BILL NUMBER: AB 246	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Price

                        FEBRUARY 10, 2009

   An act to add Section 19597.5 to the Business and Professions
Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 246, as introduced, Price. Horse racing: deductions and
distributions: trust funds.
   Existing law, the Horse Racing Law, generally regulates horse
racing and parimutuel wagering on horse races. Existing law requires
various deductions and distributions to be made from parimutuel pools
as specified.
   This bill would require a person licensed to conduct a horse
racing meeting to hold in trust the distributions required to be made
pursuant to the Horse Racing Law until the funds are paid to the
various distributees. The bill would provide that these required
deductions, except for those that enure to the benefit of the racing
association, are trust funds and shall not be used by the racing
association for any purpose other than for payment to those
distributees as directed by the Horse Racing Law.
   By imposing new requirements on licensees under the Horse Racing
Law, the violation of which would be a crime, the bill would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 19597.5 is added to the Business and
Professions Code, to read:
   19597.5.  A person licensed under this chapter to conduct a horse
racing meeting shall hold in trust the distributions required to be
made pursuant to this chapter until the funds are paid to the various
distributees. These required deductions, except for those that enure
to the benefit of the racing association, are trust funds and shall
not be used by the racing association for any purpose other than for
payment to those distributees as directed by this chapter.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.