Louisiana § RS 4:183.2 - Disposition of accrued interest on undistributed monies at a race meeting

§ RS 4:183.2. Disposition of accrued interest on undistributed monies at a race meeting

            A. Monies designated for purses under R.S. 4:183(A) shall be remitted to the Horsemen's Benevolent and Protective Association within ten business days to be deposited in a separate interest-bearing account when earned and shall remain in that account until the first day of the next race meeting of the appropriate breed. Monies earned as interest on that account shall be added to those designated for Louisiana bred purses under R.S. 4:183(A) and shall be considered part of the gross purses as defined therein.

            B.(1) Monies required to be deposited into the interest-bearing account provided for in Subsection A of this Section shall be deemed earned when the race on which the wagers are placed is run. Such monies shall be deposited into such interest-bearing account within fifteen days of being earned; however, the amounts earned pursuant to R.S. 4:217 shall be deposited into the account provided for in Subsection A of this Section within fifteen days of the date on which the monies are received by the licensee.

            (2) Until all monies have been distributed in accordance with R.S. 4:183(A)(4), the Horsemen's Benevolent and Protective Association or all member and other horsemen in the state and all other persons or entities that receive purse or purse supplement funds shall be deemed to hold a perfected security interest in and to all funds that are deemed to have been earned pursuant to this Section and that have not yet been distributed in accordance with R.S. 4:183(A)(4). All earned purse money not yet distributed as purses shall be deemed to be held in trust for the benefit of the Horsemen's Benevolent and Protective Association by the licensee until such time as such monies are distributed in accordance with law or remitted to the Horsemen's Benevolent and Protective Association pursuant to Subsection A of this Section. Following the remittance to the Horsemen's Benevolent and Protective Association by the licensee, all earned purse money not yet distributed shall be deemed to be held in trust for the benefit of all member and other horsemen in the state and all other persons or entities that receive purse funds by the Horsemen's Benevolent and Protective Association until such time as the monies are distributed in accordance with the law.

            (3) A licensee shall have a fiduciary duty to the Horsemen's Benevolent and Protective Association to preserve and account for such monies until such monies are remitted to the Horsemen's Benevolent and Protective Association. Once the licensee remits the monies designated for purses in accordance with R.S. 4:183(A) to the Horsemen's Benevolent and Protective Association pursuant to Subsection A of this Section, it shall have no fiduciary duty to the Horsemen's Benevolent and Protective Association, any member or other horsemen, or any person or entity that receives purse funds to preserve and account for such monies and shall be indemnified against any loss of monies or other circumstance causing the amount of funds to be less than what the licensee remitted to the Horsemen's Benevolent and Protective Association. The Horsemen's Benevolent and Protective Association shall have a fiduciary duty to all member and other horsemen in the state and all other persons or entities that receive purse funds to preserve and account for such monies.

            (4) The account containing the monies remitted to the Horsemen's Benevolent and Protective Association pursuant to Subsection A of this Section shall be subject to audit at all times by the legislative auditor and shall be included in the annual audit required by R.S. 4:185.1.

            Acts 1989, No. 626, §1, eff. July 7, 1989; Acts 2014, No. 437, §1; Acts 2023, No. 261, §1; Acts 2024, No. 642, §1.