Washington 2023-2024 Regular Session Status: Passed Senate Bipartisan · 5 D · 4 R cosponsors

SB 5598 — Providing supplementary funding to legalized horse racing and the recreational use of horses in Washington state.

Last action — Senate Rules "X" file.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

171 added · 191 removed

Plain-language change summary

The revised version of Bill SB 5598 introduces a provision requiring the state treasurer to transfer up to $6 million annually from the general fund to support the equine industry in Washington State, specifically focusing on funding equine-related products, services, and uses. This funding is intended to bolster legalized horse racing and recreational horse use. Additionally, the language around imposing fees by the commission has been adjusted, removing previous requirements and instead granting more flexibility to set reasonable fees for regulatory compliance. These changes are significant as they aim to enhance financial support for the horse racing industry, which can have economic benefits for the state.

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S-1556.1 SUBSTITUTE SENATE BILL 5598 State of Washington 68th Legislature 2023 Regular Session By Senate Business, Financial Services, Gaming & Trade (originally sponsored by Senators Mullet, Fortunato, Nguyen, Keiser, Schoesler, Kauffman, Hunt, Padden, J.
S-0813.1 SENATE BILL 5598 State of Washington 68th Legislature 2023 Regular Session By Senators Mullet, Fortunato, Nguyen, Keiser, Schoesler, Kauffman, Hunt, Padden, J.
Wilson, Conway, Dozier, Stanford, and Van De Wege) READ FIRST TIME 02/17/23.
Wilson, Conway, Dozier, Stanford, and Van De Wege Read first time 01/27/23.
AN ACT Relating to the funding of legalized horse racing and the recreational use of horses in Washington state;
Referred to Committee on Business, Financial Services, Gaming & Trade.
amending RCW 67.16.050, 67.16.280, and 67.16.105;
AN ACT Relating to providing supplementary funding to legalized horse racing and the recreational use of horses in Washington state;
amending RCW 67.16.050 and 67.16.280;
adding a new section to chapter 82.08 RCW;
creating a new section;
repealing RCW 67.16.105;
providing an effective date;
A new section is added to chapter 67.16 RCW to read as follows:
A new section is added to chapter 82.08 RCW to read as follows:
The commission may impose fees, as the commission deems reasonable and appropriate, in compliance with the horseracing integrity and safety act of 2020, 15 U.S.C.
(1) By July 1, 2023, and by July 1st of each year thereafter, the state treasurer, based upon information provided by the department, must transfer from the general fund to the Washington equine industry reinvestment account created in section 2 of this act an amount not to exceed $6,000,000 per fiscal year from revenues deposited into the general fund for the previous fiscal year directly derived from the imposition of state sales and use taxes charged or levied on the following equine-related products, services, or uses:
(a) Equines;
(b) Equine feed;
(c) Prescription drugs, over-the-counter drugs, or dietary supplements to be dispensed to equines;
p.
1 SB 5598 (d) Equine tack which includes, but is not limited to, equipment used to ride or care for an equine such as saddles, driving harnesses, girths, cinches, bridles, martingales, halters, lead ropes, whips, long reins, wraps, and other items used in handling and caring for equines;
(e) Horse bedding and grooming supplies;
(f) Sale of horses, including equines claimed at class 1 and class C regulated race meets;
and (g) Other taxable sales directly related to equine ownership, riding, or boarding.
(2) For purposes of this section, "equine" has the same definition as in RCW 4.24.530.
(3) Following each biennium, the transfer amount in subsection (1) of this section must be reviewed and may be increased based on inflationary calculations as determined by the department.
NEW SECTION.
3051 et seq., as amended.
The commission may adopt rules to implement this section.
Sec.
A new section is added to chapter 67.16 RCW to read as follows:
(1) The Washington equine industry reinvestment account is created in the state treasury to provide assistance to legalized horse racing and the recreational use of horses in Washington state.
Revenues in the account consist of moneys transferred to the account pursuant to section 1 of this act and other revenue appropriated or transferred to the account pursuant to legislative directive.
Moneys in the account may be spent only after appropriation.
(2) Beginning with the 2024 fiscal year, the legislature must annually appropriate moneys in the account as follows:
(a) An amount of $6,000,000 to the Washington horse racing commission operating account created in RCW 67.16.280.
From this appropriation all commission activities and operating costs must be funded based on budget projections from the office of financial management.
(b) The remaining amount must be distributed as follows:
(i) 10 percent to support nonprofit class C race meets under RCW 67.16.130.
Grants for the nonprofit race meets must not exceed 10 percent of the funds.
If there are less than 10 nonprofit race days awarded, the remainder may be distributed by grant to other approved allocations under this subsection (2)(b) based on greatest need;
(ii) 10 percent to supplement Washington breeders and bred horses consistent with RCW 67.16.075;
p.
2 SB 5598 (iii) 10 percent to be awarded as grants to support equine activities as defined in RCW 4.24.530;
(iv) 65 percent to the class 1 racing associations allocated by grant from the Washington horse racing commission.
Twenty-five percent of this allocation must be used for assistance in shipping and recruitment of horses to Washington from outside of the state, with the remainder being used for equine health and safety programs, research, racetrack surface improvements, and long-term maintenance of the racing surface.
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Additional allocations may be made for veterinary staff, track security, on-duty paramedics, emergency medical technicians, starting gate personnel, race-day outriders, purchase of track surface materials, and track safety maintenance equipment;
and (v) Five percent to the local affiliate and representative of horsemen and horsewomen in Washington state, the Washington horseman's benevolent and protective association, who are authorized to apply for grants to implement health and welfare benevolent programs for eligible persons and families working in the stable area at covered tracks.
Such programs may include, but are not limited to, low-fee dental care, medical and burial assistance, educational and recreational programs, disaster relief, and assistance for department of labor and industries claim monitoring programs.
Sec.
3.
The commission shall be the sole judge of whether or not the race meet shall be licensed and the number of days p.
The commission shall be the sole judge of whether or not the race meet shall be licensed and the number of days the meet shall continue.
1 SSB 5598 the meet shall continue.
The license shall specify the number of days the race meet shall continue and the number of races per day, which shall include not less than six nor more than ((eleven)) 11 live races per day, and for which a fee shall be paid daily in advance of ((five hundred dollars for each live race day for those licensees which had gross receipts from parimutuel machines in excess of fifty million dollars in the previous year and two hundred dollars for each day for meets which had gross receipts from parimutuel machines at or below fifty million dollars in the previous year)) $200;
The license shall specify the number of days the race meet shall continue and the number of races per day, which shall include not less than six nor more than ((eleven)) 11 live races per day, and p.
3 SB 5598 for which a fee shall be paid daily in advance of ((five hundred dollars for each live race day for those licensees which had gross receipts from parimutuel machines in excess of fifty million dollars in the previous year and two hundred dollars for each day for meets which had gross receipts from parimutuel machines at or below fifty million dollars in the previous year)) $200;
3.
4.
All receipts collected by the commission under RCW 67.16.105(2) must be deposited into the account.
((All receipts collected by the commission under RCW 67.16.105(2) must be deposited into the account.)) Expenditures from the account may be used only for the operating expenses of the commission.
Beginning July 1, 2023, through July 1, 2029, the legislature must annually appropriate $6,000,000 from the general fund to this account.
Expenditures from the account may be p.
2 SSB 5598 used only for the operating expenses of the commission and for purposes set forth in subsection (3) of this section.
(((b))) (2) The commission has the authority to receive such gifts, grants, and endowments from public or private sources as may be made from time to time in trust or otherwise for the use and purpose of regulating or supporting nonprofit race meets as set forth in RCW 67.16.130 and 67.16.105(1);
(((b))) (2) The commission has the authority to receive such gifts, grants, and endowments from public or private sources as may be made from time to time in trust or otherwise for the use and purpose of regulating or supporting nonprofit race meets as set forth in RCW 67.16.130 ((and 67.16.105(1)));
such gifts, grants, and endowments must also be deposited into the horse racing commission operating account and expended according to the terms of such gift, grant, or endowment.
such gifts, grants, and endowments must also be deposited into the horse racing commission p.
4 SB 5598 operating account and expended according to the terms of such gift, grant, or endowment.
These expenditures may occur only when sufficient funds remain for the continued operations of the horse racing commission.)) (3) Expenditures from the account must be used for the operating expenses of the commission, with the remaining amount distributed annually as follows:
These expenditures may occur only when sufficient funds remain for the continued operations of the horse racing commission.)) NEW SECTION.
(a) 10 percent for grants to nonprofit entities involved with equine shows, fairs, competitions, performances, parades, youth programs, or educational programs related to equines;
(b) 20 percent to nonprofit entities with programs to improve working conditions for employees and families working in the stable areas at covered tracks.
The programs may include, but are not limited to, low-fee dental care, medical and burial assistance, educational and recreational programs, disaster relief, and assistance for department of labor and industries claim monitoring programs;
p.
3 SSB 5598 (c) 10 percent for grants to class C race meets under RCW 67.16.130.
Grants for the nonprofit race meets must not exceed 10 percent of the funds.
If there are less than 10 nonprofit race days awarded, the remainder may be distributed by grant to other approved allocations under this subsection (3) based on greatest need;
and (d) 60 percent to the class 1 racing associations allocated by grant by the Washington horse racing commission.
Most of the grant funding must be used for equine health and safety programs, research, racetrack surface improvements, and long-term maintenance of the racing surface.
Additional allocations may be made for veterinary staff, track security, on-duty paramedics, emergency medical technicians, starting gate personnel, race-day outriders, purchase of track surface materials, and track safety maintenance equipment.
(4) On December 1, 2023, and annually thereafter, the commission must report to the appropriate committees of the legislature on the use of grant funds and criteria used to determine grant awards established in subsection (3) of this section.
4.
5.
RCW 67.16.105 and 2011 c 12 s 1 are each amended to read as follows:
RCW 67.16.105 (Gross receipts — Commission's percentage— Distributions) and 2011 c 12 s 1, 2010 c 39 s 1, 2004 c 246 s 7, 2003 1st sp.s.
(1) Licensees of race meets that are nonprofit in nature and are of ten days or less are exempt from payment of a parimutuel tax.
c 27 s 1, 1998 c 345 s 6, 1997 c 87 s 3, 1995 c 173 s 2, 1994 c 159 s 2, 1993 c 170 s 2, 1991 c 270 s 6, 1987 c 347 s 4, 1985 c 146 s 7, 1982 c 32 s 3, & 1979 c 31 s 6 are each repealed.
(2) Licensees that do not fall under subsection (1) of this section must withhold and pay to the commission daily for each authorized day of parimutuel wagering the following applicable percentage of all daily gross receipts from its in-state parimutuel machines:
(a) If the gross receipts of all its in-state parimutuel machines are more than fifty million dollars in the previous calendar year, the licensee must withhold and pay to the commission daily 1.30 percent of the daily gross receipts;
and (b) If the gross receipts of all its in-state parimutuel machines are fifty million dollars or less in the previous calendar year, the licensee must withhold and pay to the commission daily 1.803 percent of the daily gross receipts.
(3)(a) In addition to those amounts in subsection (2) of this section, a licensee must forward one-tenth of one percent of the daily gross receipts of all its in-state parimutuel machines to the commission for payment to those nonprofit race meets as set forth in p.
4 SSB 5598 RCW 67.16.130 and subsection (1) of this section, but the percentage may not be charged against the licensee.
(b) Payments to nonprofit race meets under this subsection must be distributed on a per-race-day basis and used only for purses at racetracks that have been operating under RCW 67.16.130 and subsection (1) of this section in 2010 or for the five consecutive years immediately preceding the year of payment.
(c) As provided in this subsection, the commission must distribute funds up to fifteen thousand eight hundred dollars per race day from funds generated under this subsection (3).
(4) Beginning July 1, 1999, at the conclusion of each authorized race meet, the commission must calculate the mathematical average daily gross receipts of parimutuel wagering that is conducted only at the physical location of the live race meet at those race meets of licensees with gross receipts of all their in-state parimutuel machines of more than fifty million dollars.
Such calculation shall include only the gross parimutuel receipts from wagering occurring on live racing dates, including live racing receipts and receipts derived from one simulcast race card that is conducted only at the physical location of the live racing meet, which, for the purposes of this subsection, is "the handle." If the calculation exceeds eight hundred eighty-six thousand dollars, the licensee must within ten days of receipt of written notification by the commission forward to the commission a sum equal to the product obtained by multiplying 0.6 percent by the handle.
Sums collected by the commission under this subsection must be forwarded on the next business day following receipt thereof to the state treasurer to be deposited in the fair fund created in RCW 15.76.115.
(5) Until July 1, 2030, licensees subject to the parimutuel tax in this section are exempt from paying the tax as well as the other requirements in subsections (2) through (4) of this section.
As of July 1, 2030, licensees subject to the parimutuel tax must withhold and pay the tax to the commission daily, in addition to other requirements, as set forth in subsections (2) through (4) of this section.
5.
If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2023, in the omnibus appropriations act, this act is null and void.
p.
5 SSB 5598 NEW SECTION.
Sec.
This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2023.
This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.
6 SSB 5598
5 SB 5598
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Action History

  1. Senate Rules "X" file.

  2. Passed to Rules Committee for second reading.

  3. Minority; without recommendation.

  4. Minority; do not pass.

  5. WM - Majority; 2nd substitute bill be substituted, do pass.

  6. Executive action taken in the Senate Committee on Ways & Means at 10:00 AM.

  7. By resolution, reintroduced and retained in present status.

  8. Executive session scheduled, but no action was taken in the Senate Committee on Ways & Means at 9:00 AM.

  9. Public hearing in the Senate Committee on Ways & Means at 1:30 PM.

  10. Referred to Ways & Means.

  11. Minority; without recommendation.

  12. And refer to Ways & Means.

  13. BFGT - Majority; 1st substitute bill be substituted, do pass.

  14. Executive action taken in the Senate Committee on Business, Financial Services, Gaming & Trade at 10:30 AM.

  15. Public hearing in the Senate Committee on Business, Financial Services, Gaming & Trade at 8:00 AM.

  16. First reading, referred to Business, Financial Services, Gaming & Trade.

Sponsors

Sponsorship breakdown

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1 sponsors · 12 co-sponsors · 138 not signed on

Sponsors (1)

  • Mullet

Co-sponsors (12)

Not signed on (138)

138 members have not signed on to this bill.

Show all 138 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 5598?
SB 5598 is sponsored by Derek Stanford (Democrat), Perry Dozier (Republican), Steve Conway (Democrat), Jeff Wilson (Republican), Padden, Claudia Kauffman (Democrat), Mark Schoesler (Republican), Keiser, Phil Fortunato (Republican), Mullet, Victoria Hunt (Democrat), Joe Nguyen (Democrat), and Van De Wege.
What is the current status of SB 5598?
This bill died with 2023-2024 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 5598?
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