BILL NUMBER: SB 1072 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 20, 2010
AMENDED IN ASSEMBLY AUGUST 16, 2010
AMENDED IN ASSEMBLY AUGUST 2, 2010
INTRODUCED BY Senator Calderon
FEBRUARY 17, 2010
An act to amend Section 19605.73 of , and to add Section
19642.1 to, the Business and Professions Code, relating to
horse racing.
LEGISLATIVE COUNSEL'S DIGEST
SB 1072, as amended, Calderon. Horse racing: statewide marketing
organization.
(1) 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. Existing
law requires the marketing organization to annually submit to the
California Horse Racing Board a statewide marketing and promotion
plan and a thoroughbred trainers' workers' compensation defrayal plan
for thoroughbred and fair horse racing. A specified
percentage 0.4% of the amount handled by each
satellite wagering facility is required to be distributed to the
marketing organization for the promotion of thoroughbred and fair
horse racing, and to defray the cost of workers' compensation
insurance, as specified. Existing law repeals these provisions on
January 1, 2011.
This bill would extend the operation of these provisions until
January 1, 2014, when they would be repealed. The bill would
specify that its provisions allowing for the formation of a private
statewide marketing association applies to thoroughbred racing as
sociations, fairs, and the organization for contracting
with thoroughbred racing associations and fairs with respect to the
conduct of racing meetings. The bill would specify that the marketing
and promotion activities that the marketing organization may engage
in includes, but is not limited to, the establishment and
maintenance of an Internet Web site, players incentive programs, and
the funding of promotional activities at satellite wagering
facilities.
This bill would change the amount to be distributed to the
marketing organization for the promotion of thoroughbred and fair
racing from an amount equal to 0.4% of the amount handled at each
satellite wagering facility to an amount not to exceed 0.25%, and
would delete the provision allowing for the funds to be used to
defray the cost of workers' compensation coverage for stable
employees and jockeys of thoroughbred trainers. The bill would
require that the initial distribution be 0.2% of the total amount
handled by satellite wagering facilities for thoroughbred and fair
meetings only and would allow the board to adjust this amount to an
aggregate of 0.25% of the total amount handled by satellite wagering
facilities for thoroughbred and fair meetings only.
The bill would, with respect to the statewide marketing
and promotion plan, instead require the marketing organization, by
November 1 of each year, to submit a written report to the board on
the statewide marketing and promotion plan for the upcoming calendar
year, and would additionally require the marketing organization to
annually present to the board at the board's November meeting a
verbal report on the statewide marketing and promotion plan for the
upcoming calendar year. The bill would specify that the
workers' compensation defrayal plan is to be submitted to the board
by November 1 of each year. The bill would delete the
requirement that the marketing organization submit to the board a
thoroughbred trainers' workers compensation and defrayal plan.
The bill would also require the marketing organization to
semiannually quarterly submit to the board a
written report that accounts for all receipts and expenditures of the
promotion funds for the previous 6 3
months.
(2) Existing law authorizes the board, in performing its
responsibilities, to participate in the affairs of associations
having as their purpose the interchange of information relating to
racing law enforcement, the licensing of horse racing participants,
the registration of race horses, the tabulation, analysis, and
publication of statistical information based on parimutuel handles
and the distribution of proceeds, and to conduct research regarding
horse racing accidents, and the detection of drugs on race horses,
among other things.
This bill would provide that, in addition to certain specified
distributions, an amount not to exceed 0.05% of the total amount
handled by each satellite wagering facility shall be distributed to a
nonprofit organization designated by the board for the purposes of
maintaining a database of horse racing information to further the
purposes of the above provision. The bill would state that the amount
distributable to the nonprofit organization may be adjusted by the
board, in its discretion. The bill would require the nonprofit
organization to submit an annual budget and file quarterly financial
statements with the board.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19605.73 of the Business and Professions Code
is amended to read:
19605.73. (a) Racing Thoroughbred racing
associations, fairs, and the organization responsible for
contracting with thoroughbred racing associations and
fairs with respect to the conduct of racing meetings, may 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. The organization
including, but not limited to, establishment and
maintenance of an Internet Web site featuring California thoroughbred
and fair racing, the establishment and administration of players
incentive programs for those who wager on thoroughbred association
and fair races, and promotional activities at satellite wagering
facilities to increase their attendance and handle. While the
promotional activities at satellite wagering facilities shall be
funded by the marketing organization, they shall be implemented and
coordinated by representatives of the satellite wagering facilities
and the thoroughbred racing associations or fair then conducting a
live race meet. The organization shall consist of the following
members: two members, one from the northern zone and one from the
combined central and southern zones, appointed by the thoroughbred
racetracks; two members, one from the northern zone and one from the
combined central and southern zones, appointed by the owners'
organization responsible for contracting with associations and fairs
with respect to the conduct of racing meetings; and two members, one
from the northern zone and one from the combined central and southern
zones, appointed by the organization representing racing and
satellite fairs.
(b) The marketing organization formed pursuant to subdivision (a)
shall, by November 1 of each year, submit a written report to the
board on a statewide marketing and promotion plan for the upcoming
calendar year , and shall, by November 1 of each year,
submit to the board a thoroughbred trainers' workers' compensation
defrayal plan, for thoroughbred and fair horse racing that
encompasses all geographical zones in the state, and which includes
the manner in which funds were expended in the implementation of the
plan for the previous calendar year . In addition, the
organization shall annually present to the board at the board's
November meeting a verbal report on the statewide marketing and
promotion plan for the upcoming calendar year. The plan shall be
implemented as determined by the organization. The organization shall
receive input from all interested industry participants and may
utilize outside consultants in developing the annual
marketing plan .
(c) In addition to the distributions specified in subdivisions (a)
and (b) of Section 19605.7, and in Sections
subdivisions (a) and (b) of Section 19605.71 and
, and Section 19605.72, for thoroughbred and
fair meetings only, from the amount that would normally be available
for commissions and purses, an amount equal to 0.4
no t to exceed 0.25 percent of the total
amount handled by each satellite wagering facility shall be
distributed to the statewide marketing
organization formed pursuant to subdivision (a) for the
promotion of thoroughbred and fair horse racing and to defray the
cost of workers' compensation coverage for stable employees and
jockeys of thoroughbred trainers. Not more than one-sixth of the
total amount available annually pursuant to this subdivision shall be
used to defray the cost of workers' compensation insurance.
purposes set forth therein. The amounts initially
distributed to the marketing organization formed pursuant to
subdivision (a) shall be 0.2 percent of the total amount handled by
satellite wagering facilities for thoroughbred and fair meetings
only. The amount distributable to the marketing organization may be
adjusted by the board, in its discretion. However, the adjusted
amounts may not exceed an aggregate of 0.25 percent of the total
amount handled by satellite wagering facilities for thoroughbred and
fair meetings only. Any of the promotion funds that are not expended
in the year in which they are collected may be expended in the
following year. If promotion funds expended in any one year exceed
the amount collected for that year, the funds expended in the
following year shall be reduced by the excess amount. Any of
the promotion funds that are not expended in the year in which they
are collected may be expended in the following year. If promotion
funds expended in any one year exceed the amount collected for that
year, the funds expended in the following year shall be reduced by
the excess amount. The marketing organization , on a quarterly
basis, shall semiannually submit to the
board a written report that accounts for all receipts and
expenditures of the promotion funds for the previous six
three months.
(d) This section shall remain in effect only until January 1,
2014, and, as of that date, is repealed, unless a later enacted
statute that is enacted before January 1, 2014, deletes or extends
that date. Any moneys held by the organization shall, in the event
this section is repealed, be distributed to the organization formed
pursuant to Section 19608.2, for purposes of that section.
SEC. 2. Section 19642.1 is added to the
Business and Professions Code , to read:
19642.1. In addition to the distributions specified in Sections
19605.7, 19605.71, and 19605.72, from the amounts that would normally
be available for commissions and purses from wagering on all breeds,
an amount not to exceed 0.05 percent of the total amount handled by
each satellite wagering facility shall be distributed to the
nonprofit organization designated by the board for purposes of
maintaining a database of horseracing information to further the
purposes of Section 19444. The amount distributable to the nonprofit
organization may be adjusted by the board, in its discretion. The
nonprofit organization shall annually submit its budget for the
ensuing calendar year to the board at its November meeting and shall
file quarterly financial statements with the board.