BILL NUMBER: AB 2637 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Hall
FEBRUARY 21, 2014
An act to amend Section Sections 19556 and
19599 of , and to repeal Section 19549.3 of, the
Business and Professions Code, relating to horse racing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2637, as amended, Hall. Horse racing: parimutuel
wagering. wagering and charity racing days.
Existing
(1) Existing law, the Horse
Racing Law, provides for the operation of live horse racing in this
state and for wagering thereon, and for the operation of satellite
wagering facilities, subject to regulation and oversight by the
California Horse Racing Board as specified. That law authorizes an
association or fair to offer any form of parimutuel wagering, as
defined, and authorizes the board to prohibit any form of parimutuel
wagering if it determines that the proposed wagering would compromise
the honesty and integrity of racing in the state.
This bill would correct an outdated cross-reference and would
delete the board's authority 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 .
(2) The Horse Racing Law also requires each licensed racing
association to designate a certain number of racing days to be
conducted as charity days for the purpose of distribution of the net
proceeds to beneficiaries. Existing law requires that beneficiaries
of these proceeds be a nonprofit corporation or organization entitled
by law to receive a distribution made by a distributing agent,
exempt or entitled to exemption from state and federal income taxes,
involved in specified beneficial activities, and approved by the
California Horse Racing Board. Existing law requires, among other
distributions, that at least 20% of the distribution from charity day
racing go to charities associated with the horse racing industry.
This bill would increase the percentage of that distribution to
30%.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19549.3 of the
Business and Professions Code is repealed.
19549.3. Notwithstanding Section 19549 or any other provision of
this chapter, the board may annually allocate a maximum of 28 racing
days to any county fair in the northern zone which did not conduct
horseracing prior to January 1, 1985.
SEC. 2. Section 19556 of the Business
and Professions Code is amended to read:
19556. (a) The distribution shall be made by the distributing
agent to beneficiaries qualified under this article. For the
purposes of this article, a beneficiary shall be all of
the following:
(1) A nonprofit corporation or organization entitled by law to
receive a distribution made by a distributing agent.
(2) Exempt or entitled to an exemption from taxes measured by
income imposed by this state and the United States.
(3) Engaged in charitable, benevolent, civic, religious,
educational, or veterans' work similar to that of agencies recognized
by an organized community chest in the State of California, except
that the funds so distributed may be used by the beneficiary for
capital expenditures.
(4) Approved by the board.
(b) At least 20 30 percent of the
distribution shall be made to charities associated with the horse
racing industry. In addition to this 20 30
percent of the distribution, another 5 percent of the
distribution shall be paid to a welfare fund described in subdivision
(b) of Section 19641 and another 5 percent of the distribution shall
be paid to a nonprofit corporation, the primary purpose of which is
to assist horsemen and backstretch personnel who are being affected
adversely as a result of alcohol or substance abuse. No beneficiary
otherwise qualified under this section to receive charity day net
proceeds shall be excluded on the basis that the beneficiary provides
charitable benefits to persons connected with the care, training,
and running of racehorses, except that type of beneficiary shall make
an accounting to the board within one calendar year of the date of
receipt of any distribution.
(c) (1) In addition to the distribution pursuant to subdivision
(b), a separate 20 percent of the distribution shall be made to a
nonprofit corporation or trust, the directors or trustees of which
shall serve without compensation except for reimbursement for
reasonable expenses, and which that has
as its sole purpose the accumulation of endowment funds, the income
on which shall be distributed to qualified disabled jockeys.
(2) To receive a distribution under this subdivision, a
nonprofit corporation or trust must establish objective
qualifications for disabled jockeys, and provide an annual accounting
and report to the board on its activities indicating compliance with
the requirements of this subdivision.
(3) The nonprofit corporation or trust shall, in an amount
proportional to the contributions received pursuant to this
subdivision as a percentage of the total contributions received by
the corporation or trust, give preference in assisting qualified
disabled jockeys to the following:
(A) Jockeys who were disabled while participating in the racing or
training of horses at licensed racing associations or approved
training facilities in California.
(B) Jockeys licensed by the board who were disabled while
participating in the racing or training of horses in a state other
than California.
(d) When the nonprofit corporation or trust described in
subdivision (c) has received distributions in an amount equal to two
million dollars ($2,000,000), the distribution mandated by
subdivision (c) shall cease.
SECTION 1. SEC. 3. Section 19599 of
the Business and Professions Code is amended to read:
19599. An association or fair may offer any form of parimutuel
wagering, as defined by regulations adopted by the board, or as
defined by Chapter 4, Pari-Mutuel Wagering, Model Rules of Racing, as
published by the Association of Racing Commissioners International.
The board may prohibit any form of parimutuel wagering if it
determines that the proposed wagering would compromise the honesty
and integrity of racing in the state. Each racing association or fair
shall include the types of conventional exotic and other wagering it
proposes to offer on its application to conduct a horse racing
meeting.