BILL NUMBER: AB 1074	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 20, 2013
	AMENDED IN ASSEMBLY  MAY 24, 2013

INTRODUCED BY   Assembly Member Atkins

                        FEBRUARY 22, 2013

   An act to amend  Section   Sections 19531,
19549.2, 19549.6, 19549.7, 19549.9, and  19605.73 of  , and
to repeal Sections 19532.1 and 19532.2 of,  the Business and
Professions Code, relating to horse racing.



	LEGISLATIVE COUNSEL'S DIGEST


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

   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.  
   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.  
   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.  
   This bill would repeal those provisions. 
   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,  2019   2015  . 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. 
   This bill would make conforming changes to specified provisions in
order to update cross references. 
   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:

   SECTION 1.    Section 19531 of the  
Business and Professions Code  is amended to read: 
   19531.   (a)    The board shall make allocations
of racing weeks, including simultaneous racing between zones, as it
deems appropriate. The maximum number of racing weeks that may be
allocated for horse racing other than at fairs, shall be as follows:

   (a) 
    (1)  For thoroughbred racing: 44 weeks per year in the
northern zone;  42   and 49  weeks per year
in the  combined  central  zone; and seven weeks
per year in the   and  southern  zone.
  zones.  
   (b) 
    (2)  For harness racing: 25 weeks per year in the
northern zone. 
   (c) 
    (3)  For quarter horse racing: 25 weeks per year in the
northern zone. 
   (d) 
    (4)  For harness racing and quarter horse racing: a
total of 77 weeks per year in the combined central and southern
zones. 
   (e) 
    (b)  In its written application for a license, an
applicant shall state the time of day, consistent with this chapter,
during which it will conduct its racing meeting, and particularly the
first race starting time for the various racing days. After
receiving a license, a licensee shall not change the first race
starting time without securing prior approval of the board. 
   (f) 
    (c)  Notwithstanding this section or any other provision
in this chapter, the  board    
following provisions apply: 
    (1)    From the weeks available in the
combined central and southern zones pursuant to subdivision (a), the
board shall allocate a minimum of seven weeks per year to a
thoroughbred racing association to conduct thoroughbred racing at a
racetrack that was used to conduct a thoroughbred race meeting in the
southern zone prior to 2012. 
    (2)     The board  shall not allocate
dates to a thoroughbred association in the central zone for the
purpose of conducting racing during daytime hours if a thoroughbred
racing association is conducting racing in the southern zone on the
same date during daytime hours. 
   (3) From the weeks available in the combined central and southern
zones pursuant to subdivision (a), the board shall allocate a minimum
of 25 weeks per year to a thoroughbred racing association to conduct
thoroughbred racing at a racetrack that was used to conduct a
thoroughbred race meeting in the central zone prior to 2012. 

   (4) The board shall not allocate dates to a thoroughbred
association in the southern zone for the purpose of conducting racing
during daytime hours if a thoroughbred racing association is
conducting racing in the central zone on the same date during daytime
hours.
   SEC. 2.    Section 19532.1 of the   Business
and Professions Code   is repealed.  
   19532.1.  (a) Notwithstanding any other provision of law,
excluding venues under construction for the purpose of expanded
year-round stabling and training for thoroughbred race horses, if a
venue used for thoroughbred racing by an association or racing fair
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 to licensed associations or racing fairs in the southern or
central zone.
   (b) Upon allocation of dates pursuant to this section, no
association or racing fair licensed to conduct thoroughbred racing in
the southern or central zones may receive more than 25 weeks of
thoroughbred racing when aggregated among the combined southern and
central zones.
   (c) Notwithstanding subdivisions (a) and (b), the aggregate
allocation of racing weeks conducted in the southern and central
zones shall not exceed the total aggregate racing weeks permitted to
be run in the southern and central zones by Section 19531. 
   SEC. 3.   Section 19532.2 of the   Business
and Professions Code   is repealed.  
   19532.2.  Notwithstanding any other provision of law, commencing
July 1, 2010, if a racetrack located in the central zone is not
available for use by a thoroughbred association that was licensed by
the board to conduct a live race meet at that racetrack in 2009, the
board shall be 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, in accordance with
the rules and regulations of the board, provided, however, that the
number of racing dates allocated pursuant to this section does not
exceed the number of racing dates that became unavailable at the
central zone racetrack. 
   SEC. 4.    Section 19549.2 of the   Business
and Professions Code   is amended to read: 
   19549.2.  From the weeks available for harness and quarter horse
racing pursuant to  paragraph (4) of  subdivision 
(d)   (a)  of Section 19531, the board may allocate
a maximum of 12 weeks of harness racing to the 22nd District
Agricultural Association to be conducted on the 22nd District
Agricultural Association grounds. The racing shall be conducted by a
person other than the 22nd District Agricultural Association.
   SEC. 5.    Section 19549.6 of the   Business
and Professions Code   is amended to read: 
   19549.6.  Notwithstanding  paragraph (2) of  subdivision
 (b)   (a)  of Section 19531 and Sections
19540, 19546, and 19549, the board may allocate additional weeks of
harness racing to the California Exposition and State Fair in
Sacramento or its lessee, to be raced at the California Exposition
and State Fair in Sacramento.
   SEC. 6.    Section 19549.7 of the   Business
and Professions Code   is amended to read: 
   19549.7.  Notwithstanding  paragraph (3) of  subdivision
 (c)   (a)  of Section 19531 and Section
19549, the board may allocate additional weeks of quarter horse
racing to a lessee of the California Exposition and State Fair in
Sacramento to be raced at the California Exposition and State Fair in
Sacramento.
   SEC. 7.    Section 19549.9 of the   Business
and Professions Code   is amended to read: 
   19549.9.  Notwithstanding  paragraph (4) of  subdivision
 (d)   (a)  of Section 19531 and Section
19549, the board may allocate up to 10 additional weeks of harness
racing to the Los Angeles County Fair, or its lessee, to be raced at
the fairgrounds in Pomona.
   SECTION 1.   SEC. 8.   Section 19605.73
of the Business and Professions Code is amended to read:
   19605.73.  (a) Thoroughbred racing associations, fairs, and the
organization responsible for contracting with thoroughbred racing
associations and fairs with respect to the conduct of racing
meetings, may form a private, statewide marketing organization to
market and promote thoroughbred and fair horse racing, including, but
not limited to, the establishment and maintenance of an Internet Web
site featuring California thoroughbred and fair racing, the
establishment and administration of players incentive programs for
those who wager on thoroughbred association and fair races, and
promotional activities at satellite wagering facilities to increase
their attendance and handle. While the promotional activities at
satellite wagering facilities shall be funded by the marketing
organization, they shall be implemented and coordinated by
representatives of the satellite wagering facilities and the
thoroughbred racing associations or fairs then conducting a live race
meet. The organization shall consist of the following members: two
members, one from the northern zone and one from the combined central
and southern zones, appointed by the thoroughbred racetracks; two
members, one from the northern zone and one from the combined central
and southern zones, appointed by the owners' organization
responsible for contracting with associations and fairs with respect
to the conduct of racing meetings; and two members, one from the
northern zone and one from the combined central and southern zones,
appointed by the organization representing racing and satellite
fairs.
   (b) The marketing organization formed pursuant to subdivision (a)
shall, by November 1 of each year, submit a written report to the
board on a statewide marketing and promotion plan for the upcoming
calendar year. In addition, the organization shall annually present
to the board at the board's November meeting a verbal report on the
statewide marketing and promotion plan for the upcoming calendar
year. The plan shall be implemented as determined by the
organization. The organization shall receive input from all
interested industry participants and may utilize outside consultants.

   (c) In addition to the distributions specified in subdivisions (a)
and (b) of Section 19605.7, subdivisions (a) and (b) of Section
19605.71, and Section 19605.72, for thoroughbred and fair meetings
only, from the amount that would normally be available for
commissions and purses, an amount not to exceed 0.25 percent of the
total amount handled by each satellite wagering facility shall be
distributed to the marketing organization formed pursuant to
subdivision (a) for the purposes set forth therein. The amounts
initially distributed to the marketing organization formed pursuant
to subdivision (a) shall be 0.2 percent of the total amount handled
by satellite wagering facilities for thoroughbred and fair meetings
only. The amount distributable to the marketing organization may be
adjusted by the board, in its discretion. However, the adjusted
amounts may not exceed an aggregate of 0.25 percent of the total
amount handled by satellite wagering facilities for thoroughbred and
fair meetings only. Any of the promotion funds that are not expended
in the year in which they are collected may be expended in the
following year. If promotion funds expended in any one year exceed
the amount collected for that year, the funds expended in the
following year shall be reduced by the excess amount. The marketing
organization, on a quarterly basis, shall submit to the board a
written report that accounts for all receipts and expenditures of the
promotion funds for the previous three months.
   (d) This section shall remain in effect only until January 1,
 2019,   2015,  and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2019,   2015,  deletes or
extends that date. Any moneys held by the organization shall, in the
event this section is repealed, be distributed to the organization
formed pursuant to Section 19608.2, for purposes of that section.
   SEC. 2.   SEC. 9.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.