BILL NUMBER: AB 1578	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Governmental Organization (Price
(Chair), Cook, Coto, Evans, Galgiani, Hall, Hill, Jeffries, Lieu,
Mendoza, Portantino, Silva, Torres, Torrico, and Tran)

                        MARCH 23, 2009

   An act to amend Section 19617.2 of the Business and Professions
Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1578, as introduced, Committee on Governmental Organization.
Horse racing: thoroughbred racing: California-bred bonus program.
   Existing law requires any association conducting a race meeting
that includes thoroughbred racing to deposit certain sums with the
official registering agency for thoroughbred horses, and requires
that official registering agency to distribute a portion of those
sums annually to the California-bred race fund for the promotion of
California-bred races and for purses for California Cup Day and other
California-bred races, and to the owner fund for owner premiums, as
provided.
   This bill would permit the official registering agency to also
distribute a certain portion of those sums annually to the
California-bred bonus program, which would be required to be
administered by the official registering agency, for payment of
bonuses to California-bred horses in maiden allowance races in
California.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 19617.2 of the Business and Professions Code is
amended to read:
   19617.2.  (a) Except as otherwise provided in this chapter, any
association conducting a race meeting that includes thoroughbred
racing shall deposit with the official registering agency 0.54
percent of the total amount handled ontrack in daily conventional and
exotic parimutuel pools resulting from thoroughbred wagers made in
this state. These deposits shall be made at the following intervals:
   (1) For any meeting of 20 racing days or less, the requisite
deposit shall be made not later than seven days immediately following
the last day of that meeting.
   (2) For any meeting of more than 20 racing days, the initial
deposit shall be made not later than 27 racing days after the
commencement of that meeting and every 20 racing days thereafter,
with a final deposit made not later than seven days following the
last day of that meeting. The initial deposit for that meeting shall
be based upon the applicable amount handled during the first 20
racing days of the meeting, and deposits thereafter shall be based
upon the applicable amount handled during the ensuing periods of 20
racing days with the last deposit being based upon the applicable
amount handled from the end of the last 20-racing-day period for
which a deposit has been made to the end of the meeting.
   (b) After deducting a sum equal to 5 percent of the total deposits
made pursuant to subdivision (a) and the total deposits made
pursuant to Section 19602, the amount to compensate the official
registering agency for its administrative cost and for expenses it
incurs for educational, promotional, and research programs, the
official registering agency shall for computational purposes
distribute annually the balance of the deposits in the following
manner:
   (1) To the California-bred race fund, 10 percent to be used for
the promotion of California-bred races and from which purses are to
be provided or supplemented for California Cup Day, other
California-bred races, and, upon the approval of the official
registering agency, races featuring California-breds. This fund shall
be administered by the official registering agency. Any funds not
used for those purposes during any year, up to 1 percent of the total
breeder, stallion, and owner award receipts, shall remain in the
California-bred race fund to be distributed for the purposes of this
paragraph the following year. Any funds remaining thereafter shall be
redistributed to augment the funds referred to in subdivision (c),
and shall be allocated to the breeder fund and to the stallion fund
as provided in that subdivision. It is the intent of the Legislature
that all funds used for purses shall supplement and not supplant
existing purses for California-breds.
   (2) To the owner fund for the purpose of owner premiums pursuant
to Section 19614.4. 
   (3) To the California-bred bonus program, 15 percent of the amount
remaining to be used for the payment of bonuses to California-bred
horses in maiden allowance races in California. This bonus program
shall be administered by the official registering agency. 
   (c) The funds remaining after the distributions made pursuant to
subdivision (b) shall be distributed as follows:
   (1) To the breeder fund 75 percent, from which breeder awards are
to be paid.
   (2) To the stallion fund 25 percent, from which stallion awards
are to be paid.
   (d) The official registering agency shall make the following
payments to the owner, breeder, and stallion owner so as to encourage
agriculture and the breeding of higher quality horses in this state:

   (1) The owner shall be paid an owner premium pursuant to Section
19614.4.
   (2) The breeder shall be paid a breeder award equal to the
quotient for the breeder fund multiplied by the eligible earnings of
the horse bred by the breeder.
   (3) The stallion owner shall be paid a stallion award equal to the
quotient for the stallion fund multiplied by the eligible earnings
of the stallion owner's eligible thoroughbred sire.
   (4) Owner premiums for California-bred horses shall be listed in
the racing program alongside the advertised purse, and shall be
distributed to the owner pursuant to Section 19614.4 at the same time
as the purse.
   (5) The breeder and stallion awards shall be paid not later than
March 31 of the calendar year immediately following the calendar year
for which the awards or premiums were earned.