BILL NUMBER: SB 662 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Yee
FEBRUARY 27, 2009
An act to amend Sections 19440 and 19604
19616.51 of the Business and Professions Code, relating to
horse racing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 662, as amended, Yee. Horse racing: board powers:
advance deposit wagering parimutuel wagering: real
time monitoring .
Existing law provides that the California Horse Racing Board shall
have all necessary powers to carry out the purposes of the Horse
Racing Law and specifies certain responsibilities of the board.
This bill would include, within those responsibilities of the
board, providing real time transactional monitoring of all parimutuel
wagering on California horse races and maintaining independent
technology services for specified purposes.
Existing law authorizes advance deposit wagering to be conducted,
upon the approval of the board. Existing law provides for various
deductions and distributions by advance deposit wagering providers
from advance deposit wagers, as provided.
This bill would require every advance deposit wagering provider to
deduct the sum of 0.33 of 1% from all of the amount handled on
advance deposit wagers and to deposit that sum with the board for the
purpose of a parimutuel wagering monitoring system, as defined, and
the regulation of horse racing.
Existing law, effective July 1, 2009, provides that,
notwithstanding any other provision of law and in lieu of any license
fee payable to the state prescribed for or referred to in specified
provisions of the Horse Racing Law, any association or fair that
conducts a racing meeting shall pay a license fee to fund the
California Horse Racing Board and the equine drug testing program in
accordance with a formula devised by the board in consultation with
the industry, as provided.
This bill would also require any association or fair that conducts
a racing meeting to pay a license fee to the state to fund real time
transactional monitoring of all parimutuel wagering on California
horse races, as specified.
Under existing law, funds deposited in the Fair and Exposition
Fund are continuously appropriated for various regulatory and general
governmental purposes. Because this revenue from advance
deposit wagering from license fees would be
deposited into the continuously appropriated Fairs and Exposition
Fund, the bill would make an appropriation.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19440 of the Business and Professions Code is
amended to read:
19440. (a) The board shall have all powers necessary and proper
to enable it to carry out fully and effectually the purposes of this
chapter. Responsibilities of the board shall include, but not be
limited to, all of the following:
(1) Adopting rules and regulations for the protection of the
public and the control of horse racing and parimutuel wagering.
(2) Administration and enforcement of all laws, rules, and
regulations affecting horse racing and parimutuel wagering.
(3) Adjudication of controversies arising from the enforcement of
those laws and regulations dealing with horse racing and parimutuel
wagering.
(4) Licensing of each racing association and all persons, other
than the public at large, who participate in a horse racing meeting
with parimutuel wagering.
(5) Allocation of racing dates to qualified associations in
accordance with law.
(6) Providing real time transactional monitoring of all parimutuel
wagering on California horse races.
(7) Maintaining independent technology services to provide for
capturing, saving, transmitting, receiving, and otherwise
disseminating technology resources, and the board may contract with
the Department of Technology Services or seek suitable accommodations
with vendors of the board's choosing for the purpose of furthering
the board's chosen business objectives.
(b) The board may delegate to stewards appointed pursuant to
Article 5 (commencing with Section 19510) any of its powers and
duties that are necessary to carry out fully and effectuate the
purposes of this chapter.
SEC. 2. Section 19616.51 of the
Business and Professions Code , as added by Section 4
of Chapter 12 of the Statutes of 2009 of the Second
Extraordinary Session, is amended to read:
19616.51. (a) Notwithstanding any other provision of law, and in
lieu of any license fee payable to the state prescribed for or
referred to in Section 19491, 19491.5, 19596.3, 19601, 19601.2,
19602, 19603, 19604, 19605.25, 19605.35, 19605.45, 19605.6, 19605.7,
19605.71, 19606.5, 19606.6, 19610.8, 19611, 19612, 19614, 19616,
19616.1, 19616.2, or 19641, any association or fair that conducts a
racing meeting shall only pay a license fee to the state to fund the
board , real time transactional m onitoring of all
parimutuel wagering on California horse races, and the equine
drug testing program as follows:
(1) All racing associations and fairs including all breeds of
racing shall participate in the funding of the board in accordance
with a formula devised by the board in consultation with the
industry.
(2) The baseline funding for the board , real time
transactional monitoring of all parimutuel wagering on California
horse races, and equine drug testing program in the first
fiscal year after the enactment of this section shall be the amount
approved in the 2008-09 Budget Act.
(3) Adjustments to the funding in subsequent budget years may only
be made by an act of the Legislature.
(b) The license fee reductions resulting from subdivision (a),
after payments to fund the board real time transactional
monitoring of all parimutuel wagering on California horse races,
and the equine drug testing program, shall be distributed as
follows:
(1) For thoroughbred racing only, 3 percent of the amount of the
reduction 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. The remaining amount shall be distributed to the
association that conducts the racing meeting and to horsemen
participating in that racing meeting as follows:
(A) Fifty percent to the association as commissions.
(B) Fifty percent to the horsemen as purses.
(2) For quarter horse racing, 2.5 percent of the amount of the
reduction shall be deposited with the official registering agency
pursuant to subdivision (b) of Section 19617.7, and shall thereafter
be distributed in accordance with subdivisions (c), (d), (e), and (f)
of Section 19617.7, the remaining amount shall be distributed to the
association that conducts the racing meeting and to horsemen
participating in that racing meeting as follows:
(A) Fifty percent to the association as commissions.
(B) Fifty percent to the horsemen as purses.
(3) For harness racing, 6 percent of the amount of the reduction
shall be distributed as specified in Section 19617.6, the remaining
amount shall be distributed to the association that conducts the
racing meeting and to horsemen participating in that racing meeting
as follows:
(A) Fifty percent to the association as commissions.
(B) Fifty percent to the horsemen as purses.
(4) For all other breeds, the remaining amount shall be
distributed to the association that conducts the racing meeting and
to horsemen participating in that racing meeting as follows:
(A) Fifty percent to the association as commissions.
(B) Fifty percent to the horsemen as purses. All matter omitted in
this version of the bill appears in the bill as introduced in the
Senate, February 27, 2009 (JR11)