Amended in Senate February 13, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1303

Introduced by Assembly Member Hall

February 22, 2013

begin delete An act to add Section 19610.7 to the Business and Professions Code, relating to horse racing. end delete begin insert An act to amend Section 19605.7 of, and to add Section 19549.16 to, the Business and Professions Code, relating to horse racing, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1303, as amended, Hall. begin delete Horse racing: takeouts: disclosure to patrons. end delete begin insert Horse racing: northern zone: fairs: satellite wagering. end insert

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(1) Existing law, the Horse Racing Law, notwithstanding any other law, authorizes fairs that conduct live horse racing meetings in the northern zone to allow a joint powers authority to administer and distribute purses and authorizes the California Horse Racing Board to annually allocate a maximum of 28 racing days to any county fair in the northern zone which did not conduct horse racing prior to January 1, 1985.

end insert begin insert

This bill would authorize the board, notwithstanding any other law, to allocate racing days to a fair in the northern zone to be conducted by the fair or, at the request of the fair, to authorize the board to license a racing association that was licensed by the board to conduct racing meetings in California prior to 2010 to conduct live horse racing at the fair during the dates allocated to the fair by the board. The bill would require the live horse racing days, whether they are conducted by the fair or the racing association contracting with the fair, to be subject to the same provisions of law as are presently applicable to a fair race meeting in the northern zone.

end insert begin insert

(2) The Horse Racing Law requires the total percentage deducted from wagers at satellite wagering facilities in the northern zone to be the same as deductions for wagers at the racetrack where the racing meeting is being conducted and to be distributed as specified. That law also requires an additional amount not to exceed 4% of the amount handled by the satellite wagering facility on conventional and exotic wagers to be distributed to the organization formed to operate the audiovisual signal system with the mutual consent of the racing association, the organization representing the horsemen participating in the meeting, and the board from January 1, 2010, until December 31, 2013. That law also requires, commencing January 1, 2014, an amount not to exceed the amount of actual operating expenses, as determined by the board, or 2.5% of the amount handled by the satellite wagering facility on conventional and exotic wagers, whichever is less, to be distributed to the organization formed to operate the audiovisual signal system.

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This bill would extend these dates to December 31, 2016, and January 1, 2017, respectively.

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A violation of the Horse Racing Law is generally a misdemeanor.

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Because the bill would change the definition of an existing crime, the bill would impose a state-mandated local program.

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(3) 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.

end insert begin insert

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

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(4) This bill would declare that it is to take effect immediately as an urgency statute.

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Existing law, the Horse Racing Law, authorizes racing associations and fairs to make various deductions from the amounts handled, and specifies the manner in which the amounts deducted are required to be distributed. A violation of the Horse Racing Law, where no other penalty is expressed, is a misdemeanor.

end delete begin delete

This bill would require each racing association or fair to inform patrons, through the official program, of the takeout being applied to the handle for the racing meeting. By creating a new crime, the bill would impose a state-mandated local program.

end delete begin delete

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.

end delete begin delete

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

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 19549.16 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

begin insert

begin insert 19549.16. end insert   

(a) Notwithstanding any other law, the board may
allocate racing days, pursuant to this article, to a fair in the
northern zone to be conducted by the fair or, at the request of the
fair, the board may license a racing association that was licensed
by the board to conduct racing meetings in California prior to
2010 to conduct live horse racing at the fair during the dates
allocated to the fair by the board.

(b) The live horse racing days, whether they are conducted by
the fair or the racing association contracting with the fair, shall
be subject to the same provisions of law as are presently applicable
to a fair race meeting in the northern zone.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 19605.7 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

19605.7.  

The total percentage deducted from wagers at satellite
wagering facilities in the northern zone shall be the same as the
deductions for wagers at the racetrack where the racing meeting
is being conducted and shall be distributed as set forth in this
section. Amounts deducted under this section shall be distributed
as follows:

(a) (1) For thoroughbred meetings, 1.3 percent of the amount
handled by the satellite wagering facility on conventional and
exotic wagers shall be distributed to the racing association for
payment to the state as a license fee, 2 percent shall be distributed
to the satellite wagering facility as a commission for the right to
do business, as a franchise, and this commission is not for the use
of any real property, 0.54 percent shall be deposited with the
official registering agency pursuant to subdivision (a) of Section
19617.2 and shall thereafter be distributed in accordance with
subdivisions (b), (c) and (d) of Section 19617.2, 0.033 percent
shall be distributed to the Center for Equine Health, and 0.067
percent shall be distributed to the California Animal Health and
Food Safety Laboratory, School of Veterinary Medicine, University
of California at Davis. It is the intent of the Legislature that the
0.033 percent of funds distributed to the Center for Equine Health
shall supplement, and not supplant, other funding sources.

(2) (A) In addition to the distributions specified in paragraph
(1), for thoroughbred meetings, an amount not to exceed 4 percent
of the amount handled by the satellite wagering facility on
conventional and exotic wagers shall be distributed to an
organization described in Section 19608.2 with the mutual consent
of the racing association, the organization representing the
horsemen participating in the meeting, and the board from January
1, 2010, until December 31, begin delete 2013 end delete begin insert 2016 end insert . However, the amount
shall be no less than that specified in subparagraph (B), and any
amount greater than the amount specified in subparagraph (B)
shall be approved by the board for no more than 12 months at a
time, and only upon a determination by the board that the greater
amount is in the economic interest of thoroughbred racing.

(B) Commencing January 1, begin delete 2014 end delete begin insert 2017 end insert , an amount not to exceed
the amount of actual operating expenses, as determined by the
board, or 2.5 percent of the amount handled by the satellite
wagering facility on conventional and exotic wagers, whichever
is less, shall be distributed to an organization described in Section
19608.2.

(C) A request to the board for a distribution pursuant to
subparagraph (A) shall be accompanied by a report detailing all
receipts and expenditures over the two prior fiscal years of the
funds affected by the request.

(D) The racing association whose request pursuant to
subparagraph (A) has been approved by the board shall provide
subsequent quarterly reports of receipts and expenditures of the
affected funds if requested by the board.

(b) For harness, quarter horse, Appaloosa, Arabian, or mixed
breed meetings, 0.4 percent of the amount handled by the satellite
wagering facility on conventional and exotic wagers shall be
distributed to the racing association for payment to the state as a
license fee, for fair meetings, 1 percent of the amount handled by
the satellite wagering facility on conventional and exotic wagers
shall be distributed to the fair association for payment to the state
as a license fee, 2 percent shall be distributed to the satellite
wagering facility as a commission for the right to do business, as
a franchise, and this commission is not for the use of any real
property, and 6 percent of the amount handled by the satellite
wagering facility or the amount of actual operating expenses, as
determined by the board, whichever is less, shall be distributed to
an organization described in Section 19608.2. In addition, in the
case of quarter horses, 0.4 percent shall be deposited with the
official registering agency pursuant to subdivision (b) of Section
19617.7 and shall thereafter be distributed in accordance with
subdivisions (c), (d), and (e) of Section 19617.7; in the case of
Appaloosas, 0.4 percent shall be deposited with the official
registering agency pursuant to subdivision (b) of Section 19617.9
and shall thereafter be distributed in accordance with subdivisions
(c), (d), and (e) of Section 19617.9; in the case of Arabians, 0.4
percent shall be held by the association to be deposited with the
official registering agency pursuant to Section 19617.8, and shall
thereafter be distributed in accordance with Section 19617.8; in
the case of standardbreds, 0.4 percent shall be distributed for the
California Standardbred Sires Stakes Program pursuant to Section
19619; in the case of thoroughbreds, 0.48 percent shall be deposited
with the official registering agency pursuant to subdivision (a) of
Section 19617.2 and shall thereafter be distributed in accordance
with subdivisions (b), (c), and (d) of Section 19617.2; 0.033 percent
shall be distributed to the Center for Equine Health; and 0.067
percent shall be distributed to the California Animal Health and
Food Safety Laboratory, School of Veterinary Medicine, University
of California at Davis. It is the intent of the Legislature that the
0.033 percent of funds distributed to the Center for Equine Health
shall supplement, and not supplant, other funding sources.

(c) In addition to the distributions specified in subdivisions (a)
and (b), for mixed breed meetings, 1 percent of the total amount
handled by each satellite wagering facility shall be distributed to
an organization described in Section 19608.2 for promotion of the
program at satellite wagering facilities. For harness meetings, 0.5
percent of the total amount handled by each satellite wagering
facility shall be distributed to an organization described in Section
19608.2 for the promotion of the program at satellite wagering
facilities, and 0.5 percent of the total amount handled by each
satellite wagering facility shall be distributed according to a written
agreement for each race meeting between the licensed racing
association and the organization representing the horsemen
participating in the meeting. If, with respect to harness meetings,
there are funds unexpended from this 1 percent, these funds may
be expended for other purposes with the consent of the horsemen
and the racing association to benefit the horsemen, or the racing
association, or both, pursuant to their agreement. For quarter horse
meetings, 0.5 percent of the total amount handled by each satellite
wagering facility on races run in California shall be distributed to
an organization described in Section 19608.2 for the promotion
of the program at satellite wagering facilities, 0.5 percent of the
total amount handled by each satellite wagering facility on
out-of-state and out-of-country imported races shall be distributed
to the official quarter horse registering agency for the purposes of
Section 19617.75, and 0.5 percent of the total amount handled by
each satellite wagering facility on all races shall be distributed
according to a written agreement for each race meeting between
the licensed racing association and the organization representing
the horsemen participating in the meeting.

(d) Additionally, for thoroughbred, harness, quarter horse, mixed
breed, and fair meetings, 0.33 percent of the total amount handled
by each satellite wagering facility shall be paid to the city or county
in which the satellite wagering facility is located pursuant to
Section 19610.3 or 19610.4.

(e) Notwithstanding any other begin delete provision of end delete law, a racing
association is responsible for the payment of the state license fee
as required by this section.

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begin insert SEC. 3. end insert   

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.

end insert

begin insert

begin insert SEC. 4. end insert   

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to preserve jobs, to ensure that live horse racing
continues in northern California each year, and for this act to
apply to the 2014 horse racing season, it is necessary that this act
take effect immediately.

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SECTION 1.  

Section 19610.7 is added to the Business and
Professions Code, to read:

19610.7.  

A racing association or fair shall inform patrons,
through the official program, of the takeout being applied to the
handle for the racing meeting.

end delete

begin delete

SEC. 2.  

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.

end delete