Amended in Senate August 26, 2013

Amended in Senate August 12, 2013

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 amend 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: 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. Existing law also prohibits the board from allocating dates to a thoroughbred association in the central zone for conducting racing during daytime hours, if in the southern zone, a thoroughbred racing association is conducting racing on the same date during daytime hours. 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 2012begin insert and would authorize the board to allocate from those weeks a maximum number of weeks to certain racetracks in the southern zone that were not used to conduct thoroughbred race meetings in the southern zone prior to 2012end insert. The bill would prohibit the board from allocating dates to a thoroughbred association in the southern zone for the purpose of conducting racing, regardless of the hours, if, on the same date and during daytime hours, a thoroughbred racing association is conducting racing in the central zone, and would reciprocally prohibit the allocation of racing dates to a thoroughbred association in the central zone when daytime racing is conducted by a thoroughbred association in the southern zone. 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 thebegin delete California Horse Racing Boardend deletebegin insert boardend insert. Violations of the Horse Racing Law are generally misdemeanors.

This bill would extend the operation of those provisions to January 1, 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:

P3    1

SECTION 1.  

Section 19531 of the Business and Professions
2Code
is amended to read:

3

19531.  

(a) The board shall make allocations of racing weeks,
4including simultaneous racing between zones, as it deems
5appropriate. The maximum number of racing weeks that may be
6allocated for horse racing other than at fairs, shall be as follows:

7(1) For thoroughbred racing: 44 weeks per year in the northern
8zone; and 49 weeks per year in the combined central and southern
9zones.

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

11(3) For quarter horse racing: 25 weeks per year in the northern
12zone.

13(4) For harness racing and quarter horse racing: a total of 77
14weeks per year in the combined central and southern zones.

15(b) In its written application for a license, an applicant shall
16state the time of day, consistent with this chapter, during which it
17will conduct its racing meeting, and particularly the first race
18starting time for the various racing days. After receiving a license,
19a licensee shall not change the first race starting time without
20securing prior approval of the board.

21(c) Notwithstanding this section or any other provision in this
22chapter, the following provisions apply:

23(1) From the weeks available in the combined central and
24southern zones pursuant to subdivision (a), the board shall allocate
25a minimum of seven weeks per year to a thoroughbred racing
26association to conduct thoroughbred racing at a racetrack that was
27used to conduct a thoroughbred race meeting in the southern zone
28prior to 2012.

P4    1(2) The board shall not allocate dates to a thoroughbred
2association in the central zone for the purpose of conducting racing
3if a thoroughbred racing association is conducting racing in the
4southern zone on the same date during daytime hours.

5(3) From the weeks available in the combined central and
6southern zones pursuant to subdivision (a), the board shall allocate
7a minimum of 25 weeks per year to a thoroughbred racing
8association to conduct thoroughbred racing at a racetrack that was
9used to conduct a thoroughbred race meeting in the central zone
10prior to 2012.

11(4) The board shall not allocate dates to a thoroughbred
12association in the southern zone for the purpose of conducting
13racing if a thoroughbred racing association is conducting racing
14in the central zone on the same date during daytime hours.

begin insert

15(5) From the weeks available in the combined central and
16southern zones pursuant to subdivision (a), the board may allocate
17a maximum of five weeks per year to a thoroughbred racing
18association to conduct thoroughbred racing at a racetrack in the
19southern zone that was not used to conduct a thoroughbred race
20meeting in the southern zone prior to 2012.

end insert
21

SEC. 2.  

Section 19532.1 of the Business and Professions Code
22 is repealed.

23

SEC. 3.  

Section 19532.2 of the Business and Professions Code
24 is repealed.

25

SEC. 4.  

Section 19549.2 of the Business and Professions Code
26 is amended to read:

27

19549.2.  

From the weeks available for harness and quarter
28horse racing pursuant to paragraph (4) of subdivision (a) of Section
2919531, the board may allocate a maximum of 12 weeks of harness
30racing to the 22nd District Agricultural Association to be conducted
31on the 22nd District Agricultural Association grounds. The racing
32shall be conducted by a person other than the 22nd District
33Agricultural Association.

34

SEC. 5.  

Section 19549.6 of the Business and Professions Code
35 is amended to read:

36

19549.6.  

Notwithstanding paragraph (2) of subdivision (a) of
37Section 19531 and Sections 19540, 19546, and 19549, the board
38may allocate additional weeks of harness racing to the California
39Exposition and State Fair in Sacramento or its lessee, to be raced
40at the California Exposition and State Fair in Sacramento.

P5    1

SEC. 6.  

Section 19549.7 of the Business and Professions Code
2 is amended to read:

3

19549.7.  

Notwithstanding paragraph (3) of subdivision (a) of
4Section 19531 and Section 19549, the board may allocate additional
5weeks of quarter horse racing to a lessee of the California
6Exposition and State Fair in Sacramento to be raced at the
7California Exposition and State Fair in Sacramento.

8

SEC. 7.  

Section 19549.9 of the Business and Professions Code
9 is amended to read:

10

19549.9.  

Notwithstanding paragraph (4) of subdivision (a) of
11Section 19531 and Section 19549, the board may allocate up to
1210 additional weeks of harness racing to the Los Angeles County
13Fair, or its lessee, to be raced at the fairgrounds in Pomona.

14

SEC. 8.  

Section 19605.73 of the Business and Professions
15Code
is amended to read:

16

19605.73.  

(a) Thoroughbred racing associations, fairs, and the
17organization responsible for contracting with thoroughbred racing
18associations and fairs with respect to the conduct of racing
19meetings, may form a private, statewide marketing organization
20to market and promote thoroughbred and fair horse racing,
21including, but not limited to, the establishment and maintenance
22of an Internet Web site featuring California thoroughbred and fair
23racing, the establishment and administration of players incentive
24programs for those who wager on thoroughbred association and
25fair races, and promotional activities at satellite wagering facilities
26to increase their attendance and handle. While the promotional
27activities at satellite wagering facilities shall be funded by the
28marketing organization, they shall be implemented and coordinated
29by representatives of the satellite wagering facilities and the
30thoroughbred racing associations or fairs then conducting a live
31race meet. The organization shall consist of the following members:
32two members, one from the northern zone and one from the
33combined central and southern zones, appointed by the
34thoroughbred racetracks; two members, one from the northern
35zone and one from the combined central and southern zones,
36appointed by the owners’ organization responsible for contracting
37with associations and fairs with respect to the conduct of racing
38meetings; and two members, one from the northern zone and one
39from the combined central and southern zones, appointed by the
40organization representing racing and satellite fairs.

P6    1(b) The marketing organization formed pursuant to subdivision
2(a) shall, by November 1 of each year, submit a written report to
3the board on a statewide marketing and promotion plan for the
4upcoming calendar year. In addition, the organization shall annually
5present to the board at the board’s November meeting a verbal
6report on the statewide marketing and promotion plan for the
7upcoming calendar year. The plan shall be implemented as
8determined by the organization. The organization shall receive
9input from all interested industry participants and may utilize
10outside consultants.

11(c) In addition to the distributions specified in subdivisions (a)
12and (b) of Section 19605.7, subdivisions (a) and (b) of Section
1319605.71, and Section 19605.72, for thoroughbred and fair
14meetings only, from the amount that would normally be available
15for commissions and purses, an amount not to exceed 0.25 percent
16of the total amount handled by each satellite wagering facility shall
17be distributed to the marketing organization formed pursuant to
18subdivision (a) for the purposes set forth therein. The amounts
19initially distributed to the marketing organization formed pursuant
20to subdivision (a) shall be 0.2 percent of the total amount handled
21by satellite wagering facilities for thoroughbred and fair meetings
22only. The amount distributable to the marketing organization may
23be adjusted by the board, in its discretion. However, the adjusted
24amounts may not exceed an aggregate of 0.25 percent of the total
25amount handled by satellite wagering facilities for thoroughbred
26and fair meetings only. Any of the promotion funds that are not
27expended in the year in which they are collected may be expended
28in the following year. If promotion funds expended in any one
29year exceed the amount collected for that year, the funds expended
30in the following year shall be reduced by the excess amount. The
31marketing organization, on a quarterly basis, shall submit to the
32board a written report that accounts for all receipts and expenditures
33of the promotion funds for the previous three months.

34(d) This section shall remain in effect only until January 1, 2015,
35and as of that date is repealed, unless a later enacted statute, that
36is enacted before January 1, 2015, deletes or extends that date.
37 Any moneys held by the organization shall, in the event this section
38is repealed, be distributed to the organization formed pursuant to
39Section 19608.2, for purposes of that section.

P7    1

SEC. 9.  

No reimbursement is required by this act pursuant to
2Section 6 of Article XIII B of the California Constitution because
3the only costs that may be incurred by a local agency or school
4district will be incurred because this act creates a new crime or
5infraction, eliminates a crime or infraction, or changes the penalty
6for a crime or infraction, within the meaning of Section 17556 of
7the Government Code, or changes the definition of a crime within
8the meaning of Section 6 of Article XIII B of the California
9Constitution.



O

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