An Act ENROLLED HOUSE BILL NO. 3693 By: Culver of the House and Kidd of the Senate An Act relating to amusements and sports; amending 3A O.S. 2021, Sections 201 and 208.3, which relate to the Oklahoma Horse Racing Commission; modifying appointment of members of the Commission; providing for appointing procedure if there is a vacancy ; prohibiting the Commission from expending certain funds when other funds are available; and providing an effective date. SUBJECT: Amusements and sports BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA: SECTION 1. AMENDATORY 3A O.S. 2021, Section 201, is amended to read as follows: Section 201. A. There is hereby create d the Oklahoma Horse Racing Commission, which shall consist of the following nine (9) members: 1. One member who shall be from the First Congressional District, one member who shall be from the Sec ond Congressional District, one member who shall be from the Third Congressional District, one member who shall be from the Fourth Congressional District, and one member who shall be from the Fifth Congressional ENR. H. B. NO. 3693 Page 2 District appointed by the Governor with the advice and consent of and confirmed by the Senate; 2. One at large member who shall be experienced in the horse racing industry and from the state and one at large member who may be experienced in the horse racing industry and who shall be from the state appointed by the Speaker of the Oklahoma House of Representatives; and 3. One at large member who shall be experienced in the horse racing industry and from the state and one at large member who shall be experienced in the ho rse racing industry and from the stat e appointed by the President Pro Tempore of t he Oklahoma State Senate. In the event of a vacancy that qualifies for an appointment under paragraph 2 or 3 of this subsection, the Speaker of the House and the President Pro Temp ore shall have alternating appointment s; provided, however, the Speaker of the House shall make the initial appointment. At least one member shall be appointed from each congressional district, and at least three of the remaining members sh all be experienced in the hor se industry and shall be appointed from the state at large. Howeve r, when When congressional districts ar e redrawn, each member appointed and confirmed by the Senate, if applicable, prior to July 1 of the year in which such modification becomes effective shall complete the current term of office, and appointments made and confirmed by the Senate, if applicable , after July 1 of the year in which such modific ation becomes effective shall be based on the redrawn districts. Appointments made after July 1 of the year in which such mod ification becomes effective shall be from any redrawn districts which are not represented by a board member until such time as eac h of the modified congressional districts is represented by a board member. B. To be eligible for appointment to the Commissi on, a person shall: 1. Be a citizen of the United States; 2. Have been a resident of this state f or five (5) years immediately preceding the appointment; and 3. Not have been convicted of a f elony pursuant to the laws of this state, the laws of any othe r state, or the laws of the United ENR. H. B. NO. 3693 Page 3 States as established by a n ational criminal history record che ck as defined by Section 150.9 o f Title 74 of the Oklahoma Statutes. C. The term of office of a member of the Commission shall be for six (6) years and until a successor is appointed and qualified. D. The Governor Each appointing authority may remove any member of he or she appointed to the Commission for incompetence, neglect of duty, or malfeasan ce in office upon first giving the member a copy of the charges and an opportunity to be heard. A vacancy on the Commission shall be filled for the unexpired term by appointment made by the Governor appropriate appointing authority. SECTION 2. AMENDATORY 3A O.S. 2021, Section 208.3, is amended to read as follows: Section 208.3 A. There is hereby cre ated in the State Treasury an agency special account for the Oklahoma Horse Racing Commission, to be designated the "Oklahoma Breeding Development Fund Special Account". The fund shall be a c ontinuing fund, not subject to fiscal year limitations, and shal l consist of all monies received by the Commission for deposit in the fund pursuant to Section 205.6 of this title and from r evenue received as breakage and from unclaimed pari-mutuel tickets. All monies accruing to the credit of the fund are hereby appropriated and may be budgeted and expended by the Commission for the purposes specified in subse ction B of this section. Expenditures from the fund shall be made upon vouchers prescribed by the State Treasurer and issued by the Commission against the Oklahoma Breeding Development Fund Special Account. The official registering agency designated by t he Commission pursuant to subsection D of this section shall verify the current eligibility of a participating horse prior to distributing any purse supplement, stake, reward or award from the Oklahoma Breeding Development Fund Special Account. Any person entitled to monies from the Ok lahoma Breeding Development Fund Special Account as a purse supplem ent, stake, reward, or award (awards), will forfeit such monies if that person fails to comply with all requirements necessary for earning the awards. Further, any such person will forfeit such monies if, within one (1) year from the date of the race in w hich such award was earned, that person does not submit the stat e voucher for payment or for replacement in the event of an expired voucher, or if that person fails to submit all documentat ion required by the Oklahoma Horse Racing Commission. In such even t, monies accrued from forfeiture will be returned to the Oklaho ma Breeding ENR. H. B. NO. 3693 Page 4 Development Fund Special Account for expenditure by the Commission for the purposes specified in subsection B of this section. B. No monies shall be expended by the Commission fro m the Oklahoma Breeding Development Fund Special Account except for any of the following purposes: 1. To provide purse supplements to owners of Oklahoma -bred horses; 2. To provide stakes and rewards to be paid to the owners of the winning Oklahoma-bred horses in certain horse races; 3. To provide stallion awards to the owner of the Oklahoma stallion which is the sire of an Oklahoma -bred horse if such a horse wins any race conducted at a r ace meeting; 4. To provide breeders awards to the owner of the Okl ahoma- registered mare which is the dam of an Oklahoma-bred horse if such a horse wins any race conducted at a race meeting; 5. To provide monies for equine r esearch through state institutions accredited for the same; 6. To provide monies for use in marke ting, promoting and advertising the Oklahoma-Bred Program and the Oklahoma horse racing industry to the people of Oklahoma, the United States and abroad; 7. To provide for the administrati on of the Oklahoma Breeding Development Program. The Oklahoma Hors e Racing Commission is hereby authorized to utilize up to fiftee n percent (15%) of the prior year's receipts for administration. All expenses reimbursed as administrative pursuant to this subsection shall be itemized and audited pursuant to subsection E o f this section. Any monies transferred from the Oklahoma Breedi ng Development Fund Special Account to the Oklahoma Breeding Development Revolving Fund for administrative reimbursement foun d to be unsubstantiated, excessive or ineligible for reimbursement by the audit shall be returned to the Oklahoma Breeding Developm ent Fund Special Account within thirty (30) days of the conclusion of the audit; and 8. To provide, upon the request of an o fficial horsemen's representative organization for a breed, funding to any nonprofit entity that is based in Oklahoma and exempt fr om taxation pursuant to the provisions of the United States Internal Revenue Code, 26 ENR. H. B. NO. 3693 Page 5 U.S.C. Section 501(c), for the purpose of providing care of retired and unwanted Oklahoma-bred racing stock of the particular breed of horse represented by the requesting organization. Provided, however, that no monies shall be expended by the Commission for the purpose of this paragraph if federal funds are available for the same purpose. C. By rule the Comm ission shall: 1. Define the term "Oklahoma-bred horse"; 2. Qualify stallions for participation in Oklahoma-bred stallion awards; 3. Provide for the regist ration of Oklahoma-domiciled mares and stallions and Oklahoma-bred horses. No such horse shall com pete in the races limited to Oklahoma-bred horses unless regist ered with the Commission. The Commission may prescribe such forms as are necessary to determi ne the eligibility of such hors es; provided, breeding stallions shall be eligible for registration in the Oklahoma-bred breeding program until July 1 of the breed ing year. No person shall knowingly prepare or cause preparation of an application for regist ration of such foals which cont ains false information; 4. Establish a schedule of fees for the reg istration of Oklahoma-domiciled mares and stallions and Oklahom a-bred horses sufficient to provide for all ex penses incurred in the administration of the Okl ahoma Breeding Development Fund Special Account; 5. Allow a mare registered as Oklahoma -bred racing stock which has not been registered as an Oklahoma broodmare prior to foaling to be registered as an Oklaho ma broodmare upon payme nt of the registration fee and a late fee not to exceed Two Hundred Dollars ($200.00), which action shall entitle the foals of the mare to be registered as Oklahoma-bred horses, provided all other qualifications of the Commission are met; and 6. Establish criteria which a nonprof it entity based in Oklahoma must meet to be eligible to receive funds for the purpose of caring for retired and unwanted Oklahoma-bred racing stock. D. The Commission may contract with and designate an offic ial registering agency to implement the registra tion of horses and the ENR. H. B. NO. 3693 Page 6 payment of awards from the Oklahoma Breeding Development Fund Special Account. The official registering agency shall operate under the supervision of the Commission and be subject to t he rules and regulations of the Commission. The official registering agency shall receive no compensation except fees received for registration of horses. In the event the Commission elects to perform as the official registering agency rather than contra cting for such services, the Commission shall de posit all registration fees fro m the registration of Oklahoma-bred horses into the Oklahoma Breedin g Development Fund Special Account. SECTION 3. This act shall become effective November 1, 2024. ENR. H. B. NO. 3693 Page 7 Passed the House of Representatives the 23rd day of May, 2024. Presiding Officer of the House of Representatives Passed the Senate the 2 3rd day of May, 2024. Presiding Officer of the Senate OFFICE OF THE GOVERNOR Received by the Office of the Governor this ____________________ day of ___________________, 20_______, at _______ o'clock _______ M. By: _________________________________ Approved by the Governor of the State of Oklahoma this _____ ____ day of ___________________, 20_______, at _______ o'clock _______ M. _________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this __________ day of ___________________, 20_______, at _______ o'clock _______ M. By: _________________________________