Amended in Senate June 20, 2013

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 amendbegin delete Sectionend deletebegin insert Sections 19531, 19549.2, 19549.6, 19549.7, 19549.9, andend insert 19605.73 ofbegin insert, and to repeal Sections 19532.1 and 19532.2 of,end insert the Business and Professions Code, relating to horse racing.

LEGISLATIVE COUNSEL’S DIGEST

AB 1074, as amended, Atkins. Horse racing:begin delete statewide marketing organization.end deletebegin insert thoroughbred racing.end insert

begin insert

Existing law, the Horse Racing Law, authorizes the California Horse Racing Board to make allocations of racing weeks, as it deems appropriate, and, for thoroughbred racing, establishes a maximum of 44 weeks per year of racing weeks in the northern zone, a maximum of 42 weeks per year in the central zone, and a maximum of 7 weeks per year in the southern zone. A violation of the Horse Racing Law is a crime.

end insert
begin insert

This bill would instead establish a maximum of 49 weeks per year in the combined central and southern zones. The bill would also require the board to allocate from those weeks a minimum number of weeks to certain racetracks in the central and southern zones that were used to conduct thoroughbred race meetings prior to 2012. Because a violation of those provisions would be a crime, this bill would impose a state-mandated local program.

end insert
begin insert

Existing law provides that, except as specified, if a venue licensed to conduct thoroughbred racing in the central zone in 2008 is not available for racing in 2009 or thereafter, the dates formerly allocated to that venue shall be available for allocation by the board, and further provides that, if a racetrack located in the central zone is not available for use by a thoroughbred association that was licensed to conduct a live race meet at that racetrack in 2009, the board is authorized to allocate racing dates to that association to be operated at a racetrack in the central zone or southern zone for racing in 2010 or thereafter.

end insert
begin insert

This bill would repeal those provisions.

end insert

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 would extend the operation of those provisions to January 1,begin delete 2019end deletebegin insert 2015end insert. By extending those provisions of the Horse Racing Law, a violation of which is a crime, the bill would create new crimes and would thereby impose a state-mandated local program.

begin insert

This bill would make conforming changes to specified provisions in order to update cross references.

end insert

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    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 19531 of the end insertbegin insertBusiness and Professions
2Code
end insert
begin insert is amended to read:end insert

P3    1

19531.  

begin insert(a)end insertbegin insertend insert The board shall make allocations of racing weeks,
2including simultaneous racing between zones, as it deems
3appropriate. The maximum number of racing weeks that may be
4allocated for horse racing other than at fairs, shall be as follows:

begin delete

5(a)

end delete

6begin insert(1)end insert For thoroughbred racing: 44 weeks per year in the northern
7zone;begin delete 42end deletebegin insert and 49end insert weeks per year in thebegin insert combinedend insert centralbegin delete zone; and
8seven weeks per year in theend delete
begin insert andend insert southernbegin delete zone.end deletebegin insert zones.end insert

begin delete

9(b)

end delete

10begin insert(2)end insert For harness racing: 25 weeks per year in the northern zone.

begin delete

11(c)

end delete

12begin insert(3)end insert For quarter horse racing: 25 weeks per year in the northern
13zone.

begin delete

14(d)

end delete

15begin insert(4)end insert For harness racing and quarter horse racing: a total of 77
16weeks per year in the combined central and southern zones.

begin delete

17(e)

end delete

18begin insert(b)end insert In its written application for a license, an applicant shall
19state the time of day, consistent with this chapter, during which it
20will conduct its racing meeting, and particularly the first race
21starting time for the various racing days. After receiving a license,
22a licensee shall not change the first race starting time without
23securing prior approval of the board.

begin delete

24(f)

end delete

25begin insert(c)end insert Notwithstanding this section or any other provision in this
26chapter, thebegin delete boardend deletebegin insert end insertbegin insertfollowing provisions apply:end insert

27begin insert(1)end insertbegin insertend insertbegin insertFrom the weeks available in the combined central and
28southern zones pursuant to subdivision (a), the board shall allocate
29a minimum of seven weeks per year to a thoroughbred racing
30association to conduct thoroughbred racing at a racetrack that
31was used to conduct a thoroughbred race meeting in the southern
32zone prior to 2012.end insert

33begin insert(2)end insertbegin insertend insertbegin insertThe boardend insert shall not allocate dates to a thoroughbred
34association in the central zone for the purpose of conducting racing
35during daytime hours if a thoroughbred racing association is
36conducting racing in the southern zone on the same date during
37daytime hours.

begin insert

38(3) From the weeks available in the combined central and
39southern zones pursuant to subdivision (a), the board shall allocate
40a minimum of 25 weeks per year to a thoroughbred racing
P4    1association to conduct thoroughbred racing at a racetrack that
2was used to conduct a thoroughbred race meeting in the central
3zone prior to 2012.

end insert
begin insert

4(4) The board shall not allocate dates to a thoroughbred
5association in the southern zone for the purpose of conducting
6racing during daytime hours if a thoroughbred racing association
7is conducting racing in the central zone on the same date during
8daytime hours.

end insert
9begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 19532.1 of the end insertbegin insertBusiness and Professions Codeend insert
10begin insert is repealed.end insert

begin delete
11

19532.1.  

(a) Notwithstanding any other provision of law,
12excluding venues under construction for the purpose of expanded
13year-round stabling and training for thoroughbred race horses, if
14a venue used for thoroughbred racing by an association or racing
15fair licensed to conduct thoroughbred racing in the central zone in
162008 is not available for racing in 2009 or thereafter, the dates
17formerly allocated to that venue shall be available for allocation
18by the board to licensed associations or racing fairs in the southern
19or central zone.

20(b) Upon allocation of dates pursuant to this section, no
21association or racing fair licensed to conduct thoroughbred racing
22in the southern or central zones may receive more than 25 weeks
23of thoroughbred racing when aggregated among the combined
24southern and central zones.

25(c) Notwithstanding subdivisions (a) and (b), the aggregate
26allocation of racing weeks conducted in the southern and central
27zones shall not exceed the total aggregate racing weeks permitted
28to be run in the southern and central zones by Section 19531.

end delete
29begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 19532.2 of the end insertbegin insertBusiness and Professions Codeend insert
30begin insert is repealed.end insert

begin delete
31

19532.2.  

Notwithstanding any other provision of law,
32commencing July 1, 2010, if a racetrack located in the central zone
33is not available for use by a thoroughbred association that was
34licensed by the board to conduct a live race meet at that racetrack
35in 2009, the board shall be authorized to allocate racing dates to
36that association to be operated at a racetrack in the central zone or
37southern zone for racing in 2010, or thereafter, in accordance with
38the rules and regulations of the board, provided, however, that the
39number of racing dates allocated pursuant to this section does not
P5    1exceed the number of racing dates that became unavailable at the
2central zone racetrack.

end delete
3begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 19549.2 of the end insertbegin insertBusiness and Professions Codeend insert
4begin insert is amended to read:end insert

5

19549.2.  

From the weeks available for harness and quarter
6horse racing pursuant tobegin insert paragraph (4) ofend insert subdivisionbegin delete (d)end deletebegin insert (a)end insert of
7Section 19531, the board may allocate a maximum of 12 weeks
8of harness racing to the 22nd District Agricultural Association to
9be conducted on the 22nd District Agricultural Association
10grounds. The racing shall be conducted by a person other than the
1122nd District Agricultural Association.

12begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 19549.6 of the end insertbegin insertBusiness and Professions Codeend insert
13begin insert is amended to read:end insert

14

19549.6.  

Notwithstandingbegin insert paragraph (2) ofend insert subdivisionbegin delete (b)end deletebegin insert (a)end insert
15 of Section 19531 and Sections 19540, 19546, and 19549, the board
16may allocate additional weeks of harness racing to the California
17Exposition and State Fair in Sacramento or its lessee, to be raced
18at the California Exposition and State Fair in Sacramento.

19begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 19549.7 of the end insertbegin insertBusiness and Professions Codeend insert
20begin insert is amended to read:end insert

21

19549.7.  

Notwithstandingbegin insert paragraph (3) ofend insert subdivisionbegin delete (c)end deletebegin insert (a)end insert
22 of Section 19531 and Section 19549, the board may allocate
23additional weeks of quarter horse racing to a lessee of the California
24Exposition and State Fair in Sacramento to be raced at the
25California Exposition and State Fair in Sacramento.

26begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 19549.9 of the end insertbegin insertBusiness and Professions Codeend insert
27begin insert is amended to read:end insert

28

19549.9.  

Notwithstandingbegin insert paragraph (4) ofend insert subdivisionbegin delete (d)end deletebegin insert (a)end insert
29 of Section 19531 and Section 19549, the board may allocate up to
3010 additional weeks of harness racing to the Los Angeles County
31Fair, or its lessee, to be raced at the fairgrounds in Pomona.

32

begin deleteSECTION 1.end delete
33begin insertSEC. 8.end insert  

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

35

19605.73.  

(a) Thoroughbred racing associations, fairs, and the
36organization responsible for contracting with thoroughbred racing
37associations and fairs with respect to the conduct of racing
38meetings, may form a private, statewide marketing organization
39to market and promote thoroughbred and fair horse racing,
40including, but not limited to, the establishment and maintenance
P6    1of an Internet Web site featuring California thoroughbred and fair
2racing, the establishment and administration of players incentive
3programs for those who wager on thoroughbred association and
4fair races, and promotional activities at satellite wagering facilities
5to increase their attendance and handle. While the promotional
6activities at satellite wagering facilities shall be funded by the
7marketing organization, they shall be implemented and coordinated
8by representatives of the satellite wagering facilities and the
9thoroughbred racing associations or fairs then conducting a live
10race meet. The organization shall consist of the following members:
11two members, one from the northern zone and one from the
12combined central and southern zones, appointed by the
13thoroughbred racetracks; two members, one from the northern
14zone and one from the combined central and southern zones,
15appointed by the owners’ organization responsible for contracting
16with associations and fairs with respect to the conduct of racing
17meetings; and two members, one from the northern zone and one
18from the combined central and southern zones, appointed by the
19organization representing racing and satellite fairs.

20(b) The marketing organization formed pursuant to subdivision
21(a) shall, by November 1 of each year, submit a written report to
22the board on a statewide marketing and promotion plan for the
23upcoming calendar year. In addition, the organization shall annually
24present to the board at the board’s November meeting a verbal
25report on the statewide marketing and promotion plan for the
26upcoming calendar year. The plan shall be implemented as
27determined by the organization. The organization shall receive
28input from all interested industry participants and may utilize
29outside consultants.

30(c) In addition to the distributions specified in subdivisions (a)
31and (b) of Section 19605.7, subdivisions (a) and (b) of Section
3219605.71, and Section 19605.72, for thoroughbred and fair
33meetings only, from the amount that would normally be available
34for commissions and purses, an amount not to exceed 0.25 percent
35of the total amount handled by each satellite wagering facility shall
36be distributed to the marketing organization formed pursuant to
37subdivision (a) for the purposes set forth therein. The amounts
38initially distributed to the marketing organization formed pursuant
39to subdivision (a) shall be 0.2 percent of the total amount handled
40by satellite wagering facilities for thoroughbred and fair meetings
P7    1only. The amount distributable to the marketing organization may
2be adjusted by the board, in its discretion. However, the adjusted
3amounts may not exceed an aggregate of 0.25 percent of the total
4amount handled by satellite wagering facilities for thoroughbred
5and fair meetings only. Any of the promotion funds that are not
6expended in the year in which they are collected may be expended
7in the following year. If promotion funds expended in any one
8year exceed the amount collected for that year, the funds expended
9in the following year shall be reduced by the excess amount. The
10marketing organization, on a quarterly basis, shall submit to the
11board a written report that accounts for all receipts and expenditures
12of the promotion funds for the previous three months.

13(d) This section shall remain in effect only until January 1,begin delete 2019,end delete
14begin insert 2015, end insert and as of that date is repealed, unless a later enacted statute,
15that is enacted before January 1,begin delete 2019,end deletebegin insert 2015,end insert deletes or extends
16that date. Any moneys held by the organization shall, in the event
17this section is repealed, be distributed to the organization formed
18pursuant to Section 19608.2, for purposes of that section.

19

begin deleteSEC. 2.end delete
20begin insertSEC. 9.end insert  

No reimbursement is required by this act pursuant to
21Section 6 of Article XIII B of the California Constitution because
22the only costs that may be incurred by a local agency or school
23district will be incurred because this act creates a new crime or
24infraction, eliminates a crime or infraction, or changes the penalty
25for a crime or infraction, within the meaning of Section 17556 of
26the Government Code, or changes the definition of a crime within
27the meaning of Section 6 of Article XIII B of the California
28Constitution.



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