the
large class.
SECTION 2. AMENDATORY 3A O.S. 2021, Section 205.2, is
amended to read as follows:
Section 205.2 A. Applications for organization licenses must
be filed with the Commission at a time and place prescribed by the
rules and regulations of the Commission. Beginning with
organization license applications for t he 1994 calendar year, the
Commission shall develop and use separate application forms for
applicants requesting an organization license to co nduct horse
racing with the pari-mutuel system of wagering and applicants
requesting an organization license to co nduct horse racing without
the pari-mutuel system of wagering. For use for the 1993 ca lendar
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year organization licenses, an applicant request ing to conduct horse
racing without the pari-mutuel system of wagering shall make
application with the Commission on American Quarter Horse
Association application forms. Applications for an organizat ion
license to conduct horse racing without the pari -mutuel system of
wagering for the 1993 calendar year shall be filed with the
Commission on or before the 1st day of August, 1992. Each applicant
requesting an organization license to conduct horse racin g with the
pari-mutuel system of wagering shall include with each application a
nonrefundable license fee equal to the sum of Five Thousand Dollars
($5,000.00) for each race meeting and Two Hundred Dollars ($200.00)
for each racing day requested. Provided , the fee for Five Thousand
Dollars ($5,000.00) shall b e waived for applicants applyin g pursuant
to the provisions of Section 208.2 of this title. Each applicant
requesting an organization license to conduct horse racing without
the pari-mutuel system of wagering or to conduct accredited work or
training races shall include with each appli cation a nonrefundable
license fee of Five Hundred Dollars ($500.00) for each race meeting.
Such fee shall be in the form of a certified check or bank draft
payable to the order of the Commission. Within thirty (30) days
after the date specified for fili ng, the Commission shall examine
the applications for compliance with the provision s of the Oklahoma
Horse Racing Act and such rules and regulations as may be
promulgated by the Commission. If any application does not comply
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with the provisions of the Okl ahoma Horse Racing Act or the rules
and regulations promulgated by the Commission, the application may
be rejected or the Commission may direct the applicant to comply
with the provisions of the Oklahoma Horse Racing Act or t he rules
and regulations of the Commission within a reasonable time as
determined by the Commission. Upon proof b y the applicant of
compliance, the Commission may reconsider the application. If it is
found to be in compliance with the provisions of the O klahoma Horse
Racing Act and the rules and regulations of the Commission, the
Commission may then issue an organiz ation license to the applicant.
B. The Commission may exercise discretion in the issui ng of
organization licenses to qualified applicants. T he Commission may
also determine and grant racing dates different from those requested
by the applicants in their applications.
C. The Commission may determine and grant the number of racing
days to be allotted to each applicant. When granting organizati on
licenses and allocating date s for race meetings which will, in the
judgment of the Commission, be conducive to the best interests of
the public and the sport of horse racing, the Commission shall gi ve
consideration to:
1. The character, reputation, exp erience, and financial
integrity of each applicant and of any other person that:
a. directly or indirectly control s such applicant, or
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b. is directly or indirectly controlled by such applicant
or by a person who directly or indirectly controls
such applicant; and
2. The facilities and accommodations of the applicant for the
conduct of race meetings; and
3. The location of the race meeting of the applicant in
relation to the principal centers of popula tion of this state; and
4. The highest prospective tot al revenue to be derived by the
state from the conduct of the race meeting.
D. Prior to the issuance of an organi zation license to conduct
pari-mutuel race meetings, the applicant shall file with the
Commission a bond payable to the State of Oklahoma in a n amount
determined by the Comm ission which is not less than Two Hundred
Thousand Dollars ($200,000.00) and not mo re than the total financial
liability of the organization licensee throughout the race meeting
for which the organization license is requested , executed by the
applicant and a surety company or companies authorized to do
business in this state, and conditi oned upon the payment by the
organization licensee of all taxes and other monies due an d payable
pursuant to the provisions of the Oklahoma Ho rse Racing Act and all
purses due and payable, and upon the fact that, upon presentation of
winning tickets, the o rganization licensee will distribute all sums
due to the patrons of pari -mutuel pools. The financial liabilities
incurred by the organization licensee in the form of real e state
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mortgages shall not be included in the determination of the bond
amount.
E. The Commission shall notify each applicant of the racing
dates allotted to such applica nt. The notice shall be in writing
and sent by registered mail to the applicant at th e address stated
in the application. The notice shall be mailed within two (2)
business days of the date the allotment is made. After the mailing
of such notice of allo tment, each applicant shall file with the
Commission within ten (10) days an acceptanc e of such allotment on a
form prescribed and furnished by the Commission.
F. Each organization license shall specify the name of the
person to whom it is issued, the dat es upon which horse racing is
permitted, and the locati on, place, track, or enclosure where the
race meeting is to be held.
G. All employees of an organization licensee shall be citizens
of the United States, and not less than ninety percent (90%) of such
employees shall be residents of this state for not les s than
eighteen (18) months imm ediately preceding such employment.
H. All horse racing conducted pursuant to the provisions of an
organization license is subject to the provisions of the Oklahoma
Horse Racing Act and of the rules, regulations and directiv es
promulgated by the Commissio n, and every organization license issued
by the Commission shall contain a statemen t to that effect.
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I. Any organization licensee may provide, with prior approval
by the Commission, that at least one horse race a day may be devoted
to the racing of a type of horse which is different from the type of
horse being raced in the other races conducted by the organization
licensee on that day. When scheduled races are trial hea ts for
futurities or stakes races electronically timed from the starting
gates, no organization licensee shall move the starting gates or
allow the starting gates to be moved until all trial heats are
complete, unless they are using a device approved by th e horsemen's
representative and the stewards that will ensure the gates are set
in the same position, except in an emergency as determined by the
stewards.
J. Organization licenses may be revoked if th e organization
licensee or any person owning an intere st in the organization
licensee:
1. Violates any provision of the Oklahoma Horse Raci ng Act; or
2. Violates any provision of the rules and regulations
promulgated pursuant to the provisions of the Okl ahoma Horse Racing
Act; or
3. Has been convicted of a felony; or
4. Has been convicted of violating any law reg arding gambling
or controlled dangerous substances of the United States, this state,
or any other state; or
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5. Has failed to disclose or has s tated falsely any information
contained in the applica tion; or
6. Has concealed in whole or in part the true own ership of the
organization licensee.
Any organization license revocation proceeding shall be
conducted pursuant to the provisions of Sections 3 02 through 323 of
Title 75 of the Oklahoma Statutes.
K. The fees received by the Commission pursuant to the
provisions of this section shal l be apportioned to the Oklahoma
Horse Racing Commission Operational Expenses Revol ving Fund.
L. The provisions of the Oklahoma Horse Racing Act and rules
promulgated by the Commission shall apply to an organization
licensee during the entire calendar yea r in which the license was
issued.
SECTION 3. REPEALER 3A O.S. 2021, Section 202, is hereby
repealed.
SECTION 4. This act shall become effective November 1, 2023.
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Passed the House of Representatives the 8th day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2023.
Presiding Officer of the Senate