AB 2765,
as amended, Committee on Governmental Organization. Horse racing: marketingbegin delete organization.end deletebegin insert organizations.end insert
Existing law, operative until January 1, 2015,
end deletebegin insert(1)end insertbegin insert end insertbegin insertExisting law, the Horse Racing Law,end insert authorizesbegin insert, until January 1, 2015,end insert 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.begin delete 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.end delete
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.
begin insert(2) A former provision in the Horse Racing Law, which was repealed on January 1, 2014, required any racing association, including a fair, that conducts thoroughbred racing to pay to the owners’ organization contracting with the association with respect to the conduct of thoroughbred racing an additional 13⁄4 % of the portion required to be deducted for purses for a national marketing program, as specified.
end insertbegin insertThis bill would reenact this requirement, which would be effective until January 1, 2018, and repealed as of that date.
end insertbegin insert(3) By imposing requirements under the Horse Racing Law, the violation of which would be a crime, the bill would create new crimes and would thereby impose a state-mandated local program.
end insertThe
end deletebegin insert(4)end insertbegin insert end insertbegin insertTheend insert 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 19605.73 of the Business and Professions
2Code is amended to read:
(a) Thoroughbred racing associations, fairs, and the
4organization responsible for contracting with thoroughbred racing
5associations and fairs with respect to the conduct of racing
6meetings, may form a private, statewide marketing organization
7to market and promote thoroughbred and fair horse racing,
P3 1including, but not limited to, the establishment and maintenance
2of an Internet Web site featuring California thoroughbred and fair
3racing, the establishment and administration of players incentive
4programs for those who wager on thoroughbred association and
5fair races, and promotional activities at satellite wagering facilities
6to increase their attendance and handle. While the promotional
7activities at satellite wagering facilities shall be funded by
the
8marketing organization, they shall be implemented and coordinated
9by representatives of the satellite wagering facilities and the
10thoroughbred racing associations or fairs then conducting a live
11race meet. The marketing organization shall consist of the
12following members: two members, one from the northern zone
13and one from the combined central and southern zones, appointed
14by the thoroughbred racetracks; two members, one from the
15northern zone and one from the combined central and southern
16zones, appointed by the owners’ organization responsible for
17contracting with associations and fairs with respect to the conduct
18of racing meetings; and two members, one from the northern zone
19and one from the combined central and southern zones, appointed
20by the organization representing racing and satellite fairs.
21(b) The marketing
organization formed pursuant to subdivision
22(a) shall, by October 1 of each year, submit a written report to the
23board on a statewide marketing and promotion plan for the
24upcoming calendar year. In addition, the marketing organization
25shall annually present to the board at the board’s November
26meeting a verbal report on the statewide marketing and promotion
27plan for the upcoming calendar year. The plan shall be
28implemented as determined by the marketing organization. The
29marketing organization shall receive input from all interested
30
industry participants and may utilize outside consultants with horse
31racing or other related experience, including experience in other
32gaming enterprises.
33(c) In addition to the distributions specified in subdivisions (a)
34and (b) of Section 19605.7, subdivisions (a) and (b) of Section
3519605.71, and Section 19605.72, for thoroughbred and fair
36meetings only, from the amount that would normally be available
37for commissions and purses, an amount not to exceed 0.25 percent
38of the total amount handled by each satellite wagering facility shall
39be distributed to the marketing organization formed pursuant to
40subdivision (a) for the purposes set forth in subdivision (a). The
P4 1amounts initially distributed to the marketing organization formed
2pursuant to subdivision (a) shall be 0.2 percent of the total amount
3handled by satellite
wagering facilities for thoroughbred and fair
4meetings only. The amount distributable to the marketing
5organization may be adjusted by the board, in its discretion.
6However, the adjusted amounts may not exceed an aggregate of
70.25 percent of the total amount handled by satellite wagering
8facilities for thoroughbred and fair meetings only. Any of the
9promotion funds that are not expended in the year in which they
10are collected may be expended in the following year. If promotion
11funds expended in any one year exceed the amount collected for
12that year, the funds expended in the following year shall be reduced
13by the excess amount. The marketing organization, on a quarterly
14basis, shall submit to the board a written report that accounts for
15all receipts and expenditures of the promotion funds for the
16previous three months.
17(d) This
section shall remain in effect only until January 1, 2019,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2019, deletes or extends that date.
20
Any moneys held by the marketing organization shall, in the event
21this section is repealed, be distributed to the organization formed
22pursuant to Section 19608.2, for purposes of that section.
begin insertSection 19613.05 is added to the end insertbegin insertBusiness and
24Professions Codeend insertbegin insert, to read:end insert
(a) Any association, including a fair, that conducts
26thoroughbred racing shall pay to the owners’ organization,
27contracting with the association with respect to the conduct of
28thoroughbred racing, an additional 13⁄4 percent of the portion
29deducted for purses, required by Section 19613, for a national
30marketing program. These funds shall be used exclusively for the
31promotion of thoroughbred racing in conjunction with a national
32thoroughbred racing marketing program. Funds that may not be
33needed for this effort shall be returned to the purse pool at the
34racing associations where these funds were raised in direct
35proportion to the amount in which they were initially raised. The
36owners’ organization shall
file a report with the board and the
37respective Senate and Assembly Committees on Governmental
38Organization, accounting for the receipt and expenditure of these
39funds on an annual basis. The board of directors of the owners’
40organization shall have the discretion to select the national
P5 1marketing organization that shall be the recipient of these funds.
2If the board of directors of the owners’ organization decides at
3any time not to contribute to the national marketing organization,
4notice shall be given promptly to the respective racing association
5or associations and the 13⁄4 percent deduction shall cease until
6the owners’ organization decides otherwise.
7(b) This section shall remain in effect only until January 1, 2018,
8and as of that date is repealed, unless a later enacted statute, that
9is enacted
before January 1, 2018, deletes or extends that date.
No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13the only costs that may be incurred by a local agency or school
14district will be incurred because this act creates a new crime or
15infraction, eliminates a crime or infraction, or changes the penalty
16for a crime or infraction, within the meaning of Section 17556 of
17the Government Code, or changes the definition of a crime within
18the meaning of Section 6 of Article XIII B of the California
19Constitution.
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