BILL NUMBER: SB 305	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Calderon

                        FEBRUARY 14, 2011

   An act to amend Section 19605.25 of the Business and Professions
Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 305, as introduced, Calderon. Satellite wagering: minisatellite
facilities.
   Existing law generally regulates horse racing, including satellite
wagering on horse races. Existing law authorizes the California
Horse Racing Board to authorize certain fairs and racing associations
to operate satellite wagering facilities. Existing law authorizes
the board to approve minisatellite wagering sites, as defined, under
specified conditions. Existing law directs the board to license a
minisatellite facility for a period of 2 years.
   This bill would, instead, direct the board to license a
minisatellite facility for a period of up to 5 years. The bill would
also make 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 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 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.
   (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 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 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  to
implement   this section  , 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   up to five
 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.