Bill
Number: H.B. 2547
Borrelli Floor Amendment
Reference to: NATURAL RESOURCES AND
ENERGY Committee amendment
Amendment drafted by: Leg Council
FLOOR AMENDMENT EXPLANATION
1. Prescribes requirements for simulcast agreements for simulcasts of live-racing originating within and outside Arizona.
2. Subjects simulcast agreements to approval by the Arizona Racing Commission (Commission) and directs the Commission to approve agreements that are reasonable and comply with statutory requirements.
3. Prohibits a permittee from engaging in anticompetitive or deceptive practice in offering its signal to another permittee or additional wagering facility in Arizona and prohibits a simulcast provider from engaging in an anticompetitive or deceptive practice in offering an interstate simulcast of live-racing from outside Arizona to a permittee or additional wagering facility in Arizona.
First Regular Session H.B. 2547
BORRELLI FLOOR AMENDMENT
SENATE AMENDMENTS TO H.B. 2547
(Reference to NATURAL RESOURCES AND ENERGY Committee amendment)
Page 1, line 5, after "report" insert "; anticompetitive or deceptive practices prohibited"
Page 8, between lines 17 and 18, insert:
"T. Each commercial live-racing permittee in this state shall enter into an agreement that complies with this subsection. Simulcasts that originate from a racetrack enclosure that conducts Live racing in this state shall be offered to each commercial live-racing permittee in this state and additional wagering facility in this state. Each simulcast agreement executed pursuant to this subsection is subject to approval by the commission. The commission shall approve the simulcast agreement if the commission determines that the agreement is reasonable and complies with the requirements of this subsection. A permittee may not engage in any anticompetitive or deceptive practice in offering to send the permittee's simulcast to another commercial live-racing permittee or additional wagering facility in this state. For the purposes of this subsection, an anticompetitive or deceptive practice includes any of the following:
1. Any agreement to charge excessive or unreasonable fees for the right to receive the simulcasts. In determining whether a fee is excessive or unreasonable, the commission shall consider prevailing rates paid for comparable simulcast signals in the past, prevailing rates paid outside this state and whether any commonality of ownership or revenue sharing exists, partially or wholly, between the permittee in this state and the entity that receives the simulcast fee.
2. Any agreement, combination, trust or joint enterprise with any other racetrack or entity in which multiple simulcast signals are bundled together for the purpose of securing an excessive or unreasonable fee for one or more simulcast signals in the group in exchange for the right to receive any of the signals in that group.
3. Any other activity with the purpose or effect of artificially inflating prices beyond reasonable market rates.
U. Any simulcast of live racing into this state that originates from outside this State shall comply with this subsection. The simulcast must be offered to each commercial live-racing permittee in this state and additional wagering facility in this state. Each simulcast agreement executed pursuant to this subsection is subject to approval by the commission. The commission shall approve the simulcast agreement if the commission determines that the agreement is reasonable and complies with the requirements of this subsection. A provider of simulcasts originating from outside of this state may not engage in any anticompetitive or deceptive practice in offering to contract for the privilege to send any interstate simulcast to a commercial live-racing permittee or additional wagering facility in this state. For the purposes of this subsection, an anticompetitive or deceptive practice includes any of the following:
1. Any agreement to charge excessive or unreasonable fees for the right to receive the interstate simulcasts. In determining whether a fee is excessive or unreasonable, the commission shall consider prevailing rates paid for comparable simulcast signals in the past, prevailing rates paid outside this state and whether any commonality of ownership or revenue sharing exists, partially or wholly, between the permittee in this state and the entity receiving the simulcast fee.
2. Any agreement, combination, trust or joint enterprise with any other racetrack or entity in which multiple interstate signals are bundled together for the purpose of securing an excessive or unreasonable fee for one or more simulcast signals in the group in exchange for the right to receive any of the signals in that group.
3. Any other activity with the purpose or effect of artificially inflating prices beyond reasonable market rates."
Amend title to conform