BILL NUMBER: AB 388	CHAPTERED  08/04/03

	CHAPTER  174
	FILED WITH SECRETARY OF STATE  AUGUST 4, 2003
	APPROVED BY GOVERNOR  AUGUST 3, 2003
	PASSED THE SENATE  JULY 21, 2003
	PASSED THE ASSEMBLY  MAY 8, 2003
	AMENDED IN ASSEMBLY  APRIL 8, 2003

INTRODUCED BY   Assembly Member Strickland

                        FEBRUARY 14, 2003

   An act to add Section 19610.8 to the Business and Professions
Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 388, Strickland.  Horse racing:  deductions.
   Existing law specifies the percentages to be deducted by a racing
association or fair from the parimutuel pools for horserace wagering,
and amount of these deductions varies based on the type of bet and
type of racing.  Existing law provides for the payment of license
fees to the state in amounts that vary depending on the type of
racing, the type of bet, whether the racing meeting is a fair
meeting, and other considerations.  Existing law provides for the
distribution of the amount deducted from the parimutuel pool to
various entities based on the type of racing, and other factors.
   This bill would permit the California Horse Racing Board,
notwithstanding these statutory percentages, to set the deduction for
any new type of wager introduced after January 1, 2004, in an amount
of not less than 10 nor more than 30% at the joint request of the
association or fair and the horsemen's organization for the meeting
of the association or fair accepting the new wager.  It would also
set a fixed state license fee of 3% for these new types of wagers,
and provide for the distribution of the funds deducted, as specified.

   Under existing law, revenues distributed to the state as license
fees from horse racing are required to be distributed in the Fair and
Exposition Fund and are continuously appropriated to the Department
of Food and Agriculture for various regulatory and general
governmental purposes.
   By providing for state license fees of 3% for some new types of
bets that otherwise would be subject to lower state license fees as
exotic wagers, this bill would increase the amount of continuously
appropriated license fees, thereby making an appropriation.
   Appropriation:  yes.


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


  SECTION 1.  Section 19610.8 is added to the Business and
Professions Code, to read:
   19610.8.  Notwithstanding any other provision of law, and in lieu
of any deduction and distribution provided for in this chapter, upon
the joint request of the association or fair accepting the wager, and
the organization representing the horsemen participating in the
meeting of the association or fair accepting the wager, the board may
set the total percentage deducted from the parimutuel pool for any
new type of wager introduced after January 1, 2004, in an amount of
at least 10 percent and not more than 30 percent of the amount
handled in the parimutuel pool for the wager.  Three percent of the
amount deducted shall be paid to the state as a license fee and, if
the wager was placed at a satellite wagering facility or a location
other than the host racing association, eight percent shall be paid
to the satellite wagering facility or to the entity that processed
the wager.  In addition, with respect to thoroughbred racing only,
three percent of the amount remaining after the payment of the state
license fee and payment to a satellite wagering facility or an entity
that processed the wager, if any, shall be deposited with the
official registering agency pursuant to subdivision (a) of Section
19617.2, and shall thereafter be distributed in accordance with
subdivisions (b), (c), and (d) of Section 19617.2.  Thereafter, for
all kinds of racing, the remaining amount shall be distributed 50
percent to the association conducting the racing meeting and 50
percent to the horsemen participating in the racing meeting as
purses.