Bill Summary – FastDemocracy

67th Legislature                                                                                                  HB 214.1
                                                   HOUSE BILL NO. 214
                                             INTRODUCED BY F. ANDERSON
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   A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING THE BOARD OF HORSERACING DISCRETION IN
   ALLOCATING SOURCE MARKET FEES; PROVIDING THAT THE BOARD MAY ALLOCATE CERTAIN FEES
   TO THE OWNER BONUS PROGRAM AND THE BREEDER BONUS PROGRAM; AND AMENDING SECTION
   23-4-302, MCA.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 23-4-302, MCA, is amended to read:
              "23-4-302.   Distribution of deposits -- breakage. (1) Each licensee conducting the parimutuel
   system for a simulcast race meet shall distribute all funds deposited in any pool to the winner of the parimutuel
   pool, less an amount that in the case of exotic wagering on races may not exceed 26% and in all other races
   may not exceed 20% of the total deposits plus the odd cents of all redistribution to be based on each dollar
   deposited exceeding a sum equal to the next lowest multiple of 10, known as "breakage".
              (2)   Each licensee conducting the parimutuel system for a simulcast race meet shall distribute all funds
   deposited with the licensee in any pool for the simulcast race meet, less an amount that in the case of exotic
   wagering on these races may not exceed 26%, unless the signal originator percentage is higher, in which case
   the Montana simulcast licensee may adopt the same percentage withheld as the place where the signal
   originated, and that in all other of these races may not exceed 20% of the total deposits plus the odd cents of all
   redistribution to be based on each dollar deposited exceeding a sum equal to the next lowest multiple of 10,
   known as "breakage".
              (3)   Each licensee conducting a parimutuel system for a simulcast race meet shall deduct 1% of the
   total amount wagered on the race meet and deposit it in a state special revenue account. The board shall then
   distribute all funds collected under this subsection to live race purses or for other purposes that the board
   considers appropriate for the good of the existing horseracing industry.
              (4)   (a) Source market fees from licensed advance deposit wagering hub operators must be deposited
                                                                 -1-                     Authorized Print Version – HB 214
67th Legislature                                                                                                  HB 214.1
   by the board in the board's state special revenue account.
              (b)   The board shall pay 80% of the source market fees generated between May 1 and the following
   April 30 to live race meet licensees based on each live race meet licensee's percentage of the total annual on-
   track parimutuel handle during the previous live race season. Prior to the beginning of each year's live race
   season, the correct percentage must be distributed by the board to each live race meet licensee to be used for
   race purses or other purposes that the board considers appropriate for the good of the horseracing industry.
              (c) Ten percent of the source market fees paid to the board in a calendar year may be retained by the
   board for the payment of administrative expenses. One-half of the remaining 10% of the source market fees
   paid to the board in a calendar year must may, by January 31 of the following calendar year, be paid to the
   owner bonus program and the other one-half to the breeder bonus program.
              (5)   (a) The parimutuel network licensee conducting fantasy sports league wagering shall distribute all
   funds deposited in the pool to the winner of the parimutuel pool less the takeout amount of not more than 30%
   of the total deposits.
              (b)   The takeout amount must be distributed according to the yearly license agreement between the
   parimutuel facility licensee, the parimutuel network licensee, and the board. No more than 10% of the amount
   collected under this subsection (5)(b) may be appropriated by the legislature for administration of this chapter.
   The remaining portion collected under this subsection (5)(b) must be deposited in a state special revenue
   account. The board shall then distribute this portion to live race purses and for other purposes that the board
   considers appropriate for the good of the existing horseracing industry.
              (c) The odd cents of all redistribution based on each dollar deposited that exceeds a sum equal to the
   next lowest multiple of 10, known as "breakage", as well as unclaimed winning tickets from each parimutuel
   pool, must be distributed by the board to live race purses or for other purposes that the board considers
   appropriate for the good of the existing horseracing industry."
                                                          - END -
                                                                 -2-                     Authorized Print Version – HB 214
Statutes affected: 
HB0214_1.pdf: 23-4-302
HB0214_X.pdf: 23-4-302
Enrolled: 23-4-302
Introduced: 23-4-302