SB 398, as introduced, Galgiani. Horse racing: charity days.
Existing law requires each licensed racing association to designate a certain number of racing days to be conducted as charity days, and requires the net proceeds from those charity days to be distributed to beneficiaries who meet certain qualifications. Existing law also requires distributions to be made to certain nonprofit corporations and organizations, and requires that at least 20% of the distributions go to charities associated with the horse racing industry.
This bill, in addition to those required distributions, would authorize a separate distribution to be made to a nonprofit corporation or trust that has as its sole purpose the support of recognized fairs or the network of California fairs.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 19556 of the Business and Professions
2Code is amended to read:
(a) The distribution shall be made by the distributing
4agent to beneficiaries qualified under this article. Forbegin delete theend delete purposes
5of this article, a beneficiary shall be all of the following:
P2 1(1) A nonprofit corporation or organization entitled by law to
2receive a distribution made by a distributing agent.
3(2) Exempt or entitled to an exemption from taxes measured by
4income imposed by this state and the United States.
5(3) Engaged in charitable, benevolent, civic, religious,
6educational, or veterans’ work similar to that
of agencies
7recognized by an organized community chest in the State of
8California, except that the funds so distributed may be used by the
9beneficiary for capital expenditures.
10(4) Approved by the board.
11(b) At least 20 percent of the distribution shall be made to
12charities associated with the horse racing industry. In addition to
13this 20 percent of the distribution, another 5 percent of the
14distribution shall be paid to a welfare fund described in subdivision
15(b) of Section 19641 and another 5 percent of the distribution shall
16be paid to a nonprofit corporation, the primary purpose of which
17is to assist horsemen and backstretch personnel who are being
18affected adversely as a result of alcohol or substance abuse. No
19beneficiary otherwise qualified under this section to receive charity
20day net proceeds shall be excluded on the basis that the beneficiary
21provides charitable benefits
to persons connected with the care,
22training, and running of racehorses, except that type of beneficiary
23shall make an accounting to the board within one calendar year of
24the date of receipt of any distribution.
25(c) (1) In addition to the distribution pursuant to subdivision
26(b), a separate 20 percent of the distribution shall be made to a
27nonprofit corporation or trust, the directors or trustees of which
28shall serve without compensation except for reimbursement for
29reasonable expenses, and which has as its sole purpose the
30accumulation of endowment funds, the income on which shall be
31distributed to qualified disabled jockeys.
32(2) To receive a distribution under this subdivision, a corporation
33or trust must establish objective qualifications for disabled jockeys,
34and provide an annual accounting and report to the board on its
35activities indicating compliance
with the requirements of this
36subdivision.
37(3) The nonprofit corporation or trust shall, in an amount
38proportional to the contributions received pursuant to this
39subdivision as a percentage of the total contributions received by
P3 1the corporation or trust, give preference in assisting qualified
2disabled jockeys to the following:
3(A) Jockeys who were disabled while participating in the racing
4or training of horses at licensed racing associations or approved
5training facilities in California.
6(B) Jockeys licensed by the board who were disabled while
7participating in the racing or training of horses in a state other than
8California.
9(d) When the nonprofit corporation or trust described in
10subdivision (c) has received distributions in an amount equal to
11two
million dollars ($2,000,000), the distribution mandated by
12subdivision (c) shall cease.
13(e) In addition to the distributions pursuant to subdivisions (b)
14and (c), a separate distribution may be made to a nonprofit
15corporation or trust that has as its sole purpose the support of
16recognized fairs or the network of California fairs.
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