BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2637|
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CONSENT
Bill No: AB 2637
Author: Hall (D)
Amended: 3/28/14 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 6/24/14
AYES: Correa, Berryhill, Cannella, De Le�n, Galgiani,
Hernandez, Lieu, Padilla, Torres, Vidak
NO VOTE RECORDED: Vacancy
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/23/14 (Consent) - See last page for
vote
SUBJECT : Horse racing: pari-mutuel wagering and charity
racing days
SOURCE : Author
DIGEST : This bill makes substantive and clarifying changes to
California Horse Racing Law including (1) increasing the minimum
distribution from charity day horse racing required to be
allocated to charities associated with the horse racing industry
from 20% to 30%; (2) deleting the California Horse Racing
Board's (CHRB) authority to annually allocate a maximum of 28
racing days to any county fair in the northern zone which did
not conduct horse racing prior to January 1, 1985; and (3)
correcting an outdated cross-reference in the law and making
other minor code maintenance changes.
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ANALYSIS :
Existing law:
1.Provides CHRB with the authority to allocate racing weeks to
an applicant pursuant to the provisions of the Horse Racing
Law and to specify such racing days, dates and hours for horse
racing meetings as will be in the public interest. Requires
CHRB to make allocation for racing weeks, including
simultaneous racing between zones, as it deems appropriate.
2.Requires each licensed racing association to designate a
certain number of racing dates to be conducted as charity days
by the licensee for the purpose of distribution of the net
proceeds to charitable beneficiaries.
3.Requires that at least 20% of the distribution from charity
day racing be made to charities associated with the horse
racing industry. In addition to this 20%, another 5% of the
distribution must go to a welfare fund established for the
benefit of horsemen, horsewomen and backstretch personnel, as
specified, and another 5% of the distribution must be provided
to a nonprofit corporation assisting horsemen, horsewomen and
backstretch personnel who are affected adversely as a result
of alcohol or substance abuse. In addition to the above
distribution, requires that a separate 20% of the distribution
from charity day racing, up to a maximum of $2 million, be
provided as an endowment for a nonprofit corporation or trust
which assists disabled jockeys.
4.Requires that beneficiaries of these proceeds be a nonprofit
corporation or organization entitled by law to receive a
distribution made by a distributing agent, exempt or entitled
to exemption from state and federal income taxes, involved in
specified beneficial activities, and approved by CHRB.
This bill makes substantive and clarifying changes to California
Horse Racing Law including:
1.Increasing the minimum distribution from charity day horse
racing required to be allocated to charities associated with
the horse racing industry from 20% to 30%;
2.Deleting CHRB's authority to annually allocate a maximum of 28
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racing days to any county fair in the northern zone which did
not conduct horse racing prior to January 1, 1985; and
3.Correcting an outdated cross-reference in the law and making
other minor code maintenance changes.
Background
Since the early 1940s, California racing associations have been
required to conduct charity racing days. By law, each racing
association must either conduct a specified portion of its race
meeting, based on the length of the race meet, for the benefit
of charities meeting the statutory criteria and approved by
CHRB, or two tenths of 1% of the live handle for the entire
meet. The law also requires that at least 50% of the proceeds
be distributed to charitable groups within the horse racing
industry. While recognizing the worthwhile nature of all the
charitable organizations favored by the various distributing
foundations, CHRB encourages the foundations to exceed this
minimum percentage.
On charity racing days, the racing association furnishes the
facilities and personnel necessary for the conduct of racing.
The income from all operations of the race meeting on charity
racing days, less deductions for actual expenses, is dedicated
to charitable purposes. The following racing associations
distributed funds last year: Los Angeles Turf Club, Hollywood
Park Racing Association, Del Mar Thoroughbred Club, Los Alamitos
Quarter Horse Racing Association, and the Pacific Racing
Association.
According to CHRB, charity racing day donations in the 2012-13
Fiscal Year totaled approximately $778,707.
Comments
According to the author's office, this bill provides the horse
racing industry the ability to further support charities
associated with the horse racing industry. Currently, charity
day proceeds go to a number of causes, including a backstretch
program to combat drug and alcohol abuse, a workers' welfare
fund, support of disabled jockeys and other charities associated
with the industry.
The author's office states that this bill is intended to ensure
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that California's horse racing industry is also providing
sufficient funds to aid charities dedicated to the rescue,
rehabilitation, retraining, adoption, and retirement of
racehorses which no longer compete at racetracks throughout the
state. For example, it might be beneficial to use charity day
proceeds for therapeutic riding programs involving children and
adults with physical, developmental, social and emotional
disabilities. Such programs provide a golden opportunity for
the utilization and retraining of retired race horses.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 73-0, 5/23/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonta, Bradford, Brown, Buchanan, Ian Calderon,
Campos, Chau, Ch�vez, Chesbro, Conway, Cooley, Dababneh,
Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,
Gray, Grove, Hagman, Hall, Holden, Jones, Jones-Sawyer,
Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,
Medina, Mullin, Muratsuchi, Nazarian, Olsen, Pan, Patterson,
Perea, John A. P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Bonilla, Harkey, Roger Hern�ndez, Melendez,
Nestande, V. Manuel P�rez, Vacancy
MW:e 8/5/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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