BILL NUMBER: AB 2011 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Cooper
FEBRUARY 16, 2016
An act to amend Sections 19607.2 and 19607.3 of the Business and
Professions Code, relating to horse racing.
LEGISLATIVE COUNSEL'S DIGEST
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 1. Section 19607.2 of the Business and Professions Code is
amended to read:
19607.2. Notwithstanding Section 19605.8, when satellite wagering
is conducted on thoroughbred races at associations or fairs in the
northern zone, an amount not to exceed 1.25 2
percent of the total amount handled by all of those satellite
wagering facilities, shall 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, with each party having meaningful
representation horsemen and horsewomen, for use
pursuant to Section 19607.3. A vote of the organization representing
thoroughbred horsemen and horsewomen shall constitute 50 percent of
all voting interests on the board of the organization,
to administer, pursuant organization for
med and operated to supervision of
administer the board, a fund to provide reimbursement
for offsite stabling at board-approved auxiliary training facilities
of fund. The other 50 percent of all voting interests
shall be allocated among thoroughbred racing associations
or and fairs for additional
stalls beyond the number of usable stalls the association is required
to make available and maintain pursuant to Section 19535,
conducting thoroughbred racing in a manner that provides
meaningful representation on the governing board of the organization
for starter fees thoroughbred racing
associations and for the vanning of starters from
these additional stalls on race days for thoroughbred horses.
fairs conducting thoroughbred racing, except as
provided in subdivision (h) of Section 19607.3.
SEC. 2. Section 19607.3 of the Business and Professions Code is
amended to read:
19607.3. (a) The Notwithstanding Section
19535, the funds distributed to the organization formed
pursuant to Section 19607.2 shall be used to reimburse
racing associations that are operating pay the
organization's expenses and compensate th e provider of a
board-approved auxiliary offsite facility for stabling,
training, and vanning of thoroughbred horses in the northern zone.
The organization administering the auxiliary offsite stabling
providing additional stalls and training
facility and vanning program shall submit its proposed financial and
operational plans for the incremental increase in
operating costs directly resulting from providing the stabling.
upcoming calendar year to the board for review no
later than November 1 of the preceding year. Neither the
organization administering the auxiliary offsite stabling
and training facility and vanning program nor any of the
entities forming and operating the organization, except the entity
operating the auxiliary offsite stabling and training
facility where the injury occurred, shall be liable for any
injury to any jockey, exercise person, owner, trainer, or any
employee or agent thereof, or any horse occurring at any
auxiliary offsite stabling and training facility.
(b) The funds shall also be used to reimburse horsemen
for cover all or part of the cost of vanning
starting thoroughbred horses from a
board-approved auxiliary training facility operated by a
racing association or fair offsite stabling and
training facility to the track conducting the racing
meeting. Horsemen may use carriers of their own choice, except that
to start in a thoroughbred race at a thoroughbred or
fair racing meeting in the amount
northern zone. The organization shall determine the extent of
reimbursement to horsemen is limited to the amount
and manner in which compensation will be paid for thoroughbred
horses that the organization determines is generally
charged by carriers for vanning are vanned from
the auxiliary training facility to the track
or the fair conducting the thoroughbred or fair
racing meeting. Neither the organization administering the
auxiliary offsite stabling and training facility and
vanning program nor any of the entities forming and operating the
organization, except the an entity
actually engaged in vanning horses, is liable for any injury
occurring to any individual or horse during vanning from an offsite
stabling and training facility.
(c) The auxiliary offsite stabling and training
facilities and the amenities provided for offsite stabling
and training purposes shall be substantially equivalent
in character to those provided during by the
thoroughbred racing meetings of
association or fair conducting the association.
racing meeting.
(d) In order to ensure the long-term availability of facilities
for offsite stabling and training, the organization may enter into
multiyear contracts for auxiliary facilities in the northern zone.
The organization shall submit to the board for its approval the
multiyear contracts that it enters into with providers of auxiliary
facilities for offsite stabling and training. Contracts not
disapproved by the board within 60 days of submittal to the board
shall be deemed to have been approved by the board.
(e) At the request of the board, the organization shall submit a
report detailing all of its receipts and expenditures over the prior
two fiscal years and, upon request of any party within the
organization, those receipts and expenditures shall be audited by the
board.
(d) Upon the request of any party within the organization, the
board shall adjudicate any dispute regarding costs, or other matters
relating
(f) In addition to the
furnishing uses of offsite stabling or
vanning. The board may, if necessary, appoint an independent auditor
to assist in the resolution of disputes. The auditor shall be
reimbursed from the funds described in subdivisions
(a) and (b), the organization may use the funds for both
of the organization. following:
(e) The organization may maintain
(1) Maintain a reserve fund of up
to 10 percent of the total estimated annual vanning and
auxiliary offsite stabling and training facility
costs. In addition to the reserve fund, if the funds generated for
the auxiliary offsite stabling and training
facilities and vanning are insufficient to fully
reimburse racing associations or fairs for expenses incurred during
cover the offsite vanning and stabling
program, expenses incurred, the organization
may may, in the future, accumulate
sufficient funds to fully reimburse cover
those associations or fairs for those
expenses.
(2) Pay back commissions, purses, and owners' premiums to the
extent the deductions made pursuant to Section 19607.2 exceed in any
year the amount of funds necessary to achieve the objectives of the
organization.
(f)
(g) The amount initially deducted and distributed to
the organization shall be 0.5 percent of the total amount
handled by satellite wagering facilities authorized under this
article in the northern zone on thoroughbred racing, but that
allocation may pursuant to Section 19607.2 may
be adjusted by the board, in its discretion. However, the adjusted
amount may not exceed 1.25 2 percent of
the total amount handled by satellite wagering facilities,
facilities. The amount deducted and distributed
to pay expenses and maintain the reserve
fund for organization as adjusted by the
continuing support board may be a different
percentage of the program. handle for
different associations and fairs conducting thoroughbred racing
meetings in the northern zone, but only if all the associations and
fairs agree to the differing percentages.
(h) A thoroughbred racing association or fair in the northern zone
that is able to provide the minimum number of stalls required by its
racing meeting license without the use of any auxiliary offsite
stabling and training facility and vanning program may opt out of
that program, in which case the deduction described in Section
19607.2 shall not apply during the live racing meeting conducted by
the association or fair until such time as the association or fair
opts back into the auxiliary offsite stabling and training facility
and vanning program. Any thoroughbred racing association or fair in
the northern zone that opts out of the auxiliary offsite stabling and
training facility and vanning program shall not have any voting
interest therein until such time as the association or fair opts back
into the program. The organization shall establish reasonable
procedures and timelines for the giving of notice to the organization
by a thoroughbred racing association or fair that elects to opt out
of the auxiliary offsite stabling and training facility and vanning
program.
(i) 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. Notwithstanding
any other law, the board shall maintain all powers necessary and
proper to ensure that offsite stabling, training, and vanning, as
provided for in this article, is conducted in a manner that protects
the public and serves the best interests of horse racing.
SEC. 3. 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.