SCS/SB 765 - This act makes the following changes to the law relating to horse racing and pari-mutuel wagering:

Section 313.500 - Defines "applicant", "associated pari- mutuel license", "associated pari-mutuel system", "commission on wagers", "interstate common pari-mutuel pool", "licensee", "Missouri bred horse", "race meeting grounds", "simulcast" and "steward". "Commission" is re-defined to mean the Missouri Horse Racing Commission rather than the Missouri Gaming Commission.

Section 313.510 - Requires members of the Horse Racing Commission to be residents of the state and from different counties. The Governor is authorized to designate one of the members as chair of the Commission and to remove any member for malfeasance or neglect of duty in office.

Section 313.520 - Authorizes the Commission to hire an executive director and other employees. Background investigations for potential employees are authorized. A code of ethics for Commission employees is required.

Section 313.530 - Requires all licensing revenue, other than revenue designated for the Missouri breeders fund, to be deposited in the Missouri Horse Racing Fund. Commission expenses are to be paid out of the Fund, and any surplus will be deposed in the newly created Horse Racing for Education Fund.

Section 313.540 - Authorizes the Commission to promulgate rules and regulations governing pari-mutuel wagering.

Section 313.550 - Specifies that anyone testifying falsely under oath before Commission employees shall be guilty of a Class D felony.

Section 313.560 - Specifies powers of the Commission. Racing stewards are required to be certified by the Association of Racing Commissioners International. Various existing powers, such as the right to enter without a search warrant areas under the licensee's control and the right to inspect records, are removed from this section and moved to Section 313.561.

Section 313.561 - Specifies additional powers of the Commission. The Commission is authorized to investigate applicants and to continue to observe the conduct of licensees and others who are materially involved with the licensee. An application may be denied or condition, restrict or limit any license; any person aggrieved by such action has a right to appeal to the appropriate circuit court. Existing powers of right of entry without a search warrant and right to inspect records are specified in this section. The Commission is also authorized to levy administrative penalties of up to $2,000 per day for violations.

Section 313.580 - Removes the current restriction on pari- mutuel wagering only within the enclosure of a licensed race track. The Commission is required to determine whether associated pari-mutuel facilities, where simulcasting is allowed, are in the public interest and that such facilities are economically feasible. Applicants for licensing must be either residents of Missouri or incorporated, formed or organized in the state. The Commission may license an applicant to operate one or more race tracks and no more than five associated pari-mutuel facilities. License are valid unless revoked for cause.

Section 313.583 - Requires an application fee of $50,000 per applicant and allows the Commission to assess additional amounts if investigation costs exceed that amount. If an applicant is denied a license, a refund of the difference between the fee and the investigation costs is required. Good faith affirmative action efforts are required of all applicants.

Section 313.585 - Limits licensing associated pari-mutuel wagering to licensees with a live race track which shall run within 3 years of license date and maintain at least 21 days of live racing in Missouri.

Section 313.587 - Requires Commission approval of any associated pari-mutuel wagering system. The system may be physically located outside the state. The act specifies requirements for associated pari-mutuel wagering system operators.

Section 313.590 - Specifies bonding requirement for licensees.

Sections 313.600, 313.605, and 313.610 - Make technical changes.

Section 313.620 - Requires all application and licensing fees to be deposited in the Missouri Horse Racing Fund.

Section 313.630 - Requires admission fees to be deposited in the Missouri Horse Racing Fund. Each licensee is also required to pay an admission of $2 for each person entering an associated pari-mutuel facility.

Section 313.631 - Requires licensees to keep records of number of admissions to associated facilities as well as to race meeting grounds.

Section 313.632 - Deletes current section which requires Commission approval for all contracts for the payment of money, salaries, and proposed extensions or improvements to property owned by the licensee.

Section 313.640 - Deletes current requirement for the Commission to determine fees for registration of stable names. The section requires at least 80% of all permanent employees of a licensee to be residents of Missouri during the course of employment.

Section 313.652 - Specifies that percentage deductions from mutuel pools are only for live races of the licensee.

Section 313.655 - Changes current language relating to simulcasting horse races and authorizes licensing associated pari-mutuel facilities. The Commission may authorize a different percentage of deductions for associated pari-mutuel wagers than is required for deductions for live races. A tax is imposed on the total amount of money wagered at associated pari-mutuel facilities.

Section 313.660 - Specifies a Class A misdemeanor for operating pari-mutuel wagering without a license or in a manner other than as specified by law.

Section 313.662 - Allows associated pari-mutuel tickets to be cashed for up to 180 days from the date the race was made official.

Section 313.670 - Extends restriction on minors being admitted to any pari-mutuel wagering area to associated pari- mutuel facilities.

Section 313.710 - Deletes current section which allows the Commission to establish a program to encourage owners and breeders of Missouri-bred horses.

Section 313.720 - Requires use of the Missouri Breeders Fund to establish the program formerly accomplished by section 313.710 regarding encouragement of owners and breeders of Missouri-bred horses.
RUSS HEMBREE