Amended in Senate August 19, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2226

Introduced by Assembly Member Bigelow

February 18, 2016

An act to amend begin delete Section 19605 end delete begin insert Sections 19605 and 19620.2 end insert of the Business and Professions Code, begin insert and to amend Section 3200 of the Food and Agricultural Code, end insert relating to horse begin delete racing. end delete begin insert racing, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2226, as amended, Bigelow. Horse racing: begin delete satellite wagering facilities: end delete fairs.

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The

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begin insert (1) end insert begin insert   end insert begin insert The end insert Horse Racing Law permits the California Horse Racing Board to authorize an association licensed to conduct a racing meeting to also operate a satellite wagering facility at its racetrack inclosure, under specified conditions that differ between the northern zone and the central and southern zones, and provides specific guidelines for the operation and location of these facilities. That law also authorizes fairs to contract for the operation and management of a satellite wagering facility with an individual racing association or a partnership, joint venture, or other affiliation of 2 or more racing associations that are licensed to conduct thoroughbred meetings within the northern zone.

This bill would authorize a fair to contract with 2 or more fairs that are licensed to conduct thoroughbred meetings within the northern zone for the operation and management of a satellite wagering facility.

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(2) The Horse Racing Law provides that any unallocated balance from the total revenue received by the Department of Food and Agriculture pursuant to that law, except as specified, is hereby appropriated without regard to fiscal years for allocation by the Secretary of Food and Agriculture for capital outlay to California fairs for, among other things, fair projects involving public health and safety and projects that are required to protect fair property. That law also provides that a portion of these funds may be allocated to California fairs for general support.

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This bill would revise these provisions to include revenue deposited into the Fair and Exposition Fund pursuant to a specified provision and funding appropriated by the Legislature or otherwise designated for California fairs pursuant to the Horse Racing Law or any other law that is to be appropriated without regard to fiscal years for allocation by the secretary for those capital outlay purposes.

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(3) Existing law provides that all funds appropriated for California fairs and expositions pursuant to specified provisions of law shall not be utilized for the purposes specified in those provisions but shall instead be utilized for the construction or operation of recreational and cultural facilities of general public interest and may be allocated by the Secretary of Food and Agriculture to all state designated fairs for those purposes.

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This bill would delete these provisions and instead require that all funds appropriated or designated for California fairs and expositions pursuant to specified law or any other law be deposited in the Fair and Exposition Fund and be continuously appropriated as provided in specified provisions of the Horse Racing Law.

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(4) By increasing the amounts to be deposited in the Fair and Exposition Fund, which is continuously appropriated, and by appropriating these amounts for new purposes, the bill would make an appropriation.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 19605 of the Business and Professions
Code is amended to read:

19605.  

(a) Notwithstanding any other law, the board may
authorize an association licensed to conduct a racing meeting in
the northern zone to operate a satellite wagering facility for
wagering on races conducted in the northern zone at its racetrack
inclosure subject to all of the conditions specified in Section
19605.3, and may authorize an association licensed to conduct a
racing meeting in the central or southern zone to operate a satellite
wagering facility for wagering on races conducted in the central
or southern zone at its racetrack inclosure subject to the conditions
specified in subdivisions (a) to (e), inclusive, of Section 19605.3
and the conditions and limitations set forth in Section 19605.6.

(b) Notwithstanding any other law, no satellite wagering facility,
except a facility that is located at a track where live racing is
conducted, shall be located within 20 miles of any existing satellite
wagering facility or of any track where a racing association
conducts a live racing meeting. However, in the northern zone, a
racing association or any existing satellite wagering facility may
waive the prohibition contained in this subdivision and may consent
to the location of another satellite wagering facility within 20 miles
of the facility or track.

(c) Notwithstanding subdivision (b), the Department of Food
and Agriculture may approve not more than three satellite wagering
facilities that are licensed jointly to the 1a District Agricultural
Association and the 5th District Agricultural Association and that
are located on the fairgrounds of the 1a District Agricultural
Association or within the boundaries of the City and County of
San Francisco. Before a satellite wagering facility may be licensed
for the 1997 and subsequent calendar years under this subdivision,
the department shall conduct a one-year test at the proposed site
in order to determine the impact of the proposed facility on total
state parimutuel revenues and on attendance and wagering at
existing racetracks and fair satellite wagering facilities in the
Counties of Alameda, San Mateo, Santa Clara, and Solano.
Notwithstanding Section 19605.1, a satellite wagering facility may
be located on property leased to one or both fairs. Notwithstanding
any other law, the fairs may contract for the operation and
management of a satellite wagering facility with an individual
racing association or a partnership, joint venture, or other affiliation
of two or more racing associations or fairs that are licensed to
conduct thoroughbred meetings within the northern zone.

(d) Subdivision (b) shall not be construed to prohibit the location
of satellite wagering facilities within 20 miles of any existing or
proposed satellite facility established pursuant to subdivision (c).

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begin insert SEC. end insert begin insert 2 end insert begin insert . end insert   

end insert

begin insert Section 19620.2 of the end insert begin insert Business and Professions Code end insert

begin insert is amended to read: end insert

19620.2.  

(a)  begin delete Any end delete begin insert Notwithstanding any other law, any end insert
unallocated balance from begin delete Section 19620.1 end delete begin insert Sections 19606.1 and
19620.1, revenue deposited into the Fair and Exposition Fund
pursuant to Section 19614, and funding appropriated by the
Legislature or otherwise designated for California fairs pursuant
to this chapter or any other law end insert is hereby appropriated without
regard to fiscal years for allocation by the Secretary of Food and
Agriculture for capital outlay to California fairs for fair projects
involving public health and safety, for fair projects involving major
and deferred maintenance, for fair projects necessary due to any
emergency, for projects that are required by physical changes to
the fair site, for projects that are required to protect the fair property
or installation, such as fencing and flood protection, and for the
acquisition or improvement of any property or facility that will
serve to enhance the operation of the fair.

(b) A portion of the funds subject to allocation pursuant to
subdivision (a) may be allocated to California fairs for general
operational support. It is the intent of the Legislature that these
moneys be used primarily for those fairs whose sources of revenue
may be limited for purposes specified in this section.

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begin insert SEC. end insert begin insert 3 end insert begin insert . end insert   

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begin insert Section 3200 of the end insert begin insert Food and Agricultural Code end insert begin insert is
amended to read: end insert

3200.  

Notwithstanding any other begin delete provision of end delete law, all funds
appropriated begin insert or designated end insert for California fairs and expositions
pursuant to begin delete Sections 19622, 19627, 19627.1, and subdivision (c)
of Section 19627.2 of the Business and Professions Code for the
1995-96 fiscal year shall not be utilized for the purposes specified
in those sections but shall, instead, be utilized for the purposes
specified in Section 19630 of the Business and Professions Code,
and may be allocated by the Secretary of Food and Agriculture to
all state designated fairs as defined by Section 19418 of the
Business and Professions Code, for the purposes specified in
Section 19630. end delete begin insert this chapter or any other law shall be deposited
in the Fair and Exposition Fund and be continuously appropriated
as specified in Sections 19606.1 and 19620.2 of the Business and
Professions Code. end insert