BILL NUMBER: AB 2765	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 22, 2014

INTRODUCED BY   Committee on Governmental Organization (Assembly
Members Hall (Chair), Nestande (Vice Chair), Bigelow, Chesbro,
Cooley, Dababneh, Gray, Jones, Levine, Medina, Perea,  V.
Manuel Pérez,   V. Manuel   Pérez,  and
Wilk))

                        MARCH 28, 2014

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2765, as amended, Committee on Governmental Organization. Horse
racing: marketing organization.
   Existing law, operative until January 1, 2015, 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   ,   by November 1 of each
year, a written report  to the California Horse Racing Board.
 Violations of the Horse Racing Law are generally
misdemeanors.   Existing law also authorizes the
marketing organization to utilize outside consultants.  
    The bill would change the date for submission of the written
report to the board to October 1 of each year and limit the
authorization for the marketing organization to use outside
consultants to those consultants with horse racing or other related
experience, including experience in other gaming enterprises. 

   This bill would extend the operation of those provisions to
January 1, 2017. 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.
 
   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
  no  . State-mandated local program:  yes
  no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  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   October  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  with horse racing or other related
experience, including experience in other gaming enterprises  .
   (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,
 2017,   2015,  and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1,  2017,  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.   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.