BILL NUMBER: AB 2048 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 12, 2008
AMENDED IN ASSEMBLY APRIL 9, 2008
INTRODUCED BY Assembly Member Silva
FEBRUARY 19, 2008
An act to amend Section 19596.1 Sections
19596.1 and 19605.76 of the Business and Professions Code,
relating to horse racing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2048, as amended, Silva. Horse racing: harness or
quarter horse races: out-of-state or out-of-country.
racing.
Under existing law, the California Horse Racing Board is
authorized to permit a harness or quarter horse association
conducting a race meeting to accept wagers on the results of
out-of-state, out-of-country, and sometimes other harness or quarter
horse races, if specified conditions are met, including that the
association conducts at least 7 live races and imports not more than
6 races on live racing days.
This bill would revise that provision to instead permit the
association to import not more than 8 races on live racing days.
Existing law authorizes the operation of satellite wagering
facilities.
This bill would require the board to review the regulations
governing the operation of satellite wagering facilities, in an
attempt to reduce the cost of operating these facilities.
Existing law authorizes a quarter horse racing association to
deduct an additional 0.5% of the total amount handled in its exotic
parimutuel pools, under certain conditions, to be distributed as
specified. This authorization expires as of January 1, 2009.
This bill would extend that authorization to January 1, 2014.
Under existing law, revenues distributed to the state as license
fees from horse racing are required to be deposited in the Fair and
Exposition Fund and are continuously appropriated to the Department
of Food and Agriculture for various regulatory and general
governmental purposes.
By providing for the importation of additional out-of-state and
out-of-country races, this bill would authorize additional wagering,
and would increase the amount of continuously appropriated license
fees, thereby making an appropriation.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19596.1 of the Business and Professions Code is
amended to read:
19596.1. (a) Notwithstanding any other provision of law, the
board may authorize a harness or quarter horse association conducting
a race meeting to accept wagers on the results of out-of-state or
out-of-country harness or quarter horse races and, with the board's
approval and with the concurrence of the horsemen's organization
contracting with the association, other designated harness or quarter
horse races during the period it is conducting the racing meeting,
if all of the following conditions are met:
(1) The authorization complies with federal laws, including, but
not limited to, Chapter 57 (commencing with Section 3001) of Title 15
of the United States Code.
(2) Wagering is offered only within the racing inclosure and only
within 36 hours of the running of the out-of-state feature race.
(3) The association conducts at least seven live races, and
imports not more than eight races on those days during a racing
meeting when live races are being run, except as provided in
subdivision (b).
(4) If only one breed of horse specified in this section is being
raced on a given day, then the association conducting the live racing
may import those races which would otherwise be simulcast by the
association which is not racing, provided that the total number of
harness or quarter horse races imported in a calendar year does not
exceed the number of night races imported in 1998 after 5:30 p.m.
After the usual deductions, including the portion for the racing
association, the portion remaining for purses from these races shall
be distributed equally for purses for harness horsemen and quarter
horse horsemen.
(5) No quarter horse or harness racing association shall accept
wagers on out-of-state or out-of-country quarter horse or harness
races commencing before 5:30 p.m., Pacific standard time, without the
consent of any thoroughbred association or fair that is then
conducting a live racing meeting in this state.
(b) An association that is authorized to import races pursuant to
subdivision (a) may, at its sole discretion, import fewer than the
maximum number of harness or quarter horse races authorized in
paragraph (3) of subdivision (a). For up to two races per night, for
each race that is not imported under the maximum authorized by
paragraph (3) of subdivision (a) on a particular night of racing, the
association may add a race to the number of races allowable under
the maximum authorization on another night of racing. However, no
more than two races may be added under this subdivision to the number
allowable on a single night, and the total number of imported races
over a calendar year may not exceed the total number of imported
races authorized pursuant to paragraphs (3) and (4) of subdivision
(a).
SEC. 2. Section 19605.76 of the
Business and Professions Code is amended to read:
19605.76. (a) Notwithstanding Section 19610, a quarter horse
racing association may deduct an additional 0.5 percent of the total
amount handled in its exotic parimutuel pools. This additional
deduction shall only be permitted with the approval of the
organization representing quarter horsemen and horsewomen at the
applicable racing association meet.
(b) Any funds collected pursuant to subdivision (a) from exotic
parimutuel pools on 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 quarter horse racing association that authorizes a betting
system located outside of this state to accept exotic wagers on its
races and to combine those wagers in the association's exotic
parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to exotic 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 to defray workers' compensation insurance costs for trainers
and owners who are racing horses at the applicable quarter horse
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 purse pools at the track where the funds are
generated. Funds to benefit purse pools shall be allocated by breed,
in the same proportions as each breed generated in deductions under
this section at the track in the year the funds were collected.
(e) The quarter horse racing association and the organization
representing quarter horsemen and horsewomen shall form an
organization to which any funds deducted pursuant to subdivisions (b)
and (c) shall be distributed. The quarter horse associations
collectively shall have representation equal to that of the
organization representing quarter horsemen and horsewomen on the
governing board of the organization formed pursuant to this
subdivision.
(f) If the quarter horse racing association and the organization
representing quarter 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,
2009 2014 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2009 2014 , deletes or
extends that date.
SEC. 3. Due to a decrease in handle at several
satellite wagering facilities, the California Horse Racing Board
shall review the regulations governing the operation of satellite
wagering facilities, in an attempt to reduce the cost of operating
these facilities.