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House Bill 1327 would standardize fees, remove breeder requirement on racing commission and change tax thresholds
Summary
House Bill 1327 was heard Jan. 22 by the State Government & Tribal Relations Committee. The bill would make multiple changes to Washington’s horse-racing statutes, including removing the requirement that one commissioner be a breeder, standardizing a $500 per live race-day license fee, lowering a gross-receipts threshold from $50 million to $20
The State Government & Tribal Relations Committee on Jan. 22 received a staff briefing and public testimony on House Bill 1327, which would amend several provisions of Washington law governing pari-mutuel horse racing.
Connor Schiff, counsel to the committee, summarized the bill’s principal changes: remove the statutory requirement that one of three commissioners be a racehorse breeder; eliminate the prohibition on paying salaries or expenses related to commission work; replace multiple per-day license-fee rates with a uniform $500 per race-day fee for all licensees; lower a statutory threshold for differentiating tax obligations from $50 million in annual gross receipts to $20 million; and allow licensees to retain up to 15% of gross receipts. Schiff also noted other changes: removal of certain restrictions on satellite locations and simulcasts, elimination of reimbursements for capital construction of new racetracks, and expanded spending authority for the commission to support equine industry development and grants to equestrian nonprofits.
The bill’s prime sponsor, Representative Joe Schmick (R., 9th District), said the statute needed updating to reflect the current industry, which now has a single active track in the state. “There are several instances in the staff report, but it broadens who can be on the commission as a commissioner,” Schmick told the committee, adding the breeder requirement is not feasible given the decline in breeders and that some race-day rules no longer match current practice.
Commission chair Doug Moore and Executive Secretary Amanda Benton answered committee questions about practical consequences. Moore said the removal of the breeder requirement had been discussed with breeders’ groups and that he had found no negative reaction; he also explained the proposal would standardize fees now that the state has only one active racetrack. Benton clarified the commission’s statutory role in distributing owner/breeder awards under RCW 67.16.102 and RCW 67.16.175 and described current funding sources including pari-mutuel taxes, license fees and source market fees from advance deposit wagering.
Representative Schmick also noted the bill would remove a past requirement that one race per day must be restricted to Washington-bred horses and would eliminate a mandate that a track run up to 11 races per day — changes he said reflect field-size and animal-care realities that make some earlier mandates impractical.
Ending: Committee members heard the bill and questions from legislators and the commission; no committee vote on House Bill 1327 was recorded during the Jan. 22 hearing.
