BILL NUMBER: AB 1347	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2013

INTRODUCED BY   Assembly Member Gray

                        FEBRUARY 22, 2013

   An act to amend  Section   Sections 19596.2
and  19605.73 of the Business and Professions Code, relating to
horse racing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1347, as amended, Gray. Horse racing:  out-of-state
thoroughbred races:  statewide marketing organization. 
    Existing  
   (1) Existing law authorizes a thoroughbred racing association or
fair to distribute the audiovisual signal and accept wagers on the
results of out-of-state thoroughbred races conducted in the United
States during the calendar period the association or fair is
conducting a race meeting, including days on which there is no live
racing being conducted by the association or fair, without the
consent of the organization that represents horsemen and horsewomen
participating in the race meeting and without regard to the amount of
purses. Under existing law, the total number of thoroughbred races
imported by associations or fairs on a statewide basis under these
provisions shall not exceed 50 per day on days when live thoroughbred
or fair racing is being conducted in the state, with the exception
of prescribed races, including races that are part of the race card
of the Kentucky Derby, the Kentucky Oaks, the Preakness Stakes, the
Belmont Stakes, the Jockey Club Gold Cup, the Travers Stakes, the
Arlington Million, the Breeders' Cup, the Dubai Cup, the Arkansas
Derby, or the Haskell Invitational.  
   This bill would exempt from the 50 race per day limitation, races
that are part of the race card. 
    (2)     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.
   This bill would extend the operation of those provisions to
January 1, 2019. Because the bill would extend 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.
   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 19596.2 of the  
Business and Professions Code   is amended to read: 
   19596.2.  (a) Notwithstanding any other  provision of
 law and except as provided in Section 19596.4, a
thoroughbred racing association or fair may distribute the
audiovisual signal and accept wagers on the results of out-of-state
thoroughbred races conducted in the United States during the calendar
period the association or fair is conducting a race meeting,
including days on which there is no live racing being conducted by
the association or fair, without the consent of the organization that
represents horsemen and horsewomen participating in the race meeting
and without regard to the amount of purses. Further, the total
number of thoroughbred races imported by associations or fairs on a
statewide basis under this section shall not exceed 50 per day on
days when live thoroughbred or fair racing is being conducted in the
state. The limitation of 50 imported races per day does not apply to
any of the following:
   (1) Races imported for wagering purposes pursuant to subdivision
(c).
   (2) Races imported that are part of the race card of  the Wood
Memorial,  the Kentucky Derby, the Kentucky Oaks, the Preakness
Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the Travers
Stakes, the Arlington Million, the Breeders' Cup, the Dubai Cup, the
Arkansas Derby, or the Haskell Invitational.
   (3) Races imported into the northern zone when there is no live
thoroughbred or fair racing being conducted in the northern zone.
   (4) Races imported into the combined central and southern zones
when there is no live thoroughbred or fair racing being conducted in
the combined central and southern zones.
   (b) Any thoroughbred association or fair accepting wagers pursuant
to subdivision (a) shall conduct the wagering in accordance with the
applicable provisions of Sections 19601, 19616, 19616.1, and
19616.2.
   (c) No thoroughbred association or fair may accept wagers pursuant
to this section on out-of-state races commencing after 7 p.m.,
Pacific standard time, without the consent of the harness or quarter
horse racing association that is then conducting a live racing
meeting in  the counties of  Orange or Sacramento 
Counties  .
   SECTION 1.   SEC. 2.   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 marketing 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 marketing 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
marketing organization. The marketing 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   shall  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, and, as of that date, is repealed, unless a later enacted
statute that is enacted before January 1, 2019, deletes or extends
that date. Any moneys held by the marketing 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. 3.   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.