BILL NUMBER: AB 2765 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 5, 2014
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, 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 submit, by November 1 of each year, a written
report to the California Horse Racing Board. Existing law also
authorizes the marketing organization to utilize outside consultants.
This bill would extend the operation of those provisions to
January 1, 2019. By extending the operation of 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 bill would also 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.
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: no
yes . State-mandated local program: no
yes .
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 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 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 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 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
in subdivision (a) . 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,
2015, 2019, and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2015, 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 . 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.