HB 4347 — Gaming: horse racing; Michigan agriculture and equine industry development fund; modify. Amends secs. 2 & 20 of 1995 PA 279 (MCL 431.302 & 431.320). TIE BAR WITH: HB 4346'25

HB-4347, As Passed House, February 26, 2026 SUBSTITUTE FOR HOUSE BILL NO.

or is a co- shareholder of a corporation, co-member of a limited liability company, or co-partner in a limited liability partnership with a person who holds or applies for a race meeting or track license THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 under this act.

THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 (g) "Drug" means any of the following:

(n) (m) "Net commission" means the amount determined under THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 section 17(3), after first deducting from the licensee's statutory commission the applicable state tax on wagering due and payable under section 22 and the actual verified fee paid by the licensee to the sending host track to receive the simulcast signal.

(t) (s) "Thoroughbred" means a thoroughbred, quarter, paint, THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 Arabian, or other breed horse.

The Michigan agriculture THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 equine industry development fund must be administered by the director of the department of agriculture and rural development with the assistance and advice of the racing commissioner.

(b) A sum to be allotted on a matching basis, but not to exceed $15,000.00 each year to a single fair, for the purpose of THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 equipment rental during fairs;

THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 (d) (e) A sum Twelve percent to pay breeders' awards in an amount not to exceed 10% 20% of the gross purse to breeders of Michigan bred Michigan-bred standardbred harness horses for each time the horse wins a race at a licensed race meeting or fair in or outside of this state.

(e) (f) A sum not to exceed $4,000.00 each year to be allotted to fairs to provide training and stabling facilities for standardbred harness horses.Two percent to be distributed in equal amounts by the state treasurer to each fair that held standardbred THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 harness racing in the previous calendar year and that will hold standardbred harness racing in the current calendar year.

If the results of a test show that a person an individual has more than .05% of alcohol in his or her the individual's blood, or has present in his or her the individual's body a controlled substance, the person individual is THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 not permitted to continue in his or her the individual's duties on that race day and until he or she the individual can produce, at his or her the individual's own expense, a negative test result.

A foal that is born on or after January 1, 2002 of a mare owned by a nonresident of this state and that is conceived outside of this state from transported semen of a stallion registered with the department of agriculture and rural development is eligible for Michigan tax- supported races only if, in the year that the foal is conceived, the department of agriculture and rural development's agent for receiving funds as the holding agent for stakes and futurities is paid a transport fee as determined by the department of agriculture and rural development and administered by the Michigan Harness THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 Horsemen's Association.

If there is no thoroughbred race meeting in the state, or the race meeting is unable to conduct the races under this subdivision, the director of the department of agriculture and rural development shall allot a special thoroughbred sires stakes fund for 4-year-olds to provide an award to the owners of the top 5 highest earning Michigan-sired THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 4-year-olds by sex and distribute money as follows:

If there is no thoroughbred race meeting in the state, or the race meeting is THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 unable to conduct the races under this subdivision, the director of the department of agriculture and rural development shall allot a special thoroughbred sires stakes fund for 2-year-olds and 3-year- olds to provide an award to the owners of the top 5 highest earning Michigan-sired 2-year-old and 3-year-old colts and fillies by age and sex and distribute money as follows:

THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 (d) As used in this subsection, "Michigan bred "Michigan-bred quarter horse" means Michigan bred Michigan-bred quarter horse as that term is defined in R 285.817.1 of the Michigan Administrative Code.

THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 (d) As used in this subsection, "Michigan bred "Michigan-bred Arabian horse" means a Michigan bred Michigan-bred horse as that term is defined in R 285.822.1(i) of the Michigan Administrative Code.

(a) A sum 0.5% to fund grants for research projects conducted by persons affiliated with a university or governmental research agency or institution or other private research entity approved by the racing commissioner, which are beneficial to the horse racing THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 and breeding industry in this state.

THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 (15) A percentage of the Michigan agriculture equine industry development fund that is equal to 1/15 of 1% of the gross wagers made each year in each of the racetracks licensed under this act must be deposited in the compulsive gaming prevention fund created in section 3 of the compulsive gaming prevention act, 1997 PA 70, MCL 432.253.

THS H01712'25 (H-2)(H-4)_HB4347_APH_1 02yb78bs19ud 1 (a) $1,500,000.00$2,500,000.00 is allotted to the Michigan gaming control board.

(e) If the money deposited in the state school aid fund under section 16 of the lawful internet gaming act, 2019 PA 152, MCL 432.316, for the current fiscal year is less than the money deposited in the state school aid fund under section 16 of the lawful internet gaming act, 2019 PA 152, MCL 432.316, for the fiscal year ending September 30, 2024, the sum of the difference between the money to be deposited in the current fiscal year compared to the amount deposited in the fiscal year ending September 30, 2024 is deposited in the state school aid fund established under section 11 of article IX of the state constitution of 1963.

(19) If the amount allocated to the Michigan agriculture equine industry development fund under this act or any other source exceeds $8,000,000.00 in a fiscal year, the amount in excess of THS H01712'25 (H-4)_HB4347_APH_1 bs19ud 1 $8,000,000.00 must be allocated to the pari-mutuel horse racing disbursement account under section 19.

(2) This act does not permit the pari-mutuel system of wagering upon a racetrack on live or simulcast horse races unless the racetrack, is licensed as provided by including any racetrack at a fairground, fair, or agricultural or livestock exhibition, at which the live horse races occur and the simulcast horse races are THS H01712'25 (H-2) 02yb78 1 televised holds a current track license under this act.

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