§ 4-35-7-12 — Mandatory support for the horse racing industry; allocation among breeds; regulatory oversight

Note: This version of section amended by P.L.108-2019, SEC.76.
See also following version of this section amended by P.L.168-2019,
SEC.18.
Sec. 12. (a) The Indiana horse racing commission shall
enforce the requirements of this section.
(b) Subject to section 12.5 of this chapter, a licensee shall before the
fifteenth day of each month distribute for the support of the Indiana
horse racing industry the adjusted gross receipts of the gambling game
wagering from the previous month at each casino operated by the
licensee that is determined under section 16 or 17 of this chapter.
(c) A licensee shall distribute the money devoted to horse racing
purses and to horsemen's associations under this subsection as follows:
(1) Five-tenths percent (0.5%) shall be transferred to horsemen's
associations for equine promotion or welfare according to the
ratios specified in subsection (f).
(2) Two and five-tenths percent (2.5%) shall be transferred to
horsemen's associations for backside benevolence according to
the ratios specified in subsection (f).
(3) Ninety-seven percent (97%) shall be distributed to promote
horses and horse racing as provided in subsection (e).
(d) A horsemen's association shall expend the amounts distributed
to the horsemen's association under subsection (c)(1) through (c)(2) for
a purpose promoting the equine industry or equine welfare or for a
benevolent purpose that the horsemen's association determines is in the
best interests of horse racing in Indiana for the breed represented by the
horsemen's association. Expenditures under this subsection are subject
to the regulatory requirements of subsection (g).
(e) A licensee shall distribute the amounts described in subsection
(c)(3) as follows:
(1) Forty-six percent (46%) for thoroughbred purposes as follows:
(A) Fifty-five percent (55%) for the following purposes:
(i) Ninety-seven percent (97%) for thoroughbred purses.
(ii) Two and four-tenths percent (2.4%) to the horsemen's
association representing thoroughbred owners and trainers.
(iii) Six-tenths percent (0.6%) to the horsemen's association
representing thoroughbred owners and breeders.
(B) Forty-five percent (45%) to the breed development fund
established for thoroughbreds under IC 4-31-11-10.
(2) Forty-six percent (46%) for standardbred purposes as follows:
(A) Three hundred seventy-five thousand dollars ($375,000) to
the state fair commission to be used by the state fair
commission to support standardbred racing and facilities at the
state fairgrounds.
(B) One hundred twenty-five thousand dollars ($125,000) to the
state fair commission to be used by the state fair commission to
make grants to county fairs and the department of parks and
recreation in Johnson County to support standardbred racing
and facilities at county fair and county park tracks. The state
fair commission shall establish a review committee to include
the standardbred association board, the Indiana horse racing
commission, the Indiana county fair association, and a member
of the board of directors of a county park established under IC 36-10 that provides or intends to provide facilities to support
standardbred racing, to make recommendations to the state fair
commission on grants under this clause. A grant may be
provided to the Johnson County fair or department of parks and
recreation under this clause only if the county fair or
department provides matching funds equal to one dollar ($1)
for every three dollars ($3) of grant funds provided.
(C) Fifty percent (50%) of the amount remaining after the
distributions under clauses (A) and (B) for the following
purposes:
(i) Ninety-six and five-tenths percent (96.5%) for
standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the horsemen's
association representing standardbred owners and trainers.
(D) Fifty percent (50%) of the amount remaining after the
distributions under clauses (A) and (B) to the breed
development fund established for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarter horse owners and trainers.
(B) Thirty percent (30%) to the breed development fund
established for quarter horses under IC 4-31-11-10.
Expenditures under this subsection are subject to the regulatory
requirements of subsection (g).
(f) Money distributed under subsection (c)(1) and (c)(2) shall be
allocated as follows:
(1) Forty-six percent (46%) to the horsemen's association
representing thoroughbred owners and trainers.
(2) Forty-six percent (46%) to the horsemen's association
representing standardbred owners and trainers.
(3) Eight percent (8%) to the horsemen's association representing
quarter horse owners and trainers.
(g) Money distributed under this section may not be expended
unless the expenditure is for a purpose authorized in this section and is
either for a purpose promoting the equine industry or equine welfare or
is for a benevolent purpose that is in the best interests of horse racing
in Indiana or the necessary expenditures for the operations of the
horsemen's association required to implement and fulfill the purposes
of this section. The Indiana horse racing commission may review any
expenditure of money distributed under this section to ensure that the
requirements of this section are satisfied. The Indiana horse racing
commission shall adopt rules concerning the review and oversight of
money distributed under this section and shall adopt rules concerning
the enforcement of this section. The following apply to a horsemen's
association receiving a distribution of money under this section:
(1) The horsemen's association must annually file a report with
the Indiana horse racing commission concerning the use of the
money by the horsemen's association. The report must include
information as required by the commission.
(2) The horsemen's association must register with the Indiana
horse racing commission.
The state board of accounts shall audit the accounts, books, and records
of the Indiana horse racing commission, each horsemen's association,
a licensee, and any association for backside benevolence containing
any information relating to the distribution of money under this section.
(h) The commission shall provide the Indiana horse racing
commission with the information necessary to enforce this section.
(i) The Indiana horse racing commission shall investigate any
complaint that a licensee has failed to comply with the horse racing
purse requirements set forth in this section. If, after notice and a
hearing, the Indiana horse racing commission finds that a licensee has
failed to comply with the purse requirements set forth in this section,
the Indiana horse racing commission may:
(1) issue a warning to the licensee;
(2) impose a civil penalty that may not exceed one million dollars
($1,000,000); or
(3) suspend a meeting permit issued under IC 4-31-5 to conduct
a pari-mutuel wagering horse racing meeting in Indiana.
(j) A civil penalty collected under this section must be deposited in
the state general fund.

Legislative History

As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008, SEC.21; P.L.142-2009, SEC.25; P.L.229-2011, SEC.60; P.L.210-2013, SEC.13; P.L.181-2015, SEC.6; P.L.213-2015, SEC.52; P.L.255-2015, SEC.40; P.L.256-2015, SEC.9; P.L.122-2016, SEC.1; P.L.28-2018, SEC.1; P.L.108-2019, SEC.76.