BILL NUMBER: SB 1825	CHAPTERED  09/08/00

	CHAPTER   342
	FILED WITH SECRETARY OF STATE   SEPTEMBER 8, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 6, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	PASSED THE ASSEMBLY   AUGUST 10, 2000
	AMENDED IN ASSEMBLY   JUNE 2, 2000

INTRODUCED BY   Senator Kelley

                        FEBRUARY 24, 2000

   An act to add Section 19616.51 to the Business and Professions
Code, relating to horse racing, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1825, Kelley.  Horse racing:  minimum license fees.
   Existing law authorizes parimutuel wagering on horse races to be
conducted in this state, as specified, subject to regulation by the
California Horse Racing Board, and from the amount handled in
parimutuel pools requires the deduction and distribution of license
fees payable to the state that vary according to the breed of horse
being raced, whether the wager is placed at the track of an
association  or fair, a satellite facility, or an out-of-state
betting system, and other factors as specified.  Existing law
requires that all license fees payable to the state from horse racing
be deposited within specified accounts of the Fairs and Exposition
Fund, and provides for the distribution of moneys in this fund for
various regulatory and general governmental purposes, including
continuous appropriations for the benefit of the network of
California fairs and transfers to the General Fund, as specified.
   This bill would provide that notwithstanding any other provision
of law, if the total amount paid to the state by racing associations
and fairs pursuant to the Horse Racing Law is less than $40,000,000
in any calendar year, beginning January 1, 2001, and thereafter, all
associations and fairs that conducted live racing during the year of
shortfall shall remit to the state, on a pro rata basis according to
the amount handled in-state by each association or fair, the amount
necessary to bring the total amount paid to the state to $40,000,000.
  The bill would provide that amounts due under this section shall be
paid from the amount available for commissions, purses, and breeder
awards, and shall be paid to the board prior to March 1 of the year
following the year of the shortfall.
   By imposing a minimum license fee level on the live racing
industry as a whole, this bill would increase the amount of
continuously appropriated license fees payable to the state, thereby
making an appropriation. This bill would also result in a change in
state taxes for the purpose of increasing state revenues within the
meaning of Section 3 of Article XIII A of the California
Constitution, and therefore requires a 2/3 vote for passage.
   Appropriation:  yes.


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


  SECTION 1.  Section 19616.51 is added to the Business and
Professions Code, to read:
   19616.51.  Notwithstanding any other provision of law, if the
total amount paid to the state by racing associations and fairs
pursuant to this chapter is less than forty million dollars
($40,000,000) in any calendar year, beginning January 1, 2001, and
thereafter, all associations and fairs that conducted live racing
during the year of shortfall shall remit to the state, on a pro rata
basis according to the amount handled in-state by each association or
fair, the amount necessary to bring the total amount paid to the
state to forty million dollars ($40,000,000).  The amounts due under
this section, if any, shall be paid from the amount available for
commissions, purses, and breeder awards, and shall be paid to the
board prior to March 1 of the year following the year of the
shortfall.