Section 1, Section 63C-32-101 is enacted to read:32. PARI-MUTUEL HORSE RACING COMMISSION1. General Provisions63C-32-101. Chapter definitions.As used in this chapter:(1)"Advance deposit pari-mutuel wager" means a wager on the outcome of a pari-mutuel event by an individual who has opened an account in advance with a permittee.(2)"Breakage" means the amount a permittee retains after rounding down a pari-mutuel payout to the nearest increment of 10 cents.(3)"Breeder award" means money that the commission collects and distributes to promote the improved breeding and development of the horse racing industry.(4)"Breeder Award Account" means the restricted account created in Section 63C-32-602.(5)"Commission" means the Pari-mutuel Horse Racing Commission created in Section 63C-32-201.(6)"Drug" means a substance foreign to a horse's body, other than food, that is intended to affect the structure or function of the horse's body.(7)"Entry" means a horse entered to compete in a horse race.(8)"Exotic wager" means a wager consisting of a single betting interest on three or more entries.(9)"Handle" means the amount of money wagered in a pari-mutuel pool.(10)"Multiple wager" means a wager consisting of a single betting interest on two entries.(11)"Pari-mutuel Commission Account" means the restricted account created in Section 63C-32-601.(12)"Pari-mutuel event" means a horse racing event authorized by the commission.(13)"Pari-mutuel pool" means all the wagers placed on a pari-mutuel event.(14)"Pari-mutuel wagering" means wagering on the outcome of a pari-mutuel event in which:(a)an individual may place a wager of various amounts on an entry in the event;(b)all wagers for the event are pooled and held by the permittee for distribution; and(c)the permittee distributes the total wagers comprising the pari-mutuel pool once the outcome of the event is decided after subtracting:(i)an amount not greater than:(A)for live racing, 25.90%; or(B)for simulcasting, 35%; and(ii)the amount for breakage to holders of tickets on the winning entries.(15)(a)"Participant" means any person with a financial interest or investment in an entry.(b)"Participant" includes the entry's trainer, jockey, and owner.(c)"Participant" does not include a person that places a wager on an entry.(16)"Simulcasting" means the live broadcasting of a pari-mutuel event at a remote location from the pari-mutuel event.(17)"Simulcast wagering" means a wager placed on a simulcast pari-mutuel event.(18)"Steward" means an individual authorized by the commission to enforce this chapter and commission rules under Section 63C-32-203.

Section 2, Section 63C-32-201 is enacted to read:2. Pari-mutuel Horse Racing Commission63C-32-201. Creation -- Membership -- Officers -- Meetings -- Compensation.(1)There is created the Pari-mutuel Horse Racing Commission.(2)The commission is composed of seven individuals, each of whom is appointed by the governor with the advice and consent of the Senate.(3)The governor shall appoint to the commission an individual who:(a)is a resident of the state;(b)reflects the different geographical areas of the state; and(c)can demonstrate experience in horse racing.(4)(a)Except as provided in Subsection (4)(d), a commission member shall serve for a term of four years.(b)The governor may reappoint a commission member to one additional four-year term.(c)A commission member shall continue to serve until the governor appoints and the Senate confirms the member's successor.(d)Notwithstanding Subsection (4)(a), the governor may, at the time of appointment or reappointment, adjust the length of a commission member's term to ensure that terms are staggered so that approximately one half of the commission is appointed every two years.(e)When a vacancy occurs in the commission membership for any reason, the governor shall fill the vacancy for the unexpired term.(f)The governor may remove a commission member for inefficiency, neglect of duty, malfeasance or misfeasance in office, or other good and sufficient cause.(5)(a)A majority of the commission constitutes a quorum.(b)A majority vote of a quorum may act for the commission.(6)The commission shall:(a)elect annually from the commission membership a president and vice-president;(b)hold a fall meeting;(c)hold special meetings at times and places that a majority of the commission determines; and(d)keep a record of the proceedings of the commission.(7)The commission may employ, seasonally or annually:(a)a director who has a working knowledge of pari-mutuel wagering and horse racing;(b)an executive secretary; and(c)a steward described in Section 63C-32-203.(8)(a)A member of the commission who has a personal or private interest in any matter proposed or pending before the commission:(i)shall publicly disclose the member's personal or private interest to the commission; and(ii)may not vote on the proposed or pending matter in which the member has a personal or private interest.(b)A member of the commission who owns or has any interest, or whose spouse or immediate family member has any interest, in an entry in a pari-mutuel event:(i)shall disclose the interest; and(ii)may not participate in a commission decision involving the pari-mutuel event.(9)The commission may provide to a commission member:(a)per diem and travel expenses in accordance with:(i)Section 63A-3-106;(ii)Section 63A-3-107; and(iii)rules that the Division of Finance makes in accordance with Sections 63A-3-106 and 63A-3-107; and(b)compensation of $50 for each day during which the member is engaged in the discharge of commission duties except participation at a commission meeting.(10)(a)The Department of Agriculture and Food, created in Section 4-2-102, shall provide staff support for the commission.(b)The commission shall reimburse the Department of Agriculture and Food for all costs and expenses incurred by the Department of Agriculture and Food to staff the commission.

Section 3, Section 63C-32-202 is enacted to read:63C-32-202. Duties --Rulemaking -- Accounting -- Audit.(1)The commission shall:(a)authorize by permit all pari-mutuel events;(b)supervise all pari-mutuel events;(c)announce the place, time, and duration of all pari-mutuel events the commission authorizes by permit; and(d)keep an accurate and true account of all:(i)funds the commission receives; and(ii)payments the commission issues.(2)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules to:(a)establish a process for receiving and reviewing an application for a license or a permit;(b)establish a process for granting a license or a permit;(c)establish fees, in accordance with Section 63J-1-504, for all licenses and permits under this chapter to ensure that the total revenues received by the commission recover the costs of administering this chapter;(d)establish security access safeguards for licensees to use for advance deposit pari-mutuel wagering;(e)prohibit advertising of advance deposit pari-mutuel wagering that the commission determines to be deceptive to the public;(f)establish the number of pari-mutuel event days required to qualify for a simulcasting permit in a manner that ensures fair and equitable involvement of all affected parties, including consideration of the economic viability of those days to the permit applicant;(g)control, supervise, and direct permittees, including:(i)provisions for resolving scheduling conflicts; and(ii)settling disputes between permittees;(h)govern the supervising, disciplining, suspending, fining, and barring from pari-mutuel events of an individual required to be licensed under this chapter;(i)govern the holding, conducting, and operating of all pari-mutuel events;(j)provide for simulcasting, in accordance with Section 63C-32-402, in a manner that protects the public interest;(k)establish a list of allowed drugs for a horse participating in a pari-mutuel event; and(l)establish qualifications for horses that the commission allows to race in a permitted pari-mutuel event.(3)(a)The state auditor or the state auditor's designee shall:(i)audit the commission's accounting described in Subsection (1)(d) at least once every two calendar years; and(ii)deliver a copy of the audit to the commission and the governor within 30 days after the day on which the auditor or the auditor's designee completes the audit.(b)The commission shall bear the cost of the audit described in Subsection (3)(a).

Section 4, Section 63C-32-203 is enacted to read:63C-32-203. Appointment of stewards.(1)(a)The commission shall appoint no less than one steward and no more than three stewards for each pari-mutuel event, including each simulcast event as described in Section 63C-32-402, to enforce the commission's rules.(b)The commission shall ensure that at least one steward described in Subsection (1)(a) is an employee of the commission.(2)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission shall make rules to grant reasonable and necessary authority to a steward, including authority to:(a)enforce the commission's rules and the requirements in this chapter;(b)rule on the outcome of events;(c)impose a fine or suspension in accordance with Section 63C-32-303; and(d)recommend that the commission impose a larger fine or longer suspension in accordance with Subsection 63C-32-303(4)(b).(3)The commission shall pay a steward an amount set by the commission that includes expenses and mileage.

Section 5, Section 63C-32-204 is enacted to read:63C-32-204. County elections required for pari-mutuel events.(1)The commission may not issue a permit for a pari-mutuel event in a county that:(a)has not voted to allow pari-mutuel events within the county in an election described in Subsection (2); or(b)rejects holding pari-mutuel events within the county in an election described in Subsection (2).(2)On or before December 31, 2025, each county legislative body shall put the question of whether to allow pari-mutuel events within the county to voters in a general or special election called and held in accordance with Sections 20A-1-203 and 20A-1-204.(3)If voters in an election described in Subsection (2) vote to not allow pari-mutuel events within a county, the county legislative body may put the question of whether to allow pari-mutuel events within the county to the voters no sooner than two years after a previous vote.

Section 6, Section 63C-32-301 is enacted to read:3. License and Permit Requirements63C-32-301. License required.(1)The following shall obtain a license from the commission:(a)each applicant for a permit described in Section 63C-32-302;(b)each participant;(c)each employee of a permittee or participant that is directly involved in the horse racing or pari-mutuel wagering activities of the permittee or participant; and(d)any other person that the commission requires to obtain a license under commission rule.(2)The commission may fine a licensee or suspend a license in accordance with Section 63C-32-303 and commission rule.(3)An applicant for a pari-mutuel license shall provide to the commission all information necessary for a criminal background check.

Section 7, Section 63C-32-302 is enacted to read:63C-32-302. Permit required -- Conditions.(1)A person shall obtain a permit from the commission before holding or advertising a pari-mutuel event.(2)(a)An application for a permit shall include:(i)the name and identification of the applicant;(ii)a complete financial statement of the applicant;(iii)information about the purpose and use of the permit, including:(A)the events the applicant will conduct under the permit;(B)the manner of wagering for the events that the applicant will conduct under the permit; and(C)the applicant's proposed controls and supervision of an event and wagering at the event;(iv)the names and identification of the individuals who will supervise the manner of wagering; and(v)the license of the applicant as required by Section 63C-32-301.(b)A permit issued under this Subsection (2) authorizes a pari-mutuel event for the times and places described in the permit.(3)(a)The commission may issue a permit to allow a person, including a county, municipality, or county fair board, to hold pari-mutuel events for up to three years from the date of issuance.(b)A permittee under Subsection (2)(a) may not:(i)assign, lease, contract, or otherwise turn over the operation or management of:(A)a permitted pari-mutuel event; or(B)the pari-mutuel system of wagering; or(ii)allow a person other than the permittee to retain any of the money received for admission to the race or from the operations of the pari-mutuel system.(c)The commission shall revoke the permit of a permittee that violates Subsection (3)(b).(d)The commission may issue, amend, or deny permits at the commission's discretion.(4)To obtain a pari-mutuel permit, the permittee shall agree to contribute to the Breeder Award Account:(a)an amount equal to 0.40% of the total handle wagered during the pari-mutuel event; and(b)a sum equal to 20% of the 5% retained under Subsection 63C-32-404(2)(b) on multiple or exotic wagers.

Section 8, Section 63C-32-303 is enacted to read:63C-32-303. License or permit violations -- Fine -- Suspension -- Appeal.(1)(a)If a person violates a commission rule:(i)a steward may impose a fine not to exceed $1,000; and(ii)the commission may impose a fine not to exceed $10,000.(b)A steward shall report to the commission within 24 hours after the fine is imposed:(i)the amount of the fine;(ii)information about the violation, including which commission rule the person violated; and(iii)the name of the person subject to the fine.(c)The commission or a steward shall send written notification to a person subject to a fine.(d)A written notification described in Subsection (1)(c) shall include:(i)the amount of the fine;(ii)which commission rule the person violated;(iii)whether the person is required to pay the fine within 48 hours in accordance with Subsection (1)(e); and(iv)information regarding how to appeal the fine.(e)A permittee or licensee subject to a fine under this chapter shall pay the fine to the commission within 48 hours after the fine is imposed.(2)(a)If a licensee or permittee violates a commission rule:(i)a steward may suspend the license or permit for up to 30 days; and(ii)the commission may suspend the license or permit for any period of time.(b)A steward shall report to the commission within 24 hours after suspending a license or permit:(i)that the steward imposed a license or permit suspension;(ii)information about the violation, including which commission rule the licensee or permittee violated; and(iii)the name of the licensee or permittee subject to suspension.(c)The commission or a steward shall send written notification to a licensee or permittee subject to a license or permit suspension.(d)A written notification described in Subsection (2)(c) shall include:(i)the length of the suspension;(ii)which commission rule the licensee or permittee violated; and(iii)information regarding how to appeal the suspension.(3)The commission or steward imposing a fee or suspension shall ensure that the amount of the fee or the length of the suspension is proportional to the seriousness of the violation.(4)(a)A person may appeal a fine or suspension in writing to the commission within five days after the day on which the person is notified of the fine or suspension.(b)The commission may:(i)affirm or reverse a steward's imposition of a fee or suspension; or(ii)increase or decrease a fine or suspension.

Section 9, Section 63C-32-304 is enacted to read:63C-32-304. Bond of permittees -- Conditions -- Prosecution of bond actions.(1)(a)Subject to the condition described in Subsection (1)(b), the commission may require a permittee to deliver to the commission, in an amount not less than $5,000:(i)a bond signed by a surety company authorized to do business in the state in a form and amount that the commission specifies;(ii)a certificate of deposit; or(iii)an irrevocable letter of credit.(b)The commission may accept the delivery described in Subsection (1)(a) if the permittee:(i)pays to the commission all monies due under this chapter; and(ii)performs other obligations as the commission may require.(c)The commission may exempt a political subdivision, as that term is defined in Section 17-1-102, from the requirements of this Subsection (1).(2)The county attorney of the county in which a pari-mutuel event is held may prosecute an action on the bond described in Subsection (1) on behalf of the commission against a permittee for any reason except for an action involving public liability insurance.

Section 10, Section 63C-32-401 is enacted to read:4. Pari-mutuel Events63C-32-401. Commission supervision of pari-mutuel events.(1)The commission shall:(a)observe and supervise the conduct of pari-mutuel wagering at a pari-mutuel event in accordance with the event's permit; and(b)make the commission's rules available to a participant of an event.(2)(a)The commission may appoint a steward in accordance with Section 63C-32-203, to observe and supervise the conduct of pari-mutuel wagering at a pari-mutuel event.(b)A steward of the commission may freely access each event to which the commission assigns the steward, including accessing associated pari-mutuel booths and records.

Section 11, Section 63C-32-402 is enacted to read:63C-32-402. Simulcasting.(1)A person may not conduct simulcasting without a permit described in Section 63C-32-302.(2)The commission may not issue a permit to an applicant for simulcasting unless the applicant is authorized to conduct a pari-mutuel event other than simulcasting.(3)A permittee may conduct simulcasting off the permitted premises of a pari-mutuel event if the county legislative body in the county hosting the simulcasting grants approval.(4)(a)Except as provided in Subsection (4)(b), a permittee may not conduct simulcasting within 100 miles of the premises of a permitted pari-mutuel event.(b)The commission may waive the 100-mile limitation described in Subsection (4)(a) if a permit application for simulcasting includes written approval from the permittee of the pari-mutuel event within the 100-mile limitation.

Section 12, Section 63C-32-403 is enacted to read:63C-32-403. Advance deposit pari-mutuel wagering.(1)The commission may authorize a permittee to conduct advance deposit pari-mutuel wagering at a pari-mutuel event.(2)An authorized permittee under Subsection (1) may not:(a)accept an advance deposit pari-mutuel wager on an advance deposit pari-mutuel wagering account that an individual other than the account owner makes; or(b)allow an individual under 18 years old to open, own, or access an advance deposit pari-mutuel wagering account.(3)An authorized permittee under Subsection (1) shall:(a)confirm the identification of the account owner by using methods and technologies that the commission approves;(b)provide a full accounting and verification of the sources of wagers at the request of the commission and in a form that the commission requires;(c)allow the commission and a commission representative, steward, and agent to access the permittee's premises to ensure the permittee's compliance with this chapter and commission rules; and(d)include a statement in all forms of advertising for advance deposit pari-mutuel wagering accounts that individuals under 18 years old are not allowed to open, own, or access an advance deposit pari-mutuel wagering account.

Section 13, Section 63C-32-404 is enacted to read:63C-32-404. Takeouts -- Payment -- Breakage.(1)(a)On or before the Wednesday following a permittee's pari-mutuel event, a permittee shall:(i)file a report with the commission regarding the total amount of money wagered during an event; and(ii)pay into the Pari-mutuel Commission Account an amount equal to 3% of the total amount described in the report under Subsection (1)(a)(i).(b)The commission shall transfer one-third of the amount described in Subsection (1)(a)(ii):(i)if the permittee is located within the borders of a city or town, in equal shares to the county and the city or town in which the permittee is located; or(ii)if the permittee is not located within the boundaries of a city or town, to the county in which the permittee is located.(2)Subject to Subsection 63C-32-302(5)(a), a permittee may retain an amount equal to:(a)19.4% of the total handle, as shown by the report described in Subsection (1)(a)(i);(b)5% of the total amount wagered on multiple or exotic wagers;(c)the breakage, not to exceed 10 cents per winning wager; and(d)unclaimed tickets not claimed within one year following the event for:(i)the expenses of the event;(ii)a purse payout; and(iii)promotion of the racing industry.

Section 14, Section 63C-32-405 is enacted to read:63C-32-405. Horse identification -- Stimulation or retardation of animals prohibited -- Animal testing.(1)A permittee shall ensure that every horse participating in the permittee's pari-mutuel event:(a)participates under the horse's registered name; and(b)is accurately identified.(2) A person may not:(a)substitute a horse approved as an entry; or(b)use any device or means to conceal or confuse the name and identification of a horse.(3)It is unlawful for any person to use or permit to be used a drug or mechanical or electrical device of any kind to stimulate or retard an animal in a permitted pari-mutuel event, except as allowed by the commission under Subsection 63C-32-202(2)(j).(4)(a)A commission member, agent of the commission, or steward may require the testing of an animal to determine whether the animal has been stimulated or retarded in violation of Subsection (3).(b)A veterinarian licensed under Title 58, Chapter 28, Veterinary Practice Act, shall supervise the testing described in Subsection (4)(a).

Section 15, Section 63C-32-501 is enacted to read:5. Criminal Violations63C-32-501. Operating without a permit -- Criminal penalty.(1)It is unlawful for an individual to hold or conduct a pari-mutuel event or a pari-mutuel system of wagering without a permit described in Section 63C-32-302.(2)A violation of Subsection (1) is a third degree felony.

Section 16, Section 63C-32-502 is enacted to read:63C-32-502. Bribery -- Criminal penalty.(1)It is unlawful bribery for an individual:(a)to give, promise to give, or attempt to give any money, bribe, or thing of value with intent to influence a person to dishonestly umpire, manage, direct, judge, preside, officiate at, or participate in a pari-mutuel event with the intention or purpose of affecting the result of the event; or(b)to receive, agree to receive, or attempt to receive any money, bribe, or thing of value with intent to influence a person to dishonestly umpire, manage, direct, judge, preside, officiate at, or participate in a pari-mutuel event with the intention or purpose of affecting the result of the event.(2)A violation of Subsection (1) is a third degree felony.

Section 17, Section 63C-32-503 is enacted to read:63C-32-503. Touting -- Criminal penalty.(1)It is unlawful touting for an individual:(a)to knowingly persuade, procure, cause, or attempt to persuade, procure, or cause another person to wager on an animal in a pari-mutuel event; or(b)to ask or demand compensation as a reward for information or purported information given in a circumstance described in this Subsection (1).(2)A violation of Subsection (1) is a class B misdemeanor.

Section 18, Section 63C-32-504 is enacted to read:63C-32-504. Betting by minors -- Criminal penalty.(1)It is unlawful for an individual under 18 years old to place or be allowed to place a wager on a pari-mutuel event.(2)A violation of Subsection (1) is a class B misdemeanor.

Section 19, Section 63C-32-505 is enacted to read:63C-32-505. Refusal to leave premises -- Criminal penalty.(1)A commission member, agent of the commission, or steward may exclude from a pari-mutuel event an individual who has been convicted of:(a)bribery as described in Section 63C-32-502;(b)touting as described in Section 63C-32-503; or(c)underage betting or permitting underage betting as described in Section 63C-32-504.(2)It is unlawful for an individual described in Subsection (1) to refuse to leave the premises of a pari-mutuel event when the commission member, agent of the commission, or steward excludes the individual from attendance under Subsection (1).(3)A violation of Subsection (2) is a class B misdemeanor.

Section 20, Section 63C-32-601 is enacted to read:6. Restricted Accounts63C-32-601. Pari-mutuel Commission Restricted Account.(1)There is created a restricted account within the General Fund known as the Pari-mutuel Commission Restricted Account.(2)The account shall consist of:(a)all sums paid to the commission under this chapter except contributions from permittees to the Breeder Award Restricted Account described in Subsection 63C-32-302(4);(b)fines and penalties that the commission receives; and(c)interest earned on money in the account.(3)Subject to appropriation by the Legislature, money in the account may be used to pay the expenses the commission incurs in enforcing this chapter, including to:(a)reimburse the costs incurred by the Department of Agriculture and Food, created in Section 4-2-102, to staff the commission under Subsection 63C-32-201(10); and(b)pay and reimburse a steward under Section 63C-32-203.(4)The commission may not incur expenses that exceed the total money in the Pari-mutuel Commission Account.

Section 21, Section 63C-32-602 is enacted to read:63C-32-602. Breeder Award Restricted Account.(1)There is created a restricted account within the General Fund known as the Breeder Award Restricted Account.(2)The account shall consist of:(a)contributions the commission receives described in Subsection 63C-32-302(4); and(b)interest earned on money in the account.(3)Subject to appropriation by the Legislature, money in the account may be used to promote, at the commission's discretion:(a)improved breeding practices;(b)development of the horse industry; and(c)the horse racing commission created in Section 4-38-103.

Section 22. Effective Date.This bill takes effect on May 7, 2025.