BILL NUMBER: AB 246	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 17, 2009
	AMENDED IN ASSEMBLY  MARCH 25, 2009

INTRODUCED BY   Assembly Member Price

                        FEBRUARY 10, 2009

   An act to add  Section 19597.5   Sections
19597.5 and 19601.3  to the Business and Professions Code,
relating to horse racing  , and declaring the urgency thereof, to
take effect immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 246, as amended, Price. Horse racing: deductions and
distributions: trust funds.   funds: harness and
quarter horse racing. 
   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. The bill would
provide that these funds are not the property of the racing
association and are to be held in a separate depository account until
they are actually distributed as provided for in the Horse Racing
 Law. 
    By   Law. By  codifying 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.

   This bill would authorize a quarter horse and harness racing
association to deduct from the total amount handled in the parimutuel
pool for any type of wager up to 2% more of the total amount handled
than was authorized on May 1, 2009, and would require any amount
deducted under this authority to be distributed as specified. 
   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. 
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes.


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

  SECTION 1.  (a) The Legislature finds and declares that it has long
been established in California that the racing association and its
parimutuel operation is actually  a stakes holder 
 o   nly holding the stakes  . The funds wagered
are not the property of the racing association. The racing
association merely holds the funds wagered until the results of the
race are known, then the association pays the winning wagers, and
holds funds for others pursuant to the California Horse Racing Law.
It has always been known that the funds due the various distributees
are not the property of the racing association. The racing
association is merely acting as a trustee until the funds are paid to
those as provided for in statute.
   (b) It is therefore the intent of the Legislature that the purpose
of this act is not to change California law, but merely to codify
this trustee relationship.
  SEC. 2.  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. These
funds are not the property of the racing association, but are merely
held in trust for the benefit of the statutory distributees until the
funds are distributed to them in accordance with this chapter. These
funds shall be held in a separate depository account until they are
actually distributed as provided for in this chapter.
   SEC. 3.    Section 19601.3 is added to the  
Business and Professions Code   , to read:  
   19601.3.  (a) Notwithstanding any other provision of law, a
quarter horse racing association may deduct from the total amount
handled in the parimutuel pool for any type of wager up to 2 percent
more of the total amount handled than was authorized on May 1, 2009.
Funds deducted pursuant to this additional authority shall be
distributed as follows:
   (1) All of the funds, up to 1 percent on the first fifty thousand
dollars ($50,000) per day handled, to eligible satellite wagering
facilities that are in compliance with Article 9.2 (commencing with
Section 19605), based on the wagers they accept, and provided further
that they accept all available signals from the quarter horse racing
association.
   (2) The remainder of the funds shall be distributed with 50
percent going to the quarter horse horsemen's organization for purses
and the other 50 percent being retained by the racing association.
   (b) Notwithstanding any other provision of law, a harness racing
association may deduct from the total amount handled in the
parimutuel pool for any type of wager up to 2 percent more of the
total amount handled than was authorized on May 1, 2009. Funds
deducted pursuant to this additional authority shall be distributed
as follows:
   (1) All of the funds, up to 1 percent on the first fifty thousand
dollars ($50,000) per day handled, to eligible satellite wagering
facilities that are in compliance with Article 9.2 (commencing with
Section 19605), based on the wagers they accept, and provided further
that they accept all available signals from the harness racing
association.
   (2) The remainder of the funds shall be distributed with 50
percent going to the harness horsemen's organization for purses and
the other 50 percent being retained by the racing association. 
   SEC. 3.  SEC. 4.   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.
   SEC. 5.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to protect the public's funds placed as wagers on horse
racing and to ensure the economic stability and survival of, and the
protection and preservation of jobs in, the harness and quarter horse
racing industries at the earliest possible time, it is necessary
that this act take effect immediately.