Committee approves transfer of South Dakota bred racing funds to support Fort Pierre live racing

The Senate Appropriations Committee voted to send House Bill 1057 to the floor after testimony that the bill would allow the Fort Pierre live horse-racing meet to access restricted funds.

Proponents said the bill would move money currently restricted to incentivizing South Dakota-bred horses into a revolving fund that the state Gaming Commission can use to pay operational costs and purses for open races. "If this transfer is allowed, I would invite you all to the horse races in Fort Pierre this fall to enjoy that event," Shane Cramey, lobbyist for the South Dakota Horsemen's Association and general manager of Fort Pierre Horse Racing, told the committee.

Why it matters: Proponents said the breeding fund currently contains money that cannot be used for open races or operational expenses; with few South Dakota-bred horses running in recent years, the fund has limited utility without the transfer. Supporters argued the transfer would preserve a fall showcase and provide short-term financial flexibility while organizers seek longer-term industry solutions.

Details and testimony: Representative Mike Weisgram, sponsor, said HB 1057 would "allow greater flexibility of these funds to successfully fund and support live horse racing in Fort Pierre later this fall." Cramey told the committee that last year only eight South Dakota-bred quarter horses competed in the state futurity and derby combined, and moving money into the revolving fund would permit requests to the Gaming Commission to pay purses and operational costs for the meet.

Senators asked about producer support and the effect on the breeding fund. Cramey said the Horsemen's Association supports the transfer, and he expected about $30,000 to remain in the bred fund so organizers could still stage a small number of races for state-bred horses.

Procedure and outcome: Senator Miskivens moved a do-pass recommendation; the motion was seconded by Senator Vilhauer. The committee recorded the motion as carried and announced that HB 1057 "will go down to the floor." The committee reported the disposition as seven yeas, one excused and one nay.

What the bill does not do: The committee action authorizes the transfer mechanism; it does not appropriate new money nor adopt longer-term policy changes for the horse-racing industry. Proponents and the committee noted the transfer is intended to be a short-term measure to support the fall meet while industry participants pursue other options.

Looking ahead: With the committee's do-pass recommendation, HB 1057 will be scheduled for floor consideration where the full chamber will decide whether to enact the transfer.