1.2relating to horse racing; providing for sharing of purse set-aside and breeder's
1.3fund revenue; modifying certain restrictions on simulcasting and card club
1.4operation; amending Minnesota Statutes 2006, sections 240.06, subdivision 5a,
1.5by adding a subdivision; 240.13, subdivision 6; 240.135; 240.30, subdivision 5.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


1.9    Section 1. Minnesota Statutes 2006, section 240.06, subdivision 5a, is amended to read:
1.10    Subd. 5a. Additional license; metropolitan area. (a) Notwithstanding subdivision
1.115, the commission may issue one additional class A license within the seven-county
1.12metropolitan area, provided that the additional license may only be issued for a facility:
1.13(1) located more than 20 miles from any other racetrack in existence on January
1.141, 1987;
1.15(2) containing a track no larger than five-eighths of a mile in circumference;
1.16(3) used exclusively for at which standardbred racing is the only form of live horse
1.17racing conducted;
1.18(4) not owned or operated by a governmental entity or a nonprofit organization; and
1.19(5) that has a current road or highway system adequate to facilitate present and
1.20future vehicular traffic expeditiously to and from the facility.
1.21The consideration of clause (5) shall prevail when two competing licensees are
1.22relatively equal regarding other considerations mandated by law or rule.
2.1(b) An application for an additional class A license within the seven-county
2.2metropolitan area may not delay or adversely affect an application for a class A license for
2.3a facility to be located outside the seven-county metropolitan area.

2.4    Sec. 2. Minnesota Statutes 2006, section 240.06, is amended by adding a subdivision
2.5to read:
2.6    Subd. 5b. Sharing of purse set-aside and breeders fund revenue. Notwithstanding
2.7subdivision 5, a class A licensed racetrack operating within the seven-county metropolitan
2.8area may:
2.9(1) enter into an agreement with a horsepersons' organization that represents a breed
2.10other than the breed racing at the licensee's racetrack under which the licensee agrees to
2.11pay a percentage of simulcasting or card club revenues to the purse set-aside account of
2.12another class A licensed racetrack operating within the seven-county metropolitan area.
2.13The licensee may only enter into such an agreement with a horsepersons' organization
2.14that represents a breed other than the breed racing at the licensee's racetrack. All amounts
2.15contributed to a class A racetrack under such an agreement must go to purses for races
2.16run at that racetrack; and
2.17(2) conduct simulcasting on all breeds of horses if it:
2.18(i) enters into an agreement with another class A licensed racetrack within the
2.19seven-county metropolitan area regarding simulcasting of any breed of horses raced at
2.20such other class A licensed racetrack that the class A racetrack elects to simulcast; and
2.21(ii) contributes to the purse set-aside account of another class A licensed racetrack
2.22operating within the seven-county metropolitan area, and to the breeders fund, an amount
2.23equal to the amount that would have been contributed to the set-aside account and the
2.24breeders fund, as required by statute, if the simulcast had been conducted at such other
2.25class A licensed racetrack. The percentages used to determine the amount of the simulcast
2.26contribution to the purse set-aside account and the breeders fund will be the percentage
2.27required under law. Contributions to the purse set-aside account shall be used by such
2.28other class A licensed racetrack for purses for races conducted by that racetrack in the
2.29same manner as if the simulcast had occurred at that racetrack.

2.30    Sec. 3. Minnesota Statutes 2006, section 240.13, subdivision 6, is amended to read:
2.31    Subd. 6. Simulcasting. (a) The commission may permit an authorized licensee to
2.32conduct simulcasting at the licensee's facility on any day authorized by the commission.
2.33All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States
2.34Code, title 15, sections 3001 to 3007.
3.1(b) The commission may not authorize any day for simulcasting at a class A facility
3.2during the racing season, and a licensee may not be allowed to transmit out-of-state
3.3telecasts of races the licensee conducts, unless the licensee has obtained the approval of
3.4the horsepersons' organization representing the majority of the horsepersons racing the
3.5breed involved at the licensed racetrack during the preceding 12 months. In the case of
3.6a class A facility licensed under section 240.06, subdivision 5a, the approval applicable
3.7to the first year of the racetrack's operation may be obtained from the horsepersons'
3.8organization that represents the majority of horsepersons who will race the breed involved
3.9at the licensed racetrack during the first year of the racetrack's operation.
3.10(c) The licensee may pay fees and costs to an entity transmitting a telecast of a
3.11race to the licensee for purposes of conducting pari-mutuel wagering on the race. The
3.12licensee may deduct fees and costs related to the receipt of televised transmissions from a
3.13pari-mutuel pool on the televised race, provided that one-half of any amount recouped in
3.14this manner must be added to the amounts required to be set aside for purses.
3.15(d) With the approval of the commission and subject to the provisions of this
3.16subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes,
3.17to locations outside the state, and the commission may allow this to be done on a
3.18commingled pool basis.
3.19(e) Except as otherwise provided in this section, simulcasting may be conducted
3.20on a separate pool basis or, with the approval of the commission, on a commingled
3.21pool basis. All provisions of law governing pari-mutuel betting apply to simulcasting
3.22except as otherwise provided in this subdivision or in the commission's rules. If pools
3.23are commingled, wagering at the licensed facility must be on equipment electronically
3.24linked with the equipment at the licensee's class A facility or with the sending racetrack
3.25via the totalizator computer at the licensee's class A facility. Subject to the approval of the
3.26commission, the types of betting, takeout, and distribution of winnings on commingled
3.27pari-mutuel pools are those in effect at the sending racetrack. Breakage for pari-mutuel
3.28pools on a televised race must be calculated in accordance with the law or rules governing
3.29the sending racetrack for these pools, and must be distributed in a manner agreed to
3.30between the licensee and the sending racetrack. Notwithstanding subdivision 7 and
3.31section 240.15, subdivision 5, the commission may approve procedures governing the
3.32definition and disposition of unclaimed tickets that are consistent with the law and rules
3.33governing unclaimed tickets at the sending racetrack. For the purposes of this section,
3.34"sending racetrack" is either the racetrack outside of this state where the horse race is
3.35conducted or, with the consent of the racetrack, an alternative facility that serves as the
3.36racetrack for the purpose of commingling pools.
4.1(f) Except as otherwise provided in section 240.06, subdivision 5b, paragraph (b),
4.2if there is more than one class B licensee conducting racing within the seven-county
4.3metropolitan area, simulcasting may be conducted only on races run by a breed that ran at
4.4the licensee's class A facility within the 12 months preceding the event.

4.5    Sec. 4. Minnesota Statutes 2006, section 240.135, is amended to read:
4.6240.135 CARD CLUB REVENUE.
4.7(a) From the amounts received from charges authorized under section 240.30,
4.8subdivision 4 , the licensee shall set aside the amounts specified in this section to be
4.9used for purse payments. These amounts are in addition to the breeders fund and purse
4.10requirements set forth elsewhere in this chapter.
4.11(1) For amounts between zero and $6,000,000, the licensee shall set aside ten
4.12percent to be used as purses.
4.13(2) For amounts in excess of $6,000,000, the licensee shall set aside 14 percent to
4.14be used as purses.
4.15(b) From all amounts set aside under paragraph (a), the licensee shall set aside ten
4.16percent to be deposited in the breeders fund.
4.17(c) The licensee and the horseperson's organization representing the majority of
4.18horsepersons who have raced at the racetrack during the preceding 12 months, or, in the
4.19case of a racetrack licensed under section 240.06, subdivision 5a, will race at the race
4.20during the first year of the racetrack's operation, may negotiate percentages different
4.21from those stated in this section if the agreement is in writing and filed with the Racing
4.22Commission.
4.23(c) (d) It is the intent of the legislature that the proceeds of the card playing activities
4.24authorized by this chapter be used to improve the horse racing industry by improving
4.25purses. The commission shall annually review the financial details of card playing
4.26activities and determine if the present use of card playing proceeds is consistent with the
4.27policy established by this paragraph. If the commission determines that the use of the
4.28proceeds does not comply with the policy set forth herein, then the commission shall direct
4.29the parties to make the changes necessary to ensure compliance. If these changes require
4.30legislation, the commission shall make the appropriate recommendations to the legislature.

4.31    Sec. 5. Minnesota Statutes 2006, section 240.30, subdivision 5, is amended to read:
4.32    Subd. 5. Limitation. (a) Except as provided in paragraph (b), the commission
4.33shall not authorize a licensee to operate a card club unless the licensee has conducted at
5.1least 50 days of live racing at a class A facility within the past 12 months or during the
5.2preceding calendar year.
5.3(b) In the case of a racetrack licensed under section 240.06, subdivision 5a, during
5.4the first 12 months of the racetrack's operation, the commission may authorize the licensee
5.5to operate a card club when the licensee has been assigned dates by the commission for at
5.6least 50 days of live racing during those 12 months.
5.7EFFECTIVE DATE.This section is effective the day following final enactment.