BILL NUMBER: AB 1575 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 4, 2009
AMENDED IN SENATE AUGUST 31, 2009
INTRODUCED BY Committee on Governmental Organization (Coto (Chair),
Anderson, Chesbro, Cook, De Leon, Evans, Galgiani, Hall, Hill,
Jeffries, Lieu, Mendoza, Nestande, V. Manual Perez, Portantino,
Silva, Torres, Torrico, and Tran)
MARCH 23, 2009
An act to amend Sections 19510, 19513, 19605.7, 19605.71,
19605.9, and 19606.3 of the Business and Professions Code,
relating to horse racing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1575, as amended, Committee on Governmental Organization. Horse
racing.
Existing law, the Horse Racing Law, provides for the operation of
live horse racing in this state and for wagering thereon, and for the
operation of satellite wagering facilities, subject to regulation
and oversight by the California Horse Racing Board, as specified.
Existing law provides that every steward and racing official shall be
licensed and subject to both written and oral examinations, as
specified. "Racing official" is defined to include official
veterinarians. In general, a person who participates in a horse race
without proper licensure is guilty of a misdemeanor.
This bill would include outriders in the definition of racing
officials thus requiring them to be licensed and examined, as
specified. The bill would also provide that oral examinations for
stewards shall be conducted by a panel of not less than 3 members of
the board, while oral examinations for official veterinarians shall
be conducted by a panel of not less than one member of the board, the
equine medical director, and the executive director of the board. By
expanding the scope of an existing crime, this bill would impose a
state-mandated local program.
Existing law requires that the total percentage deducted from
wagers at satellite wagering facilities in the northern zone ,
and in the central and southern zones, be the same as
deductions for wagers at the racetrack where the racing meeting is
being conducted and amounts deducted are to be distributed as
specified. Existing law provides that, for thoroughbred meetings,
2.5% of the amount handled by the satellite wagering facility on
conventional and exotic wagers, or the amount of actual operating
expenses, as determined by the board, whichever is less, shall be
distributed to a specified organization formed to operate the
audiovisual signal system.
This bill would instead require, for thoroughbred meetings from
January 1, 2010, until December 31, 2013, an amount no less than in
existing law, nor more than 4% of the amount handled by the satellite
wagering facility on conventional and exotic wagers, to be
distributed to that specified organization with the mutual consent of
the racing association, horsemen's organization, and the board, as
specified. The bill would require the distribution to revert on
January 1, 2014, to that in existing law.
Existing provisions of law continuously appropriate certain
satellite wagering moneys from wagering on thoroughbred racing at the
22nd District Agricultural Association for supplementing purses at
fair meetings in Los Angeles and Orange Counties, as specified.
This bill would instead provide for the payment of that money to
an unspecified racing fair in the County of Los Angeles for
supplementing purses, as specified.
Existing law requires, on July 1, 2009, and each July 1
thereafter, the transfer of $32,000,000 from the General Fund to be
paid into the State Treasury to the credit of the separate account of
the Fair and Exposition Fund created for satellite wagering
revenues, and to continuously appropriate those moneys for allocation
for the financial support of the network of California fairs.
Existing law requires the first $1,100,000 of all funds for
distribution as purses generated at satellite wagering facilities
statewide from wagering on thoroughbred horse racing to be deposited
in a special account in the Fair and Exposition Fund and continuously
appropriated to the Department of Food and Agriculture for
supplementing purses at fair meetings to achieve certain specified
purposes.
This bill would instead authorize the Secretary of Food and
Agriculture to allocate up to $1,100,000 of those General Fund moneys
to supplement purses at fair meetings to achieve those specified
purposes. The bill would require the secretary to make these
allocations part of the annual expenditure plan the secretary is
required to submit to the Joint Committee on Fairs Allocation and
Classification. Because this bill would authorize the expenditure of
money from the continuously appropriated Fair and Exposition Fund for
a new purpose, the bill would make an appropriation.
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: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19510 of the Business and Professions Code is
amended to read:
19510. (a) Every steward and racing official not required to be
licensed under Article 4 (commencing with Section 19480) shall be
licensed by the board pursuant to this article. Any license issued
pursuant to this article shall include a current photograph of the
licensed person.
(b) No person required to be licensed pursuant to this article may
participate in any capacity in any horse race meeting without a
valid and unrevoked license. The board shall determine the fixed
license fee which shall be paid in order to receive a license
pursuant to this article.
(c) As used in this section, "racing official" means the starter,
outrider, timer, paddock judge, horseshoe inspector, horse
identifier, official veterinarian, racing veterinarian, associate
judge, placing judge, patrol judge, clerk of scales, clerk of the
course, and any other person acting as an official at any horse
racing meeting.
SEC. 2. Section 19513 of the Business and Professions Code is
amended to read:
19513. (a) The board shall prepare both written and oral
examinations. All examinations shall be standardized and, in the case
of oral examinations, tape recorded. Written examinations may be
administered by members of the board staff. Oral examinations for
stewards shall be conducted by a panel of not less than three board
members. Oral examinations for official veterinarians shall be
conducted by a panel of not less than one board member, the equine
medical director, and the executive director.
(b) The board shall provide a detailed outline of the subjects to
be covered by the oral and written examinations for a license to
every person who requests the outline.
(c) The results of the oral and written examinations for a steward'
s license shall be a public record.
SEC. 3. Section 19605.7 of the Business and Professions Code is
amended to read:
19605.7. The total percentage deducted from wagers at satellite
wagering facilities in the northern zone shall be the same as the
deductions for wagers at the racetrack where the racing meeting is
being conducted and shall be distributed as set forth in this
section. Amounts deducted under this section shall be distributed as
follows:
(a) (1) For thoroughbred meetings, 1.3 percent of the amount
handled by the satellite wagering facility on conventional and exotic
wagers shall be distributed to the racing association for payment to
the state as a license fee, 2 percent shall be distributed to the
satellite wagering facility as a commission for the right to do
business, as a franchise, and this commission is not for the use of
any real property, 0.54 percent shall be deposited with the official
registering agency pursuant to subdivision (a) of Section 19617.2 and
shall thereafter be distributed in accordance with subdivisions (b),
(c) and (d) of Section 19617.2, 0.033 percent shall be distributed
to the Center for Equine Health, and 0.067 percent shall be
distributed to the California Animal Health and Food Safety
Laboratory, School of Veterinary Medicine, University of California
at Davis. It is the intent of the Legislature that the 0.033 percent
of funds distributed to the Center for Equine Health shall
supplement, and not supplant, other funding sources.
(2) (A) In addition to the distributions specified in paragraph
(1), for thoroughbred meetings, an amount not to exceed 4 percent of
the amount handled by the satellite wagering facility on conventional
and exotic wagers shall be distributed to an organization described
in Section 19608.2 with the mutual consent of the racing association,
the organization representing the horsemen participating in the
meeting, and the board from January 1, 2010, until December 31, 2013.
However, the amount shall be no less than that specified in
subparagraph (B), and any amount greater than the amount specified in
subparagraph (B) shall be approved by the board for no more than 12
months at a time, and only upon a determination by the board that the
greater amount is in the economic interest of thoroughbred racing.
(B) Commencing January 1, 2014, an amount not to exceed the amount
of actual operating expenses, as determined by the board, or 2.5
percent of the amount handled by the satellite wagering facility on
conventional and exotic wagers, whichever is less, shall be
distributed to an organization described in Section 19608.2.
(C) A request to the board for a distribution pursuant to
subparagraph (A) shall be accompanied by a report detailing all
receipts and expenditures over the two prior fiscal years of the
funds affected by the request.
(D) The racing association whose request pursuant to subparagraph
(A) has been approved by the board shall provide subsequent quarterly
reports of receipts and expenditures of the affected funds if
requested by the board.
(b) For harness, quarter horse, Appaloosa, Arabian, or mixed breed
meetings, 0.4 percent of the amount handled by the satellite
wagering facility on conventional and exotic wagers shall be
distributed to the racing association for payment to the state as a
license fee, for fair meetings, 1 percent of the amount handled by
the satellite wagering facility on conventional and exotic wagers
shall be distributed to the fair association for payment to the state
as a license fee, 2 percent shall be distributed to the satellite
wagering facility as a commission for the right to do business, as a
franchise, and this commission is not for the use of any real
property, and 6 percent of the amount handled by the satellite
wagering facility or the amount of actual operating expenses, as
determined by the board, whichever is less, shall be distributed to
an organization described in Section 19608.2. In addition, in the
case of quarter horses, 0.4 percent shall be deposited with the
official registering agency pursuant to subdivision (b) of Section
19617.7 and shall thereafter be distributed in accordance with
subdivisions (c), (d), and (e) of Section 19617.7; in the case of
Appaloosas, 0.4 percent shall be deposited with the official
registering agency pursuant to subdivision (b) of Section 19617.9 and
shall thereafter be distributed in accordance with subdivisions (c),
(d), and (e) of Section 19617.9; in the case of Arabians, 0.4
percent shall be held by the association to be deposited with the
official registering agency pursuant to Section 19617.8, and shall
thereafter be distributed in accordance with Section 19617.8; in the
case of standardbreds, 0.4 percent shall be distributed for the
California Standardbred Sires Stakes Program pursuant to Section
19619; in the case of thoroughbreds, 0.48 percent shall be deposited
with the official registering agency pursuant to subdivision (a) of
Section 19617.2 and shall thereafter be distributed in accordance
with subdivisions (b), (c), and (d) of Section 19617.2; 0.033 percent
shall be distributed to the Center for Equine Health; and 0.067
percent shall be distributed to the California Animal Health and Food
Safety Laboratory, School of Veterinary Medicine, University of
California at Davis. It is the intent of the Legislature that the
0.033 percent of funds distributed to the Center for Equine Health
shall supplement, and not supplant, other funding sources.
(c) In addition to the distributions specified in subdivisions (a)
and (b), for mixed breed meetings, 1 percent of the total amount
handled by each satellite wagering facility shall be distributed to
an organization described in Section 19608.2 for promotion of the
program at satellite wagering facilities. For harness meetings, 0.5
percent of the total amount handled by each satellite wagering
facility shall be distributed to an organization described in Section
19608.2 for the promotion of the program at satellite wagering
facilities, and 0.5 percent of the total amount handled by each
satellite wagering facility shall be distributed according to a
written agreement for each race meeting between the licensed racing
association and the organization representing the horsemen
participating in the meeting. If, with respect to harness meetings,
there are funds unexpended from this 1 percent, these funds may be
expended for other purposes with the consent of the horsemen and the
racing association to benefit the horsemen, or the racing
association, or both, pursuant to their agreement. For quarter horse
meetings, 0.5 percent of the total amount handled by each satellite
wagering facility on races run in California shall be distributed to
an organization described in Section 19608.2 for the promotion of the
program at satellite wagering facilities, 0.5 percent of the total
amount handled by each satellite wagering facility on out-of-state
and out-of-country imported races shall be distributed to the
official quarter horse registering agency for the purposes of Section
19617.75, and 0.5 percent of the total amount handled by each
satellite wagering facility on all races shall be distributed
according to a written agreement for each race meeting between the
licensed racing association and the organization representing the
horsemen participating in the meeting.
(d) Additionally, for thoroughbred, harness, quarter horse, mixed
breed, and fair meetings, 0.33 percent of the total amount handled by
each satellite wagering facility shall be paid to the city or county
in which the satellite wagering facility is located pursuant to
Section 19610.3 or 19610.4.
(e) Notwithstanding any other provision of law, a racing
association is responsible for the payment of the state license fee
as required by this section.
SEC. 4. Section 19605.71 of the
Business and Professions Code is amended to read:
19605.71. The total percentage deducted from wagers at satellite
wagering facilities in the central and southern zone
zones shall be the same as the percentage
deducted from wagers at the racetrack where the racing meeting is
being conducted and shall be distributed as set forth in this
section. Amounts deducted by a satellite wagering facility under this
section shall be distributed as follows:
(a) (1) For thoroughbred meetings, 2 percent
of the amount handled by the satellite wagering facility on
conventional and exotic wagers shall be distributed to the racing
association for payment to the state as a license fee, 2 percent
shall be distributed to the satellite wagering facility as a
commission for the right to do business, as a franchise, and this
commission is not for the use of any real property, 2.5
percent or the amount of actual operating expenses, as determined by
the board, whichever is less, shall be distributed to an organization
described in Section 19608.2, and 0.54 percent shall be
deposited with the official registering agency pursuant to
subdivision (a) of Section 19617.2 and shall thereafter be
distributed in accordance with subdivisions (b), (c), and (d) of
Section 19617.2, and 0.033 percent shall be
distributed to the Center for Equine Health , and 0.067
percent shall be distributed to the California Animal Health and Food
Safety Laboratory, School of Veterinary Medicine, University of
California at Davis. It is the intent of the Legislature that the
0.033 percent of funds distributed to the Center for Equine Health
shall supplement, and not supplant, other funding sources.
(2) (A) In addition to the distributions specified in paragraph
(1), for thoroughbred meetings, an amount not to exceed 4 percent of
the amount handled by the satellite wagering facility on conventional
and exotic wagers shall be distributed to an organization described
in Section 19608.2 with the mutual consent of the racing association,
the organization representing the horsemen participating in the
meeting, and the board from January 1, 2010, until December 31, 2013.
However, the amount shall be no less than that specified in
subparagraph (B), and any amount greater than the amount specified in
subparagraph (B) shall be approved by the board for no more than 12
months at a time, and only upon a determination by the board that the
greater amount is in the economic interest of thoroughbred racing.
(B) Commencing January 1, 2014, an amount not to exceed the amount
of actual operating expenses, as determined by the board, or 2.5
percent of the amount handled by the satellite wagering facility on
conventional and exotic wagers, whichever is less, shall be
distributed to an organization described in Section 19608.2.
(C) A request to the board for a distribution pursuant to
subparagraph (A) shall be accompanied by a report detailing all
receipts and expenditures over the two prior fiscal years of the
funds affected by the request.
(D) The racing association whose request pursuant to subparagraph
(A) has been approved by the board shall provide subsequent quarterly
reports of receipts and expenditures of the affected funds if
requested by the board.
(b) For harness, quarter horse, Appaloosa, Arabian, or mixed breed
meetings, 0.4 percent of the amount handled by the satellite
wagering facility on conventional and exotic wagers shall be
distributed to the racing association for payment to the state as a
license fee, for fair meetings, 1 percent of the amount handled by
the satellite wagering facility on conventional and exotic wagers
shall be distributed to the racing association for payment to the
state as a license fee, 2 percent shall be distributed to the
satellite wagering facility as a commission for the right to do
business, as a franchise, and this commission is not for the use of
any real property, and 6 percent of the amount handled by the
satellite wagering facility or the amount of actual operating
expenses, as determined by the board, whichever is less, distributed
to an organization described in Section 19608.2. In addition, in the
case of quarter horses, 0.4 percent shall be deposited with the
official registering agency pursuant to subdivision (b) of Section
19617.7 and shall thereafter be distributed in accordance with
subdivisions (c), (d), and (e) of Section 19617.7; in the case of
Appaloosas, 0.4 percent shall be deposited with the official
registering agency pursuant to subdivision (b) of Section 19617.9 and
shall thereafter be distributed in accordance with subdivisions (c),
(d), and (e) of Section 19617.9; in the case of Arabians, 0.4
percent shall be held by the association to be deposited with the
official registering agency, pursuant to Section 19617.8, and
thereafter shall be distributed in accordance with Section 19617.8;
in the case of standardbreds, 0.4 percent shall be distributed for
the California Standardbred Sires Stakes Program pursuant to Section
19619; in the case of thoroughbreds, 0.48 percent shall be deposited
with the official registering agency pursuant to subdivision (a) of
Section 19617.2 and shall thereafter be distributed in accordance
with subdivisions (b), (c), and (d) of Section 19617.2; and
0.033 percent shall be distributed to the Center for Equine
Health ; and 0.067 percent shall be distributed to the
California Animal Health and Food Safety Laboratory, School of
Veterinary Medicine, University of California at Davis. It is the
intent of the Legislature that the 0.033 percent of funds distributed
to the Center for Equine Health shall supplement, and not supplant,
other funding sources.
(c) In addition, for Appaloosa and mixed breed meetings, 1 percent
shall be distributed to an organization described in Section 19608.2
for promotion of the program at satellite wagering facilities.
Notwithstanding any other provision of law, on wagers made in the
Counties of Orange and Los Angeles on thoroughbred races conducted in
the County of Orange or Los Angeles, or both, excluding the 50th
District Agricultural Association, the amount deducted for promotion
of the satellite wagering program at satellite wagering facilities
shall be 0.5 percent. Any of the promotion funds that are not
distributed in the year in which they are collected may be
distributed in the following year. If promotion funds distributed in
any year exceed the amount collected for that year, the funds
distributed in the following year shall be reduced by the excess
amount. For harness meetings, 0.5 percent of the total amount handled
by each satellite wagering facility shall be distributed to an
organization described in Section 19608.2 for the promotion of the
program at satellite wagering facilities, and 0.5 percent of the
total amount handled by each satellite wagering facility shall be
distributed according to a written agreement for each race meeting
between the licensed racing association and the organization
representing the horsemen participating in the meeting. For quarter
horse meetings 0.5 percent of the total amount handled by satellite
wagering facility on races run in California shall be distributed to
an organization described in Section 19608.2 for the promotion of the
program at satellite wagering facilities, 0.5 percent of the total
amount handled by each satellite wagering facility on out-of-state
and out-of-country imported races shall be distributed to the
official quarter horse registering agency for the purposes of Section
19617.75, and 0.5 percent of the total amount handled by each
satellite wagering facility on all races shall be distributed
according to a written agreement for each race meeting between the
licensed racing association and the organization representing the
horseman participating in the meeting.
(d) Additionally, for thoroughbred, harness, quarter horse, mixed
breed, and fair meetings, 0.33 percent of the total amount handled by
the satellite wagering facility shall be paid to the city or county
in which the satellite wagering facility is located pursuant to
Section 19610.3 or 19610.4.
(e) Notwithstanding any other provision of law, a racing
association is responsible for the payment of the state license fee
as required by this section.
SEC. 4. SEC. 5. Section 19605.9 of
the Business and Professions Code is amended to read:
19605.9. (a) Except as provided in subdivision (b), in the
central and southern zones, all of the funds distributed for purses
from satellite wagering facilities shall go to the purse program of
the association conducting the racing meeting.
(b) Notwithstanding subdivision (a), all funds for distribution as
purses at satellite wagering facilities which are racing fairs in
the County of Los Angeles from wagering on thoroughbred horse racing
conducted at the 22nd District Agricultural Association Fairgrounds
shall be paid to a racing fair in the County of Los Angeles for
supplementing purses at the fair meeting. Commencing January 1, 1992,
the funds distributed for purses from satellite wagering facilities
pursuant to this subdivision shall not exceed the amount distributed
during the 1990 calendar year. Any funds in excess of this amount
shall be distributed as purses at the racing meeting conducted by the
association.
SEC. 5. SEC. 6. Section 19606.3 of
the Business and Professions Code is amended to read:
19606.3. (a) From all revenues transferred pursuant to Section
19620.2 and deposited in the Fair and Exposition Fund, an amount up
to one million one hundred thousand dollars ($1,100,000) may be
allocated by the Secretary of Food and Agriculture, at his or her
discretion, to supplement purses at fair meetings to achieve the
purposes of Section 19606.4.
(b) All allocations made pursuant to this section shall be made
part of the annual expenditure plan submitted to the Joint Committee
on Fairs Allocation and Classification by the Secretary of Food and
Agriculture as provided in Section 19621.
SEC. 6. SEC. 7. 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.