LANSING — Sponsors and industry witnesses told the House Rules Committee that two companion bills (House Bill 4346 and House Bill 4347) would channel a portion of projected growth in non‑tribal online gaming revenue into an Equine Development (Ag Equine) fund to support county fairs and harness racing.

Representative Koontz, the bills’ sponsor, said the proposal would not authorize wagering at county fairs and would not reduce school aid funding. He cited Michigan Gaming Control Board revenue figures and a projected online gaming revenue trajectory; his presentation referenced a 2028 projection that showed online gaming totals growing toward $746,000,000 and illustrated that the equine fund could phase from a current cap of $3 million toward $15 million over several years by adding increments each year (an additional $3 million in year one, then phased increases toward $15 million).

Richard Shunk, a longtime horseman who identified himself as having raced for 44 consecutive years, described neighboring states’ gaming expansion (Indiana, Ohio, West Virginia, Pennsylvania) as having shifted participants and operations out of Michigan. Shunk said the phased funding would immediately boost purses, breeders’ awards and veterinarians’ work, and have a “trickle‑down” economic effect for farms and county fairs.

Kim Pluta of the Michigan Harness Horsemen’s Association testified in support and described county fairs’ financial strain, noting that many fairs are “struggling” and that the proposal would provide consistent revenue to 83 county fairs in the state. The sponsor said the bills specify how funds are to be allocated in the first phase and that distribution will occur through the Michigan Department of Agriculture and Rural Development (MDARD). The sponsor emphasized the bills would limit recipients to Michigan residents for monies coming from the additional $15 million cap.

Committee members asked technical questions about growth assumptions, which revenue streams were included (the sponsor clarified the bills target non‑tribal online gaming revenue from the three corporate online platforms), and whether the proposal would affect Detroit’s existing hold‑harmless offset (the sponsor said the bills would stay within statutory limits and reiterated that the plan phases monies in to avoid a sudden influx).

The committee did not take a roll‑call vote on these bills during the hearing; testimony was taken and the committee moved on to other items.

Representative Koontz and witnesses said the proposal should increase funding for purses and county fair operations while requiring rulemaking and implementation details to be handled by MDARD.