BILL NUMBER: AB 1289	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 29, 2008
	PASSED THE ASSEMBLY  AUGUST 31, 2008
	AMENDED IN SENATE  AUGUST 22, 2008
	AMENDED IN SENATE  JUNE 18, 2008
	AMENDED IN ASSEMBLY  APRIL 9, 2007

INTRODUCED BY   Assembly Member Price

                        FEBRUARY 23, 2007

   An act to amend Sections 19601.2 and 19605.77 of the Business and
Professions Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1289, Price. Fairs: out-of-zone, out-of-state, and
out-of-country races: harness racing: workers' compensation.
   Existing law provides that when the San Mateo County Fair, or
other fair or thoroughbred association, and the Humboldt County Fair
simultaneously conduct race meetings, the San Mateo County Fair, or
other fair or thoroughbred association, is authorized to distribute
the signal and accept wagers on out-of-zone, out-of-state, and
out-of-country races if it complies with specified conditions.
   Under existing law, for the period in which both fairs are
conducting race meetings, the San Mateo County Fair, or other fair or
thoroughbred association, is required to give to the Humboldt County
Fair 0.75% of the out-of-zone, out-of-state, and out-of-country
handle. Existing law requires the San Mateo County Fair to distribute
the remaining amount by retaining 50% and distributing it equally as
commissions and purses with the other 50% being paid to the state as
a license fee.
   This bill would make clarifying changes to the above provisions.
   Existing law authorizes a harness racing association, until
January 1, 2009, upon approval of the organization representing
harness horsemen and horsewomen, to deduct an additional 1% from the
conventional parimutuel pools of harness races for workers'
compensation costs of trainers, as specified, with any funds not
expended for this purpose in the year in which they are collected to
either be used for the following year's workers' compensation costs
or to benefit the harness purse pool, as specified. If the harness
racing association and the organization representing harness horsemen
and horsewomen cannot agree on the manner of distribution of these
funds, the matter is required to be submitted to the California Horse
Racing Board for a decision.
   This bill would extend the operation of these provisions until
January 1, 2014.



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

  SECTION 1.  Section 19601.2 of the Business and Professions Code is
amended to read:
   19601.2.  (a) During calendar periods when the San Mateo County
Fair, or other fair or thoroughbred association, and the Humboldt
County Fair simultaneously conduct race meetings in the northern
zone, the San Mateo County Fair, or other fair or thoroughbred
association, shall be the association authorized to distribute the
signal and accept wagers on out-of-zone, out-of-state, and
out-of-country races if it complies with the conditions specified in
subdivision (a) of Section 19601. The amounts deducted from these
wagers shall be distributed as provided in Section 19601, and license
fees on races conducted by the Humboldt County Fair and on
out-of-zone, out-of-state, or out-of-country races shall be as
specified in subdivision (h) of Section 19601. Additionally, from,
and to the extent of, license fees generated from the total handle of
the San Mateo County Fair, or other fair or thoroughbred
association, during the overlap, the San Mateo County Fair, or other
fair or thoroughbred association, shall distribute to the Humboldt
County Fair, not less than seven days after the close of the racing
meeting, an amount equal to 0.75 percent of the out-of-zone,
out-of-state, and out-of-country handle. From the amount remaining,
if any, 50 percent shall be retained by the San Mateo County Fair, or
other fair or thoroughbred association, to be distributed equally as
commissions and purses, and 50 percent shall be paid to the state as
a license fee.
   (b) During calendar periods when the Fresno District Fair and any
thoroughbred association in the northern zone both conduct race
meetings, the thoroughbred association shall be the association
authorized to distribute the signal and accept wagers on out-of-zone,
out-of-state, and out-of-country races, if it complies with the
conditions specified in subdivision (a) of Section 19601. The amounts
deducted from these wagers shall be distributed as provided in
Section 19601, and license fees on races conducted by the Fresno
District Fair and on out-of-zone, out-of-state, or out-of-country
races shall be as specified in subdivision (h) of Section 19601.
Additionally, from, and to the extent of, license fees generated from
the total handle of the thoroughbred association during the overlap,
the thoroughbred association shall distribute to the Fresno District
Fair, not less than seven days after the close of the racing
meeting, an amount equal to 0.75 percent of the out-of-zone,
out-of-state, and out-of-country handle. From the amount remaining,
if any, 50 percent shall be retained by the thoroughbred association
to be distributed equally as commissions and purses, and 50 percent
shall be paid to the state as a license fee.
  SEC. 2.  Section 19605.77 of the Business and Professions Code is
amended to read:
   19605.77.  (a) Notwithstanding Section 19610, a harness racing
association may deduct an additional 1 percent of the total amount
handled in conventional parimutuel pools of harness races. This
additional deduction shall only be permitted with the approval of the
organization representing harness horsemen and horsewomen at the
applicable racing association meeting.
   (b) Any funds collected pursuant to subdivision (a) from
conventional parimutuel pools on harness races within the inclosure
of a racetrack, at satellite wagering facilities within this state,
and through advance deposit wagering by residents of this state,
shall be distributed to the organization described in subdivision (e)
to be used in accordance with subdivision (d).
   (c) Any harness racing association that authorizes a betting
system located outside of this state to accept conventional wagers on
its races and to combine those wagers in the association's
conventional parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to conventional wagers made by
residents other than those of this state, may deduct the amount
specified in subdivision (a) in addition to any other applicable
deductions specified in law. Any amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (e) to be used in accordance with the provisions of
subdivision (d). This additional deduction shall not be included in
the amount on which license fees are determined pursuant to Section
19602.
   (d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account and used to reduce the workers' compensation insurance costs
for trainers who are racing horses at the applicable harness racing
association meet. Any funds not expended for this purpose in the
calendar year in which they are collected may either be used for the
following year's workers' compensation costs, as specified above, or
to benefit the harness purse pool at the track where the funds are
generated.
   (e) The harness racing association and the organization
representing harness horsemen and horsewomen shall form an
organization to which any funds deducted pursuant to subdivisions (b)
and (c) shall be distributed. The harness associations collectively
shall have representation equal to that of the organization
representing harness horsemen and horsewomen on the governing board
of the organization formed pursuant to this subdivision.
   (f) If the harness racing association and the organization
representing harness horsemen and horsewomen cannot agree on the
manner for distributing these funds to defray the costs of workers'
compensation insurance, the matter shall be submitted to the
California Horse Racing Board for a decision consistent with
subdivision (d), and the decision of the board shall be final.
   (g) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.