BILL NUMBER: AB 2414	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 22, 2010
	AMENDED IN ASSEMBLY  APRIL 15, 2010

INTRODUCED BY   Assembly Member John A. Perez

                        FEBRUARY 19, 2010

   An act to add Sections 19601.02 and 19605.74 to the Business and
Professions Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2414, as amended, John A. Perez. Horse racing: thoroughbred
racing: Breeders' Cup: wagering deduction: promotion.
   Existing law authorizes a thoroughbred association or fair,
subject to approval by the California Horse Racing Board, to deduct
from the parimutuel pool for any type of wager, a specified
percentage for the meeting of the thoroughbred association or fair
that accepts the wager.
   This bill would authorize a thoroughbred association hosting
Breeders' Cup races, upon filing a written notice with the board, to
deduct from the total amount handled in the parimutuel pool for any
type of wager made during the days on which Breeders' Cup races are
held, an amount of not less than 10% nor more than 25%. The bill
would require the written notice to include the written agreement of
the thoroughbred association and the horsemen's organization. The
bill would require the amount deducted to be distributed as
prescribed in the Horse Racing Law.
   Existing law permits racing associations, fairs, and the
organization responsible for contracting with racing associations and
fairs with respect to the conduct of racing meetings, to form a
private, statewide marketing organization to market and promote
thoroughbred and fair horse racing, and to obtain, provide, or defray
the cost of workers' compensation coverage for stable employees and
jockeys of thoroughbred trainers.
   This bill would, for every year that the organization operating
the Breeders' Cup Championship series chooses to conduct the Breeders'
Cup Championship series of races in California, require the
statewide marketing organization to enter into an agreement, in
consultation and cooperation with the California Tourism Commission,
with the organization that operates the Breeders' Cup Championship
series to sponsor and promote the Breeders' Cup Championship series
of races. The bill would require the agreement to provide for
assistance with a minimum value of $2,000,000 annually in support of
the organization operating the Breeders' Cup Championship series and
to promote the Breeders' Cup Championship series. By imposing new
requirements under the Horse Racing Law, the violation of which would
be a crime, this bill would create new crimes and would thereby
impose a state-mandated local program.
   This bill would also  declare the Legislature's intent to
later amend this bill to provide that   authorize the
board to require that  a percentage of the takeout that is
attributable to the Breeders' Cup races that otherwise would not have
been generated absent the Breeders' Cup races occurring in this
state , be eligible to  be made available to support
the statewide marketing organization and the state horse racing
industry.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) The Breeders' Cup Championship series of races is the
preeminent series of horse races recognized throughout the world.
   (2) From the inaugural running in Hollywood Park 26 years ago, the
Breeders' Cup has a rich and vibrant tradition in California, having
been run here eight times.
   (3) The Breeders' Cup Championship races have, for 2008 and 2009,
been held in California and have been an outstanding success,
bringing significant revenue and tourism to the State of California.
   (4) In 2009, the Breeders' Cup was held at Santa Anita racetrack
located in Los Angeles County, where it was attended by over 96,000
fans and telecast to over 130 countries.
   (5) The Los Angeles Economic Development Commission, having
studied the impact of the Breeders' Cup Championship series being
held in California the last two years, has concluded that the events
have brought an additional sixty million dollars ($60,000,000) in
economic impact to the State of California and Los Angeles region
each year, through added tourism and other economic impact, and
created over 500 direct and indirect jobs.
   (6) The Legislature and the Governor of California recognize the
importance of the horse racing industry to this state, including the
50,000 jobs associated with the industry, and have taken significant
steps to support the industry, evidenced most recently by the forty
million dollars ($40,000,000) in license fee relief provided in 2009.

   (b) It is therefore the desire of the Legislature to encourage the
organization operating the Breeders' Cup Championship series to make
California the permanent home of the Breeders' Cup Championship
series, and it is the intent of the Legislature, through the
enactment of this act, to provide substantial support towards that
end.
  SEC. 2.  Section 19601.02 is added to the Business and Professions
Code, to read:
   19601.02.  Notwithstanding any other law, a thoroughbred
association hosting the series of thoroughbred championship races
known as the "Breeders' Cup" races may, upon filing a written notice
with the board, deduct from the total amount handled in the
parimutuel pool for any type of wager made during the days on which
Breeders' Cup races are held, an amount of not less than 10 percent
nor more than 25 percent. The written notice shall include the
written agreement of the thoroughbred association and the horsemen's
organization for the meeting of the thoroughbred association
accepting the wager. The amount deducted shall be distributed as
prescribed in this chapter  , including the provisions of Section
19605.74  .
  SEC. 3.  Section 19605.74 is added to the Business and Professions
Code, to read:
   19605.74.   (a)    For every year that the
organization operating the Breeders' Cup Championship series chooses
to conduct the Breeders' Cup Championship series of races in
California, the private, statewide marketing organization formed
pursuant to subdivision (a) of Section 19605.73 shall enter into an
agreement, in consultation and cooperation with the California
Tourism Commission, with the organization that operates the Breeders'
Cup Championship series to sponsor and promote the Breeders' Cup
Championship series of races. The agreement shall provide for
assistance with a minimum value of two million dollars ($2,000,000)
annually in support of the organization operating the Breeders' Cup
Championship series and to promote the Breeders' Cup Championship
series. 
   SEC. 4. It is also the intent of the Legislature to later amend
this bill to provide 
    (b)     The board may require  that a
percentage of the takeout that is attributable to the Breeders' Cup
races that otherwise would not have been generated absent the
Breeders' Cup races occurring in this state  , be eligible to
 be made available to support the statewide marketing
organization formed pursuant to subdivision (a) of Section 19605.73
 of the Business and Professions Code  and the state
horse racing industry.
   SEC. 5.   SEC. 4.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.
                           ____ CORRECTIONS  Text--Page 4.
                                                   ____