A BILL TO BE ENACTED To Provide for Pari-Mutuel Wagering on Horse Racing

Establishment of the Division of Horse Racing (Article 1) This legislation creates a Division of Horse Racing (DHR) under the Georgia Lottery Corporation (GLC) (Subsection 1) The Board of the Georgia Lottery Corporation will appoint a Director of the DHR (Subsection 3) The DHR is funded entirely by permit fees paid by individuals and entities involved (Subsection 31) All monies received by the DHR are placed in a State Operations Fund (Subsection 8)

Duties of the DHR (Subsections 6, 7, 9, 13, 16) Maintain jurisdiction and supervision of all horse racing licensed under this provision Establish and enforce and all Rules and Regulations Audit and Report to the Governor and General Assembly annually Appoint Stewards, Veterinarians, Inspectors and other employees essential to the operation Fingerprint and conduct background checks on all employees and licensees Issue all licenses Grant permits for non-thoroughbred racing at its discretion

Racetrack Licensee (Subsections 12, 13, 14, 16, 18, 19) Must pass background checks Identify all stockholders Be adequately capitalized Demonstrate a successful history of operating not less than five racetracks managing a handle of at least $2 billion dollars over the last five years -Subsections 11, 15 and 17 outline provisions for denying a license to any individual or entity -Subsection 19 sets the timeframe for a racetrack license -Subsection 20 regulates the licensing process for Advance Deposit Wagering(ADW)

Applications and Permits Subsections 21 through 27 outline: – Requirements for application – Consideration of applications – Duties and responsibilities of the DHR in issuing licenses – Timeframes for notifications and responses – Penalties for suspension or revocation of licenses

Racetrack/Satellite Facility Location No facility may be located in a county or municipality without the approval of the voters via a local referendum (Subsection 28) Only three racetrack licenses will be issued and in effect at any one time (Subsection 15)

Handle and Takeout (Subsection 29) Handle means the total amount of all pari-mutuel wagering from all sources Takeout means the percentage of the Handle deducted by the racetrack prior to distribution to the bettors

Distribution (Subsection 29) Distribution of Takeout (as a percentage of Handle): 5% to be used for purses on live races 3% to be allocated to the GLC for HOPE and need based scholarships 1% to the local governing authority of the racetrack or satellite facility within its jurisdiction.5% to breeders awards as incentives to grow the equine industry in Georgia.1% to the UGA School of Veterinary Medicine The balance will go to cover the racetrack or satellite facilities operating expenses

Annual Permit Fees (Subsection 31) Racetracks$150,000 Advance Deposit Wagering operations$150,000 Satellite Facilities$15,000 Non-Thoroughbred Racing Facilities$15,000 Associated Business Entities $5,000 Employees$500 Owners and Trainers$100 Amounts shown are ‘not to exceed’ and are subject to review annually by the DHR

Interstate Compact on Licensure (Article 2) The purpose of this compact is to establish uniform licensing requirements among the participating party states and to authorize the DHR to participate in this compact Subsections 40 through 43 outline: - Purpose - Definitions - Powers and Duties - Voting Requirements - Administration

Criminal Provisions (Article 3) Subsections 50 through 58 outline the penalties and/or fines associated with various criminal acts conducted in association with racetrack operations and pari-mutuel wagering

Effective Date Act is effective January 1, 2017 Amendment to the Constitution must: First be passed by the General Assembly Then be ratified by the electors in the November, 2016 general election