BILL NUMBER: SB 766	CHAPTERED
	BILL TEXT

	CHAPTER  616
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2009
	APPROVED BY GOVERNOR  OCTOBER 11, 2009
	PASSED THE SENATE  SEPTEMBER 8, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2009
	AMENDED IN ASSEMBLY  AUGUST 31, 2009
	AMENDED IN SENATE  APRIL 2, 2009

INTRODUCED BY   Senator Negrete McLeod

                        FEBRUARY 27, 2009

   An act to add Section 19605.10 to the Business and Professions
Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 766, Negrete McLeod. Horse racing.
   Existing law, until January 1, 2011, authorizes racing
associations, fairs, and other related organizations to form a
private, statewide marketing organization to market and promote
thoroughbred and fair horse racing, and to obtain, provide, or defray
the cost of workers' compensation coverage for stable employees and
jockeys of thoroughbred trainers. A specified percentage of the
amount handled by each satellite wagering facility is required to be
distributed to that statewide marketing organization for those
purposes of promotion and defraying the cost of workers' compensation
coverage. Existing law also provides that any promotion funds not
expended in the year in which they are collected may be expended in
the following year.
   Existing law, until January 1, 2014, 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 an
organization, as specified, 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 provide that, in the event there are at any time
uncommitted surplus funds in accounts created pursuant to the above
provisions of existing law, those unexpended funds may, at the
written request of the organization governing those funds and with
the approval of the California Horse Racing Board, be reallocated to
any other fund or account created pursuant to the Horse Racing Law.
The bill would require the request to be accompanied by a certain
report of receipts and expenditures, would authorize the board to
require quarterly reports of receipts and expenditures from approved
requesters, and would require the filing of a report accounting for
all receipts and expenditures in any of the affected funds with the
board and certain legislative committees within one year of initial
approval and annually thereafter if approval is extended by the
board.


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

  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) The existence of high caliber thoroughbred horse racing in
California is important to the state's agricultural economy.
   (2) 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. These costs
are not only causing thoroughbred horses and trainers to leave the
state, but are also discouraging owners and trainers from bringing
horses into this state to compete.
   (b) It is therefore the intent of the Legislature to provide some
relief from these escalating costs through the redistribution of the
parimutuel handle on wagers.
  SEC. 2.  Section 19605.10 is added to the Business and Professions
Code, to read:
   19605.10.  (a) Notwithstanding any other provision of law, in the
event there are at any time uncommitted surplus funds in accounts
created pursuant to Sections 19605.73 and 19605.75, those unexpended
funds may, at the written request of the organization governing those
funds and with the approval of the board, be reallocated to any
other fund or account created pursuant to this chapter.
   (b) Requests to the board to reallocate funds pursuant to
subdivision (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.
   (c) Initial board approval of a request to reallocate funds
pursuant to subdivision (a) shall be limited to a one-year period.
Approval of a reallocation may be extended beyond one year upon a
determination by the board that the extension is in the economic
interest of thoroughbred racing.
   (d) The organization whose written request pursuant to subdivision
(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.
   (e) The organization whose written request pursuant to subdivision
(a) has been approved by the board shall file a report with the
board and the respective fiscal committees and Committees on
Governmental Organization of the Senate and the Assembly accounting
for all receipts and expenditures in any of the affected funds. This
report shall be filed within one year of initial board approval and
annually thereafter if the approval is extended by the board.