BILL NUMBER: AB 2693	CHAPTERED
	BILL TEXT

	CHAPTER  350
	FILED WITH SECRETARY OF STATE  SEPTEMBER 17, 2012
	APPROVED BY GOVERNOR  SEPTEMBER 17, 2012
	PASSED THE SENATE  AUGUST 22, 2012
	PASSED THE ASSEMBLY  AUGUST 27, 2012
	AMENDED IN SENATE  AUGUST 15, 2012

INTRODUCED BY   Committee on Governmental Organization (Hall (Chair),
Nestande (Vice Chair), Atkins, Block, Blumenfield, Chesbro, Cook,
Galgiani, Garrick, Gatto, Hill, Ma, Perea, V. Manuel Pérez, Silva,
and Torres)

                        MARCH 15, 2012

   An act to amend Sections 19596.2 and 19613 of the Business and
Professions Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2693, Committee on Governmental Organization. Horse racing.
   Existing law authorizes a thoroughbred racing association or fair
to distribute the audiovisual signal and accept wagers on the results
of out-of-state thoroughbred races conducted in the United States
during the calendar period the association or fair is conducting a
race meeting, including days on which there is no live racing being
conducted by the association or fair, without the consent of the
organization that represents horsemen and horsewomen participating in
the race meeting and without regard to the amount of purses. Under
existing law, the total number of thoroughbred races imported by
associations or fairs on a statewide basis under this section shall
not exceed 50 per day on days when live thoroughbred or fair racing
is being conducted in the state, with the exception of prescribed
races, including races that are part of the race card of the Kentucky
Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes,
the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million,
the Breeders' Cup, the Dubai Cup, or the Haskell Invitational.
   This bill would exempt from the 50 race per day limitation, races
that are part of the race card of the Arkansas Derby.
   Existing law requires a portion of the funds deducted from purses
to be paid to a trainers' organization for administrative expenses
and services rendered to trainers and backstretch employees.
   This bill would specify that the referenced trainers'
organization, known as the California Thoroughbred Trainers, Inc., is
the plan sponsor for purposes of the federal Employee Retirement
Income Security Act of 1974 (ERISA).


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

  SECTION 1.  Section 19596.2 of the Business and Professions Code is
amended to read:
   19596.2.  (a) Notwithstanding any other provision of law and
except as provided in Section 19596.4, a thoroughbred racing
association or fair may distribute the audiovisual signal and accept
wagers on the results of out-of-state thoroughbred races conducted in
the United States during the calendar period the association or fair
is conducting a race meeting, including days on which there is no
live racing being conducted by the association or fair, without the
consent of the organization that represents horsemen and horsewomen
participating in the race meeting and without regard to the amount of
purses. Further, the total number of thoroughbred races imported by
associations or fairs on a statewide basis under this section shall
not exceed 50 per day on days when live thoroughbred or fair racing
is being conducted in the state. The limitation of 50 imported races
per day does not apply to any of the following:
   (1) Races imported for wagering purposes pursuant to subdivision
(c).
   (2) Races imported that are part of the race card of the Kentucky
Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont Stakes,
the Jockey Club Gold Cup, the Travers Stakes, the Arlington Million,
the Breeders' Cup, the Dubai Cup, the Arkansas Derby, or the Haskell
Invitational.
   (3) Races imported into the northern zone when there is no live
thoroughbred or fair racing being conducted in the northern zone.
   (4) Races imported into the combined central and southern zones
when there is no live thoroughbred or fair racing being conducted in
the combined central and southern zones.
   (b) Any thoroughbred association or fair accepting wagers pursuant
to subdivision (a) shall conduct the wagering in accordance with the
applicable provisions of Sections 19601, 19616, 19616.1, and
19616.2.
   (c) No thoroughbred association or fair may accept wagers pursuant
to this section on out-of-state races commencing after 7 p.m.,
Pacific standard time, without the consent of the harness or quarter
horse racing association that is then conducting a live racing
meeting in Orange or Sacramento Counties.
  SEC. 2.  Section 19613 of the Business and Professions Code is
amended to read:
   19613.  (a) Except as provided in subdivisions (b), (c), (d), (e),
and (f), the portion deducted for purses pursuant to this chapter
shall be paid to or for the benefit of the horsemen and horsewomen at
the racing meeting, and may include obtaining, providing, or
defraying the cost of workers' compensation coverage for stable
employees and jockeys of licensed trainers. For purposes of this
section, the trainers' organization referred to in subdivisions (b),
(c), and (d), known as the California Thoroughbred Trainers, Inc.,
shall be the plan sponsor, consistent with the definition set forth
in Section 3 of the federal Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1002(16)(B)), as amended.
   (b) Any association other than a fair that conducts a thoroughbred
racing meeting shall pay to the owners' organization contracting
with the association with respect to the conduct of racing meetings
for administrative expenses and services rendered to owners, an
amount not to exceed two-thirds of 11/2 percent of the portion, and
to a trainers' organization for administrative expenses and services
rendered to trainers and backstretch employees an amount equivalent
to one-third of 11/2 percent of the portion. That association shall
also pay an amount for a pension plan for backstretch personnel to be
administered by the trainers' organization equivalent to an
additional 1 percent of the portion. The remainder of the portion
shall be distributed as purses.
   (c) Any other association may pay to the horsemen's organization
contracting with the association with respect to the conduct of
racing meetings for administrative expenses and services rendered to
horsemen an amount out of the portion as may be determined by the
association by agreement or otherwise, but, in all events, shall
include, relative to a thoroughbred horsemen's organization racing, 1
percent of the portion for a pension plan for the trainers'
organization. The remainder of the portion shall be distributed as
purses.
   (d) Notwithstanding subdivisions (b) and (c), any association
conducting a fair racing meeting shall pay to the horsemen's
organizations contracting with the association with respect to the
conduct of races for their respective breeds of horses at the
meetings for administrative expenses and services rendered to their
respective horsemen those amounts out of the portion as determined by
the horsemen's organization for the respective breeds with the
approval of the board. Pursuant to this subdivision, amounts not to
exceed 3 percent of the portion for the owners' and trainers'
organizations shall be distributed to any thoroughbred owners' and
trainers' organizations contracting with an association for a fair
racing meeting or participating in mixed breed racing meetings as
follows: two-thirds of 1 percent to the owners' organization and
one-third of 1 percent to the trainers' organization for
administrative expenses and services rendered to both owners and
trainers, 1 percent for welfare funds, and 1 percent for a pension
program for backstretch personnel, to be administered by the
thoroughbred trainers' organization.
   (e) Any association other than a fair that conducts a quarter
horse racing meeting shall pay to the horsemen's organization
contracting with the association with respect to the conduct of
racing meetings for administrative expenses and services rendered to
horsemen, an amount not to exceed 3 percent of the portion. The
remainder of the portion shall be distributed as purses.
   (f) For racing meetings other than thoroughbred meetings, if no
contract has been signed between the association conducting the
racing meeting and the organization representing the horsemen by the
time the racing meeting commences, the distribution of purses shall
be governed by the following:
   (1) If the association conducted a racing meeting within the past
15 months and a contract was in existence, for that meeting with the
horsemen's organization and the association is conducting a
subsequent meeting for the same breed or mixed breeds, the amounts
payable to the horsemen's organization under subdivision (c) shall be
computed under the provisions of the last signed contract between
the parties.
   (2) This subdivision applies regardless of the cause of the
failure to execute a contract, whether that failure is a result of
inadvertence or otherwise.
   (3) For racing meetings that do not come within paragraph (1), the
board shall, within 15 days after the commencement of the racing
meeting, determine the amounts payable to the horsemen's organization
for administrative expenses and services, and provide for the direct
payment of those amounts.
   (g) Amounts distributed pursuant to this section are derived from
owners' purses.
   (h) For the purposes of this section, the following definitions
shall apply:
   (1) "Owner" means a person currently licensed by the board as an
owner of a thoroughbred racehorse.
   (2) "Trainer" means a person currently licensed by the board as a
trainer of a thoroughbred racehorse.
   (i) This section shall become operative on January 1, 2008.