21.8043.01000
Sixty-seventh
Legislative Assembly SENATE BILL NO. 2071
of North Dakota
Introduced by
Judiciary Committee
(At the request of the Racing Commission)
1 A BILL for an Act to amend and reenact sections 53-06.2-01, 53-06.2-03, and 53-06.2-04,
2 subsection 3 of section 53-06.2-07, and sections 53-06.2-10, 53-06.2-10.1, 53-06.2-11, and
3 53-06.2-15 of the North Dakota Century Code, relating to pari-mutuel wagering events and
4 requiring the racing commission to adopt model rules and standards.
5 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
6 SECTION 1. AMENDMENT. Section 53-06.2-01 of the North Dakota Century Code is
7 amended and reenacted as follows:
8 53-06.2-01. Definitions.
9 As used in this chapter:
10 1. "Arena" means any venue where an event may be held either indoors or outdoors.
11 2. "Breeders' fund" means a fund, administered by the commission, established to
12 financially reward breeders or owners of North Dakota-bred horses to be paid in
13 accordance with rules as approved by the commission.
14 2.3. "Certificate system" means the system of betting described in section 53-06.2-10.
15 3.4. "Charitable organization" means a nonprofit organization operated for the relief of
16 poverty, distress, or other conditions of public concern in this state and has been so
17 engaged in this state for at least two years.
18 4.5. "Civic and service club" means a branch, lodge, or chapter of a nonprofit national or
19 state organization that is authorized by its written constitution, charter, articles of
20 incorporation, or bylaws to engage in a civic or service purpose in this state and has
21 so existed in this state for at least two years. The term includes a similar local
22 nonprofit organization, not affiliated with a state or national organization, which is so
23 recognized by a resolution adopted by the governing body of the local jurisdiction in
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1 which the organization conducts its principal activities, and which has existed in this
2 state for at least two years.
3 5.6. "Commission" means the North Dakota racing commission.
4 6.7. "Event" means a race, contest, game, or competition in which a wager can legally be
5 made in the jurisdiction the wager is made.
6 8. "DirectorExecutive director" means the director of the commission.
7 7.9. "Fraternal organization" means a nonprofit organization in this state, which is a
8 branch, lodge, or chapter of a national or state organization and exists for the common
9 business, brotherhood, or other interests of its members, and has so existed in this
10 state for two years. The term does not include a college or high school fraternity.
11 8.10. "Local jurisdiction" means, with respect to a site inside the city limits of a city, that city,
12 and with respect to a site not inside the city limits of a city, the county in which the site
13 is located.
14 9.11. "Other public-spirited organization" means a nonprofit organization recognized by the
15 governing body of the appropriate local jurisdiction by resolution as public-spirited and
16 eligible under this chapter.
17 10.12. "Purse fund" means a fund, administered by the commission, established to
18 supplement and improve purses offered at racetracks within the state.
19 11.13. "Racing" means a live or simulcast horse racingevent under the certificate system or
20 simulcast dog racing under the certificate system.
21 12.14. "Racing promotion fund" means a fund administered by the commission established to
22 assist in improving and upgrading racetracks in the state, promoting horse racing in
23 the state, and developing new racetracks in the state as necessary and approved by
24 the commission.
25 13.15. "Religious organization" means a nonprofit organization, church, body of
26 communicants, or group gathered in common membership for mutual support and
27 edification in piety, worship, and religious observances, and which has been so
28 gathered or united in this state for at least two years.
29 14.16. "Veterans' organization" means a congressionally chartered organization in this state,
30 or a branch, lodge, or chapter of a nonprofit national or state organization in this state,
31 the membership of which consists of individuals who were members of the armed
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1 services or forces of the United States, and which has so been in existence in this
2 state for at least two years.
3 SECTION 2. AMENDMENT. Section 53-06.2-03 of the North Dakota Century Code is
4 amended and reenacted as follows:
5 53-06.2-03. DirectorExecutive director of racing - Appointment - Qualifications -
6 Salary - Duties - Other personnel.
7 1. The commission shall appoint aan executive director of racing. The commission shall
8 establish the executive director's qualifications and salary.
9 2. The executive director shall devote such time to the duties of the office as the
10 commission may prescribe. The executive director is the executive officer of the
11 commission and shall enforce the rules and orders of the commission. The executive
12 director shall perform other duties the commission prescribes.
13 3. The executive director may employ other persons as authorized by the commission.
14 SECTION 3. AMENDMENT. Section 53-06.2-04 of the North Dakota Century Code is
15 amended and reenacted as follows:
16 53-06.2-04. Duties of commission.
17 The commission shall:
18 1. Provide for racing under the certificate system.
19 2. Set racing dates.
20 3. Adopt rules for effectively preventing the use of any substance, compound items, or
21 combinations of any medicine, narcotic, stimulant, depressant, or anesthetic which
22 could alter the normal performance of a racehorse, unless specifically authorized by
23 the commission.
24 4. Supervise and check the making of pari-mutuel pools, pari-mutuel machines, and
25 equipment at all races held under the certificate system.
26 5. Adopt rules governing, restricting, or regulating bids on licensees' concessions and
27 leases on equipment.
28 6. Consider all proposed extensions, additions, or improvements to the buildings,
29 stables, or tracks on property owned or leased by a licensee.
30 7. Exclude from racetracks or simulcast pari-mutuel wagering facilities any person who
31 violates any rule of the commission or any law.
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1 8. Determine the cost of inspections performed under subsection 3 of section 53-06.2-05
2 and require the licensee to pay that cost.
3 9. Report biennially to the legislative council regarding the operation of the commission.
4 10. Adopt by rule model rules and standards, such as the association of racing
5 commissioners international's model rules and standards.
6 11. Provide notice to the North Dakota horsemen's council of meetings held by the
7 commission and permit the North Dakota horsemen's council to participate in the
8 meetings through placement of items on the agenda.
9 11.12. Complete, distribute, and post on the commission's website the minutes of each
10 commission meeting within thirty days of that meeting or before the next meeting of
11 the commission, whichever occurs first.
12 SECTION 4. AMENDMENT. Subsection 3 of section 53-06.2-07 of the North Dakota
13 Century Code is amended and reenacted as follows:
14 3. At least thirty days before the commission issues or renews a license to conduct
15 races, the applicant shall deliver a complete copy of the application to the local
16 jurisdiction governing body. The application to the commission must include a
17 certificate verified by a representative of the applicant, indicating delivery of the
18 application copy to the governing body. If the governing body of the local jurisdiction
19 adopts a resolution disapproving the application for license or renewal and so informs
20 the executive director within thirty days of receiving a copy of the application, the
21 license to conduct races may not be issued or renewed.
22 SECTION 5. AMENDMENT. Section 53-06.2-10 of the North Dakota Century Code is
23 amended and reenacted as follows:
24 53-06.2-10. Certificate system - Rules.
25 The certificate system allows a licensee to receive money from any person present at a live
26 horse race, simulcast horse race, or simulcast dog raceevent who desires to bet on any entry in
27 that raceevent. A person betting on an entry to win acquires an interest in the total money bet
28 on all entries in the raceevent, in proportion to the amount of money bet by that person, under
29 rules adopted by the commission. The licensee shall receive the bets and for each bet shall
30 issue a certificate to the bettor on which is at least shown the number of the race, the amount
31 bet, and the number or name of the entry selected by the bettor. The commission may adopt
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1 rules for place, show, quinella, combination, or other types of betting usually connected with
2 racing.
3 SECTION 6. AMENDMENT. Section 53-06.2-10.1 of the North Dakota Century Code is
4 amended and reenacted as follows:
5 53-06.2-10.1. Simulcast wagering.
6 In addition to racing under the certificate system, as authorized by this chapter, and
7 conducted upon the premises of a racetrack, simulcast pari-mutuel and account wagering may
8 be conducted in accordance with this chapter or rules adopted by the commission under this
9 chapter in accordance with chapter 28-32. Any organization qualified under section 53-06.2-06
10 to conduct racing may make written application to the commission for the conduct of simulcast
11 pari-mutuel and account wagering on racesevents held at licensed racetracksarenas inside the
12 state or racetracksarenas outside the state, or both. Licensure of service providers, totalizator
13 companies, site operators, or organizations applying to conduct or conducting simulcast or
14 account wagering must be approved by the attorney general. The attorney general may not
15 grant a license denied by the commission. Notwithstanding any other provision of this chapter,
16 the commission may authorize any licensee to participate in interstate or international combined
17 wagering pools with one or more other racing jurisdictions. Anytime that a licensee participates
18 in an interstate or international combined pool, the licensee, as prescribed by the commission,
19 may adopt the take-out of the host jurisdiction or facility. The commission may permit a licensee
20 to use one or more of its races or simulcast programs for an interstate or international combined
21 wagering pool at locations outside its jurisdiction and may allow pari-mutuel pools in other
22 states to be combined with pari-mutuel pools in its jurisdiction for the purpose of establishing an
23 interstate or international combined wagering pool. The participation by a licensee in a
24 combined interstate or international wagering pool does not cause that licensee to be
25 considered to be doing business in any jurisdiction other than the jurisdiction in which the
26 licensee is physically located. Pari-mutuel taxes or commissions may not be imposed on any
27 amounts wagered in an interstate or international combined wagering pool other than amounts
28 wagered within this jurisdiction. The certificate system also permits pari-mutuel wagering to be
29 conducted through account wagering. As used in this section, "account wagering" means a form
30 of pari-mutuel wagering in which an individual deposits money in an account and uses the
31 account balance to pay for pari-mutuel wagers. An account wager made on an account
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1 established in this state may only be made through the licensed simulcast service provider
2 approved by the attorney general and authorized by the commission to operate the simulcast
3 pari-mutuel wagering system under the certificate system. The attorney general may not grant a
4 license denied by the commission. An account wager may be made in person, by direct
5 telephone communication, or through other electronic communication in accordance with rules
6 adopted by the commission. Breakage for interstate or international combined wagering pools
7 must be calculated in accordance with the statutes or rules of the host jurisdiction and must be
8 distributed among the participating jurisdictions in a manner agreed to among the jurisdictions.
9 SECTION 7. AMENDMENT. Section 53-06.2-11 of the North Dakota Century Code is
10 amended and reenacted as follows:
11 53-06.2-11. Bet payoff formulas - Uses by licensee of funds in excess of expenses -
12 Payment to general fund.
13 1. For wagering on live horse racing or events:
14 a. In win, place, and show pari-mutuel pools, the licensee may deduct no more than
15 twenty percent of the amount wagered. Of the amount wagered, the licensee
16 shall pay:
17 (1) One-half of one percent to the state treasurer to be deposited in the general
18 fund.
19 (2) One-half of one percent to the commission to be deposited in the breeders'
20 fund.
21 (3) One-half of one percent to the commission to be deposited in the purse
22 fund.
23 (4) One-half of one percent to the commission to be deposited in the racing
24 promotion fund.
25 b. In daily double, quinella, exacta, trifecta, or other combination pari-mutuel pools,
26 the licensee may deduct no more than twenty-five percent of the amount
27 wagered. Of the amount wagered, the licensee shall pay:
28 (1) One-half of one percent to the state treasurer to be deposited in the general
29 fund.
30 (2) One-half of one percent to the commission to be deposited in the breeders'
31 fund.
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1 (3) One-half of one percent to the commission to be deposited in the purse
2 fund.
3 (4) One-half of one percent to the commission to be deposited in the racing
4 promotion fund.
5 2. For simulcast and account wagering:
6 a. In win, place, and show pari-mutuel pools, the licensee may deduct no more than
7 twenty percent of the amount wagered. Except as limited in subdivision c, of the
8 amount wagered by simulcast and account wagering in win, place, and show
9 pari-mutuel pools, the licensee shall pay:
10 (1) One-sixteenth of one percent to the state treasurer to be deposited in the
11 general fund.
12 (2) One-sixteenth of one percent to the commission to be deposited in the
13 breeders' fund.
14 (3) One-sixteenth of one percent to the commission to be deposited in the
15 purse fund.
16 (4) One-sixteenth of one percent to the commission to be deposited in the
17 racing promotion fund.
18 b. Except as limited in subdivision c, of the amount wagered by simulcast and
19 account wagering in daily double, quinella, exacta, trifecta, or other combination
20 pari-mutuel pools, the licensee shall pay:
21 (1) One-sixteenth of one percent to the state treasurer to be deposited in the
22 general fund.
23 (2) One-sixteenth of one percent to the commission to be deposited in the
24 breeders' fund.
25 (3) One-sixteenth of one percent to the commission to be deposited in the
26 purse fund.
27 (4) One-sixteenth of one percent to the commission to be deposited in the
28 racing promotion fund.
29 c. For the fiscal year commencing July 1, 2013, the licensee may not pay more than
30 four hundred thousand dollars. For the fiscal year commencing July 1, 2014, and
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1 thereafter, the licensee may not pay more than four hundred twenty thousand
2 dollars.
3 3. For all pari-mutuel wagering the licensee shall pay to the commission the amount due
4 for all unclaimed tickets and all breakage on the first twenty million dollars wagered in
5 each fiscal year with each service provider. The amount received must