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2003 House Bill 4610: Video lottery [slot machines] at racetracks - "racinos"
  1. Introduced by Rep. Jack Minore (D) on May 1, 2003, to authorize video lottery and other forms of gambling at racetracks. The bill includes regulations, licensure and tax provisions, and penalties. It is part of a racetrack gambling package comprised of House Bills 4609 to 4612.
    • Referred to the House Agriculture and Resource Management Committee on May 1, 2003.
      • Reported in the House on May 20, 2003, with the recommendation that the substitute (H-3) be adopted and that the bill then pass.
      • Substitute offered in the House on May 22, 2003, to replace the previous version of the bill with one recommended by the committee which reported it. The substitute incorporates changes resulting from negotiations and deliberations related to the specific regulations on the proposed new gambling, and on how the revenue from it will be divided. The substitute passed by voice vote in the House on May 22, 2003.
      • Amendment offered by Rep. William O'Neil (D) on May 22, 2003, to raise the minimum age for gambling at a video lottery terminal from 18 to 21. The amendment passed by voice vote in the House on May 22, 2003.
      • Amendment offered by Rep. Barb Vander Veen (R) on May 22, 2003, to ban lottery ticket vending machines. The amendment failed by voice vote in the House on May 22, 2003.
      • Amendment offered by Rep. David Palsrok (R) on May 22, 2003, to place a 10-year sunset on the legislation authorizing "racinos". The amendment failed 30 to 66 in the House on May 22, 2003.
        Who Voted "Yes" and Who Voted "No"

      • Amendment offered by Rep. Andy Meisner (D) on May 22, 2003, to increase from .5 percent to 1.0 percent the share of the new gambling revenue which would go to local communities near a "racino". The amendment failed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Jennifer Elkins (D) on May 22, 2003, to require the Department of Treasury to examine its records to show whether a video lottery terminal player at a "racino" has won $1,000 or more, and garnish any unpaid child support arrearages from the winnings. Under current law this is the practice with regular lottery winners. The amendment passed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Jack Minore (D) on May 22, 2003, to dedicate up to $30 million of the state's share of annual video lottery revenue at "racinos" to the state agricultural preservation fund, which is used to purchase development rights on farmland or to acquire agricultural conservation easements. The amendment failed 24 to 78 in the House on May 22, 2003.
      Who Voted "Yes" and Who Voted "No"

    • Amendment offered by Rep. Mike Pumford (R) on May 22, 2003, to require that any decrease in regular lottery revenue going to the school aid fund after the date the bill be made up by a transfer from the state general fund. The amendment passed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Randy Richardville (R) on May 22, 2003, to strike out a provision requiring that if any provision of the new law authorizing video lottery terminals at "racinos" conflicts with the regular lottery law, the new law would prevail. The amendment passed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Joe Hune (R) on May 22, 2003, to clarify that the provision requiring the first $60 million of the state's share of the new "racino" revenue, which would be divided equally between the school aid fund and a new agricultural enhancement fund, applies to the first $60 million each year. The amendment passed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Hoon-Yung Hopgood (D) on May 22, 2003, to eliminate a $1 million cap on the amount a "racino" would be required to pay each year to a nearby local unit of government. The amendment failed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Steve Bieda (D) on May 22, 2003, to require that in addition to the annual payment of up to $1 million in racino revenue to the local government in which it is located, an equivalent payment would go to any other community located less than one mile from the facility. The amendment failed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. David Woodward (D) on May 22, 2003, to prohibit video lottery terminals at horse races at the state fairgrounds in Wayne County. The amendment passed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Ken Daniels (D) on May 22, 2003, to strike out a provision allowing a "racino" to apply for more than 500 video lottery terminals. The amendment failed 35 to 62 in the House on May 22, 2003.
      Who Voted "Yes" and Who Voted "No"

    • Amendment offered by Rep. Ken Daniels (D) on May 22, 2003, to apply the more stringent background check and anti-corruption regulations which apply to the Detroit casinos to the owners and managers of "racinos," or horse race tracks with the new gambling proposed by the bill. The amendment passed 103 to 4 in the House on May 22, 2003.
      Who Voted "Yes" and Who Voted "No"

    • Amendment offered by Rep. William O'Neil (D) on May 22, 2003, to amend the Smith amendment so it would give Detroit $15 million a year and Wayne County $15 million a year, rather than $30 million to Detroit. The amendment failed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. William O'Neil (D) on May 22, 2003, to amend the Smith amendment so it would give Detroit $20 million a year and Wayne County $10 million a year, rather than $30 million to Detroit. The amendment passed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Virgil Smith, Jr. (D) on May 22, 2003, to give $30 million of the state’s share of annual video lottery revenue to Detroit. The amendment failed 54 to 44 in the House on May 22, 2003.
      Who Voted "Yes" and Who Voted "No"

    • Moved to reconsider in the House on May 22, 2003, to reconsider the vote by which the House did not adopt the amendment offered by Rep. Smith, which would give $30 million of the state’s share of annual video lottery revenue to Detroit. Passed by voice vote in the House on May 22, 2003.
    • Amendment offered by Rep. Virgil Smith, Jr. (D) on May 22, 2003, to give $30 million of the state’s share of annual racetrack video lottery revenue to Detroit. The amendment passed 55 to 45 in the House on May 22, 2003.
      Who Voted "Yes" and Who Voted "No"

  2. Passed 61 to 42 in the House on May 22, 2003, to authorize the placement of 500 (or more) video lottery machines (slot machines) at each of seven Michigan horse racetracks (referred to as "racinos"), and in any new tracks. The bill includes regulations, licensure and tax provisions, and penalties. The state would get 40 percent of the net revenue from the new gambling. Of this, the first $90 million would be divided equally between the school aid fund, an agricultural enhancement fund proposed by the bill, and Detroit. After the first $90 million is divided, 70 percent of the remainder would go to the school aid fund and to the agricultural enhancement fund.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 27, 2003.
    • Referred to the Senate Gaming and Casino Oversight Committee on May 27, 2003.
    • Motion by Sen. Beverly Hammerstrom (R) on April 27, 2004, to discharge the committee from further consideration of the bill, and move it directly to the Senate floor for immediate consideration and debate. The motion passed by voice vote in the Senate on April 27, 2004.
    • Substitute offered in the Senate on April 29, 2004, to replace the previous version of the bill with an amended version that would give the state a much larger percentage of the take, would limit racino licenses to existing racetracks, and would also impose stricter regulations on racino operators. See Senate-passed version for more details. The Senate has not taken up, and according to Senate leadership will not take up, companion bills passed by the House to authorize off track betting. The substitute passed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Deborah Cherry (D) on April 29, 2004, to divide five percent of the state's take between Oakland and Wayne Counties, and two percent between the other counties containing racinos. The amendment failed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Martha G. Scott (D) on April 29, 2004, to give five percent of the slot machine revenue from a racino that might be located at the state fairgrounds in Wayne County to the City of Highland Park. The amendment failed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Samuel B. Thomas, III (D) on April 29, 2004, to give 20 percent of the state's racino revenue in the first year, up to $20 million, for capital improvements to the state fairgrounds in Wayne county. In subsequent years, reduce this to five percent, capped at $5 million. The amendment failed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Samuel B. Thomas, III (D) on April 29, 2004, to give the first $30 million of racino revenue to Detroit. The amendment failed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Samuel B. Thomas, III (D) on April 29, 2004, to prohibit one of the two additional racino licenses that are available (in addition to the seven current operating racetracks) from being granted to a facility within 10 miles of Hazel Park racetrack. The amendment failed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Bruce Patterson (R) on April 29, 2004, to give the first $20 million of racino revenue to the School Aid Fund, and the next $20 million to a group of mostly wealthier school districts (“20j districts), which get extra money to compensate them for a loss of local funding that resulted from the 1994 Proposal A school finance initiative. After this was taken from the annual racino revenue, one percent of the amount left would go to grants to local police and fire departments. The amendment failed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Patricia Birkholz (R) on April 29, 2004, to give 20 percent of the state's racino revenue share to a state program that purchases development rights (PDR) to agricultural land, up to $50 million a year. The amendment failed by voice vote in the Senate on April 29, 2004.
    • Amendment offered by Sen. Samuel B. Thomas, III (D) on April 29, 2004, to prohibit any new racino within 100 miles of the detroit casinos. The amendment failed by voice vote in the Senate on April 29, 2004.
  4. Passed 20 to 18 in the Senate on April 29, 2004, to authorize the placement of 500 (or more) video lottery machines (slot machines) at each of seven Michigan horse racetracks (referred to as "racinos"), and probably at two new tracks (the language is unclear but legislative leaders say that is the intent). No other new tracks could become racinos. The first part of the of the new racino revenue would go to the Michigan Strategic Fund, depending on whether its revenue from casino’s falls. Of the amount remaining, 70 percent would go to the state. Of this, 94 percent would go into the general fund, and the rest to the School Aid Fund. (In the House version the state received 40 percent of the take.) The operators would get 18.24 percent of the take, local governments where racinos are located would get .76 percent, and one percent would go to problem gambler programs. The remaining 10 percent would go to horse race prizes and awards. Racino operators and owners would be subject to strict regulations, similar to those that apply to Detroit casino operators, which among other things would prohibit them from making political campaign or ballot issue contributions. Racetracks could only become a racino if county voters approve it in a referendum. Racinos could not be located within 50 miles of Indian casinos that have agreed to pay eight percent of their revenue to the state. In addition to the state’s 70 percent of the slot machine revenue, operators would pay the state an application fee of at least $15,000 per slot machine, or more if a market study shows that the market will bear a higher amount.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the House on April 29, 2004.
  6. Failed 3 to 100 in the House on May 4, 2004, to concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.
    Who Voted "Yes" and Who Voted "No"

  7. Received in the Senate on May 5, 2004.
  8. Vetoed by Gov. Jennifer Granholm on May 7, 2004.

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