Amended in Senate June 5, 2014

Amended in Assembly April 22, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2765

Introduced by Committee on Governmental Organization (Assembly Members Hall (Chair), Nestande (Vice Chair), Bigelow, Chesbro, Cooley, Dababneh, Gray, Jones, Levine, Medina, Perea, V. Manuel Pérez, and Wilk)

March 28, 2014

An act to amend Section 19605.73 of the Business and Professions Code, relating to horse racing.

LEGISLATIVE COUNSEL’S DIGEST

AB 2765, as amended, Committee on Governmental Organization. Horse racing: marketing organization.

Existing law, operative until January 1, 2015, authorizes thoroughbred racing associations, fairs, and the organization responsible for contracting with thoroughbred racing associations and fairs with respect to the conduct of racing meetings, to form a private, statewide marketing organization to market and promote thoroughbred and fair horse racing. If a marketing organization is formed, existing law requires an amount not to exceed 0.25% of the total amount handled by each satellite wagering facility to be distributed to the marketing organization, and imposes certain requirements on the marketing organization, including that the marketing organization submit, by November 1 of each year, a written report to the California Horse Racing Board. Existing law also authorizes the marketing organization to utilize outside consultants.

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This bill would extend the operation of those provisions to January 1, 2019. By extending the operation of provisions of the Horse Racing Law, a violation of which is a crime, the bill would create new crimes and would thereby impose a state-mandated local program.

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The bill would begin insert also end insert change the date for submission of the written report to the board to October 1 of each year and limit the authorization for the marketing organization to use outside consultants to those consultants with horse racing or other related experience, including experience in other gaming enterprises.

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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.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

SECTION 1.  

Section 19605.73 of the Business and Professions
Code is amended to read:

19605.73.  

(a) Thoroughbred racing associations, fairs, and the
organization responsible for contracting with thoroughbred racing
associations and fairs with respect to the conduct of racing
meetings, may form a private, statewide marketing organization
to market and promote thoroughbred and fair horse racing,
including, but not limited to, the establishment and maintenance
of an Internet Web site featuring California thoroughbred and fair
racing, the establishment and administration of players incentive
programs for those who wager on thoroughbred association and
fair races, and promotional activities at satellite wagering facilities
to increase their attendance and handle. While the promotional
activities at satellite wagering facilities shall be funded by the
marketing organization, they shall be implemented and coordinated
by representatives of the satellite wagering facilities and the
thoroughbred racing associations or fairs then conducting a live
race meet. The begin insert marketing end insert organization shall consist of the
following members: two members, one from the northern zone
and one from the combined central and southern zones, appointed
by the thoroughbred racetracks; two members, one from the
northern zone and one from the combined central and southern
zones, appointed by the owners’ organization responsible for
contracting with associations and fairs with respect to the conduct
of racing meetings; and two members, one from the northern zone
and one from the combined central and southern zones, appointed
by the organization representing racing and satellite fairs.

(b) The marketing organization formed pursuant to subdivision
(a) shall, by October 1 of each year, submit a written report to the
board on a statewide marketing and promotion plan for the
upcoming calendar year. In addition, the begin insert marketing end insert organization
shall annually present to the board at the board’s November
meeting a verbal report on the statewide marketing and promotion
plan for the upcoming calendar year. The plan shall be
implemented as determined by the begin insert marketing end insert organization. The
begin insert marketing end insert organization shall receive input from all interested
industry participants and may utilize outside consultants with horse
racing or other related experience, including experience in other
gaming enterprises.

(c) In addition to the distributions specified in subdivisions (a)
and (b) of Section 19605.7, subdivisions (a) and (b) of Section
19605.71, and Section 19605.72, for thoroughbred and fair
meetings only, from the amount that would normally be available
for commissions and purses, an amount not to exceed 0.25 percent
of the total amount handled by each satellite wagering facility shall
be distributed to the marketing organization formed pursuant to
subdivision (a) for the purposes set forth begin delete therein end delete begin insert in subdivision
(a) end insert . The amounts initially distributed to the marketing organization
formed pursuant to subdivision (a) shall be 0.2 percent of the total
amount handled by satellite wagering facilities for thoroughbred
and fair meetings only. The amount distributable to the marketing
organization may be adjusted by the board, in its discretion.
However, the adjusted amounts may not exceed an aggregate of
0.25 percent of the total amount handled by satellite wagering
facilities for thoroughbred and fair meetings only. Any of the
promotion funds that are not expended in the year in which they
are collected may be expended in the following year. If promotion
funds expended in any one year exceed the amount collected for
that year, the funds expended in the following year shall be reduced
by the excess amount. The marketing organization, on a quarterly
basis, shall submit to the board a written report that accounts for
all receipts and expenditures of the promotion funds for the
previous three months.

(d) This section shall remain in effect only until January 1, begin delete 2015, end delete
begin insert 2019, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2015, end delete begin insert 2019, end insert deletes or extends
that date. Any moneys held by the begin insert marketing end insert organization shall,
in the event this section is repealed, be distributed to the
organization formed pursuant to Section 19608.2, for purposes of
that section.

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begin insert SEC. end insert begin insert 2 end insert begin insert . end insert   

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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.

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