Greyhound Racing HF 2469/SF 2362

Transcription

1 BILL & AMENDMENT SUMMARY Greyhund Racing HF 2469/SF 2362 Status f Bill: First Huse Passage (passed Senate 46 2) Cmmittee: State Gvernment (HF 2406 passed State Gvt 15 8; HF 2469 passed W&M s 23 1) Lead Demcrats: Reps. Prichard and Lensing Flr Manager: Rep. Vander Linden Research Analyst: Mary Braun mary.braun@legis.iwa.gv April 28, 2014 Backgrund SF 2362 has been agreed t by Cuncil Bluffs, Dubuque, and the Iwa Greyhund Assciatin. SF 2362 passed the Senate by a vte f 46 2 n April 25, The Huse will amend HF 2469 t cnfrm t SF 2362; then SF 2362 will be substituted and yur vte will be n the Senate file. Highlights f SF 2362: The bill allws Cuncil Bluffs and Dubuque t discntinue live greyhund racing. In rder t get ut f live racing, Cuncil Bluffs casin will pay $65 millin and Dubuque casin $7 millin ver seven years. Half the mney will g int a retirement fund t prvide the greyhund industry a sft landing frm the reductin f live dg races in Iwa, and the ther half will g t the Iwa Greyhund Assciatin t cnduct live racing at the Dubuque racetrack under specific requirements laid ut in the bill, and upn apprval by the Iwa Racing and Gaming Cmmissin (IRGC) t get licensed. Cuncil Bluffs will remain a racetrack license under 99D (pay 24% tax) and will be allwed t cntinue t simulcast hrse r dg races even when they stp cnducting live races. They have t cnduct live greyhund races fr tw mre years (2014 and 2015). Starting January 1, 2016, they n lnger have t cnduct live greyhund races. Dubuque will have their license changed t a bat/casin nly license under 99F (cntinue t pay 22% tax). They have t cnduct live greyhund racing thrugh Oct. 31 f this year. They will n lnger be able t simulcast hrse r dg races unless under an agreement with the Iwa Greyhund Assciatin. The Iwa Greyhund Assciatin is allwed t g befre the IRGC and get licensed under 99D t cnduct simulcasting f hrse r dg races. If they btain the license, they are allwed t enter int a lease agreement with the Dubuque racetrack t cnduct live races at their racetrack. The initial agreement is fr five years at an annual lease payment f $1. They are allwed a ne five year renewal agreement at a fair market rental rate. Current emplyees at the racetrack must be ffered emplyment at the racetrack and existing cllective bargaining agreements cncerning emplyees must be hnred. The bill als allws the Iwa Greyhund Assciatin t enter agreements with ther casins t cnduct simulcast hrse r dg races at their facilities. Backgrund: Gambling in Iwa, with the exceptin f bing and raffles, began in 1983 with passage f the parimutuel wagering law that allwed hrse and dg racetracks in Iwa. The Iwa Lttery was established in 1985, excursin riverbat gambling was authrized in 1989, and slt machines were authrized at the pari mutuel racetracks in Currently, Iwa has tw greyhund racing tracks, ne in Cuncil Bluffs (peratins began n February 27, 1986) and ne in Dubuque (peratins began June, 1985). At this time, city cuncils, chambers f cmmerce, ecnm 1

2 ic develpment fficials, and license hlders have agreed with the casins t ask the Legislature t clse dg racing in Iwa. The Iwa Greyhund Assciatin is ppsed t shutting dwn dg racing. Iwa is ne f seven states that currently race dgs. The seven states that still have legal and peratinal greyhund racing are Alabama, Arizna, Arkansas, Flrida, Iwa, Texas, and West Virginia. At least 11 states and the territries f Puert Ric and Guam specifically prhibit dg r greyhund racing in their statute (New Hampshire bans live dg racing, but allws simulcast wagering n dg races in their state). Thirteen states have clsed 29 greyhund racetracks acrss the United States since Iwa s greyhund racing is regulated by the Iwa Racing and Gaming Cmmissin (IRGC) and under Iwa Cde Chapters 99D and 99F. Iwa law says the cmmissin must authrize the licensees f pari mutuel dg racetracks lcated in Dubuque Cunty t cnduct gambling games if the licensees schedule at least 130 perfrmances f 12 live races each day during a seasn f 25 weeks. Fr Pttawattamie Cunty, the cmmissin must authrize the licensee t cnduct gambling games if the licensee schedules at least 290 perfrmances f 12 live races each day during a seasn f 50 weeks. The cmmissin must apprve an annual cntract t be negtiated between the annual recipient f the dg racing prmtin fund and each dg racetrack licensee t specify the percentage r amunt f gambling game prceeds which will be dedicated t supplement the purses f live dg races. The law says all parties t negtiatins, including the cmmissin, must cnsider that dg racetracks were built t facilitate the develpment and prmtin f Iwa greyhund racing dgs in Iwa and must negtiate and decide accrdingly. Current racing dates fund n the Iwa Racing and Gaming website ( BLUFFS RUN GREYHOUND PARK Live Greyhund Racing Dates: January 1, 2013, thrugh December 31, 2013 Ttal Perfrmances: perfrmances per week 15 races per perfrmance N racing n Mndays DUBUQUE GREYHOUND PARK Live Greyhund Racing Dates: April 26, 2014, thrugh Octber 26, 2014 Ttal Perfrmances: perfrmances per week 15 races n matinees/14 races n all evenings N racing n Mndays Supprters f clsing live greyhund racing in Iwa tld cmmittee members that this is a dead industry. In Cuncil Bluffs, they say their clubhuse can seat 2,750 peple and n average nly 30 attend races. They are required t race all year; desn t matter if there is rain, snw, sleet, r 100 degree weather. They say the dg s race and n ne is there. In additin, the live handle in Iwa has decreased by 97%, t $5.9 millin in In cmparisn, in 1988, the Iwa live handle was $221.4 millin. Anther cncern is the dramatic decrease fr charitable rganizatin distributins as ppsed t the supplemental purse mney ging t kennel and dg wners. Bth Dubuque and Cuncil Bluffs tld cmmittee members that n emplyee wuld be laid ff with the clsing f the racetracks. A memrandum f agreement has been signed between the Mystique Casin in Dubuque and the Machinist Unin. They als mentined that under this bill, Iwa wuld be the nly state in the cuntry that sets up a retirement fund t help any persns invlved in greyhund racing in Iwa after the clsing f live dg races. Oppnents, including the Iwa Greyhund Assciatin, reminded legislatrs that when pari mutuel gambling was intrduced back in 1983 it was a way t help rural Iwa grw. The dgs are beautiful athletes made t run. Riverbat gambling and slt machines killed dg racing in the early 1990 s. In the mid 1990 s, the industry said help us. At that time, the Iwa Legislature prmised they wuld help keep the industry alive. The casins subsidize the racetracks and negtiate with dg wners n the purse supplements. They nte that there are 60 dg farms in Iwa and 30 kennels running apprximately 1,900 dgs. They als ppse the bill being effective upn enactment. There is n way that all thse dgs can get adpted. They want time frm the general assembly. They have invested millins f dllars in these racetracks. This is an issue that affects real peple. 2

3 Summary f HF 2469 The bill is a shell bill and nly includes intent language that says the General Assembly will adpt greyhund racing language. H 8320 by Vander Linden. The amendment cnfrms the bill t SF 2362 fr substitutin purpses. Summary f SF 2362 Racetrack Enclsure. Adds t the definitin als means real prperty by a licensee under Chapter 99D wh is nt required t cnduct live racing, where pari mutuel wagering n simulcasting hrse r dg races may be cnducted and lawful gambling is authrized and licensed under 99D and 99F. This will allw Cuncil Bluffs t cntinue t d simulcast racing withut cnducting live racing. Current law says the nly way yu can simulcast is if yu als cnduct live races (currently simulcasting is nly dne in Cuncil Bluffs, Dubuque, and Prairie Meadws). Discntinuance f Live Greyhund Racing Cessatin Fees 1. Written ntificatin t discntinue live greyhund racing is required t the Iwa Racing and Gaming Cmmissin (IRGC) by Sept. 1, Dubuque: Their live racing cessatin date is Oct. 31, Beginning Nv. 1, 2014, a licensee authrized t perate a pari mutuel dg racetrack and t cnduct gambling in Dubuque, may, upn agreement t cmply with requirements, discntinue live dg racetrack and maintain a license fr pari mutuel wagering n simultaneusly telecast hrse races and fr cnducting gambling. Cuncil Bluffs. Their live racing cessatin date is Dec. 31, The facility in Pttawattamie cunty may discntinue live racing beginning Jan. 1, If a licensee discntinues live dg racing, all f the fllwing is required: The IRGC is required t determine what prtin f the unexpended mney in the current Dg Racing Prmtin Fund is attributable t the licensee as f their live racing cessatin date and must transfer thse funds t the Iwa Greyhund Pari Mutual Racing Fund, which is created in this bill. Any agreement apprved by the cmmissin fr dg purse supplement payments fr live racing that was discntinued by the licensee will be terminated. Fr Cuncil Bluffs, within 30 days f their live racing cessatin date, the kennel wners and peratrs and all greyhund wners must, at their expense, remve all their prperty including the greyhunds frm the racetrack. These csts may be paid frm the Iwa Greyhund Pari Mutuel Racing Fund. 3. Cessatin Fees. The live racing cessatin fee is paid t the Cmmissin fr depsit in the Iwa Greyhund Pari Mutual Racing Fund. Failure t pay the fee will result in revcatin f their license. The fee is determined as fllws: Dubuque: the payment f $1 millin by Jan. 1, 2015, and $1 millin each Jan. 1 fr six cnsecutive calendar years (ttal $7 millin). Cuncil Bluffs: the payment f $9,285,800 by Jan. 1, 2016, and $9,285,700 each Jan. 1 fr six cnsecutive calendar years (ttal $65 millin). Clarifies that these payments will be made by the manager f the racetrack. If the casins wnership (Ptt. C. & Dubuque C.) r management (Ptt. C.) changes, the entire fee wed must be paid befre a new license is granted. 4. The licensee in Dubuque Cunty will be cnsidered t have a license under 99F (Gambling Bat/Casin nly). They will cntinue t pay the 22% tax. Dubuque will als be allwed t simulcast hrse r dg races until December 31, The licensee in Cuncil Bluffs will remain licensed as a pari mutuel dg racetrack licensed t perate gambling games under 99D (taxed at 24%) and must cmply with the requirements applicable t a dg racetrack licensee except fr thse requirements applicable t live racing. Nthing in this bill requires 3

4 Cuncil Bluffs t simulcast hrse r dg races t remain licensed. 6. Cmpliance with these requirements will cnstitute full satisfactin f any and all liability. This applies t the facilities in Cuncil Bluffs, Dubuque, and the Iwa Greyhund Assciatin. Iwa Greyhund Pari Mutuel Racing Fund The bill creates an Iwa Greyhund Pari Mutuel Racing Fund under the cntrl f the IRGC. Mneys in the fund cme frm remaining mneys in the current Dg Racing Prmtin Fund and frm the cessatin fees. The Cmmissin is required t distribute the mney in the fund pursuant t adpted rules. The bill says the mney is distributed as fllws: 50% f the mneys in the fund must first be distributed t the Iwa Greyhund Assciatin t be depsited in an escrw accunt established by them fr live racing, if a license is btained frm the IRGC by Dec. 15, The IRGC has sle cntrl f distributing the remaining mney. The Cmmissin is required t distribute a prtin f the mneys t n kill animal adptin agencies t facilitate care fr and adptin f greyhunds n lnger racing as a result f the discntinuance f live racing. The Cmmissin may cnsider bjective evidence, including purse payments t greyhund industry participants fr the perid beginning Jan. 1, 2010, thrugh Dec. 31, 2014, in determining the methd f distributin. The Cmmissin may hire an expert t assist in determining the distributin. The Cmmissin may distribute mneys frm the fund t greyhund industry participants and t kennel wners and peratrs and greyhund wners fr csts incurred in remving prperty frm the dg racetrack in Cuncil Bluffs. Prir t adptin f any frmula fr distributin, the Cmmissin must allw fr input frm the greyhund industry participants. Distributin decisins f the Cmmissin are final. The Cmmissin may use mneys in the fund t pay its direct and indirect administrative expenses, including hiring f experts. Members f the Cmmissin, their emplyees, and any experts hired by the Cmmissin will be held harmless against any claim f liability made by any persn arising ut f the distributin f mneys frm the fund. The fund des nt revert and interest earned remains in the fund. Alternative Dg Racetrack and Simulcasting Licensure Lease Agreement with Dubuque 1. The Iwa Greyhund Assciatin may submit an applicatin t the IRGC fr a license under 99D t cnduct pari mutuel wagering n live dg races r t simulcast hrse r dg races. The Iwa Greyhund Assciatin is required t cmply with all ther requirements fr a gaming license. If an applicatin is submitted t the Cmmissin by Oct. 1, 2014, the Cmmissin must determine whether t apprve the applicatin fr a license by Dec. 1, If the Cmmissin apprves the applicatin submitted by the Iwa Greyhund Assciatin, the terms and cnditins f the license must, ntwithstanding any prvisin f law t the cntrary, authrize them t cnduct pari mutuel wagering n live dg races r t simulcast hrse r dg races cnducted at a racetrack enclsure lcated in Dubuque Cunty subject t the requirements f a lease agreement. The terms and cnditins will als authrize them t cnduct parimutuel wagering n simulcast hrse r dg races at the facility f a licensee authrized t cnduct gambling games under 99F, pursuant t an agreement with the licensee f that facility. A licensee issued a license shall cmply with all requirements f chapter 99D. 2. The Iwa Greyhund Assciatin is required t establish an escrw fund under its cntrl fr the depsit f mneys transferred t them. They are required t use the mneys t pay all reasnable and necessary csts assciated with cnducting live dg racing and pari mutuel wagering n simulcast hrse r dg races. This includes, but nt limited t, regulatry and administrative fees, capital imprvements, purse supplements, peratinal csts, bligatins pursuant t any purse supplement agreement as amended and apprved by the Cmmissin, payments f rents fr leased facilities, cst f maintenance f leased facilities, payment fr prducts and services prvided by the licensee authrized t cnduct gambling games in Dubuque Cunty, csts t maintain the license, csts fr psting a bnd, and administrative csts and fees incurred in cnnectin with the pursuit f the cntinuatin f live greyhund racing. Hwever, if the Iwa Greyhund Assciatin is nt licensed t cnduct pari mutuel wagering n live 4

5 races r simulcast hrse r dg races, r fails t cnduct live dg racing during any calendar year beginning n r after Jan. 1, 2015, the Iwa Greyhund Assciatin is required t transfer any unused mneys in the escrw fund t the Cmmissin, fr depsit int the Iwa Greyhund Pari Mutuel Racing Fund and will receive n further distributin frm the fund. The Cmmissin must require an annual audit. 3. If a license is issued, the Iwa Greyhund Assciatin is authrized t enter int an agreement with any licensee authrized t perate an excursin gambling bat r gambling structure under Chapter 99F t cnduct pari mutuel wagering n simulcast hrse r dg races at their facility, withut the current requirement t cnduct live hrse r dg races at the facility. If a lease agreement entered int with the City f Dubuque is terminated, r nt renewed r extended, the Dubuque casin is authrized t enter int an agreement with the Iwa Greyhund Assciatin t cnduct pari mutuel wagering n simulcast hrse r dg races at their facility. If the Iwa Greyhund Assciatin is licensed by the IRGC and ceases t cnduct live dg racing, all revenue generated frm an agreement t simulcast hrse r dg races must be used slely fr the purpse f supplementing Iwa whelped dgs racing at ut f state facilities. 4. Upn written request by the Iwa Greyhund Assciatin t the City f Dubuque by July 8, 2014, the city f Dubuque is authrized t enter int an initial five year lease agreement with a single ptin t renew the lease fr an additinal five years with the Iwa Greyhund Assciatin beginning Jan. 1, 2015, t permit the Iwa Greyhund Assciatin t cnduct pari mutuel wagering n live dg races and simulcast hrse r dg races at the dg racetrack lcated in Dubuque Cunty. The lease agreement is cntingent upn the Iwa Greyhund Assciatin btaining a license frm the IRGC. The lease agreement must prvide: An annual lease payment f $1 during the initial five year lease fr the racetrack enclsure, which includes the racetrack, kennels, grandstand, and space fr a new simulcast facility, and ne five year renewal f the lease agreement at a fair market rental rate. Emplyees at the racetrack enclsure invlved in pari mutuel wagering as f the live racing cessatin date (Oct. 31, 2014) be ffered emplyment by the Iwa Greyhund Assciatin at the racetrack. Existing cllective bargaining agreements cncerning emplyees at the racetrack must be hnred. Live dg racing requirements. The requirements must prvide that the Iwa Greyhund Assciatin cnduct, fr calendar year 2015, n fewer than 60 live racing days with nine live races per day during each racing seasn, and fr calendar year 2016 and subsequent calendar years cvered by the lease agreement, n fewer than 95 live race days with nine live races per day during each racing seasn. Hwever, upn mutual agreement by parties, subject t apprval by the Cmmissin, the number f race days fr ne r mre live racing seasns may be reduced s lng as the Iwa Greyhund Assciatin cnducts a minimum number f live races and racing days during that seasn. Terminatin prvisins, t include terminatin f the agreement n Jan. 1 f the year fllwing the calendar year in which live dg racing as required by the agreement was nt cnducted by the Iwa Greyhund Assciatin. Terms cncerning cntracts entered int fr the cnduct f pari mutuel wagering at the racetrack prir t the live racing cessatin date (Oct. 31, 2014). Any ther related items cncerning the cnduct f pari mutuel wagering at the dg racetrack and the peratin f the dg racetrack facility. 5. If the parties are unable t reach agreement n any f the terms f the initial lease agreement by Oct. 1, 2014, r t reach agreement n the fair market rental rate fr purpses f the ne five year lease renewal by June 30, 2018, if the Iwa Greyhund Assciatin requests arbitratin cncerning the renewal by June 18, 2018, the disputed terms f the lease will be determined by binding arbitratin in accrdance with the rules f the American Arbitratin Assciatin as f the date fr arbitratin. The parties will each select ne arbitratr and the tw arbitratrs will chse a third t cmplete the three persn arbitratin panel. Final ffers are required t be delivered within 14 days after the request fr arbitratin. The parties may cntinue t negtiate all ffers until an agreement is reach r a decisin is rendered by the arbitratrs. Fr purpses f determining the fair market rental rate fr purpses f the 5

6 ne five year lease renewal, either party may argue, and present arguments and evidence that the renewal lease rental rate shuld be based upn the market value f similarly situated undevelped land, r upn its use as a greyhund track. Submissin f the disputed items t the arbitratrs is limited t thse items which the parties have nt reached agreement. Hwever, the arbitratrs have n authrity t extend the term f the lease agreement beynd the initial five year term r the ne five year renewal. 6. Arbitratrs are required t render a decisin within 15 days after the hearing, which is final and binding n the parties, and any decisin f the arbitratrs may be entered in any curt having jurisdictin. This final lease agreement shall nt be subject t the apprval f the City f Dubuque, the Iwa Greyhund Assciatin, the Cmmissin, r any ther gvernment bdy. Each party will pay its wn expenses f the arbitratin. The parties will equally share the filing and ther administrative fees f the American Arbitratin Assciatin and the expenses f the arbitratrs. Bnd f Licensee If the Iwa Greyhund Assciatin is issued a license frm the IRGC, it wuld be required t pst a bnd like ther licensees. The requirements are set by the Cmmissin. Racetrack Enclsure under 99F Updates the definitin f racetrack enclsure under 99F t als mean all real prperty utilized by a licensee under Chapter 99D wh is nt required t cnduct live racing, where pari mutuel wagering n simulcast hrse r dg races may be cnducted and lawful gambling is authrized and licensed under 99F. Dubuque Facility Licensed under 99F 1. Upn applicatin, the Cmmissin is required t issue a license t the licensee f the pari mutuel dg racetrack lcated in Dubuque Cunty as f the effective date f this bill (which is upn enactment) t cnduct gambling games. The licensee is nt required t pay any additinal fees r be assessed any additinal csts fr issuance f the license and is exempt frm further investigatin and examinatin fr a license t cnduct gambling games under Chapter 99F (fr the initial issuance f a license.) 2. T maintain this license under Chapter 99F after July 1, 2014, the licensee is required t prvide written ntificatin t the Cmmissin by Sept. 1, 2014, pay the live racing cessatin fee, and cmply with any ther requirements. The licensee must als pay the annual license fee and ther regulatry fees, the same as ther licensees under 99F. 3. These prvisins are effective upn enactment. Transitin Prvisins Purse Supplements The current purse supplement agreements fr the facility in Cuncil Bluffs will apply thrugh Dec. 31, Braun, Mary [LEGIS] G:\Caucus Staff\mbraun\WORD\State Gvernment\2014\HF greyhunds - Huse summary.dcx April 29, :33 AM 6