BILL NUMBER: SB 1227	CHAPTERED  09/30/04

	CHAPTER  918
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2004
	PASSED THE SENATE  AUGUST 28, 2004
	PASSED THE ASSEMBLY  AUGUST 28, 2004
	AMENDED IN ASSEMBLY  JULY 23, 2004

INTRODUCED BY   Senator Soto

                        FEBRUARY 12, 2004

   An act to add Sections 19531.1 and 19614.6 to the Business and
Professions Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1227, Soto.  Horse racing:  fairs:  allocation of racing dates.

   (1) Existing law authorizes the California Horse Racing Board to
allocate racing weeks to an applicant or applicants, and to specify
the racing days, dates, and hours for horse racing meetings.
Existing law entitles any fair racing association that conducted
racing in the central or southern zone prior to January 1, 1980, to
be allocated up to 3 weeks of racing.
   This bill would prohibit the board from allocating racing dates to
a private thoroughbred association in the central or southern zone
for the purpose of conducting thoroughbred racing during daytime or
nighttime hours if a fair racing association is conducting racing in
the central zone on the same dates and if that fair is obligated to
make payments on a capital expense loan incurred for the purpose of
improving its facilities for horse racing.
   (2) Existing law permits any county or district agricultural
association fair that is licensed to conduct racing meetings for the
first time on or after January 1, 1979, to retain the license fee
applicable to its meeting for payment of a capital expense loan
incurred for the purpose of preparing its facilities for horse
racing.
   This bill would permit any county fair in the central zone that
conducted fair racing meetings prior to January 1, 1980, commencing
with the 2006 racing session, to retain a specified portion of the
license fee applicable to its meeting for payment of a capital
expense loan incurred for the purpose of improving its facilities for
horse racing.


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


  SECTION 1.  Section 19531.1 is added to the Business and
Professions Code, to read:
   19531.1.  Notwithstanding any other provision of law, the board
shall not allocate racing dates to a private thoroughbred racing
association in the central or southern zone for the purpose of
conducting thoroughbred racing during daytime or nighttime hours if a
fair racing association is conducting racing in the central zone on
the same dates and if that fair is obligated to make payments on a
capital expense loan incurred for the purpose of improving its
facilities for horse racing.
  SEC. 2.  Section 19614.6 is added to the Business and Professions
Code, to read:
   19614.6.  Notwithstanding Section 19614, any county fair in the
central zone that conducted fair racing meetings prior to January 1,
1980, commencing with the 2006 racing season, may retain that portion
of the license fee applicable to its live racing meeting that
exceeds the amount of license fees paid during its 2004 live racing
meeting for payment of a capital expense loan incurred for the
purpose of improving its facilities for horse racing.  The license
fee retention shall be applicable only during the loan period, only
in an amount equal to the loan payments, and only if all the moneys
retained are used to pay off the loan for those capital expenses.
Any portion of the license fee in excess of the amount needed to make
loan payments pursuant to this section shall be deposited in the
Fair and Exposition Fund.  However, if after the effective date of
this section, the rate of the license fee imposed on fairs is
reduced, the county fair may retain that portion of the license fee
applicable to its live racing meeting that exceeds the amount of the
license fees that would have been paid on its 2004 live racing
meeting at the reduced rate.