BILL NUMBER: AB 2103 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 23, 2008
INTRODUCED BY Assembly Member Plescia
FEBRUARY 19, 2008
An act to amend Section 19605.75 of the Business and Professions
Code, relating to horse racing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2103, as amended, Plescia. Horse racing: thoroughbred racing:
workers' compensation.
Existing law, operative until January 1, 2009, provides that every
thoroughbred association and fair that conducts a racing meet shall
deduct a percentage of the total amount handled in exotic parimutuel
pools of thoroughbred races, which shall be distributed to a
thoroughbred racing association to defray costs of workers'
compensation insurance in connection with thoroughbred horses that
race in this state, as specified. Existing law provides that any
funds that are not used to defray the cost of workers' compensation
insurance shall either be carried forward to the subsequent year or
used to reimburse racing associations for safety-related
expenditures, as specified.
This bill would extend the operation of these provisions until
January 1, 2014. The bill would also make conforming and technical,
nonsubstantive changes.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19605.75 of the Business and Professions Code
is amended to read:
19605.75. (a) The Legislature finds and declares that the
existence of high caliber thoroughbred racing in California is
important to this state's agricultural economy. The California horse
racing industry is being threatened by the escalating costs of doing
business in California, including, but not limited to, workers'
compensation insurance costs, in that these costs are not only
causing thoroughbred horses and trainers to leave this state, but are
also discouraging owners and trainers from bringing horses into this
state to compete. It is the intent of the Legislature to provide
some relief from these escalating costs through the redistribution of
the parimutuel handle on exotic wagers.
(b) Notwithstanding Section 19610, every thoroughbred association
and fair that conducts a racing meet shall deduct an additional 0.5
percent of the total amount handled in exotic parimutuel pools of
thoroughbred races.
(c) The funds collected pursuant to subdivision (b) from exotic
parimutuel pools on thoroughbred races within the inclosure of a
thoroughbred association or fair conducting a race meeting, 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 (f) to be used in
accordance with subdivision (e).
(d) Any thoroughbred association or fair 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 or fair'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, shall deduct the amount
specified in subdivision (b) in addition to any other applicable
deductions specified in law. The amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (f) to be used in accordance with subdivision (e). This
additional deduction shall not be included in the amount on which
license fees are determined pursuant to Section 19602.
(e) The amounts distributed to the organization described in
subdivision (f) shall be deposited by that organization in a separate
account to defray the costs of workers' compensation insurance
incurred in connection with thoroughbred horses that race in this
state at thoroughbred associations and racing fairs through the
payment of supplemental premiums that reduce rates, payment to or for
the benefit of trainers and owners of such thoroughbreds, based on
the number of such thoroughbreds they start, in order to reimburse
them for the costs of workers' compensation insurance directly or
indirectly incurred by them, and other appropriate payments. Any
funds that are not used for the purposes set forth in this
subdivision shall, after an affirmative vote of at least 25 of the
voting interests of the organization described in subdivision (f),
either be carried forward to the subsequent year, or be used to
reimburse racing associations for the actual cost of health and
safety programs, research or safety equipment, or making capital
improvements that are designed to prevent workplace accidents and
increase the safety of jockeys, exercise riders, backstretch
employees, and other racetrack personnel. Those capital improvements
shall include, but not be limited to, safety improvements to racing
and training surfaces. All requests for reimbursements shall be
approved by the board. In developing proposals for approval by the
board, the association shall confer with their horsemen's
organizations and all affected labor organizations or associations.
(f) The thoroughbred racing associations and the owners'
organization described in subdivision (b) of Section 19613 shall form
an organization to which funds shall be distributed pursuant to
subdivisions (c) and (d). This organization shall have a total of 34
voting interests, of which 16 shall be allocated to the organization
representing thoroughbred owners pursuant to Section 19613, one shall
be allocated to the official registering agency for thoroughbreds in
California, and one shall be allocated to the organization
representing thoroughbred trainers pursuant to Section 19613. The
remaining 16 votes shall be allocated among the licensed racing
associations and racing fairs in the state. Each racing association
and fair shall receive the portion of these remaining votes
represented by the sum of exotic wagering on its races divided by the
statewide total of exotic wagering in the preceding calendar year,
excluding Breeders Cup races. Fractional voting shall be permitted.
Any decision of this organization with respect to the allocation of
funds pursuant to subdivisions (c) and (d) shall require the
affirmative vote of 25 of these voting interests. In the event that
the required number of affirmative votes cannot be obtained, the
matter shall be submitted to the board for a decision consistent with
subdivision (e), and the decision of the board shall be final.
(g) (1) The organization formed pursuant to this section shall
account annually to the board with respect to the expenditure and
distribution of funds received by the organization pursuant to
subdivisions (c) and (d), and shall obtain an independent audit of
fund generation and distribution. A copy of the completed audit shall
be forwarded to the board within 45 days of its receipt by the
organization.
(2) No earlier than 18 months and no later than two years
following the effective date of this section, the organization
described in subdivision (f) shall commission an independent
evaluation of the effectiveness of the distributions under this
section along with recommendations for any improvements or
modifications regarding the program created in this section. A copy
of that evaluation along with a report detailing the organization's
response to the evaluation shall be filed with the board within 30
days of the receipt of the final evaluation.
(h) Between January 1, 2014, and July 1, 2014, any unexpended
funds collected under this section shall be distributed to
organizations formed and operated pursuant to Sections 19607 and
19607.2 based upon the total thoroughbred handle in their respective
zones in the year 2008 2013 .
(i) Except for subdivision (h), this section shall become
inoperative on January 1, 2014, and as of January 1, 2015, this
entire section is repealed, unless a later enacted statute, that is
enacted before January 1, 2015, deletes or extends that date.