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S.M. 1996, c. 44
THE PARI-MUTUEL LEVY AND CONSEQUENTIAL AMENDMENTS ACT
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(Assented to November 19, 1996)
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
In this Act,
"bettor" means a person who bets through the agency of a pari-mutuel system; (« parieur »)
"commission" means The Horse Racing Commission continued under The Horse Racing Commission Act; (« Commission »)
"enforcement officer" means an enforcement officer appointed under subsection 24(1); (« agent d'exécution »)
"fiscal year" means the period beginning on April 1 of one year and ending on March 31 of the following year; (« exercice »)
"Fund" means the Pari-Mutuel Levy Fund established under section 13; (« Fonds »)
"levy" means a levy under section 8; (« prélèvement »)
"licence" means a licence issued under section 3; (« licence »)
"minister" means the member of the Executive Council charged by the Lieutenant Governor in Council with the administration of this Act; (« ministre »)
"operator" means a person who operates, conducts or manages a pari-mutuel system in connection with the operation of a race track or the conduct of a race meeting; (« exploitant »)
"pari-mutuel system" means a pari-mutuel system of betting through the agency of which bets may be placed and recorded and tickets or other documents showing the amount of money bet by a bettor may be issued to the bettor; (« système de pari mutuel »)
"plan of distribution" means a plan of distribution of the Fund referred to in section 15. (« plan de distribution »)
No person shall operate, conduct or manage a pari-mutuel system of betting or receive bets through the agency of the pari-mutuel system unless
(a) the person holds a valid and subsisting licence authorizing him or her to do so issued by the commission under this Act; and
(b) the licence is not under suspension.
An application for a licence must be in the form and contain the information required by the commission.
The commission may issue a licence and may make it subject to the terms and conditions that it considers appropriate and sets out in the licence.
A licence expires on the date stated in it.
A licence is not transferable.
For the purpose of ensuring that an operator complies with this Act, the commission may require an applicant for a licence or a licensee to provide security or evidence of security to the commission at the time of application or at any other time, by serving a notice in writing specifying the form and amount of the security or evidence of security and the time within which it is to be provided.
The applicant or licensee who is served with a notice under subsection (1) shall within the time required in the notice provide security or evidence of security in accordance with the notice.
Subject to section 6, the commission may refuse to issue a licence to an applicant who does not hold a licence if
(a) the applicant is in contravention of this Act; or
(b) the commission believes that it is in the public interest to do so.
Subject to section 6, the commission may refuse to renew a licence, may suspend a licence for a period of not more than 30 days or may cancel a licence if
(a) the licensee is in contravention of this Act or of a term or condition of his or her licence; or
(b) the commission believes that it is in the public interest to do so.
When the commission proposes to refuse to issue or renew a licence or proposes to suspend or cancel a licence, the commission shall serve on the applicant or licensee a notice
(a) stating the nature of the proposal and the reasons for it, and that the commission intends to carry out the proposal unless good reason is shown why the commission should not do so; and
(b) fixing a place where and a time and a day when the commission will
(i) hear the applicant or licensee or anyone on his or her behalf respecting the proposal, and
(ii) permit him or her to show cause why the licence should be issued, or why the licence should not be suspended or cancelled, as the case may be.
Unless the applicant or licensee consents to an earlier day, the hearing under clause (1)(b) shall not be earlier than one week after the date on which the notice is served.
Not later than one week after the hearing, the commission shall decide the matter, make a written order and serve a copy of it on the applicant or licensee.
An order made under subsection (3) suspending or cancelling a licence takes effect on the day that the copy is served on the licensee.
An applicant or licensee may, not later than 30 days after the order is served on him or her, appeal against the decision of the commission under subsection 6(3) to the Court of Queen's Bench.
The court may make an order allowing the appeal in whole or in part or may dismiss the appeal.
On application of a licensee, a judge of the Court of Queen's Bench may, pending the hearing of the appeal, stay an order suspending or cancelling a licence.
A person who bets through the agency of a pari-mutuel system shall at the time he or she places a bet pay in cash to the operator a levy equal to the following:
(a) when the person's bet depends on the selection of not more than two horses, 7.5% of the bet or such other percentage of the bet as may be prescribed by regulation;
(b) when the person's bet depends on the selection of three or more horses, 12.5% of the bet or such other percentage of the bet as may be prescribed by regulation.
An operator shall collect the levy in cash from each bettor who bets through the agency of the pari-mutuel system at the time that bettor's bet is placed.
An operator who neglects or refuses to collect a levy, or who permits or authorizes a person to place a bet, or is party or privy to a person placing a bet, through the agency of the pari-mutuel system without paying the levy is guilty of an offence.
An operator who fails to collect a levy is nevertheless required to remit the amount of the levy under section 10 as if he or she had collected it.
Any payment made by a bettor to an operator in respect of the placing of a bet shall be applied first to payment of the levy.
An operator who on a day collects levies under this Act, shall, within the time required by the commission or any extension under subsection (5) and in the manner required by the commission,
(a) remit the levies for that day to the commission less any fee that the operator may deduct under subsection (3); and
(b) complete and file with the commission a return with respect to the levies collected on that day.
Subsection (1) does not apply to an agricultural society formed under The Agricultural Societies Act that is exempted from subsection (1) by a regulation made under section 37 of that Act.
An operator who has complied with subsection (1) may deduct from the amount of levies that he or she has collected on a day a fee at a rate prescribed by regulation for services rendered in collecting and remitting the levies to the commission.
A return must be in the form and contain the information required by the commission.
The commission may in writing extend the time for remitting levies and filing a return under subsection (1).
A bettor who fails to pay a levy or an operator who fails to remit levies as required by this Act shall pay interest on the amount not paid or remitted at the following rate:
(a) for the period beginning on January 1 and ending on June 30 of a year, the rate is the prime lending rate of the government's principal banker, as the prime rate stood on January 1 of the year, plus 2%;
(b) for the period beginning on July 1 and ending on December 31, the rate is the prime lending rate of the government's principal banker, as the prime rate stood on July 1 of the year, plus 2%;
or such other rate as may be prescribed by regulation.
The commission may deduct from the levies remitted to it by an operator the amount permitted under the regulations.
PARI-MUTUEL LEVY FUND
The Pari-Mutuel Levy Fund is hereby established for the promotion of horse racing in Manitoba to be distributed in accordance with a plan of distribution approved by the minister under section 15.
The commission must deposit into the Fund all levies remitted to it and interest on the levies less the deduction by the commission under section 12.
Investment income earned on deposits of the Fund accrues to and forms part of the Fund.
The commission shall hold the Fund in a separate bank account in a chartered bank or trust company.
The commission shall keep the records relating to the Fund required by the minister.
The Fund shall be audited by the Provincial Auditor or by such other auditor as the Lieutenant Governor in Council may appoint.
The commission shall, before December 31 of a year,
(a) adopt a plan for the distribution of all or part of the Fund for the following fiscal year; and
(b) submit it to the minister.
The minister may extend the time for adopting and submitting a plan of distribution under subsection (1).
The minister may approve the plan of distribution.
The commission may adopt an amendment to an approved plan of distribution and the minister may approve the amendment.
The Fund shall not be distributed except in accordance with an approved plan of distribution.
The commission shall make a copy of every plan of distribution, and every amendment to a plan of distribution, approved by the minister under section 15 available for inspection by the public at its head office during normal business hours.
An operator shall keep the records and books of account, in the form and containing the information, required by the commission.
An operator shall keep the records and books of account
(a) at the operator's place of business in Manitoba; or
(b) if the operator has no place of business in Manitoba, at a place in Manitoba approved by the commission.
An operator shall retain a record or book of account required to be kept under subsection (1) for six years.
The commission may audit the records and books of account of an operator.
An operator holds all levies collected under subsection 9(1) in trust for the commission.
The commission may, by serving a notice in writing on the operator, require the operator to hold all levies collected under subsection 9(1) in a separate trust account, and the operator shall without delay place the levies in a separate bank account and shall not withdraw or permit the withdrawal of money from the account except as directed by the commission.
The commission may assess the amount of levies and interest to be remitted by the operator if
(a) the operator fails to file a return in accordance with section 10;
(b) the commission reasonably believes that a return filed by the operator is incorrect or misleading; or
(c) the operator fails to collect or remit the levies.
Subject to subsection (5) and section 22, the amount of the assessment is conclusive of the amount of levies required to be remitted by the operator.
A notice of assessment shall
(a) set out the amount of the assessment and interest; and
(b) contain a statement that the operator shall, within 30 days after the date the notice is served, remit to the commission the amount of the assessment and interest or otherwise account for the amount to the satisfaction of the commission.
An assessment made by the commission shall not be varied or set aside because of any irregularity, informality, omission or technical error.
The operator shall, within 30 days after the date the notice is served, remit the levies and interest to the extent that he or she has not accounted for them to the satisfaction of the commission.
An operator who disputes the amount of an assessment made under section 21 may, within 60 days after service of the notice of assessment, appeal the assessment by application to the Court of Queen's Bench.
The onus is on the operator to disprove the assessment.
The Court of Queen's Bench may make an order affirming, varying or setting aside the assessment under section 21.
The amount of the levy and interest owing by a bettor or an operator is recoverable by the commission by an action in debt.
The commission may appoint any person as an enforcement officer for the purpose of this Act.
Each enforcement officer is to be provided with a certificate of appointment and, on entering any place under this Act, an enforcement officer shall show the certificate to the person in charge of the place if the person requests proof of the appointment.
No person shall obstruct or hinder, or make a false or misleading statement to, an enforcement officer who is carrying out duties or functions under this Act.
If an operator fails to make a remittance or the commission has reason to believe that an operator will fail to make a remittance as required under subsection 10(1), an enforcement officer, when authorized to do so by the commission, may
(a) without warrant, enter the premises of the operator in which the betting through the agency of the pari-mutuel system takes place;
(b) collect the levies payable under section 8 issued after the end of each event on the outcome of which bets are placed through the agency of the pari-mutuel system or after all of such events are held on that date; and
(c) remain on the premises of the operator until the operator has satisfied the commission that the officer's attendance is no longer necessary.
An enforcement officer or any peace officer authorized by the commission may, at any reasonable time and without warrant, enter the business premises of any operator, or the premises of any person where the officer or peace officer has reasonable and probable grounds to believe that records, books of account or other documents of an operator are kept,
(a) to ascertain whether levies under this Act have been, or are being, paid, collected or remitted by any person as required by this Act;
(b) to inspect or examine the records, books of account or other documents, record-keeping devices and premises of the operator, for the purpose of ascertaining the number and amounts of bets placed and received during any period and the amount of levies to be collected and remitted by the operator;
(c) to ascertain whether the person has made or received bets in respect of which a levy is payable under this Act; and
(d) to make such inquiries and inspections of the premises as the officer or peace officer reasonably requires for the purposes of this Act;
and the person shall, at that time, produce for inspection by the officer or peace officer any records, books of account and documents that the officer or peace officer may require.
A justice who is satisfied by information on oath that there are reasonable and probable grounds to believe that
(a) a violation of this Act has occurred or is occurring; and
(b) there is to be found in any building, receptacle, vehicle, or place in the province a book of account, record, document or other thing which affords evidence of the violation;
may at any time, and when necessary on motion without notice, issue a warrant authorizing an enforcement officer, together with any peace officer on whom the officer calls for assistance and any other persons named in the warrant, to enter and search the building, receptacle, vehicle, or place for the record, book of account or other document or thing, and to seize and retain it for production in any court proceedings.
When any record, book of account or document has been seized, inspected, examined or produced in accordance with this section, the person by whom it has been seized, inspected or examined, or to whom it has been produced, may make or cause to be made one or more copies of it; and a document purporting to be certified by the person as a copy made pursuant to this subsection is admissible in evidence and has the same probative force in any court or inquiry as the original book, record or document would have had if it had been proven in the ordinary way.
When any record, book of account, document or thing has been seized or produced under this section, the person by whom it was seized or to whom it was produced shall
(a) in the case of a book, record or document, within a reasonable time of a written request for it by the person from whom it was seized or by whom it was produced, and when information from the record, book of account or document is reasonably required for the conduct of the person's business, send the record, book of account or document or a copy of it to the person; and
(b) subject to subsection (5), return the original record, book of account, document or the thing, to the person from whom it was seized or by whom it was produced, within 180 days after the seizure or production.
Any person authorized by the commission for the purpose may apply to a judge of the Court of Queen's Bench for an extension of the time referred to in clause (4)(b), and on hearing the application the judge may dismiss the application or may grant an extension for such time and subject to such conditions as he or she sees fit, if the extension is reasonable and necessary for the purposes of
(a) existing or anticipated court proceedings arising out of an alleged violation of this Act; or
(b) a continuing investigation into a suspected violation of this Act.
The decision of the judge under subsection (5) is final and is not subject to appeal.
When a judge dismisses an application for an extension of time under subsection (5), the person who made the application shall, within 30 days after the decision, return the original record, book of account, document or the thing, to the person from whom it was seized or by whom it was produced.
An enforcement officer or peace officer directed by the commission may enter the premises where a person without a valid and subsisting licence or whose licence is under suspension operates, conducts or manages a pari-mutuel system in connection with the operation of a race track or the conduct of a race meeting and close them to the public.
The commission may register a certificate of debt that contains the information required under subsection (2) and is in the form prescribed in the regulations against land of the debtor registered in the Land Titles Office of a Land Titles District, and from the time of registration the certificate binds, and forms a lien and charge on the land.
A certificate of debt shall
(a) set out
(i) the commission's address for service of notice, and
(ii) the name and address of the debtor;
(b) certify the amount of the debt; and
(c) be signed by the chairman, vice-chairman or officer of the commission.
The certificate may be registered on its production without an affidavit of execution.
The lien and charge created by the registration of the certificate of debt may be realized in the same manner as if it were a mortgage on the land executed by the owner of the land.
The commission may issue a warrant directed to the sheriff for the amount of a debt due to the commission under this Act, together with costs, expenses and poundage of the sheriff.
(a) has the same force and effect;
(b) creates the same rights, duties and obligations;
(c) is subject to the same exemptions; and
(d) shall be acted on by the sheriff in the same way and with the same procedures;
as if the warrant were a writ of seizure and sale issued out of the Court of Queen's Bench on the basis of a judgment of that court in favour of the commission.
In case of the insolvency of any person, or the liquidation of any corporation, from whom or from which a debt is due to the commission under this Act, the amount of the debt is a lien and charge upon the estate and assets of that person or corporation.
When a bettor or operator ("the debtor") owes money to the commission, and the commission receives information that another person ("the third party") is or is about to become indebted to the debtor, the commission may serve a demand on the third party requiring that the money payable by the third party to the debtor be, in whole or in part, paid to the commission on account of the debtor's liability to the commission under this Act.
The third party shall pay the money demanded under subsection (1) to the commission without delay after the later of
(a) receipt of the demand; or
(b) the due date of the liability to the debtor;
and the receipt of the commission for money so paid discharges the liability of the third party to the debtor to the extent of the amount acknowledged by the receipt.
A third party who, after receipt of a demand under this section,
(a) fails to pay the money to the commission as required under subsection (2); or
(b) pays the money to the debtor;
is personally liable to the commission to the extent of the lesser of
(c) his or her indebtedness or the amount of the indebtedness paid by him or her to the debtor; or
(d) the amount owed to the commission by the debtor, including any interest.
When a demand is served on a third party under this section, the commission shall serve a notice on the debtor of the demand and give him or her the particulars of it.
A document that is to be served under this Act may be served
(a) on an individual personally;
(b) on a corporation by serving one of its directors personally;
(c) on a partnership by serving one of the partners personally; or
(d) by sending the notice by registered mail addressed to the individual, partner or corporation at the address last known to the commission.
A notice sent by mail is deemed to have been received by the person on the second day after the day on which it is mailed.
Levies that are paid or payable to an operator or are collected and remitted or to be collected and remitted to the commission are not public moneys within the meaning of The Financial Administration Act.
Every person who
(a) contravenes any provision of this Act; or
(b) makes a false statement on an application for a licence or on any return required to be made under this Act;
is guilty of an offence and is liable on summary conviction to a fine of not more than $5,000. or imprisonment for a term of not more than three months, or to both.
In any prosecution for failure to pay a levy or to collect or remit a levy, the onus of proving that the levy was paid, collected or remitted to the commission, as the case may be, is on the accused.
When a corporation is guilty of an offence, a director or officer of the corporation who authorized, permitted or acquiesced in the offence is also guilty of the offence and is liable on summary conviction to the penalty for the offence provided in this section.
In a prosecution for an offence against this Act on the part of an operator, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused while acting in the course of his or her employment or agency functions.
A prosecution under this Act may be commenced not later than six years after the commission of the alleged offence.
The Lieutenant Governor in Council may make regulations
(a) prescribing other percentages for the purpose of clauses 8(a) and (b);
(b) prescribing the rate of the fee that may deducted by an operator for the purpose of subsection 10(3);
(c) prescribing another rate of interest for the purpose of section 11;
(d) providing for the determination of the amount of the deduction by the commission for the purpose of section 12;
(e) prescribing the form of certificate of debt for the purpose of subsection 29(1).
CONSEQUENTIAL AMENDMENTS, C.C.S.M. REFERENCE AND COMING INTO FORCE
Section 37 of The Agricultural Societies Act is repealed and the following is substituted:
The minister may make regulations exempting societies or classes of societies that collect levies at horse racing meets from the obligation to remit those levies to the Horse Racing Commission under subsection 10(1) of The Pari-Mutuel Levy Act.
The Horse Racing Commission Act is amended by this section.
Subsection 9(2.1) is amended
(a) by adding "or any other Act" after "conferred upon the commission by this Act"; and
Subsection 9(3) is amended by adding "or any other Act" after "under this Act".
Subsection 15(1) is repealed and the following is substituted:
The commission shall within three months after the end of each fiscal year make an annual report to the minister, which shall include the audited financial statements of the Pari-Mutuel Levy Fund established under The Pari-Mutuel Levy Act.
Without delay after receiving an annual report under subsection (1), the minister shall lay a copy of it before the Legislative Assembly if it is then in session, and, if it is not, then the minister shall lay a copy of the report before the Legislative Assembly within 15 days after the beginning of the next session.
Section 18 is amended by striking out "or The Horse Racing Regulation Act" wherever it occurs and substituting ", The Horse Racing Regulation Act or The Pari-Mutuel Levy Act".
39 The Pari-Mutuel Tax Act, R.S.M. 1987, c. P12, is repealed.
This Act may be cited as The Pari-Mutuel Levy Act and referred to as chapter P12 of the Continuing Consolidation of the Statutes of Manitoba.
This Act comes into force on a day fixed by proclamation.