BILL NUMBER: AB 618	CHAPTERED  07/14/99

	CHAPTER   127
	FILED WITH SECRETARY OF STATE   JULY 14, 1999
	APPROVED BY GOVERNOR   JULY 14, 1999
	PASSED THE SENATE   JULY 1, 1999
	PASSED THE ASSEMBLY   APRIL 29, 1999
	AMENDED IN ASSEMBLY   APRIL 21, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Margett

                        FEBRUARY 19, 1999

   An act to amend Section 19618 of, and to add Section 19618.1 to,
the Business and Professions Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 618, Margett.  Horse racing:  promotional payments.
   Existing law generally prohibits a person licensed to conduct a
racing meeting from paying any horse owner, or any agent, person, or
organization representing horse owners, purses, or any other type of
consideration, except as expressly provided in the Horse Racing Law.
Existing law likewise prohibits any horse owner, or any agent,
person, or organization representing horse owners, from receiving,
soliciting, or obtaining these funds.  Existing law also defines
certain exceptions from these prohibitions, including payments by a
fair in connection with promotional contests or sponsorship
contributions.
   This bill would add an exception to these prohibitions for a
payment by a licensed harness racing association in the northern
zone, or by any fair, in connection with promotional contests or
sponsorship contributions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19618 of the Business and Professions Code is
amended to read:
   19618.  (a) Except as provided in Article 9.2 (commencing with
Section 19605), no person licensed under this chapter to conduct a
racing meeting shall pay or distribute to, or on behalf of, any horse
owner, any agent, or person or organization representing any horse
owner or owners, purses, or any other type of consideration to, or
for, the benefit of horsemen, other than that expressly provided in
this chapter.
   (b) Except as provided in Article 9.2 (commencing with Section
19605), no horse owner, any agent, or person or organization
representing any horse owner or owners, shall receive, solicit, or
obtain from any person licensed under this chapter to conduct a race
meeting, purses, or any other type of consideration to, or for, the
benefit of horsemen, other than that expressly provided in this
chapter.
   (c) No plaque, cup, tray, ribbon, trophy, or similar award given
in recognition of achievement or special event is deemed to be
consideration for the purpose of subdivisions (a) and (b).
   (d) Subdivisions (a) and (b) do not apply to any payment by an
association in connection with any match race or special racing
event.
   (e) Notwithstanding subdivision (a) or (b), or any other provision
of law, the horsemen's organization that represents the horsemen
participating in a racing meeting and a licensed racing association
may enter into an agreement which provides for the division of, and
sharing by the organization and the association of, the interest
earned on the association's paymaster accounts during racing meetings
conducted prior to, during, or subsequent to, 1990, if both of the
following conditions are satisfied:
   (1) The agreement is filed with the board.
   (2) The share of earned interest allocated to the horsemen's
organization is used exclusively for the benefit of horsemen,
including, among other purposes, purses.
   (f) Notwithstanding subdivision (a) or (b), or any other provision
of law, the horsemen's organization that represents the horsemen
participating in a racing meeting and a licensed racing association
may enter into an agreement that provides for the supplementing of
purses due to the impact, if any, of activities regulated pursuant to
the provisions of Chapter 5 (commencing with Section 19800) that are
conducted on the association's property during a race meeting, if
both of the following conditions are satisfied:
   (1) The agreement is approved by the board.
   (2) Any sum agreed to pursuant to this subdivision is used
exclusively to supplement purses.
  SEC. 2.  Section 19618.1 is added to the Business and Professions
Code, to read:
   19618.1.  Subdivisions (a) and (b) of Section 19618 shall not
apply to any payment by a licensed harness racing association in the
northern zone, or by any fair, in connection with promotional
contests or sponsorship contributions.