Senate Bill 5598 — Supplementary Funding to Legalized Horse Racing (Washington, 2023 Regular Session)

Summary

Senate Bill 5598 of the State of Washington, 2023 Regular Session, sponsored by Senators Mullet, Fortunato, Nguyen, Keiser, Schoesler, Kauffman, Hunt, Padden, and others. It was read first time on January 27, 2023 and referred to the Committee on Business, Financial Services, Gaming & Trade. The title describes an act relating to providing supplementary funding to legalized horse racing and the recreational use of horses in Washington state, amending RCW 67.16.050 and 67.16.280 and repealing RCW 67.16.105. Section 1 directs the state treasurer to transfer from the general fund to the Washington equine industry reinvestment account an amount not to exceed $6,000,000 per fiscal year, from sales and use tax revenues on listed equine-related products. Section 6 declares an emergency.

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Full text

     S-0813.1

                               SENATE BILL 5598


     State of Washington       68th Legislature         2023 Regular Session

     By Senators Mullet, Fortunato, Nguyen, Keiser, Schoesler, Kauffman,
     Hunt, Padden, J. Wilson, Conway, Dozier, Stanford, and Van De Wege

     Read first time 01/27/23.       Referred   to   Committee   on   Business,
     Financial Services, Gaming & Trade.




1        AN ACT Relating to providing supplementary funding to legalized
2    horse racing and the recreational use of horses in Washington state;
3    amending RCW 67.16.050 and 67.16.280; adding a new section to chapter
4    82.08 RCW; adding a new section to chapter 67.16 RCW; repealing RCW
5    67.16.105; and declaring an emergency.


6    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 7       NEW SECTION.   Sec. 1.   A new section is added to chapter 82.08
 8   RCW to read as follows:
 9       (1) By July 1, 2023, and by July 1st of each year thereafter, the
10   state treasurer, based upon information provided by the department,
11   must transfer from the general fund to the Washington equine industry
12   reinvestment account created in section 2 of this act an amount not
13   to exceed $6,000,000 per fiscal year from revenues deposited into the
14   general fund for the previous fiscal year directly derived from the
15   imposition of state sales and use taxes charged or levied on the
16   following equine-related products, services, or uses:
17       (a) Equines;
18       (b) Equine feed;
19       (c) Prescription drugs, over-the-counter drugs, or dietary
20   supplements to be dispensed to equines;


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 1       (d) Equine tack which includes, but is not limited to, equipment
 2   used to ride or care for an equine such as saddles, driving
 3   harnesses, girths, cinches, bridles, martingales, halters, lead
 4   ropes, whips, long reins, wraps, and other items used in handling and
 5   caring for equines;
 6       (e) Horse bedding and grooming supplies;
 7       (f) Sale of horses, including equines claimed at class 1 and
 8   class C regulated race meets; and
 9       (g) Other taxable sales directly related to equine ownership,
10   riding, or boarding.
11       (2) For purposes of this section, "equine" has the same
12   definition as in RCW 4.24.530.
13       (3) Following each biennium, the transfer amount in subsection
14   (1) of this section must be reviewed and may be increased based on
15   inflationary calculations as determined by the department.


16       NEW SECTION.   Sec. 2.   A new section is added to chapter 67.16
17   RCW to read as follows:
18       (1) The Washington equine industry reinvestment account is
19   created in the state treasury to provide assistance to legalized
20   horse racing and the recreational use of horses in Washington state.
21   Revenues in the account consist of moneys transferred to the account
22   pursuant to section 1 of this act and other revenue appropriated or
23   transferred to the account pursuant to legislative directive. Moneys
24   in the account may be spent only after appropriation.
25       (2) Beginning with the 2024 fiscal year, the legislature must
26   annually appropriate moneys in the account as follows:
27       (a) An amount of $6,000,000 to the Washington horse racing
28   commission operating account created in RCW 67.16.280. From this
29   appropriation all commission activities and operating costs must be
30   funded based on budget projections from the office of financial
31   management.
32       (b) The remaining amount must be distributed as follows:
33       (i) 10 percent to support nonprofit class C race meets under RCW
34   67.16.130. Grants for the nonprofit race meets must not exceed 10
35   percent of the funds. If there are less than 10 nonprofit race days
36   awarded, the remainder may be distributed by grant to other approved
37   allocations under this subsection (2)(b) based on greatest need;
38       (ii) 10 percent to supplement Washington breeders and bred horses
39   consistent with RCW 67.16.075;
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 1       (iii) 10 percent to be awarded as grants to support equine
 2   activities as defined in RCW 4.24.530;
 3       (iv) 65 percent to the class 1 racing associations allocated by
 4   grant from the Washington horse racing commission. Twenty-five
 5   percent of this allocation must be used for assistance in shipping
 6   and recruitment of horses to Washington from outside of the state,
 7   with the remainder being used for equine health and safety programs,
 8   research, racetrack surface improvements, and long-term maintenance
 9   of the racing surface. Additional allocations may be made for
10   veterinary staff, track security, on-duty paramedics, emergency
11   medical technicians, starting gate personnel, race-day outriders,
12   purchase of track surface materials, and track safety maintenance
13   equipment; and
14       (v) Five percent to the local affiliate and representative of
15   horsemen   and  horsewomen   in  Washington   state,  the  Washington
16   horseman's benevolent and protective association, who are authorized
17   to apply for grants to implement health and welfare benevolent
18   programs for eligible persons and families working in the stable area
19   at covered tracks. Such programs may include, but are not limited to,
20   low-fee dental care, medical and burial assistance, educational and
21   recreational programs, disaster relief, and assistance for department
22   of labor and industries claim monitoring programs.


23       Sec. 3. RCW 67.16.050 and 1997 c 87 s 2 are each amended to read
24   as follows:
25       Every person making application for license to hold a race meet,
26   under the provisions of this chapter shall file an application with
27   the commission which shall set forth the time, the place, the number
28   of days such meet will continue, and such other information as the
29   commission may require. The commission shall be the sole judge of
30   whether or not the race meet shall be licensed and the number of days
31   the meet shall continue. No person who has been convicted of any
32   crime involving moral turpitude shall be issued a license, nor shall
33   any license be issued to any person who has violated the terms or
34   provisions of this chapter, or any of the rules and regulations of
35   the commission made pursuant thereto, or who has failed to pay to the
36   commission any or all sums required under the provisions of this
37   chapter. The license shall specify the number of days the race meet
38   shall continue and the number of races per day, which shall include
39   not less than six nor more than ((eleven)) 11 live races per day, and
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 1   for which a fee shall be paid daily in advance of ((five hundred
 2   dollars for each live race day for those licensees which had gross
 3   receipts from parimutuel machines in excess of fifty million dollars
 4   in the previous year and two hundred dollars for each day for meets
 5   which had gross receipts from parimutuel machines at or below fifty
 6   million dollars in the previous year)) $200; in addition any newly
 7   authorized live race meets shall pay ((two hundred dollars)) $200 per
 8   day for the first year: PROVIDED, That if unforeseen obstacles arise,
 9   which prevent the holding, or completion of any race meet, the
10   license fee for the meet, or for a portion which cannot be held may
11   be refunded the licensee, if the commission deems the reasons for
12   failure to hold or complete the race meet sufficient. Any unexpired
13   license held by any person who violates any of the provisions of this
14   chapter, or any of the rules or regulations of the commission made
15   pursuant thereto, or who fails to pay to the commission any and all
16   sums required under the provisions of this chapter, shall be subject
17   to cancellation and revocation by the commission. Such cancellation
18   shall be made only after a summary hearing before the commission, of
19   which three days' notice, in writing, shall be given the licensee,
20   specifying the grounds for the proposed cancellation, and at which
21   hearing the licensee shall be given an opportunity to be heard in
22   opposition to the proposed cancellation.


23       Sec. 4.   RCW 67.16.280 and 2016 c 160 s 1 are each amended to
24   read as follows:
25       (1)(((a))) The Washington horse racing commission operating
26   account is created in the custody of the state treasurer. ((All
27   receipts collected by the commission under RCW 67.16.105(2) must be
28   deposited into the account.)) Expenditures from the account may be
29   used only for the operating expenses of the commission. Only the
30   commission or the commission's designee may authorize expenditures
31   from the account. The account is subject to allotment procedures
32   under chapter 43.88 RCW, but an appropriation is not required for
33   expenditures.
34       (((b))) (2) The commission has the authority to receive such
35   gifts, grants, and endowments from public or private sources as may
36   be made from time to time in trust or otherwise for the use and
37   purpose of regulating or supporting nonprofit race meets as set forth
38   in RCW 67.16.130 ((and 67.16.105(1))); such gifts, grants, and
39   endowments must also be deposited into the horse racing commission
                                     p. 4                          SB 5598
 1   operating account and expended according to the terms of such gift,
 2   grant, or endowment.
 3       (((2) In order to provide funding in support of the legislative
 4   findings in RCW 67.16.101 (1) through (3), and to provide additional
 5   necessary support to the nonprofit race meets beyond the funding
 6   provided by RCW 67.16.101(4) and 67.16.102(2), the commission is
 7   authorized to spend up to three hundred thousand dollars per fiscal
 8   year from its operating account for the purpose of developing the
 9   equine industry, maintaining and upgrading racing facilities, and
10   assisting equine health research. When determining how to allocate
11   the funds available for these purposes, the commission must give
12   first consideration to uses that regulate and assist the nonprofit
13   race meets and equine health research. These expenditures may occur
14   only when sufficient funds remain for the continued operations of the
15   horse racing commission.))


16      NEW SECTION.   Sec. 5.    RCW 67.16.105 (Gross receipts—Commission's
17   percentage—Distributions) and 2011 c 12 s 1, 2010 c 39 s 1, 2004 c
18   246 s 7, 2003 1st sp.s. c 27 s 1, 1998 c 345 s 6, 1997 c 87 s 3, 1995
19   c 173 s 2, 1994 c 159 s 2, 1993 c 170 s 2, 1991 c 270 s 6, 1987 c 347
20   s 4, 1985 c 146 s 7, 1982 c 32 s 3, & 1979 c 31 s 6 are each
21   repealed.


22       NEW SECTION.   Sec. 6.  This act is necessary for the immediate
23   preservation of the public peace, health, or safety, or support of
24   the state government and its existing public institutions, and takes
25   effect immediately.

                                    --- END ---




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