69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session


                            Enrolled

                         House Bill 2104

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Oregon Racing Commission)


                     CHAPTER ................


                             AN ACT


Relating to activities regulated by Oregon Racing Commission;
  creating new provisions; and amending ORS 462.010, 462.040,
  462.050, 462.057, 462.073, 462.075, 462.090, 462.140, 462.190,
  462.240, 462.405, 462.710 and 462.720.

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 462.010 is amended to read:
  462.010. As used in this chapter, unless the context otherwise
requires:
  (1) 'Commission' means the Oregon Racing Commission.
  (2) 'Race meet' means and includes any exhibition of animal
racing where the mutuel system is used in conjunction with any
race.
  (3) 'Licensee' means a person, partnership, corporation,
political subdivision, municipal corporation or any other body
holding a license under this chapter.
  (4) 'Public training track' means any race course   { - the
facilities of which are - }   { + or other facility that is + }
available or open to the public for use in the training or
schooling of racing animals.
  (5) 'Race course' means all the premises used in connection
with the conduct of a race meet, including but not limited to,
the race track, grandstands, paddock, stables, kennels and all
other buildings and grounds adjacent to or appurtenant to the
physical limits of the race track.
  (6) 'Race' shall mean any race conducted in a race meet.
Included are races conducted without wagering provided one or
more races in the meet are conducted with wagering.
  (7) 'Drug' means any narcotic, sedative, anesthetic, analgesic,
drug or other medication of any kind or description intended for
use in any manner - directly or indirectly, internally or
externally - in the diagnosis, treatment, mitigation or cure of
injury or disease or for use in the prevention of disease, which
could affect, in any manner, the racing condition or performance
of an animal as a depressant, stimulant, local anesthetic,
analgesic, sedative or otherwise. The term also includes
substances (other than foods) intended to affect the structure or
any function of the body of the animal and all substances
affecting the central nervous system, respiratory system, or
blood pressure of any animal other than vitamins or supplemental
feeds. Also specifically included is any identified substance
which can affect or interfere with the true and accurate testing


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and analysis of blood, saliva, urine or other samples taken from
racing animals.
  (8) 'Continuous race meet' includes any exhibition of animal
racing continuously at the same race course by two or more
licensees where the mutuel system is used in conjunction with any
race.
  (9) 'Breaks' means the odd cents remaining after the payoff
prices have been computed in accordance with ORS 462.140 (3).
  (10) 'Fiscal year' means a 12-month year, as described in ORS
293.605.
  (11) 'Calendar year' means a 12-month year, January 1 through
December 31.
  (12) 'Mutuel' means a system whereby wagers with respect to the
outcome of a race are placed with a wagering pool in which the
participants are wagering with each other and not against the
operator.
  SECTION 2. ORS 462.040 is amended to read:
  462.040. (1) Race meet licenses granted by the  { + Oregon
Racing + } Commission shall be limited to:
  (a) Licenses for horse and mule race meets (class A).
  (b) Licenses for greyhound race meets (class B).
  (2) { + (a) Except as the commission otherwise may provide by
rule, + } no licensee shall be granted licenses of both classes
nor shall licenses be issued for more than one class of racing on
the same race course, track or location.   { - This subsection
does not apply to licensees subject to ORS 462.057. - }
   { +  (b) In adopting rules to carry out the provisions of this
subsection, the commission shall consider, among other matters,
the impact on existing race meet licensees in the county in which
application for a license referred to in paragraph (a) of this
subsection is made. + }
  (3) The commission shall not grant any license for greyhound
racing at the Oregon State Fair.
  (4) The license shall specify the number of days the race meet
shall continue and the number of races per day.
  SECTION 3. ORS 462.050 is amended to read:
  462.050. (1) Every person making application for a license to
hold a race meet shall file the application with the  { + Oregon
Racing + } Commission.   { - It - }   { + The application + }
shall set forth the time, place and number of days the applicant
desires the meet to continue, together with the applicant's
estimate of the daily average
  { - percentage - }  payment   { - which - }   { + that + } the
applicant will pay to the state upon the gross amount of money
wagered per day and such other information as the commission may
require.
  (2) The commission may, in its discretion, require a
performance bond in an amount not to exceed $10,000, to insure
that the licensee operates a race meet on the license days
granted.
  (3) The application shall be accompanied by a check on a bank
maintaining an office and licensed to do business in Oregon in an
amount equal to the license fee, exclusive of required percentage
payments, required for the number of days for which the license
is requested. If the license is not granted, such deposit shall
be returned promptly to the applicant. If the license is granted,
but for fewer days than applied for, the excess of the daily
deposit shall be returned promptly to the applicant.




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  (4) No applicant designated in ORS 462.057 is eligible for a
return of the license fee unless a race meet license is not
granted.
  (5) When a licensee under ORS 462.062 or 462.067 is prevented
from conducting a race meet for the authorized number of days,
the commission, upon written request therefor, may refund to the
licensee the daily license fee based upon the number of days lost
for good cause shown.   { - A strike or lockout shall not be
deemed to be good cause. - }  { +  The commission is the sole
judge of good cause. + }
  (6) In order to assist the commission in determining whether
there has been compliance with ORS 462.075 (1)(h), (2)(a) and
(4):
  (a) The commission may require each holder of a license under
ORS 462.062 or 462.067 to submit annually to the commission
audited financial statements.
  (b) Each licensee under ORS 462.062 or 462.067 shall make
available to the commission for examination and audit at all
reasonable times, upon notice to the licensee by the commission,
complete and accurate financial records of the licensee's
operations, including the financial records of any other
corporation or business entity owned or controlled by the same
parent corporation or individual as the licensee that provides
services related to the licensee's operations.
  SECTION 4. ORS 462.057 is amended to read:
  462.057. (1) A race meet licensee designated in subsection (2)
of this section shall make payments as follows:
  (a) License fee - $25 per fiscal year payable to the  { +
Oregon Racing + } Commission.
  (b) A percentage of gross mutuel wagering shall be paid to the
commission as follows:
  (A) If the race meet is for horses or mules - one percent.
  (B) If the race meet is for greyhounds -   { - three - }
 { + 1.6 + } percent.
  (c) If the race meet is for horses or mules and the average
daily gross mutuel wagering during the preceding fiscal year
exceeded $150,000, a percentage of the gross mutuel wagering
shall be paid as follows:
  (A) To purses -   { - 5.4 percent, or such greater amount - }
 { + such amount, subject to prior approval by the
commission, + } as the race meet licensee and the horse owners,
or mule owners if the race is for mules, may agree upon,
 { - except on any wager requiring the selection of three or more
separate wagering interests - seven percent, or such greater
amount as the race meet licensee and the horse owners, or mule
owners if the race is for mules, may agree upon, - }  plus an
additional   { - .4 - }   { + .1 + } percent. The additional
 { - .4 - }   { + .1 + } percent shall not become part of the
regular purse account but shall be used only to supplement purses
of races consisting exclusively of Oregon bred horses or mules;
  (B) To the Oregon Thoroughbred Breeders Association,
Incorporated, purse supplements for owners of Oregon bred
thoroughbred horses - one percent of gross mutuel wagering on
thoroughbred horse races, to be apportioned among the owners in
the same ratio that each owner's purses for Oregon bred
thoroughbred horses for the race meet bears to the total purses
for Oregon bred thoroughbred horses for the race meet;
  (C) To the Racing Division of the Oregon Quarterhorse
Association, Incorporated, purse supplements for owners of Oregon
bred quarterhorses - one percent of gross mutuel wagering on


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quarterhorse races, to be apportioned among the owners in the
same ratio that each owner's purses for Oregon bred quarterhorses
for the race meet bears to the total purses for Oregon bred
quarterhorses for the race meet;
  (D) To each association of horse or mule owners, trainers or
breeders recognized by the commission as representing the other
breeds of horses or mules not designated in subparagraphs (B) and
(C) of this paragraph, purse supplements for owners of other
Oregon bred horses or mules, not designated in subparagraphs (B)
and (C) of this paragraph, one percent of gross mutuel wagering
for races of other horses or mules, to be apportioned among the
owners in the same ratio that each owner's purses for other
Oregon bred horses or mules for the race meet bears to the total
purses for other Oregon bred horses or mules for the race meet;
  (E) Subject to prior approval of the commission, each horse or
mule owners, trainers or breeders association designated in
subparagraphs (B), (C) and (D) of this paragraph may use a
portion of the purse supplements as operating expenses only for
receipt, handling and payment of these funds; and
  (F) To a special track fund to be used primarily for improving
the race track facilities benefiting the horse and mule owners,
trainers or breeders in the barn area - .2 percent. All such
funds shall be retained by the licensee in a separate account
from all other funds and no disbursements or transfers shall be
made therefrom without prior approval of the commission. All
physical improvements paid from such funds shall satisfy
reasonable fire, health, quality and construction standards
established or approved by the commission. Unless the commission
provides otherwise, such improvements shall be made on the race
course where the race meet which created the fund was held.
  (d) If the race meet is for greyhounds, a percentage of the
gross mutuel wagering shall be paid as follows:
  (A) To a special fund to be used primarily for the development
and operation of a training track and related facilities upon
which to train greyhounds - .1 percent. All such funds shall be
retained by the licensee in a separate account from all other
funds and no disbursements or transfers shall be made therefrom
without prior approval of the commission. All physical
improvements paid from such funds shall satisfy reasonable fire,
health, quality and construction standards established or
approved by the commission. Unless the commission provides
otherwise, such improvements shall be made on the race course of
the race meet licensee; and
  (B) To the Oregon Greyhound Breeders Association, Incorporated,
purse supplements for owners of Oregon bred greyhounds - .5
percent of gross mutuel wagering, to be apportioned among the
owners, in accordance with the rules of the commission and
subject to approval by the commission, in the same ratio that
each owner's purses for Oregon bred greyhounds for the race meet
bears to the total purses for Oregon bred greyhounds for the race
meet.
  (2) Licensees subject to the provisions of this section are:
  (a) The Pendleton Roundup.
  (b) The Eastern Oregon Livestock Fair.
  (c) The Pacific International Livestock Exposition.
  (d) Any county fair.
  (e) All other nonprofit, fair-type associations which conducted
a licensed race meet in calendar year 1968 or 1969.
   { +  (f) The Pine Valley Fair Association. + }
  SECTION 5. ORS 462.073 is amended to read:


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  462.073. (1) Every licensee who conducts a race meet shall
carry on the books for each race meet an account to be known as
the Unclaimed Winnings Account showing the total amount due on
outstanding winning mutuel wagering tickets and refund tickets
not presented for payment. All funds in the Unclaimed Winnings
Account shall be retained by the licensee and deposited in a
separate account from all other funds { +  in a bank maintaining
an office located in and licensed to do business in Oregon + }.
No payments shall be made by the licensee from this account
except to a person who presents a valid, clearly identifiable
winning or refund ticket. A statement of the balance of the
Unclaimed Winnings Account shall be furnished to the  { + Oregon
Racing + } Commission within 72 hours after any change in the
account balance during the race meet and, after the completion of
the race meet, within five days following the last day of each
month in which there is any change in the account balance.
  (2) Any person claiming to be entitled to any part of winnings
or refunds from a mutuel wagering system operated by a licensee,
who fails to claim the money due prior to the completion of the
race meet at which the mutuel wagering or refund ticket was
purchased, may, within 90 days after the close of the meet, file
with the licensee a claim, in such form as the commission shall
prescribe, accompanied by the valid winning or refund ticket. If
the claimant establishes the right to winnings or refunds from
the mutuel wagering system, the licensee shall pay such moneys to
the claimant. At the expiration of such 90-day period, the holder
of such a winning or refund ticket shall possess no right to any
portion of the wagering or refund and the ticket shall be deemed
void.
  (3) One hundred twenty days after the close of a race meet
conducted by a licensee under this chapter, an amount equal to
the outstanding balance of the Unclaimed Winnings Account shall
be paid to the commission, which shall immediately deposit such
moneys in the General Fund in the State Treasury to the credit of
the Oregon Racing Commission Account. The licensee shall be
subject to a civil penalty of not less than $25 per day after 120
days for failure to pay moneys due to the commission in
accordance with this subsection. Civil penalties under this
subsection shall be imposed as provided in ORS 183.090.
  (4) Notwithstanding the provisions of subsections (2) and (3)
of this section, if a continuous race meet is designated by the
commission, the 90-day period referred to in subsection (2) of
this section shall commence after the close of the continuous
race meet at the race course.
  (5) Notwithstanding the provisions of subsection (2) of this
section, if the 90th day prescribed therein falls upon a
Saturday, Sunday or legal holiday, then the holder shall file
such claim with the licensee on the first business day
thereafter.
  (6) Notwithstanding the provisions of subsection (3) of this
section, a race meet licensee who holds a license under ORS
462.057 shall retain that licensee's unclaimed winnings to
finance physical improvements to the licensee's race course
facility and enclosure. This subsection does not apply to the
unclaimed winnings from those race meets which the licensee holds
at the race course of a licensee who is the holder of a license
under ORS 462.062 or 462.067.
  (7) Notwithstanding the provisions of subsection (3) of this
section, when a race meet is conducted at the state fairgrounds
by a licensee of the Oregon State Fair and Exposition Center,


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unclaimed winnings from the race meet shall be expended for
physical improvements to the race course facility and enclosure
at the state fairgrounds. This subsection does not apply to
unclaimed winnings from pari-mutuel wagering on races conducted
pursuant to ORS 462.700 to 462.740 by a licensee of the Oregon
State Fair and Exposition Center.
  SECTION 6. ORS 462.075 is amended to read:
  462.075. (1) The Oregon Racing Commission may refuse to
 { + issue to or renew the + } license  { + of + } any applicant
if it has reasonable ground to believe that the applicant:
  (a) Has been suspended or ruled off a recognized course in
another jurisdiction by the racing board or commission thereof.
  (b) Is not of good repute and moral character.
  (c) Does not have, when previously licensed, a good record of
compliance with the racing  { + or gaming + } laws of this state
or of any other state and with the rules of the commission or of
any other racing  { + or gaming + } commission.
  (d) If the applicant is a corporation, firm or association, is
not duly authorized to conduct business within the State of
Oregon.
  (e) If an individual, has been convicted of a crime involving
moral turpitude { +  or of any gambling or gambling-related
offense + }, or, if a corporation, firm or association, is in
whole or in part controlled or operated directly or indirectly by
a person who has been convicted of a crime involving moral
turpitude { +  or of any gambling or gambling-related
offense + }.
  (f) If an individual, is engaged in wagering by other than the
mutuel method or in pool selling or bookmaking in any state of
the United States or foreign country or, if a corporation, firm
or association, is in whole or in part controlled or operated
directly or indirectly by a person who is engaged in wagering by
other than the mutuel method or in pool selling or bookmaking in
any state of the United States or foreign country.
  (g) Has been found guilty by the commission of a violation of
this chapter or any rules of the commission.
  (h) Should not, in the best interest of the safety, welfare,
health, peace and morals of the people of the state, be granted a
license.
  (2) The commission may refuse to issue  { + or renew + } a
license to conduct a race meet for any ground set forth in
subsection (1) of this section or if it has reasonable ground to
believe any of the following to be true:
  (a) That the applicant is not possessed of or has not
demonstrated financial responsibility sufficient to meet
adequately the requirements of the enterprise proposed to be
licensed.
  (b) That the applicant is not the true owner of the enterprise
proposed to be licensed, that other persons have ownership in the
enterprise which has not been disclosed or, if the applicant is a
corporation, that any of the stock of such corporation is subject
to a contract or option to purchase at any time during the period
for which the license is issued.
  (c) That the granting of a license in the locality set out in
the application is not demanded by public interest or
convenience.
  (d) That the applicant, if a corporation, transferred any of
its stock after an application for a license to hold a race meet
was filed with the commission without prior commission approval.
The provisions of this paragraph shall not apply to day-to-day


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transfers of stock of a publicly held corporation whose shares
are publicly quoted and regularly traded in the market place
unless the transfer, or a combination of transfers, involves a
controlling interest in or affects the operational control of the
corporation, or involves 10 percent or more of any class of stock
of the corporation.
  (e) That the applicant lacks, or if the applicant is a
corporation, its officers, managerial employees, directors and
principal stockholders lack, the requisite character, reputation,
general business and managerial competence and ability, and
experience in the business of racing so as to justify or command
public confidence.
  (f) That the granting of the application would adversely and
unreasonably affect the economy of the State of Oregon and its
people and the revenues of this state and of other beneficiaries
of racing funds designated in this chapter.
  (3) The commission may   { - deny - }   { + refuse to issue or
renew + } a license to any person who has made a false statement
of a material fact to the commission.
  (4) The commission may   { - deny - }   { + refuse to issue or
renew + } a license to any applicant for a race meet license if
the applicant has failed to meet any monetary obligation in
connection with any race meet held in this state.
  (5) The commission may deny a license to any applicant for a
race meet license under ORS 462.067 unless the applicant for the
license and the greyhound kennel owners, or their representative
association, have previously agreed upon a purse schedule.
  (6) Before refusing to license any applicant for a race meet
license, the commission shall afford the applicant an opportunity
for hearing after reasonable notice as provided in ORS 183.310 to
183.550. When the commission refuses to license an applicant on
the basis of grounds provided in subsection (1)(b), (c) or (h) of
this section, the commission shall specify the particular
activities that constitute the grounds for refusal and shall give
the applicant written notice thereof.
  SECTION 7. ORS 462.090 is amended to read:
  462.090. (1) The  { + Oregon Racing + } Commission may
revoke { + , + }   { - or - } suspend  { + or refuse to renew + }
the license of any licensee upon any of the grounds upon which
the commission could refuse to issue a license, as provided in
ORS 462.075, or of any licensee who has been convicted by the
commission of a violation of this chapter or any rule made
pursuant thereto, or who fails to pay to the commission all sums
required under this chapter.
  (2) The commission may revoke { + , + }   { - or - }  suspend
 { + or refuse to renew + } the license to hold a race meet of
any licensee, if a corporation, which transfers any of its stock
after a license to hold a race meet is issued and before the
termination of the license period except as otherwise authorized
in ORS 462.075 (2)(d).
  (3) Notwithstanding any other provision of law, the commission
or board of stewards or board of judges may suspend, prior to any
hearing, the license of any person whose license has been duly
suspended by an official body of another state or country for
violation of the racing  { + or gaming + } laws or regulations of
that jurisdiction. However, at the time of the license suspension
in Oregon, the person must be notified of the right to request an
immediate hearing to contest the suspension.




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  (4) Revocation of a license shall operate as a forfeiture of
all rights and privileges granted by the commission and of all
sums of money paid to the commission by the offender.
  (5) When grounds exist for the revocation or suspension of a
license issued pursuant to this chapter, the commission may, in
its discretion, impose a civil penalty, not in excess of $1,000,
on the licensee in lieu of or in addition to revoking or
suspending the license. All sums paid the commission pursuant to
this subsection shall be deposited as provided in ORS 462.260.
  (6) Civil penalties under this section shall be imposed as
provided in ORS 183.090.
  SECTION 8. ORS 462.140 is amended to read:
  462.140. (1) No person shall conduct or commit, attempt or
conspire to conduct or commit pool selling, bookmaking, or
circulate handbooks, or bet or wager on any licensed race meet,
other than by the mutuel method. { +  All moneys wagered in
Oregon must be accounted for through a computerized mutuel
wagering system in use by an operating race meet in this state
and approved by the Oregon Racing Commission. Wagering into pools
outside of Oregon via telephone or other device is prohibited
unless the wagering information is transmitted by a licensee that
conducts off-race course mutuel wagering pursuant to ORS 462.700
to 462.740. + }
  (2) Except for the Oregon State Fair and Exposition Center, no
race meet licensee shall take more than 22 percent of the gross
receipts of any mutuel wagering system subject to approval by the
commission. The Oregon State Fair and Exposition Center may take
up to a maximum of 19 percent from gross mutuel wagering
requiring the selection of fewer than three separate wagering
interests and up to a maximum of 25 percent from gross mutuel
wagering requiring the selection of three or more separate
wagering interests.
  (3) A race meet licensee shall compute breaks in the mutuel
system at 10 cents for each dollar wagered in a specific mutuel
pool except, when the breaks in the mutuel system compute to less
than 10 cents total for each dollar wagered, the race meet
licensee shall compute the breaks on that specific mutuel pool at
five cents. When the breaks in the mutuel system compute at 10
cents or more for each dollar wagered, the race meet licensee
shall pay in increments of 10 cents for each dollar wagered. When
the breaks in the mutuel system compute to less than 10 cents for
each dollar wagered, the race meet licensee shall pay five cents
for each dollar wagered. For horses, 45 percent of the breaks
shall be retained by the licensee. For greyhounds, 33-1/3 percent
shall be retained by the licensee. The other 55 percent for
horses and 66-2/3 percent for greyhounds shall be paid as
follows:
  (a) For thoroughbred horse races, to the Oregon Thoroughbred
Breeders Association, Incorporated, to be used by that
association subject to prior approval of the commission, in such
amounts and for such of the following purposes as the association
deems desirable:
  (A) For breeders awards;
  (B) For stallion awards;
  (C) For education of the members of the association and other
horsemen regarding the breeding and racing of thoroughbred
horses; or
  (D) For the promotion and development of thoroughbred horse
breeding and racing in Oregon.



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  (b) For quarterhorse races, to the Racing Division of the
Oregon Quarterhorse Association, Incorporated, to be used by that
association subject to prior approval of the commission, in such
amounts and for such of the following purposes as the association
deems desirable:
  (A) For breeders awards;
  (B) For stallion awards;
  (C) For education of the members of the association and other
horsemen regarding the breeding and racing of quarterhorses; or
  (D) For the promotion and development of quarterhorse breeding
and racing in Oregon.
  (c) For races for any other horses not designated in paragraphs
(a) and (b) of this subsection, to each association of horsemen
recognized by the commission as representing the other breeds of
horses, to be used by that association subject to prior approval
of the commission, in such amounts and for such of the following
purposes as each recognized association deems desirable:
  (A) For breeders awards;
  (B) For stallion awards;
  (C) For education of the members of the association and other
horsemen regarding the breeding and racing of horses; or
  (D) For the promotion and development of horse breeding and
racing in Oregon.
  (d) By a licensee of a race meet for greyhounds:
  (A) One-half thereof to augment purses subject to reasonable
regulations prescribed by the commission.
  (B) The other one-half thereof for benefit and improvement of
the breeding, ownership, training and racing of greyhounds in
Oregon, subject to reasonable regulations prescribed by the
commission. Included, but not by way of limitation, would be
payment of purses for maiden graduation or special schooling
races without wagering, and construction and operation of one or
more appropriate public training facilities within the state. All
such funds shall be retained by the licensee in an account
separate from all other funds, and no disbursements or transfers
shall be made therefrom without prior approval of the commission.
  SECTION 9. ORS 462.190 is amended to read:
  462.190. (1) No person under 18 years of age shall enter upon a
race course at any time where races are being conducted in which
wagering is permitted, except:
  (a) When accompanied by a person 18 years of age or older who
is the person's parent, guardian or spouse; or
  (b) When  { + persons 14 years of age or older are + } in the
performance of a duty incident to employment.
  (2) Notwithstanding subsection (1) of this section, no person
under 12 years of age shall after 6 p.m. enter upon a race course
where races are being conducted in which wagering is permitted,
except this section shall not apply to any annual state or county
fair or   { - exposition in progress - }   { + fair-type
exposition + } on the same premises where a race meet is being
conducted by the same licensee.
  (3) No person under 18 years of age shall, except when in the
performance of a duty incident to employment, loiter in the
wagering area of a race course. The  { + Oregon Racing + }
Commission shall designate and require the marking of the
wagering area at each race course.
  (4) No licensee conducting a race meet shall sell a mutuel
wagering ticket or receipt to a person under 18 years of age or
to a person who is visibly intoxicated.



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  (5) No person shall purchase a mutuel wagering ticket or
receipt for or on behalf of a person under 18 years of age.
  SECTION 10. ORS 462.240 is amended to read:
  462.240.   { - (1) Before entering upon the duties of their
respective offices, the chairman, the vice chairman and the
executive director of the commission shall each separately enter
into a surety company bond, to be approved by the Governor and
the Attorney General, payable to the state, in the penal sum of
$10,000, conditioned upon the faithful performance of their
duties and the correct accounting and payment of all sums
received and within their control under this chapter. - }
    { - (2) - }  Each   { - commissioner - }   { + member of the
Oregon Racing Commission + } shall take and subscribe to an oath
of office of the same form as that prescribed by law for the
elective state offices.
  SECTION 11. ORS 462.405 is amended to read:
  462.405. (1) The board of stewards appointed by the  { + Oregon
Racing + } Commission for a race meet may, after an inquiry and
hearing, impose appropriate sanctions for failure to comply with
the laws and rules of racing and with the authorized commission
or board directives applicable to said race meet, subject to the
following limitations:
  (a) No fine shall exceed $500 per offense.
  (b) No license suspension shall be for a period longer than 365
calendar days from the date of issuance of the order of the board
of stewards.
  (2) Any sanction imposed by the board of stewards shall take
effect on the date so indicated in the board's ruling unless the
effective date is stayed for good cause shown by specific order
of the  { + executive director of the + } commission { + , or a
member of the commission, + } pending commission review.
  (3) In lieu of the board of stewards conducting any inquiry and
hearing provided for by subsection (1) of this section, the board
of stewards may request the commission to appoint and designate a
person to conduct such inquiry and hearing who shall be known as
a hearings master. The hearings master shall have the same
authority and power as the board of stewards in conducting the
inquiry and hearing. Any person adversely affected by any
hearings master ruling has the right to appeal to the commission
as provided for in subsection (4) of this section.
  (4) The board of stewards may refer any matter before it to the
commission for appropriate review or action either before or
after a board hearing or ruling. A person adversely affected by
any board ruling has the right to appeal to the commission for a
review and hearing as provided in ORS 183.310 to 183.550. Such
review shall be perfected by filing a written notice of appeal
with the executive director within 10 days after the board ruling
is issued. The commission is not limited in its actions or in the
sanctions it may impose by any ruling of the board or by any
limitation imposed upon the board by commission rule or
regulation or by subsection (2) of this section.
  SECTION 12. ORS 462.710 is amended to read:
  462.710. (1) Any race meet licensee may make written
application to the  { + Oregon Racing + } Commission for the
conduct of off-race course mutuel wagering:
  (a) On races held at the licensee's race course; or
  (b) On races held at race courses outside this state.
  (2) The application shall be in such form, shall contain such
information and shall be submitted at such time and in such
manner as the commission may require. Information required by the


Enrolled House Bill 2104 (HB 2104-A)                      Page 10



commission may include, but is not limited to { + , + }
 { - : - }
    { - (a) - }  a description of the facilities, equipment and
method of operation whereby the applicant proposes to conduct
off-race course mutuel wagering activities.
    { - (b) If the application is for authority to conduct mutuel
wagering on horse races held at race courses outside this state,
such evidence as the commission considers appropriate regarding
the ability of the applicant to comply with the federal
Interstate Horse Racing Act, 15 U.S.C. ss3001 to 3007, as
amended. - }
  (3) The commission shall authorize off-race course mutuel
wagering upon such terms and conditions regarding the time,
location and manner of operation as the commission considers
appropriate. The commission shall not authorize more than 20
locations for off-race course mutuel wagering to be in operation
at any one time and shall permit off-race course mutuel wagering
only at an authorized location. The commission shall not
authorize the conduct of off-race course mutuel wagering at any
time or place or in any manner which the commission determines
would have substantial adverse impact upon mutuel wagering on
races held at a race course in this state. The commission shall
not authorize a race meet licensee to conduct off-race course
mutuel wagering within the boundaries of any city or county that
has adopted an ordinance prohibiting the conduct of that activity
within the city or county. The commission shall not authorize a
race meet licensee to conduct off-race course mutuel wagering in
any county with a population of less than 250,000 at a location
that is within 40 miles of any other location where another race
meet licensee is conducting a live race meet without written
consent of the live race meet licensee.
  (4) In addition to other grounds provided in this chapter, the
commission may refuse to issue or renew or may revoke or suspend
the license of any race meet licensee, or any employee thereof,
for failure to comply with ORS 462.700 to 462.740, or the rules
adopted pursuant thereto.
  (5) If a race meet licensee proposes to conduct off-race course
mutuel wagering at a physical facility separate from the race
course:
  (a) Individuals working at the separate facility must obtain a
license for such employment from the commission if the
individuals are performing duties for which a license would be
required if the duties were performed at a race course. The fee
for any such license shall be the same as the fee for the license
required if the individual were working at a race course.
  (b) ORS 462.080, 462.190 and 462.195 apply to the race meet
licensee and to individuals at the facility in the same manner as
if the mutuel wagering activity were being conducted at a race
course.
  (6) In addition to other requirements of ORS 462.700 to
462.740, the commission may authorize a race meet licensee to
conduct off-race course mutuel wagering on a particular race that
is held at a race course outside this state subject to the
following conditions:
  (a) The commission may authorize only one such race meet
licensee, that is the holder of a license under ORS 462.062 or
462.067, to conduct off-race course mutuel wagering on the race.
  (b) The commission may authorize off-race course mutuel
wagering only during that time when the licensee is authorized to
conduct mutuel wagering on races at the licensee's race course.


Enrolled House Bill 2104 (HB 2104-A)                      Page 11



  (c) The commission may authorize such off-race course mutuel
wagering to be conducted at the licensee's race course { +  and
any off-race course wagering site approved by the commission + }.
  (d) The commission may authorize a race meet licensee to
conduct off-race course mutuel wagering on either horse races or
greyhound races.
   { +  (e) If a licensee applies for authority to conduct mutuel
wagering on horse races held at race courses outside this state,
the commission may require that the licensee provide such
evidence as the commission considers appropriate regarding the
ability of the licensee to comply with the federal Interstate
Horse Racing Act, 15 U.S.C. 3001 to 3007, as amended. + }
  SECTION 13. ORS 462.720 is amended to read:
  462.720. (1) All moneys wagered in off-race course mutuel
wagering on races held at race courses in this state shall be
included in the computation of the mutuel pool for that race at
the race course. Subject to rules adopted by the  { + Oregon
Racing + } Commission and upon application of the race meet
licensee, the commission may authorize:
  (a) Moneys wagered in off-race course mutuel wagering at
locations outside this state on races held at race courses in
this state to be included in the computation of the mutuel pool
for the race at the  { + Oregon + } race course.
  (b) Moneys wagered in off-race course mutuel wagering at
locations in this state on races held at race courses outside
this state to be included in the computation of the mutuel pool
for the race at the race course.
   { +  (2) Notwithstanding ORS 462.140, in the case of moneys
wagered in off-race course mutuel wagering at a location in this
state and included in the mutuel pool of a race held at a race
course outside this state, the amount taken from the mutuel pool
by the race meet licensee to pay taxes, purses, compensation for
the licensee and other payments shall be the amount required by
statute at the race course outside this state. + }
    { - (2) - }   { + (3) + } A race meet licensee that is
authorized to conduct off-race course mutuel wagering may exact a
surcharge on off-race course mutuel wagering at a rate not
exceeding five percent. At the discretion of the race meet
licensee, the surcharge shall be paid by the wagerer on the
amount wagered to the race meet licensee at the time the wager is
made, or the surcharge shall be paid on the winnings and shall be
deducted at the time winnings are paid. All surcharges collected
by the race meet licensee shall be reported to the commission at
such time and in such manner as the commission may require.
  SECTION 14.  { + Section 15 of this Act is added to and made a
part of ORS chapter 462. + }
  SECTION 15.  { + (1) In addition to mutuel wagering otherwise
authorized by this chapter, account wagering may be conducted
upon such conditions as the commission determines appropriate.
The commission may authorize only a race meet licensee who is the
holder of a license issued under ORS 462.057, 462.062 or 462.067
to conduct account wagering.
  (2) As used in this section, 'account wagering' means a form of
mutuel wagering in which an individual may deposit money in an
account with a race meet licensee and then use the account
balance to pay for mutuel wagering conducted by the licensee. An
account wager may be made in person, by direct telephone call or
by communication through other electronic media by the holder of
the account to the race course. + }
                         ----------


Enrolled House Bill 2104 (HB 2104-A)                      Page 12





Passed by House May 21, 1997


      ...........................................................
                                             Chief Clerk of House

      ...........................................................
                                                 Speaker of House

Passed by Senate June 9, 1997


      ...........................................................
                                              President of Senate














































Enrolled House Bill 2104 (HB 2104-A)                      Page 13





Received by Governor:

......M.,............., 1997

Approved:

......M.,............., 1997


      ...........................................................
                                                         Governor

Filed in Office of Secretary of State:

......M.,............., 1997


      ...........................................................
                                               Secretary of State









































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