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A
B
I'm
calling
the
meeting
of
the
senate
standing
committee
on
license
occupation
to
order.
Please
silence
your
cell
phones.
If
you
are
interested
in
testifying,
please
use
the
sign
up
sheet.
Testimony
is
within
the
chairs
discretion
based
on
time
constraints,
time
constraints
and
information
already
presented.
There
will
be
no
signs
permitted
in
the
committee
room.
B
President,
we
do
have
a
quorum
and
are
duly
constituted
to
do
business.
We
have
one
item
on
the
agenda.
It's
house
bill,
607,
senator
thayer
and
representative
koenig
are
going
to
present
this
bill.
Welcome
both
of
you,
of
course,
senator
thayer.
We
all
know
he's
on
the
committee
and
representative
koenig
is
chairman
of
the
committee
over
in
the
house
and
of
this
committee
over
in
the
house,
and
it's
a
great
honor
to
have
you
here,
he's
also
from
northern
kentucky
and
a
good
friend
introduce
yourselves
for
the
record
and
proceed
with
your
testimony.
B
Thank
you.
The
sub
we're
referring
to
is
pss-4.
Is
the
committee
sub?
I
heard
a
motion
to
adopt
the
sub.
I
heard
a
second
to
adopt
the
sub.
Let
the
record
reflect
all
those
in
favor
use
a
voting
sign
of
I
I
anyone
opposed
like
sign.
The
sub
is
adopted.
We
now
have
before
is
house
bill.
607
committee
sub
pss4.
C
Thank
you,
mr
chairman,
members
of
the
committee.
I
think
we're
going
to
where
we're
going
to
attack
this
I'm
going
to
talk
about
what
the
bill
looked
like
when
it
came
out
of
the
house
and
then
pass
it
over
to
senator
thayer.
We
we
passed
a
bill.
C
I
thought
that
had
so
much
goodness
we
couldn't
pack
any
more
into
it,
but
they've
senators
have
figured
out
how
to
do
so,
and
I
appreciate
that
607
is
a
result
of
the
paramutual
wagering
task
force
that
was
generated
after
the
passage
of
hhr
last
year,
and
it
does
the
following.
The
first
thing
it
does
is
it
equals
every
pair
mutual
wager
tax
rate
at
one
and
a
half
percent.
C
Currently,
if
you
wager
on
your
phone
on
something
like
twin
spires,
which
is
called
an
adw
advanced
deposit
wagering,
it
is
taxed
at
one
half
of
one
percent,
a
hhr
or
a
live
wager
is
taxed
at
one
and
a
half
percent.
A
simulcast
wager
is
taxed
at
three
percent.
C
Those
tax
rates
made
sense
when
they
were
created
years
ago,
and
I
think
in
today's
environment
it
makes
more
sense
to
make
them
all
one
and
a
half
percent
across
the
board
changes
the
distribution
of
live
in
hhr
taxes
to
send
more
money
to
the
general
fund.
There
was
a
great
deal
of
concern
last
year
that
the
general
fund
was
not
getting
as
much
money
as
it
could
or
should,
and
we've
found
a.
C
I
think,
a
creative
way
to
do
that
by
putting
a
cap
on
those
funds
and
we'll
still
fill
those
coffers
afterwards,
it'll
just
be
at
a
reduced
rate
and
that
difference
will
start
going
to
the
general
fund.
We
direct
more
funds,
the
university
of
kentucky
and
the
or
I'm
sorry.
For
the
first
time
we
direct
funds,
the
university
of
kentucky
and
bluegrass
community
technical
equine
industry
programs.
C
The
university
of
louisville
equine
program
has
gotten
money
for
years
to
help
produce
the
folks
that
work
in
the
equine
industry,
but
uk
and
bctcs
had
been
doing
it
without
the
help
of
any
funds
from
hhr,
and
we
we
fix
that.
We
eliminate
the
admissions
tax
in
statute.
There's
a
15
cent
tax
for
every
person
that
comes
to
the
races
every
day
that
that
is
a
hundred-year-old,
probably
rule
that
is
antiquated
in
that
turf
way.
At
kentucky
downs
at
ellis
park.
C
There
are
no
turnstiles
anymore
and
there's
no
way
to
really
determine
how
many
people
actually
came,
and
so
we
we
get
rid
of
that.
We
include
language
to
require
that
the
racing
commission
be
self-funding.
That's
a
three
million
dollar
yearly
amount,
that's
been
in
the
budget,
and
now
they
will
be
making
sure
that
they
are
self-funding,
so
that
that
saves
us
three
million
dollars
a
year
requires
the
operators
of
these
hhr
facilities
to
have
a
self-exclusion
list.
C
That
is
not
uncommon
for
casinos
across
the
country,
not
that
these
are
casinos,
but
I
think
they're
we're
at
the
point
where
we
need
to
make
sure
that
that
is
an
option.
So,
if
you're
someone
who
decides
that
hey
you,
you
know,
I
want
to
make
sure.
I
don't
come
back
here
for
a
week
two
weeks
a
month
whatever
it
is
that
you
go
and
talk
to
someone
at
the
track
at
the
hhr
facility.
C
They
will
put
you
on
a
list
and
make
sure
that
it,
you
know
you
don't
they
don't
take
your
money
for
a
while
eliminates
breakage,
which
is
one
of
my
favorite
parts
of
this.
If
I
imagine
everyone
here
has
been
to
the
track,
if
you
make
a
win
play,
show
bet,
for
instance,
you
notice
you
get
paid
in
20
cent
increments.
C
That
is
not
the
way
it
actually
breaks
out
from
henceforth
you'll
get
paid
to
the
penny
for
every
dollar.
You
wager
so,
instead
of
getting
paid,
say,
720
you'll
get
might
get
paid,
724
or
732,
or
something
like
that.
It's
the
bettors
money
and
we
need
to
give
it
back
to
them
as
far
as
I'm
concerned.
And,
lastly,
it
allows
ktdf
money
to
be
used
for
claiming
races.
C
Those
are
for
kentucky
bread,
races
or
for
kentucky
bread,
horses
in
any
kentucky
race
and
they're
they're
eligible
to
be
used
for
most
types
of
races,
except
for
claiming
and
now
they
can
be
used
for
any
type
of
race.
So
with
that,
mr
chairman,
I
will
pass
it
over
to
senator
thayer
to
talk
about
the
changes
very
well.
D
Thank
you,
mr
chairman.
Thank
you
chairman
koenig.
It
was
a
real
pleasure,
co-chairing
the
paramutual
wagering
task
force
with
chairman
koenig,
a
fellow
horse
racing
fan
like
like
me.
Some
of
you
are
familiar
with
the
language
that
he
just
explained
to
you.
We
made
a
couple
of
minor
tweaks.
D
Well,
actually
one's
pretty
major
tweak
racetrack
facilities
themselves
are
exempt
by
statute
from
local
occupational
sales
tax,
and
it's
because
of
all
of
the
other
taxes
that
are
stacked
up
on
the
race
tracks.
License
fees,
the
paramutual
taxes
that
they
pay,
but
grandfathered
into
that
are
the
track.
D
Extensions
that
we're
now
seeing
open
up
under
existing
law
in
kentucky
and
senator
gibbons
made
an
excellent
point
to
me
that
these
track
extensions,
which
are
currently
open
in,
let's
see
bowling
green
and
newport
and
are
scheduled
to
open
in
williamsburg,
owensboro
and
louisville
and
louisville
downtown
louisville
they're,
not
paying
the
the
local
occupational
license
fee
and,
if
they're
next
door
to
a
bookstore
or
a
shoe
store
or
an
auto
parts
store
or
a
mcdonald's
or
any
other
restaurant
or
bar
they're,
paying
the
occupational
tax
the
license
tax,
and
I
thought
he
made
a
really
good
public
policy
point.
D
So
we've
included
language.
That
is
permissive
that
allows
local
governments
to
impose
a
local
occupational
tax
if
they
so
choose.
I
think
it's
the
right
thing
to
do
from
a
public
policy
point
of
view.
Also,
we
eliminated
on
page
28
a
paragraph
about
the
display
of
information
regarding
wagering
on
historical
horse
racing
machines
as
it's
unnecessary.
It's
as
it's
already
in
regulation
and
enforced
by
the
racing
commission.
D
Then
there
was
some
language
relating
to
breakage,
that
is
on
page
29,
as
it
relates
to
the
payouts
on
historical
horse
racing
machines.
The
operators
don't
consider
breakage
there,
so
this
gives
the
option
for
them
to
do
what
they're
currently
doing,
which
is
to
put
the
breakage
back
into
the
betting
pools,
because
the
the
the
financial
model
for
historical
horse
racing
machines
is
different
than
a
live
racing.
D
Bat
where
80
on
a
live
racing
bet,
80
percent,
goes
back
to
the
better
to
pay
the
winning
betters
in
a
historical
horse
racing
machine,
it's
about
95
to
96
percent,
so
that
that
that
breakage
is
put
back
into
the
pool.
We
also
wanted
to
make
sure
that
derby
city
gaming,
formerly
known
as
churchill
downs
trackside,
is
not
part
of
the
track.
Extension
definition.
It's
always
operated
under
the
traditional
churchill,
downs,
racetrack
language.
D
Mr
chairman,
members
of
the
committee,
this
is
a
very
significant
piece
of
horse
racing
reform.
It
will
as
as
is
right
as
is
appropriate.
It
will
lead
the
country
in
horse
racing
policy.
I
suspect
other
states
will
look
at
the
things
we're
doing
here
and
follow
the
lead
if
this
is
passed
into
law
and
adopt
some
of
these
measures
in
their
own
states.
B
Thank
you
senator,
and
I
had
the
pleasure
attending
most
of
these
task
force
meetings
and
to
me
it
was
totally
fascinating
to
see
how
it
all
works
and
just
amazing,
and
we
certainly
had
the
two
two
right
guys
cheering
the
committee.
I
I
have
a
couple
questions
and
I
don't
doesn't
look
like
anyone
else
does
we
had
talked
at
one
time.
B
I
know
I
talked
with
you
senator
thayer,
and
I
think
you
too,
chairman
koenig
about
this
issue
of
and-
and
I
hope
I
explain
it
right
once.
I
think
I
start
talking-
I
think,
you'll
know
what
I'm
talking
about
the
issue
about
placing
a
wager
to
track
versus
placing
an
electronic
wager
and
the
difference
in
the
monies
that
go
to
the
to
the
development
funds,
and
does
this
correct
that
or
is
that
something
we
still
have
to
do.
D
It
it
corrects
it
you're
right
part
of
the
pair
mutual
tax
on
on
a
live
race,
if
you
bet,
with
a
pair
mutual
clerk
at
the
track
flows
to
the
kentucky
thoroughbred
development
fund
or
if
it's
at
a
harness
track
through
the
standard
bread
development
fund
for
the
last
20
years,
the
tax
on
an
advanced
deposit
wager,
which
you
know
I
have
an
app
on
my
phone-
that
I
can
make
a
wager
on
from
any
legal
state
that
allows
that
it's
only
half
a
point
and
none
of
that
money
flowed
to
the
development
fund.
D
This
bill
puts
that
tax
on
the
advanced
deposit
wager
at
one
and
a
half
percent,
and
then
the
money
will
flow
according
to
the
statutory
formula
into
the
development
funds,
and
that's
been
one
one
of
my
pet
peeves
for
for
years
as
well.
Chairman
schickel.
So
I
appreciate
your
support
on
returning
this
money
to
the
to
the
races
for
the
owners
and
trainers
and
jockeys
to
compete
for.
B
Thank
you,
I'm
happy
to
hear
that,
and
sometimes
I
think
I
lit
I
know
I
live
in
the
past,
but
one
of
the
things
I
love
to
do
when
I
go
to
the
track.
First,
I
like
to
get
a
big
old,
stinky
cigar
and
fire
that
thing
up:
big,
cheap
stinky
cigar
and
I'm
so
happy
turf,
water.
B
For
that
yeah
determined,
I'm
so
happy
turfway's
gonna.
Let
me
do
that
still,
so
I'm
very
happy
about
that.
Thank
you,
turfway,
but
the
other
thing
is
I
like
to
place
my
wagers
at
the
window
and
it
just
occurred
to
me
if
we're
being
paid
by
the
penny
to
the
penny,
do
you
think
there's
any
danger
and
that
will
be
discouraging
people
to
use
the
windows,
because
the
tracks
and
the
bettors
won't
want
to
deal
with
all
those
pennies
or,
and
maybe
that's
what
you
want
to
do.
C
Not
looking
to
discourage
anyone
from
using
the
windows,
I'm
interested
in
making
sure
the
better
gets
back
the
money
that,
frankly
that
they
deserve,
and
one
thing
I've
said
over
and
over
is
when
we
passed
hhr,
which,
which
was
your
bill.
Senator
everyone
was
taken
care
of
that
makes
the
show
go,
except
for
the
bettors,
and
I
was
bound
and
determined
to
do
something
for
for
the
people
that
that
wager
and-
and
this
is,
I
think,
the
best
way
we
can
do
that.
D
Yeah,
mr
chairman,
I
think
it
means
mutual
clerks
are
going
to
have
lots
of
penny
rolls
at
their
windows
and,
if
I'm
ever
successful
in
cashing
a
bet,
I'll
certainly
leave
the
pennies
and
the
dimes
with
them
as
part
of
the
tip.
If
I,
if
I
ever
happen
to
actually
bet
on
a
winner
at
the.
B
E
Yes,
mr
chairman,
I
just
had
a
quick
question:
the
it
states
that
harness
racing
shall
be
distributed
in
exact
amounts
based
upon
contracts
between
parties
filed
with
the
racy
commission,
and
I
just
wanted
to
know
who
are
the
parties
mentioned
here.
D
They
run
a
joint
operation
at
the
red
mile.
Where
that
that's
the
only
place
in
lexington,
you
can
go
for
euron,
simulcasting
and
and
for
hhr
it's
a
harness
track,
but
on
the
development
fund
track
on
the
development
fund
side,
they
have
for
years
operated
under
a
letter
of
agreement
with
the
finance
cabinet
to
split
the
proceeds
to
the
to
the
two
different
breed
development
funds.
This
just
puts
that
in
statute.
C
If
I,
if
I
can
add
to
that,
you
may
precede,
the
the
the
finance
cabinet
had
been
basically
making
a
50
50
split
in
this
language,
basically
says
that
if
there's
a
agreement
between
the
two
sides
to
make
something
different
than
50
50,
they
can
file
a
letter
of
intent
or
contract.
Whichever
with
the
racing
commission
to
spell
that
out,.
C
E
B
We
do
have
one
more
at
least
one
more
question,
but
this
time
I'm
entertaining
a
motion.
We
can
still
discuss
this
after
I'm,
going
to
entertain
a
motion
to
accept
to
pass
the
committee
or
to
pass
the
bill
as
amended
by
the
committee
set.
B
F
To
comment,
mr
chairman,
I'd
like
to
thank
these
two
gentlemen,
representative
koenig
and
senator
thayer,
for
what
you
all
have
done,
because
we've
had
a
lot
of
discussion
over
the
last
few
years,
and
this
is
an
issue
that,
even
though
I'm
not
a
horse
racing
fan,
it
makes
a
lot
of
difference
to
agriculture.
And
I
know
that
when
you
all
started
talking
about
this,
the
thoroughbred
industry
was
having
trouble
and
that
affects
not
just
the
people
out.
F
There
racing
the
horses,
but
the
breeders
and
everybody
else
out
there
on
the
farms,
and
I
really
appreciate
y'all
doing
this,
and
especially
where
you
put
half
the
money
into
the
settle
bread
association
too,
so
that
you
treated
them
equally
and
with
historical
racing
that
the
chairman
passed
last
year.
The
industry's
evolved
the
industry's
doing
great
here
in
kentucky
and
I'm
glad.
F
There's
two
gentlemen,
like
you
all
that
have
a
respect
and
knowledge
of
the
thoroughbred
industry
and
what
it
means
to
the
state
of
kentucky
to
everybody
in
the
state
of
kentucky,
not
just
those
involved
in
the
thoroughbred
industry.
And
thank
you
all
for
your
hard
work
on
this.
Thank.
B
B
But
I
too
appreciate
the
fact
that
we
are
that
you
have
made
a
concerted
effort
to
get
some
of
this
development
money
down
to
the
poor
folks
or
the
people
that
you
know
not
the
not
the
expensive
horses
and-
and
I
think
that
is
a
very,
very
good
way
to
go
and
a
great
way
to
expand,
expand
the
interest
in
in
horse
racing
go
ahead.
Senator
well.
D
Thank
you,
senator
schickel,
I'm
gonna
respond
to
what
you
said.
I
I
know
that
senator
or
representative
koenig's
favorite
part
of
the
bill
is
the
breakage
because
he's
a
he's,
a
handicapper,
my
favorite
part
of
it
and
a
penny
pincher.
My
favorite
part
of
the
bill
is
allowing
the
ktdf
funds
to
be
on
the
claiming
races,
because
I
partici
participate
in
a
small
way
in
racehorse
ownership.
D
Senator
hornback
to
your
point
because
of
senator
schickel
senate
bill
120
and
the
investment
it
spurred
across
kentucky,
including
a
150
million
dollar
investment
by
churchill,
downs
to
rebuild
turfway
park
in
senator
schickel's
district,
a
a
new
track
that
opened
a
few
years
ago
in
oak
grove,
a
new
track.
That's
opening
in
corbyn
and
track
extensions
in
those
cities
I
mentioned.
D
We
are
18
to
24
months
away
from
having
the
best
year-round
racing
circuit
in
north
america,
and
you
couldn't
say
that,
ten
years
ago,
horsemen
owners
trainers,
jockeys,
are
moving
to
kentucky
from
california
and
new
york
and
florida
because
of
our
lucrative
per
structure
in
the
year-round
circuit,
and
that
has
a
trickle-down
effect
into
all
segments
of
our
economy,
including
tourism
and
agriculture.
Horses
eat
a
lot
of
a
lot
of
food
and
a
lot
of
hay
a
lot
of
grain
and
that
that
benefits
our
farmers.
D
There's
also,
you
know,
there's
60
000
jobs
tied
up
in
in
horse
racing,
and
a
number
of
them
are
agriculture
related
and
tourism
related.
So
thank
you,
mr
chairman
and
mr
chairman,.
B
D
D
He
he's
he's
like
senator
mcdaniel
with
the
spreadsheets
and
the
number
crunching,
and
he
said
there
is
no
way
that
the
taxpayers
in
kentucky
need
to
continue
spending
3.8
million
dollars
in
general
fund
money
to
support
the
operations
of
the
racing
commission,
the
regulatory
body,
and
he
laid
out
a
plan
for
us
for
the
racing
commission
to
become
self-sustaining
because
again
of
your
bill
senate
bill,
120
and
again
more
money.
That
will
drop
to
the
bottom
line
of
the
general
fund.
D
And
I
just
wanted
to
give
credit
to
commissioner
simendinger
for
coming
up
with
that.
Great
idea.