Amended in Assembly May 24, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1074


Introduced by Assembly Member Atkins

February 22, 2013


An act to amend Section 19605.73 of the Business and Professions Code, relating to horse racing.

LEGISLATIVE COUNSEL’S DIGEST

AB 1074, as amended, Atkins. Horse racing: statewide marketing organization.

Existing law, operative until January 1, 2014, authorizes thoroughbred racing associations, fairs, and the organization responsible for contracting with thoroughbred 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. If a marketing organization is formed, existing law requires an amount not to exceed 0.25% of the total amount handled by each satellite wagering facility to be distributed to the marketing organization, and imposes certain requirements on the marketing organization, including that the marketing organization annually submit certain information to the California Horse Racing Board. Violations of the Horse Racing Law are generally misdemeanors.

This bill wouldbegin delete delete the repeal date, thereby extending the operation of those provisions indefinitely. By making theseend deletebegin insert extend the operation of those provisions to January 1, 2019. By extending thoseend insert provisions of the Horse Racing Lawbegin delete permanentend delete, a violation of which is a crime, the bill would create new crimes and would thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 19605.73 of the Business and Professions
2Code
is amended to read:

3

19605.73.  

(a) Thoroughbred racing associations, fairs, and the
4organization responsible for contracting with thoroughbred racing
5associations and fairs with respect to the conduct of racing
6meetings, may form a private, statewide marketing organization
7to market and promote thoroughbred and fair horse racing,
8including, but not limited to, the establishment and maintenance
9of an Internet Web site featuring California thoroughbred and fair
10racing, the establishment and administration of players incentive
11programs for those who wager on thoroughbred association and
12fair races, and promotional activities at satellite wagering facilities
13to increase their attendance and handle. While the promotional
14activities at satellite wagering facilities shall be funded by the
15marketing organization, they shall be implemented and coordinated
16by representatives of the satellite wagering facilities and the
17thoroughbred racing associations or fairs then conducting a live
18race meet. The organization shall consist of the following members:
19two members, one from the northern zone and one from the
20combined central and southern zones, appointed by the
21thoroughbred racetracks; two members, one from the northern
22zone and one from the combined central and southern zones,
23appointed by the owners’ organization responsible for contracting
24with associations and fairs with respect to the conduct of racing
25meetings; and two members, one from the northern zone and one
26from the combined central and southern zones, appointed by the
27organization representing racing and satellite fairs.

28(b) The marketing organization formed pursuant to subdivision
29(a) shall, by November 1 of each year, submit a written report to
30the board on a statewide marketing and promotion plan for the
P3    1upcoming calendar year. In addition, the organization shall annually
2present to the board at the board’s November meeting a verbal
3report on the statewide marketing and promotion plan for the
4upcoming calendar year. The plan shall be implemented as
5determined by the organization. The organization shall receive
6input from all interested industry participants and may utilize
7outside consultants.

8(c) In addition to the distributions specified in subdivisions (a)
9and (b) of Section 19605.7, subdivisions (a) and (b) of Section
1019605.71, and Section 19605.72, for thoroughbred and fair
11meetings only, from the amount that would normally be available
12for commissions and purses, an amount not to exceed 0.25 percent
13of the total amount handled by each satellite wagering facility shall
14be distributed to the marketing organization formed pursuant to
15subdivision (a) for the purposes set forth therein. The amounts
16initially distributed to the marketing organization formed pursuant
17to subdivision (a) shall be 0.2 percent of the total amount handled
18by satellite wagering facilities for thoroughbred and fair meetings
19only. The amount distributable to the marketing organization may
20be adjusted by the board, in its discretion. However, the adjusted
21amounts may not exceed an aggregate of 0.25 percent of the total
22amount handled by satellite wagering facilities for thoroughbred
23and fair meetings only. Any of the promotion funds that are not
24expended in the year in which they are collected may be expended
25in the following year. If promotion funds expended in any one
26year exceed the amount collected for that year, the funds expended
27in the following year shall be reduced by the excess amount. The
28marketing organization, on a quarterly basis, shall submit to the
29board a written report that accounts for all receipts and expenditures
30of the promotion funds for the previous three months.

begin insert

31(d) This section shall remain in effect only until January 1, 2019,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2019, deletes or extends that date.
34 Any moneys held by the organization shall, in the event this section
35is repealed, be distributed to the organization formed pursuant to
36Section 19608.2, for purposes of that section.

end insert
37

SEC. 2.  

No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P4    1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.



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