Bill Summary – FastDemocracy

68th Legislature                                                                                                    SB 133.1
                                                   SENATE BILL NO. 133
                                            INTRODUCED BY T. MCGILLVRAY
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   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO FANTASY SPORTS
   LEAGUES AND GAMBLING CONDUCTED BY THE BOARD OF HORSERACING; REMOVING THE BOARD
   OF HORSERACING'S AUTHORITY OVER PARIMUTUEL FANTASY SPORTS GAMBLING; REVISING
   DEFINITIONS; AND AMENDING SECTIONS 23-4-101, 23-4-104, 23-4-105, 23-4-201, 23-4-202, 23-4-301, 23-
   4-302, 23-4-304, 23-5-801, 23-5-802, AND 23-5-805, MCA.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 23-4-101, MCA, is amended to read:
              "23-4-101.   Definitions. Unless the context requires otherwise, in this chapter the following definitions
   apply:
              (1)      "Advance deposit wagering" means a form of parimutuel wagering in which a person deposits
   money in an account with an advance deposit wagering hub operator licensed by the board to conduct advance
   deposit wagering. The money is used to pay for parimutuel wagers made in person, by telephone, or through a
   communication by other electronic means on horse or greyhound races held in or outside this state.
              (2)      "Advance deposit wagering hub operator" means a simulcast and interactive wagering hub
   business licensed by the board that, through a subscriber-based service located in this or another state,
   conducts parimutuel wagering on the races that it simulcasts and on other races that it carries in its wagering
   menu and that uses a computer that registers bets and divides the total amount bet among those who won.
              (3)      "Board" means the board of horseracing provided for in 2-15-1809.
              (4)      "Board of stewards" means a board composed of three stewards who supervise race meets.
              (5)      "Department" means the department of commerce provided for in Title 2, chapter 15, part 18.
              (6)   "Fantasy sports league" has the meaning provided in 23-5- 801.
              (7)(6)   "Immediate family" means the spouse, parents, children, grandchildren, brothers, or sisters of
   an official or licensee regulated by this chapter who have a permanent or continuous residence in the
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   household of the official or licensee and all other persons who have a permanent or continuous residence in the
   household of the official or licensee.
              (8)(7)     "Match bronc ride" means a saddle bronc riding contest consisting of two sections known as a
   "long go" and a "short go" in which the win, place, and show winners are determined by judges of the rides for
   each go.
              (9)(8)     "Minor" means a person under 18 years of age.
              (10)(9) "Montana wager" means a parimutuel wager that is placed at a race track in Montana or on a
   race being conducted in Montana or any parimutuel wager placed by a Montana resident on a race conducted
   outside of Montana.
              (11) "Parimutuel facility" means a facility licensed by the board at which fantasy sports leagues are
   conducted and wagering on the outcome under a parimutuel system is permitted.
              (12) "Parimutuel network" means an association licensed by the board to compile and distribute
   fantasy sports league rosters and weekly point totals for licensed parimutuel facilities and to manage statewide
   parimutuel wagering pools on fantasy sports leagues.
              (13)(10)           "Persons" means individuals, firms, corporations, fair boards, and associations.
              (14)(11)           (a) "Race meet" means racing of registered horses or mules, match bronc rides, and
   wild horse rides at which the parimutuel system of wagering is used. The term includes horseraces, mule races,
   and greyhound races that are simulcast.
              (b)        The term does not include live greyhound racing.
              (15)(12)           "Racing" means live racing of registered horses or mules and simulcast racing of
   horses, mules, and greyhounds.
              (16)(13)           "Simulcast" means a live broadcast of an actual horserace, mule race, or greyhound
   race at the time it is run. The term includes races of local or national prominence.
              (17)(14)           "Simulcast facility" means a facility at which horseraces, mule races, or greyhound
   races are simulcast and wagering on the outcome is permitted under the parimutuel system.
              (18)(15)           "Simulcast parimutuel network" means an association that has contracted with the
   board to receive or originate intrastate and interstate simulcast race signals, relay the race signals to licensed
   simulcast facilities, and manage statewide parimutuel wagering pools on simulcast races or has been licensed
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   by the board to operate a statewide parimutuel wagering pool for fantasy sports leagues. The board may act as
   a simulcast parimutuel network provider with respect to simulcast races.
              (19)(16)            "Source market fee" means the portion of a wager made with a licensed advance
   deposit wagering hub operator by a Montana resident that is paid to the board.
              (20)(17)            "Steward" means an official hired by the department and by persons sponsoring a race
   meet to regulate and control the day-to-day conduct and operation of a sanctioned meet.
              (21)(18)            "Wild horse ride" means a wild horse riding contest in which three-person teams
   attempt to saddle a wild horse and ride it completely around a track with the first to do so declared the winner."
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              Section 2. Section 23-4-104, MCA, is amended to read:
              "23-4-104.      Duties of board. The board shall adopt rules to govern race meets and the parimutuel
   system. These rules shall include the following:
              (1)        definitions;
              (2)        auditing;
              (3)        supervision of the parimutuel system;
              (4)        corrupt practices;
              (5)        supervision, duties, and responsibilities of the executive secretary, presiding steward, racing
   secretary, and other racing officials;
              (6)        licensing of all personnel who have anything to do with the substantive operation of racing;
              (7)        the establishment of dates for race meets and meetings in the best interests of breeding and
   racing in this state;
              (8)        the veterinary practices and standards that must be observed in connection with race meets;
              (9)        absolute responsibility of trainers for the condition of horses and mules, regardless of the acts
   of third parties;
              (10)       licensing or renewal of a license of a person whose license has been suspended by the board
   or another horseracing jurisdiction;
              (11)       setting license fees commensurate with the cost of issuing a license;
              (12)       the time, conduct, and supervision of simulcast races and fantasy sports leagues and
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   parimutuel betting on simulcast races and fantasy sports leagues;
              (13)   licensing, approval, and regulation of simulcast facilities; and
              (14)   licensing, approval, and regulation of match bronc rides and wild horse rides."
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              Section 3. Section 23-4-105, MCA, is amended to read:
              "23-4-105.   Authority of board. (1) The board shall license and regulate racing, match bronc rides,
   and wild horse rides and review race meets held in this state under this chapter. All percentages withheld from
   amounts wagered, amounts set aside pursuant to 23-4-202(4)(d), percentages collected pursuant to 23-4-
   204(3), percentages collected pursuant to 23-4-302(3) and (5)(b), money collected pursuant to 23-4-304(1)(a)
   and (1)(b), and money received from the state lottery and sports wagering commission pursuant to 23-7-314
   must be deposited in a state special revenue account and are statutorily appropriated to the board as provided
   in 17-7-502. The board shall then distribute all funds collected under 23-4-202(4)(d), 23-4-204(3), 23-4-302(3)
   and (5)(b), and 23-4-304(1)(a) and (1)(b) to live race purses or for other purposes for the good of the existing
   horseracing industry. If the board decides to authorize new forms of racing, including new forms of simulcast
   racing, not currently authorized in Montana, the board shall do so after holding public hearings to determine the
   effects of these forms of racing on the existing saddle racing program in Montana. The board shall consider
   both the economic and safety impacts on the existing racing and breeding industry.
              (2)    Funds retained by the board in a state special revenue fund pursuant to 23-4-302(1) and (4)
   are statutorily appropriated to the board as provided in 17-7-502 for the operation of a simulcast parimutuel
   network and for other purposes that the board considers appropriate for the good of the existing horseracing
   industry."
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              Section 4. Section 23-4-201, MCA, is amended to read:
              "23-4-201.   Licenses -- contracts. (1) (a) A person may not hold a race meet or conduct fantasy
   sports league wagering through a parimutuel facility, parimutuel network, or a simulcast parimutuel network
   conducting a fantasy sports league in this state without a valid license issued by the department under this
   chapter. A person applying for a license to hold a race meet under this chapter shall file with the department an
   application that must set forth the time, place, and number of days the license will continue and other
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   information the board requires.
              (b)      A person may not conduct simulcast racing through a simulcast parimutuel network without
   having entered into a contract with the board.
              (2)      A person who participates in a race meet, except for a match bronc ride or a wild horse ride,
   must be licensed and charged an annual fee set by the board. The annual fee must be paid to the department
   and used for expenses of administering this chapter. Each person holding a license under this chapter shall
   comply with this chapter and with the rules adopted and orders issued by the board.
              (3)      A license may not be issued to a person who has failed to pay the fees, taxes, or money
   required under this chapter.
              (4)      An application to hold a race meet must be submitted to the department, and the board shall
   act on the application within 30 days. The board is the sole judge of whether the race meet may be licensed
   and the number of days the meet may continue.
              (5)      The board shall require that a fair board and an independent racing association conducting a
   race meet comply with the requirements of the rules adopted by the board before granting a license.
              (6)      A racing association consisting of a local fair board or an association approved by a local fair
   board may submit a contract proposal to the board to hold a simulcast race meet in a simulcast facility.
              (7)      An unexpired license held by a person who violates this chapter or who fails to pay to the
   department the sums required under this chapter is subject to cancellation and revocation by the board.
              (8)   A license to operate a parimutuel facility conducting fantasy sports league wagering may not be
   issued to an applicant unless the applicant is also licensed under Title 23, chapter 5."
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              Section 5. Section 23-4-202, MCA, is amended to read:
              "23-4-202.   Penalty for violations of law -- authority of board -- judicial review. (1) (a) A person
   holding a race meet or an owner, trainer, or jockey participating in a race meet, except a participant in a match
   bronc ride or a wild horse ride, without first being licensed under this chapter or a person violating this chapter
   is guilty of a misdemeanor.
              (b)      A person operating a parimutuel facility, parimutuel network, or simulcast parimutuel network
   that conducts fantasy sports league wagering without first being licensed under this chapter or a person
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   violating this chapter is guilty of a misdemeanor.
              (c)   A person conducting simulcast racing through a simulcast parimutuel network without having
   entered into a contract with the board is guilty of a misdemeanor.
              (2)      The board or, upon the board's authorization, the board of stewards of a race meet at which the
   stewards officiate may exclude from racecourses a person whom the board or board of stewards considers
   detrimental to the best interest of racing as defined by rules of the board.
              (3)      As its own formal act or through an act of a board of stewards of a race meet, the board may
   suspend or revoke any license issued by the department to a licensee and assess a fine, not to exceed $1,000,
   against a licensee who violates any of the provisions of this chapter or any rule or order of the board. In addition
   to the suspension or revocation and fine, the board may prohibit application for relicensure for a 2-year period.
   Fines collected under this subsection must be deposited in the general fund.
              (4)      The board shall promulgate rules implementing this chapter, including the right to a hearing for
   individuals against whom action is taken or proposed under this chapter. The rules may include provisions for
   the following:
              (a)      summary imposition of penalty by the stewards of a race meet, including a fine and license
   suspension, subject to review under the contested case provisions of the Montana Administrative Procedure
   Act;
              (b)      stay of a summary imposition of penalty by either the board or board of stewards;
              (c)      retention of purses pending final disposition of complaints, protests, or appeals of stewards'
   rulings;
              (d)      setting aside of up to 3% of exotic wagering on races, including simulcast races, to be
   deposited in a state special revenue account. The board shall then distribute all funds collected under this
   subsection (4)(d) to live race purses or for other purposes that the board considers appropriate for the good of
   the existing horseracing industry.
              (e)      using 2% of exotic wagering on live racing to be immediately and equally distributed to all
   purses except stakes races;
              (f)      assessment of penalty and interest on the late payment of fines, which must be paid before
   licenses are reinstated;
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              (g)         definition of exotic forms of wagering on races to be allowed;
              (h)         standards for simulcast facilities;
              (i)         conduct and supervision of simulcast races and parimutuel betting or wagering on simulcast
   races;
              (j)         conduct and supervision of parimutuel facilities, parimutuel networks, simulcast parimutuel
   networks, and parimutuel wagering on fantasy sports leagues conducted at parimutuel facilities;
              (k)      conduct and supervision of match bronc rides and wild horse rides; and
              (l)(k)      conduct and supervision of advance deposit wagering.
              (5)         The district court of the first judicial district of the state has exclusive jurisdiction for judicial
   review of cases arising under this chapter."
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              Section 6. Section 23-4-301, MCA, is amended to read:
              "23-4-301.       Parimutuel betting -- other betting illegal -- penalty. (1) It is unlawful to make, report,
   record, or register a bet or wager on the result of a contest of speed, skill, or endurance of an animal, whether
   the contest is held within or outside this state, except under 23-5-502 or this chapter.
              (2)         A licensee conducting a race meet under this chapter may provide a place in the race meet
   grounds or enclosure where the