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