69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1823

                         House Bill 2867

Sponsored by Representative ROBERTS (at the request of Multnomah
  Greyhound Track and the New Portland Meadows)


                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Modifies method for determining amount of payment to Oregon
Racing Commission by race meet licensees. Authorizes licensees to
retain unclaimed pari-mutuel winnings.

                        A BILL FOR AN ACT
Relating to pari-mutuel wagering; amending ORS 462.057, 462.062,
  462.067, 462.073 and 462.110.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. 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  { + in such amount as the commission determines
necessary to recover the costs of administration of this
chapter. + }
  { - as follows: - }
    { - (A) If the race meet is for horses or mules - one
percent. - }
    { - (B) If the race meet is for greyhounds - three
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 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 percent. The additional .4 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
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.
  SECTION 2. ORS 462.062 is amended to read:

  462.062. All licensees of race meets for horses, except those
subject to ORS 462.057, shall make payments as follows:
  (1) License fee - $100 per racing day, payable to the  { +
Oregon Racing + } Commission.
  (2)  { + A + } percentage of gross mutuel wagering payable to
the commission   { -  - one percent - }  { +  in such amount as
the commission determines necessary to recover the costs of
administration of this chapter + }.
  (3) Percentage of gross mutuel wagering for purses, in such
amounts as the race meet licensee and the horse owners may agree
upon, subject to approval by the commission. In addition, a
payment of .1 percent, which 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. However,
subject to prior approval of the commission, a portion of the
percentage of gross mutuel wagering designated by this subsection
may be paid to one or more associations of horsemen for operating
expenses and other benefits for horsemen.
  (4) To the Oregon Thoroughbred Breeders Association,
Incorporated, percentage of gross mutuel wagering on thoroughbred
horse races for purse supplements for owners of Oregon bred
thoroughbred horses - one percent, 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.
  (5) To the Racing Division of the Oregon Quarterhorse
Association, Incorporated, percentage of gross mutuel wagering on
quarterhorse races for purse supplements for owners of Oregon
bred quarterhorses - one percent, 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.
  (6) To each association of horsemen recognized by the
commission as representing the other breeds of horses not
designated in subsection (4) or (5) of this section, percentage
of gross mutuel wagering on races for any other breed of horses,
not designated in subsection (4) or (5) of this section, for
purse supplements of owners of other Oregon bred horses - one
percent, to be apportioned among the owners in the same ratio
that each owner's purses for other Oregon bred horses for the
race meet bears to total purses for other Oregon bred horses for
the race meet.
  (7) Subject to prior approval of the commission, each
horsemen's association designated in subsections (4), (5) and (6)
of this section may use a portion of the purse supplements as
operating expenses only for receipt, handling and payment of
these funds.
  (8) Percentage of gross mutuel wagering to a special track fund
of the type, and for the uses and purposes, and subject to the
conditions set forth in ORS 462.057 (1)(c)(F) - .2 percent.
  SECTION 3. ORS 462.067, as amended by section 1, chapter 15,
Oregon Laws 1996, is amended to read:
  462.067. All licensees of race meets except those subject to
ORS 462.057 and 462.062 shall make payments as follows:
  (1) License fee - $100 per racing day, payable to the Oregon
Racing Commission.
  (2)  { + A + } percentage of gross mutuel wagering payable to
the commission   { -  - 1.6 percent - }  { +  in such amount as
the commission determines necessary to recover the costs of
administration of this chapter + }.
  (3) Percentage of gross mutuel wagering on greyhound races
payable to the Oregon Greyhound Breeders Association,
Incorporated - .5 percent for purse supplements for owners of
Oregon bred greyhounds, 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.
Subject to the prior written approval of the commission, the
Oregon Greyhound Breeders Association, Incorporated, may use a
portion of the funds received pursuant to this section and ORS
462.057 (1)(d)(B) to offset expenses for receipt, accounting,
handling and payment of those funds.
  (4) 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.
  SECTION 4. ORS 462.073 is amended to read:
  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. 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 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 { +  and the outstanding balance in
the Unclaimed Winnings Account becomes the property of the
licensee + }.
    { - (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) - }   { + (3) + } Notwithstanding the provisions of
 { - subsections (2) and (3) - }   { + subsection (2) + } 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) - }   { + (4) + } 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, 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 5. ORS 462.110 is amended to read:
  462.110. (1) For the protection of the public, and all members
thereof, the exhibitors and visitors, every race meet licensee
shall carry public liability insurance written on an approved
form by a company licensed to do business in Oregon and in an
amount approved by the  { + Oregon Racing + } Commission.
  (2) Every person licensed to conduct a race meet shall provide
and deliver to the commission a bond signed by a surety company
authorized to do business in Oregon in such form as is required
by the commission and in an amount determined by the commission.
The bond shall be conditioned that the licensee will pay to the
state all moneys due it under this chapter, including moneys
which escheat pursuant to ORS 462.073 and any fines imposed by
any court or by any state agency; to horsemen or greyhound
owners, all moneys owing and all moneys required to be paid for
breakage, purses and Oregon-bred purse supplements; to persons
presenting valid winning tickets, the amounts owing to them; and
to the special track fund or training track fund, all moneys
required to be paid to those funds by statute or rule. In lieu of
a surety bond the commission may accept a certificate of deposit,
an irrevocable letter of credit, or equivalent which will assure
that the obligations described above are paid, up to the
designated amount.
  (3) The Attorney General or the district attorney of the county
wherein the race meet is held shall prosecute all actions on such
bonds on behalf of the state.
  (4) Any person having a claim against the licensee for any
obligation covered by the bond or bond substitute, except cause
of action covered by public liability insurance, may prosecute
the same in an action in behalf of the claimant brought in the
name of the state for the use and benefit and at the expense of
such claimant. The court may award reasonable attorney fees to
the prevailing party in an action under this subsection.   { - If
the amount of the bond or bond substitute is insufficient to
cover all obligations, amounts owing to and for the benefit of
the state pursuant to ORS 462.073 (3) shall have priority over
any other claims. - }  No action may be brought for recovery on
the bond or bond substitute unless written notice of the claim is
made to the commission and to the race meet licensee within 120
days after the last day of the race meet or continuous race meet
in which the obligation arose. The notice must be by registered
mail, certified mail with return receipt or personal service to
the licensee or to the licensee's registered agent. Any action
for recovery on the bond or bond substitute must be brought no
earlier than 60 days and no later than 180 days after service of
the written notice on the race meet licensee or on the licensee's
registered agent.  These limitations shall not apply to claims
for valid winning tickets if the claimant has made a timely claim
pursuant to ORS 462.073 (2).
  (5) Every person licensed to conduct a race meet for horses
shall carry insurance to protect jockeys and, if appropriate,
drivers. The type, form and amount of insurance, and the carrier,
must be approved by the commission.
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