BILL NUMBER: SB 1337	CHAPTERED  09/26/02

	CHAPTER  904
	FILED WITH SECRETARY OF STATE  SEPTEMBER 26, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 25, 2002
	PASSED THE SENATE  AUGUST 29, 2002
	PASSED THE ASSEMBLY  AUGUST 24, 2002
	AMENDED IN ASSEMBLY  AUGUST 22, 2002
	AMENDED IN ASSEMBLY  AUGUST 19, 2002
	AMENDED IN ASSEMBLY  JUNE 30, 2002

INTRODUCED BY   Senator Vincent

                        JANUARY 30, 2002

   An act to amend Section 19556 of the Business and Professions
Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1337, Vincent.  Horse racing.
   Existing law requires each licensed racing association to
designate a certain number of racing days to be conducted as charity
days for the purpose of the distribution of the net proceeds
therefrom to beneficiaries.  Existing law also requires that
beneficiaries of these proceeds be exempt or entitled to exemption
from state and federal income taxes, involved in specified beneficial
activities, and approved by the California Horse Racing Board.
Existing law also requires that at least 20% of the distribution from
charity day racing go to charities associated with the horse racing
industry.
   This bill would provide that, in addition to the 20% of the
distribution from charity day racing that is required to go to
charities associated with the horse racing industry, another 5% of
the distribution shall be provided to a welfare fund established for
the benefit of horsemen and backstretch personnel, as specified, and
another 5% of the distribution shall be provided to a nonprofit
corporation assisting horsemen and backstretch personnel who are
affected adversely as a result of alcohol or substance abuse.  In
addition, this bill would require that an additional 20% of the
distribution from charity day racing, up to a maximum of $2,000,000,
shall be provided as an endowment for a nonprofit corporation or
trust which assists disabled jockeys, as provided.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19556 of the Business and Professions Code is
amended to read:
   19556.  (a) The distribution shall be made by the distributing
agent to beneficiaries qualified under this article.  For the
purposes of this article, a beneficiary shall be all of the
following:
   (1) A nonprofit corporation or organization entitled by law to
receive a distribution made by a distributing agent.
   (2) Exempt or entitled to an exemption from taxes measured by
income imposed by this state and the United States.
   (3) Engaged in charitable, benevolent, civic, religious,
educational, or veterans' work similar to that of agencies recognized
by an organized community chest in the State of California, except
that the funds so distributed may be used by the beneficiary for
capital expenditures.
   (4) Approved by the board.
   (b) At least 20 percent of the distribution shall be made to
charities associated with the horse racing industry.  In addition to
this 20 percent of the distribution, another 5 percent of the
distribution shall be paid to a welfare fund described in subdivision
(b) of Section 19641 and another 5 percent of the distribution shall
be paid to a nonprofit corporation, the primary purpose of which is
to assist horsemen and backstretch personnel who are being affected
adversely as a result of alcohol or substance abuse.  No beneficiary
otherwise qualified under this section to receive charity day net
proceeds shall be excluded on the basis that the beneficiary provides
charitable benefits to persons connected with the care, training,
and running of racehorses, except that type of beneficiary shall make
an accounting to the board within one calendar year of the date of
receipt of any distribution.
   (c) (1) In addition to the distribution pursuant to subdivision
(b), a separate 20 percent of the distribution shall be made to a
nonprofit corporation or trust, the directors or trustees of which
shall serve without compensation except for reimbursement for
reasonable expenses, and which has as its sole purpose the
accumulation of endowment funds, the income on which shall be
distributed to qualified disabled jockeys.
   (2) To receive a distribution under this subdivision, a
corporation or trust must establish objective qualifications for
disabled jockeys, and provide an annual accounting and report to the
board on its activities indicating compliance with the requirements
of this subdivision.
   (3) The nonprofit corporation or trust shall, in an amount
proportional to the contributions received pursuant to this
subdivision as a percentage of the total contributions received by
the corporation or trust, give preference in assisting qualified
disabled jockeys to the following:
   (A) Jockeys who were disabled while participating in the racing or
training of horses at licensed racing associations or approved
training facilities in California.
   (B) Jockeys licensed by the board who were disabled while
participating in the racing or training of horses in a state other
than California.
   (d) When the nonprofit corporation or trust described in
subdivision (c) has received distributions in an amount equal to two
million dollars ($2,000,000), the distribution mandated by
subdivision (c) shall cease.