AB 2011, as introduced, Cooper. Horse racing: thoroughbred racing: northern zone: auxiliary offsite stabling, training, and vanning.
(1) The Horse Racing Law requires, when satellite wagering is conducted on thoroughbred races at associations or fairs in the northern zone, that an amount not to exceed 1.25% of the total amount handled by all of those satellite wagering facilities be deducted from the funds otherwise allocated for distribution as commissions, purses, and owners’ premiums and instead be distributed to an organization formed and operated by thoroughbred racing associations, fairs conducting thoroughbred racing, and the organization representing thoroughbred horsemen, to administer a fund to provide reimbursement for offsite stabling at California Horse Racing Board-approved auxiliary training facilities for additional stalls beyond the number of usable stalls the association or fair is required to make available and maintain, and for the vanning of starters from these additional stalls on racing days for thoroughbred horses.
This bill would increase the amount that is required to be deducted to an amount not to exceed 2% and would provide that this amount, if adjusted by the board, may be a different percentage of the handle for different associations and fairs, but only if all the associations and fairs agree to the differing percentages. The bill would establish an auxiliary offsite stabling and training facility and vanning program for thoroughbred races in the northern zone. The bill would revise and recast the provisions governing the organization formed and operated to administer the fund to include, among other things, a 50-50 percentage allocation of specified voting interests on the board of the organization, the use of funds to pay the organization’s expenses and compensate the provider of a board-approved auxiliary facility for offsite stabling and training of thoroughbred horses in the northern zone, and the requirement that the organization submit its proposed financial and operational plans for the upcoming calendar year to the board for review no later than November 1 of the preceding year.
The bill would also require that the funds be used to cover all or part of the cost of vanning thoroughbred horses in the northern zone from a board-approved auxiliary offsite stabling and training facility and would authorize the organization to enter into multiyear contracts for auxiliary facilities in the northern zone subject to specified conditions. The bill would authorize the organization to use the funds to pay back commissions, purses, and owners’ premiums to the extent that the deductions made exceed in any year the amount of the funds necessary to achieve the objectives of the organization. The bill would also authorize a thoroughbred racing association or fair in the northern zone to opt out of the auxiliary offsite stabling and training facility and vanning program, as specified. The bill would provide that the board shall reserve the right to adjudicate any disputes that arise regarding costs, or other matters, relating to the furnishing of offsite stabling, training, or vanning, as specified.
(2) By expanding the 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.
(3) 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. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 19607.2 of the Business and Professions
2Code is amended to read:
Notwithstanding Section 19605.8, when satellite
4wagering is conducted on thoroughbred races at associations or
5fairs in the northern zone, an amount not to exceedbegin delete 1.25end deletebegin insert 2end insert percent
6of the total amount handled by all of those satellite wagering
7facilities, shall be deducted from the funds otherwise allocated for
8distribution as commissions, purses, and owners’ premiums and
9insteadbegin insert beend insert distributed to an organization formed and operated by
10thoroughbred racing associations, fairs conducting thoroughbred
11racing, and the organization representing thoroughbredbegin delete horsemen, begin insert horsemen and
12with each party having meaningful representationend delete
13horsewomen, for use pursuant to Section 19607.3. A vote of the
14organization representing thoroughbred horsemen and
15horsewomen shall constitute 50 percent of all voting interestsend insert on
16the board of thebegin delete organization, to administer, pursuantend deletebegin insert organization
17formed and operatedend insert tobegin delete supervision ofend deletebegin insert administerend insert thebegin delete board, a fund begin insert fund. The other 50 percent of all
18to provide reimbursement for offsite stabling at board-approved
19auxiliary training facilities ofend delete
20voting interests shall be allocated among thoroughbredend insert racing
21associationsbegin delete orend deletebegin insert andend insert fairsbegin delete for additional stalls beyond the number begin insert conducting thoroughbred
22of usable stalls the association is required to make available and
23maintain pursuant to Section 19535,end delete
24racing in a manner that provides meaningful representation on
25the governing board of the organizationend insert forbegin delete starter feesend delete
26begin insert thoroughbred racing associationsend insert andbegin delete for the vanning of starters
27from these additional stalls on race days for thoroughbred horses.end delete
28begin insert fairs conducting thoroughbred racing, except as provided in
29subdivision (h) of Section 19607.3.end insert
Section 19607.3 of the Business and Professions Code
31 is amended to read:
(a) begin deleteThe end deletebegin insertNotwithstanding Section 19535, the end insertfunds
33distributed to the organization formed pursuant to Section 19607.2
34shall be used tobegin delete reimburse racing associations that are operatingend delete
35begin insert pay the organization’s expenses and compensate the provider of
36a board-approved auxiliaryend insert offsitebegin insert facility for stabling, training,
37and vanning of thoroughbred horses in the northern zone. The
38organization administering the auxiliary offsiteend insert stablingbegin delete providing begin insert and training facility and vanning program shall
P4 1additional stallsend delete
2submit its proposed financial and operational plansend insert for the
3begin delete incremental increase in operating costs directly resulting from begin insert upcoming calendar year to the board for
4providing the stabling.end delete
5review no later than November 1 of the preceding year.end insert Neither
6the organization administering thebegin insert auxiliaryend insert offsite stabling and
7begin insert training facility andend insert vanning program nor any of the entities
8forming and operating the organization, except the entity operating
9thebegin insert auxiliaryend insert offsite stablingbegin insert and trainingend insert
facility where the injury
10occurred, shall be liable for any injury to any jockey, exercise
11person, owner, trainer, or any employee or agent thereof, or any
12horse occurring at anybegin insert auxiliaryend insert offsite stablingbegin insert and trainingend insert
13 facility.
14(b) The funds shall also be used tobegin delete reimburse horsemen forend deletebegin insert cover
15all or part ofend insert the cost of vanningbegin delete startingend deletebegin insert thoroughbredend insert horses
16from a board-approved auxiliarybegin delete training facility operated by a begin insert offsite stabling and training facilityend insert to
17racing association or fairend delete
18the trackbegin delete conducting the racing meeting. Horsemen may use carriers begin insert to start in a thoroughbred race at
19of their own choice, except thatend delete
20a thoroughbred or fair racing meeting inend insert thebegin delete amountend deletebegin insert northern
21zone. The organization shall determine the extentend insert ofbegin delete reimbursement begin insert and manner in which
22to horsemen is limited to the amountend delete
23compensation will be paid for thoroughbred horsesend insert thatbegin delete the begin insert are vannedend insert from the auxiliary
24organization determines is generally charged by carriers for
25vanningend deletebegin delete trainingend delete facility to the track
26begin insert or the fairend insert conducting thebegin insert thoroughbred or fairend insert racing meeting.
27Neither the organization administering thebegin insert auxiliaryend insert offsite stabling
28andbegin insert training facility andend insert vanning program nor any of the entities
29forming and operating the organization, exceptbegin delete theend deletebegin insert anend insert entity
30actually engaged in vanning horses, is liable for any injury
31occurring to any individual or horse during vanning from an offsite
32stablingbegin insert and trainingend insert facility.
33(c) Thebegin insert auxiliary offsite stabling andend insert training facilities andbegin insert theend insert
34 amenities provided for offsite stabling and training purposes shall
35bebegin insert substantiallyend insert equivalent in character to those
providedbegin delete duringend delete
36begin insert by the thoroughbredend insert racingbegin delete meetings ofend deletebegin insert association or fair
37conductingend insert thebegin delete association.end deletebegin insert racing meeting.end insert
38(d) In order to ensure the long-term availability of facilities for
39offsite stabling and training, the organization may enter into
40multiyear contracts for auxiliary facilities in the northern zone.
P5 1The organization shall submit to the board for its approval the
2multiyear contracts that it enters into with providers of auxiliary
3facilities for offsite stabling and training. Contracts not
4disapproved by the board within 60 days of submittal to the board
5shall be deemed to have been approved by the board.
6(e) At the request of the board, the organization shall submit a
7report detailing all of its receipts and expenditures over the prior
8two fiscal years and, upon request of any party within the
9organization, those receipts and expenditures shall be audited by
10the board.
11(d) Upon the request of any party within the organization, the
12board shall adjudicate any dispute regarding costs, or other matters
13relating
14begin insert(f)end insertbegin insert end insertbegin insertIn additionend insert to thebegin delete furnishingend deletebegin insert usesend insert ofbegin delete offsite stabling or begin insert the funds described in subdivisions (a) and (b),
15vanning. The board may, if necessary, appoint an independent
16auditor to assist in the resolution of disputes. The auditor shall be
17reimbursed fromend delete
18the organization may useend insert the fundsbegin insert for bothend insert of thebegin delete organization.end delete
19begin insert following:end insert
20(e) The organization may maintain
end delete
21begin insert(1)end insertbegin insert end insertbegin insertMaintainend insert a reserve fund of up to 10 percent of the total
22estimated annual vanning andbegin insert auxiliary offsiteend insert stablingbegin insert
and training
23facilityend insert costs. In addition to the reserve fund, if the funds generated
24forbegin insert the auxiliaryend insert offsite stabling andbegin insert training facilities andend insert vanning
25are insufficient to fullybegin delete reimburse racing associations or fairs for begin insert coverend insert the
26expenses incurred duringend deletebegin delete offsite vanning and stabling begin insert expenses incurred,end insert the organization
27program,end deletebegin delete mayend deletebegin insert may, in the
28future,end insert accumulate sufficient funds to fullybegin delete reimburseend deletebegin insert coverend insert those
29begin delete associations or fairs for thoseend delete expenses.
30(2) Pay back commissions, purses, and owners’ premiums to
31the extent the deductions made pursuant to Section 19607.2 exceed
32in any year the amount of funds necessary to achieve the objectives
33of the organization.
34(f)
end delete
35begin insert(g)end insert The amount initially deducted and distributed to the
36organizationbegin delete shall be 0.5 percent of the total amount handled by
37satellite wagering facilities authorized under this article in the
38northern zone on thoroughbred racing, but that allocation mayend delete
39begin insert pursuant to Section 19607.2 mayend insert be adjusted by the board, in its
40discretion. However, the adjusted amount may not exceedbegin delete 1.25end deletebegin insert 2end insert
P6 1 percent of the total amount handled by satellite wageringbegin delete facilities,end delete
2begin insert facilities. The amount deducted and distributedend insert tobegin delete pay expenses the
3and maintainend deletebegin delete reserve fund forend deletebegin insert organization as adjusted byend insert the
4begin delete continuing supportend deletebegin insert board may be a different percentageend insert of the
5begin delete program.end deletebegin insert handle for different associations and fairs conducting
6thoroughbred racing meetings in the northern zone, but only if all
7the associations and fairs agree to the differing percentages.end insert
8(h) A thoroughbred racing association or fair in the northern
9zone that is able to provide the minimum number of stalls required
10by its racing meeting license without the use of any auxiliary offsite
11stabling and training facility and vanning program may opt out
12of that program, in which case the deduction described in Section
1319607.2 shall not apply during the live racing meeting conducted
14by the association or fair until such time as the association or fair
15opts back into the auxiliary offsite stabling and
training facility
16and vanning program. Any thoroughbred racing association or
17fair in the northern zone that opts out of the auxiliary offsite
18stabling and training facility and vanning program shall not have
19any voting interest therein until such time as the association or
20fair opts back into the program. The organization shall establish
21reasonable procedures and timelines for the giving of notice to
22the organization by a thoroughbred racing association or fair that
23elects to opt out of the auxiliary offsite stabling and training facility
24and vanning program.
25(i) The board shall reserve the right to adjudicate any disputes
26that arise regarding costs, or other matters, relating to the
27furnishing of offsite stabling, training, or vanning. Notwithstanding
28any other law, the board shall maintain all powers necessary and
29proper to ensure that
offsite stabling, training, and vanning, as
30provided for in this article, is conducted in a manner that protects
31the public and serves the best interests of horse racing.
No reimbursement is required by this act pursuant to
33Section 6 of Article XIII B of the California Constitution because
34the only costs that may be incurred by a local agency or school
35district will be incurred because this act creates a new crime or
36infraction, eliminates a crime or infraction, or changes the penalty
37for a crime or infraction, within the meaning of Section 17556 of
38the Government Code, or changes the definition of a crime within
P7 1the meaning of Section 6 of Article XIII B of the California
2Constitution.
O
99