BILL NUMBER: SB 1439 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Price
FEBRUARY 19, 2010
An act to amend Section 19605.25 of the Business and Professions
Code, relating to horse racing.
LEGISLATIVE COUNSEL'S DIGEST
SB 1439, as introduced, Price. Horse racing: minisatellite
wagering facilities.
Existing law authorizes the California Horse Racing Board to
approve an additional 15 minisatellite wagering sites in each zone
under certain conditions, including that no site is within 20 miles
of a racetrack, a satellite wagering facility, or a tribal casino
that has a satellite wagering facility. Existing law provides that if
the proposed facility is within 20 miles of one of the
above-referenced satellite facilities, then the consent of each
facility within a 20-mile radius must be given before the proposed
facility may be approved by the board. Existing law requires the
written consent of the San Mateo County Fair be obtained prior to the
approval of any minisatellite wagering site located within a 20-mile
radius of its fairground.
This bill would provide that the requirement that the approval of
a racetrack, satellite wagering facility, tribal casino that has a
satellite wagering facility, or fair be obtained if the proposed
minisatellite wagering facility is within 20 miles shall only apply
to those facilities that are operated by racetracks or fairs that
actually conduct 7 weeks or more of live racing in the preceding
year. The bill would authorize the board, if a satellite wagering
facility or tribal casino does not consent to a minisatellite
wagering facility being situated within 20 miles, to conduct a
one-year test at the proposed site in order to determine its impact
on total parimutuel revenues and on attendance and wagering at
existing satellite wagering facilities. The bill would authorize a
certain impact fee, as provided.
This bill would specify how mileages are to be measured for
purposes of the above provisions.
This bill would make clarifying and other technical changes.
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 19605.25 of the Business and Professions Code
is amended to read:
19605.25. (a) The California Horse Racing Board
board may approve an additional 15 minisatellite
wagering sites in each zone, if all of the following conditions are
met:
(1) No site is within 20 miles of a racetrack, a satellite
wagering facility, or a tribal casino that has a satellite wagering
facility. If the proposed minisatellite wagering facility
is within 20 miles of one of the above-referenced satellite
facilities, then the consent of each such
facility within a 20-mile radius 20 miles
must be given before the proposed minisatellite wagering
facility may be approved by the board.
(2) An agreement in accordance with subdivision (a) of Section
19605.3 has been executed and approved by the board. In addition to
the requirements set forth in that provision, the agreement shall
specify which components of its racing program, including live,
out-of-zone, out-of-state, and out-of-country races, an association
or fair will make available to the site. The terms and
condition conditions of the agreement, including
all fees payable pursuant to paragraph (3) of that provision, a
portion of which may be paid to horsemen in the form of purses, shall
be subject to the approval of the horsemen's organization
responsible for negotiating purse agreements with the association or
fair.
(3) The site is approved by the board.
(4) The wagers are accepted in an area that is accessible only to
those who are at least 21 years of age.
(5) The board has approved the accommodation, equipment used in
conducting wagering at the site, communications system, technology,
and method used by the site to accept wagers and transmit odds,
results, and other data related to wagering.
(b) Parimutuel clerks shall be available to service the
self-service tote machines at these locations, and to cash wagering
vouchers on a regularly scheduled basis.
(c) Until January 1, 2013, if the proposed minisatellite wagering
site is in the northern zone in a fair district where the fair has
operated a satellite wagering facility for the previous five years,
the approval of the fair must be obtained even if the proposed
location is more than 20 miles from the existing satellite wagering
facility operated by the fair.
(d) For purposes of commissions, deductions, and distribution of
handle, wagers placed at minisatellite sites shall be treated as if
they were placed at satellite wagering facilities authorized under
Section 19605, 19605.1, or 19605.2. Section 19608.4 shall apply to
minisatellite wagering facilities.
(e) The written consent of the San Mateo County Fair shall be
obtained prior to the approval of any minisatellite wagering site
located within a 20-mile radius 20 miles
of its fairground.
(f) Minisatellite wagering facilities created pursuant to this
section are not eligible for satellite wagering commission
distributions pursuant to Section 19604.
(g) The board shall adopt emergency regulations to implement these
new facilities on or before April 1, 2008. The board, in adopting
these regulations, shall minimize the expense to both the operator of
the minisatellite facility and the host racetrack.
(h) If there are more than 15 applications for minisatellite
wagering facilities in any zone, the board shall determine which
facilities will generate the largest handle, and give priority to the
approval of those facilities. The board shall license a
minisatellite facility for two years, and then review the operation
and the size of the handle, and determine if it is in the best
interest of horse racing to relicense the facility or, in the
alternative, license another minisatellite facility that might
generate a greater handle.
(i) Except as may be provided in the agreement required pursuant
to paragraph (2) of subdivision (a), no association or fair shall be
required to make all or part of its racing program available to a
minisatellite wagering facility. Notwithstanding subdivision (e) of
Section 19608.2, all costs incurred by the organization executing
that agreement in excess of the amounts distributable to the
organization from wagers placed at the site on that racing program,
shall be borne by the minisatellite wagering facility.
(j) Notwithstanding subdivisions (a) and (e), the requirement
that the approval of a racetrack, satellite wagering facility, tribal
casino that has a satellite wagering facility, or fair be obtained
if the proposed minisatellite wagering facility is within 20 miles
shall only apply to those facilities that are operated by racetracks
or fairs that actually conduct seven weeks or more of live racing in
the preceding year. If a satellite wagering facility, or tribal
casino that has a satellite wagering facility, does not consent to a
minisatellite wagering facility being situated within 20 miles, the
board may conduct a one-year test at the proposed site in order to
determine the impact of the proposed minisatellite wagering facility
on total parimutuel revenues, and on the attendance and wagering at
existing satellite wagering facilities. During the one-year study,
the operator of the minisatellite wagering facility and the satellite
wagering facility operated by a fair or a tribal casino may enter
into an agreement providing for the payment of an impact fee. If
there is no agreement within that year, the board may hear testimony
from both parties and impose an impact fee based on the results of
the one-year test study. A decision of the board regarding a proposed
site may cover the period of time during which the test is to be
conducted, as well as apply to the operation of the minisatellite
wagering facility if it continues to operate beyond one year.
(k) For purposes of this section, mileages shall be measured
property line to property line by the shortest publicly accessible
driving route.