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The Horse Racing Regulatory Modernization Act (Liquor, Gaming and Cannabis Control Act and Pari-Mutuel Levy Act Amended)

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If you need an official copy, use the bilingual (PDF) version.

S.M. 2021, c. 7

Bill 31, 3rd Session, 42nd Legislature

The Horse Racing Regulatory Modernization Act (Liquor, Gaming and Cannabis Control Act and Pari-Mutuel Levy Act Amended)

Explanatory Note

This note was written as a reader's aid to the Bill and is not part of the law.

This Bill amends The Liquor, Gaming and Cannabis Control Act to transfer responsibility for the regulation of all types of horse racing in Manitoba to the Liquor, Gaming and Cannabis Authority of Manitoba ("the Authority").

The Authority is responsible for establishing rules governing horse racing. Stewards, judges, veterinarians and other officials employed or retained by the Authority organize and oversee the conduct of horse racing. These officials examine race horses and conduct inspections of jockeys, drivers and other racing participants to ensure the rules of racing are followed. A formal process is established for reviewing decisions made under the rules of racing.

Racing participants and the operators of horse race tracks and betting theatres must be licensed by the Authority.

A number of amendments are made to The Pari-Mutuel Levy Act. A licensed race track operator is allowed to conduct pari-mutuel betting on horse races held at their race track. The operator must pay a levy from each wager made on a horse race. The levies are used to promote and support horse racing across Manitoba. Inspectors under The Liquor, Gaming and Cannabis Control Act will enforce The Pari-Mutuel Levy Act.

The Horse Racing Commission Act is repealed, and a consequential amendment is made to The Agricultural Societies Act.

(Assented to May 12, 2021)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE LIQUOR, GAMING AND CANNABIS CONTROL ACT

C.C.S.M. c. L153 amended

1

The Liquor, Gaming and Cannabis Control Act is amended by this Part.

2

Subsection 1(1) is amended by adding the following definition:

"horse racing" means a prescribed type of race involving horses. (« course de chevaux »)

3

Section 2 is amended by striking out "and" at the end of clause (b), adding "and" at the end of clause (c) and adding the following after clause (c):

(d) to ensure that horse racing is conducted in a fair and proper manner and in the public interest.

4(1)

The following is added after subsection 8(2.1):

Duties — horse racing

8(2.2)

The authority has the following duties in respect of horse racing:

(a) to regulate horse racing and persons who are involved in horse racing;

(b) to provide information and advice to the minister about horse racing.

4(2)

Clause 8(3)(b) is amended by adding "and responsible betting on horse racing" after "in gaming".

4(3)

Subsection 8(4) is amended by striking out "liquor, gaming and cannabis" wherever it occurs and substituting "liquor, gaming, cannabis and horse racing".

5

Section 9 is amended by striking out "gaming or cannabis" and substituting "gaming, cannabis or horse racing".

6

The following is added after section 101.27:

PART 4.2

HORSE RACING

DIVISION 1

INTERPRETATION

Definitions

101.28

The following definitions apply in this Part.

"betting theatre" means a facility that is not located at a horse race track and in which pari-mutuel betting on horse racing may take place. (« salle de paris »)

"horse race track" means the grounds on which any form of horse racing is carried on, and includes any associated buildings and facilities located on or near those grounds. (« hippodrome »)

"race administration official" means a person employed or retained by the authority under section 101.40 or 101.41. (« commissaire de course »)

"race horse" means a horse of any breed that is owned or maintained for the purpose of running in a horse race. (« cheval de course »)

"racing participant" means

(a) a jockey or driver;

(b) a race horse trainer;

(c) a race horse owner; and

(d) any other person performing a prescribed role or carrying out a prescribed activity in a horse race or at a horse race track. (« participant aux courses »)

"review adjudicator" means the person appointed as the review adjudicator under section 101.35, and includes a deputy review adjudicator conducting a review. (« arbitre »)

"rules of racing" means the rules of horse racing made under section 101.32. (« règles de courses »)

DIVISION 2

LICENSING

Horse race track operator licence

101.29

A person must not operate a horse race track unless the person holds a horse race track operator licence issued by the executive director.

Racing participant licences

101.30

A person must not act as a racing participant unless the person holds a licence issued by the executive director that authorizes the person to perform the role or carry out the activity authorized by the licence.

Betting theatre licence

101.31(1)

 A person must not operate a betting theatre unless the person holds a betting theatre licence issued by the executive director.

Locations

101.31(2)

 A betting theatre licence authorizes the holder to operate betting theatres at one or more locations specified by the executive director.

DIVISION 3

RULES OF RACING

Rules of racing

101.32(1)

 The executive director may make rules governing the organization and conduct of horse racing.

Different rules

101.32(2)

 The executive director may make different rules for different types of horse racing.

Adoption of other rules

101.32(3)

 The rules of racing may adopt by reference, in whole or in part, with such changes as the executive director considers necessary, rules and procedures made by horse racing associations or other bodies.

Rules to be accessible to the public

101.32(4)

 The authority must make the rules of racing accessible to the public.

Conflict

101.32(5)

 If there is a conflict or inconsistency between the rules of racing and this Act, this Act prevails.

Rules of racing not regulations

101.32(6)

 The rules of racing are not regulations within the meaning of The Statutes and Regulations Act.

Delegation of powers

101.33

Under the rules of racing, the executive director may delegate to specified race administration officials, horse racing associations or other bodies, employees of a horse race track operator or other persons one or more of the following powers and functions:

(a) specified functions respecting the organization and conduct of horse racing;

(b) the power to enforce the rules of racing;

(c) the power to fix, impose and enforce or collect penalties for a contravention of the rules of racing.

Compliance with rules of racing

101.34

A racing participant and a horse race track operator must comply with all applicable rules of racing.

REVIEW OF DECISIONS

Review adjudicator

101.35(1)

 The executive director may appoint a person as review adjudicator for a term not exceeding three years.

Role of review adjudicator

101.35(2)

 The review adjudicator is responsible for conducting reviews of decisions made under the rules of racing.

Deputy review adjudicators

101.36(1)

 The executive director may appoint one or more persons as a deputy review adjudicator for a term not exceeding three years.

Role of deputy review adjudicators

101.36(2)

 A deputy review adjudicator may conduct a review of a decision made under the rules of racing if the review adjudicator is absent or unable to conduct the review.

Review of decisions under rules of racing

101.37(1)

 A person who is directly affected by a decision made under the rules of racing may apply for a review of the decision by the review adjudicator, if the rules allow for a review of that decision.

Review application requirements

101.37(2)

 An application for review of a decision must be made in accordance with requirements set out in the rules of racing.

Practice and procedure

101.38

Subject to the regulations, the review adjudicator may determine the practice and procedure on a review of a decision made under the rules of racing.

Decision

101.39(1)

 After conducting a review, the review adjudicator may, by written decision,

(a) confirm, vary or rescind the decision under review; or

(b) make any decision that could have been made in the first instance.

Reasons

101.39(2)

 The review adjudicator must give written reasons for their decision.

Decision final

101.39(3)

 The decision of the review adjudicator is final and not subject to appeal.

DIVISION 4

RACE ADMINISTRATION OFFICIALS

Stewards and judges

101.40

The authority may employ or retain stewards, judges and other persons to perform such duties in relation to the organization and conduct of horse racing as may be directed by the authority.

Veterinarians

101.41

The authority may employ or retain veterinarians to monitor and provide services to ensure the health, safety and welfare of race horses.

Identification

101.42(1)

 The authority must provide race administration officials with identification.

Producing identification

101.42(2)

 A race administration official exercising a power under this Act or the rules of racing must produce identification upon request.

Inspections

101.43(1)

 A race administration official may enter and inspect

(a) any part of a horse race track and any stables, premises or conveyances operated in conjunction with a horse race track; and

(b) the offices or premises of a horse race track operator.

Application of sections 123 and 124

101.43(2)

 Sections 123 and 124 apply, with necessary changes, to a race administration official conducting an inspection under subsection (1).

Examination of race horses

101.44(1)

 A race administration official may conduct examinations of race horses at any time.

Taking samples

101.44(2)

 During an examination of a race horse, a race administration official or a person authorized by a race administration official may take samples of blood, saliva, urine or other substances from the horse for testing and analysis.

Inspection and testing of racing participants

101.45(1)

 To ensure the safety of horse racing and compliance with the rules of racing, jockeys, drivers and other prescribed classes of racing participants are required, as a condition of their licence, to submit to

(a) inspection of their person before and after a horse race; and

(b) testing of their breath, saliva, urine or other bodily substances for alcohol and other drugs.

Conduct of testing

101.45(2)

 Testing for alcohol and other drugs under this section must be conducted in accordance with prescribed procedures.

No obstruction of race administration officials

101.46

A person must not obstruct or hinder, or make a false or misleading statement to, a race administration official who is exercising powers or performing duties under the rules of racing or this Act.

7(1)

Subsection 106(1) is amended, in the part before clause (a), by striking out "subsections (2) to (4)" and substituting "subsections (2) to (4.2)".

7(2)

The following is added after subsection 106(4):

Additional requirements — racing participant licences

106(4.1)

A racing participant licence may not be issued unless the executive director is satisfied that the applicant is eligible to engage in the specified activity under the rules of racing or the regulations.

Requirement to pass test or meet standards

106(4.2)

The executive director may require an applicant for a racing participant licence to pass an examination or attain a standard required under the rules of racing or the regulations.

8

Subsection 157(2) is amended by renumbering clause (ee) as clause (ee.7) and adding the following immediately before clause (ee.7):

(ee) respecting the conduct of horse racing;

(ee.1) prescribing standards for horse race tracks;

(ee.2) fixing the number of race days that may be held in any area of the province;

(ee.3) establishing rules of practice and procedure on a review of a decision made under the rules of racing;

(ee.4) establishing requirements that must be met to hold a specified type of racing participant licence;

(ee.5) specifying an examination to be passed or a standard to be met to hold a specified type of racing participant licence;

(ee.6) respecting the records to be kept by horse race track operators and racing participants;

PART 2

THE PARI-MUTUEL LEVY ACT

C.C.S.M. c. P12 amended

9

The Pari-Mutuel Levy Act is amended by this Part.

10

Section 1 is amended

(a) in the definition "bettor", by striking out everything after "who bets" and substituting "on a horse race through the agency of a pari-mutuel betting system;";

(b) in the definition "operator", by striking out everything after "conducts or manages" and substituting "a pari-mutuel betting system in connection with the operation of a horse race track or the conduct of a horse race meet;";

(c) by replacing the definition "licence" with the following:

"licence" means a horse race track operator licence issued under The Liquor, Gaming and Cannabis Control Act; (« licence »)

(d) by repealing the definitions "commission", "enforcement officer", "fiscal year", "pari-mutuel system" and "plan of distribution"; and

(e) by adding the following definitions:

"authority" means the Liquor, Gaming and Cannabis Authority of Manitoba continued under The Liquor, Gaming and Cannabis Control Act; (« Régie »)

"inspector" means a person appointed or designated as an inspector under The Liquor, Gaming and Cannabis Control Act; (« inspecteur »)

"pari-mutuel betting system" means a system of betting on the outcome of a horse race in which all wagers for a race are pooled and held for distribution of the total amount to the winning bettors, less the deductions allowed by law; (« système de pari mutuel »)

11

Section 2 and the centred heading before it are replaced with the following:

LICENCE REQUIRED FOR PARI-MUTUEL BETTING

Licence required

2

No person shall operate, conduct or manage a pari-mutuel betting system or receive bets through the agency of a pari-mutuel betting system unless the person holds a valid and subsisting licence.

12

Sections 3 to 7 are repealed.

13

Section 8 is replaced with the following:

Pari-mutuel levy

8

A person who bets on a horse race through the agency of a pari-mutuel betting system must, at the time the bet is placed, pay a levy to the operator in an amount determined in accordance with the regulations.

14(1)

Subsection 9(1) is replaced with the following:

Collection of levy

9(1)

An operator must collect the levy from each bettor at the time the bet is placed.

14(2)

Subsection 9(2) of the English version is amended by adding "betting" after "pari-mutuel".

15(1)

Subsections 10(1) and (2) are replaced with the following:

Remitting levies

10(1)

An operator must remit levies collected from bettors to the authority within the time period specified by the authority.

Exemption

10(2)

An operator may, by regulation, be exempted from remitting levies to the authority.

15(2)

Subsection 10(3) is repealed.

15(3)

Subsections 10(4) and (5) are replaced with the following:

Returns

10(4)

The operator must provide the authority with a return respecting the levies collected and remitted by the operator. The return must be in a form and contain the information specified by the authority.

Extension

10(5)

The authority may, by written notice, extend the time for an operator to remit levies and provide a return.

16

Section 11 is amended, in the part before clause (a),

(a) by striking out everything before "who fails to remit" and substituting "An operator"; and

(b) by striking out "paid or".

17

Section 12 is repealed.

18(1)

Subsection 13(1) is amended

(a) by adding "and support" after "promotion"; and

(b) by striking out everything after "in Manitoba".

18(2)

Subsection 13(2) is replaced with the following:

Deposits into Fund

13(2)

The authority must deposit into the Fund all levies remitted to it and any interest paid under section 11.

18(3)

Subsection 13(4) is amended by striking out "commission" and substituting "authority".

19

Subsection 14(1) is amended by striking out "commission" and substituting "authority".

20

The following is added after section 14:

Distributions from Fund

14.1(1)

The authority is to distribute money from the Fund in accordance with written directions from the minister.

Directions from minister re distribution

14.1(2)

Directions from the minister respecting distributions from the Fund must specify

(a) the recipients of distributions;

(b) the amount of each distribution or the manner in which the amounts of those distributions are to be determined; and

(c) when distributions are to occur.

Information in annual report re Fund

14.2

The authority must include the audited financial statements of the Fund and a detailed statement of all distributions from the Fund in a fiscal year in its annual report.

21

Sections 15 to 17 are repealed.

22

Sections 18 to 21 are amended by striking out "commission" wherever it occurs and substituting "authority".

23

Section 23 is amended

(a) by striking out "a bettor or"; and

(b) by striking out "commission" and substituting "authority".

24

Section 24 is repealed.

25

Section 25 is amended by striking out "enforcement officer" and substituting "inspector".

26

Section 26 is amended

(a) in the section heading, by striking out "of commission";

(b) in the part before clause (a),

(i) by striking out "or the commission" and substituting "or the authority", and

(ii) by striking out "enforcement officer, when authorized to do so by the commission," and substituting "inspector";

(c) in clauses (a) and (b) of the English version, by adding "betting" after "pari-mutuel"; and

(d) in clause (c), by striking out "the commission that the officer's attendance" and substituting "the authority that the inspector's attendance".

27(1)

Subsection 27(1) is amended

(a) in the part before clause (a), by striking out "enforcement officer or any peace officer authorized by the commission" and substituting "inspector"; and

(b) by striking out "officer or peace officer" wherever it occurs and substituting "inspector".

27(2)

Subsection 27(2) is amended, in the part after clause (b),

(a) by striking out "enforcement officer" and substituting "inspector"; and

(b) by striking out "officer calls" and substituting "inspector calls".

27(3)

Subsections 27(3) to (7) are repealed.

28

Section 28 is amended

(a) by striking out "enforcement officer or peace officer directed by the commission" and substituting "inspector"; and

(b) in the English version, by adding "betting" after "pari-mutuel".

29

Sections 29 to 32 are repealed.

30

Clause 33(1)(d) is amended by striking out "commission" and substituting "authority".

31

Section 34 is amended by striking out "commission" and substituting "authority".

32(1)

Clause 35(1)(b) is amended by striking out "an application for a licence or on".

32(2)

Subsection 35(2) is amended by striking out "commission" and substituting "authority".

33

Section 36 is amended

(a) by repealing clause (b) and clauses (d) to (e); and

(b) by adding the following as clauses (f) to (h):

(f) exempting operators from the requirement to remit levies to the authority;

(g) establishing the manner in which the levy payable is to be determined;

(h) respecting any matter that the Lieutenant Governor in Council considers necessary or advisable to carry out the purposes of this Act.

PART 3

CONSEQUENTIAL AMENDMENT, REPEAL AND COMING INTO FORCE

Consequential amendment, C.C.S.M. c. A30

34

Subsection 33(2) of The Agricultural Societies Act is repealed.

Repeal

35(1)

The Horse Racing Commission Act, R.S.M. 1987, c. H90, and all regulations made under that Act, are repealed.

Dissolution of Horse Racing Commission

35(2)

On the coming into force of this Act,

(a) The Horse Racing Commission continued under The Horse Racing Commission Act is dissolved;

(b) the appointments of the members of The Horse Racing Commission are terminated, and all rights and obligations of the members in relation to or under those appointments are extinguished; and

(c) the rights and property of The Horse Racing Commission are transferred to the government and all of its liabilities and obligations are assumed by the government.

Coming into force

36

This Act comes into force on a day to be fixed by proclamation.