BILL NUMBER: SB 777 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY FEBRUARY 25, 2014
AMENDED IN ASSEMBLY FEBRUARY 4, 2014
AMENDED IN SENATE MAY 29, 2013
AMENDED IN SENATE MAY 28, 2013
AMENDED IN SENATE MAY 15, 2013
AMENDED IN SENATE MAY 7, 2013
AMENDED IN SENATE APRIL 23, 2013
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Senator Hernandez
(Coauthors: Senators Calderon, Cannella, Correa, Evans, Galgiani,
Hancock, and Vidak)
(Coauthor: Assembly Member Chesbro)
FEBRUARY 22, 2013
An act to amend Section 19605.75 of, and to add Sections 19605.76,
19605.77, and 19605.78 to, the Business and Professions Code,
relating to horse racing , and declaring the urgency thereof, to
take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
SB 777, as amended, Hernandez. Horse racing: workers'
compensation.
Until January 1, 2014, the provisions of the Horse Racing Law
required a thoroughbred racing association and fair that conducts a
racing meeting to deduct a percentage of the total amount handled in
exotic parimutuel pools of thoroughbred racing, to be distributed to
a specified organization for the purpose of defraying costs of
workers' compensation insurance in connection with thoroughbred horse
racing. Until January 1, 2014, provisions of the Horse Racing Law
authorized similar deductions from the total amount handled for races
for quarter horses and other breeds, and for harness races, to be
distributed to specified organizations for defraying workers'
compensation for trainers and owners in connection with those races.
This bill would reestablish those provisions requiring the
deduction specified above to be made by a thoroughbred racing
association, and would reestablish those provisions authorizing the
deductions to be made for races for quarter horses and other breeds,
and for harness races. Because a violation of the Horse Racing Law is
generally a misdemeanor, the bill would create new crimes, thereby
imposing a state-mandated local program.
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.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19605.75 of the Business and Professions Code
is amended to read:
19605.75. (a) The Legislature finds and declares that the
existence of high caliber thoroughbred racing in California is
important to this state's agricultural economy. 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, in that these costs are not only
causing thoroughbred horses and trainers to leave this state, but are
also discouraging owners and trainers from bringing horses into this
state to compete. It is the intent of the Legislature to provide
some relief from these escalating costs through the redistribution of
the parimutuel handle on exotic wagers.
(b) Notwithstanding Section 19610, every thoroughbred association
and fair that conducts a racing meet shall deduct an additional 0.5
percent of the total amount handled in exotic parimutuel pools of
thoroughbred races.
(c) The funds collected pursuant to subdivision (b) from exotic
parimutuel pools on thoroughbred races within the inclosure of a
thoroughbred association or fair conducting a race meeting, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (f) to be used in
accordance with subdivision (e).
(d) Any thoroughbred association or fair that authorizes a betting
system located outside of this state to accept exotic wagers on its
races and to combine those wagers in the association's or fair's
exotic parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to exotic wagers made by
residents other than those of this state, shall deduct the amount
specified in subdivision (b) in addition to any other applicable
deductions specified in law. The amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (f) to be used in accordance with subdivision (e). This
additional deduction shall not be included in the amount on which
license fees are determined pursuant to Section 19602.
(e) The amounts distributed to the organization described in
subdivision (f) shall be deposited by that organization in a separate
account to defray the costs of workers' compensation insurance
incurred in connection with thoroughbred horses that race in this
state at thoroughbred associations and racing fairs through the
payment of supplemental premiums that reduce rates, payment to or for
the benefit of trainers and owners of such thoroughbreds, based on
the number of such thoroughbreds they start, in order to reimburse
them for the costs of workers' compensation insurance directly or
indirectly incurred by them, and other appropriate payments. Any
funds that are not used for the purposes set forth in this
subdivision shall, after an affirmative vote of at least 25 of the
voting interests of the organization described in subdivision (f),
either be carried forward to the subsequent year, or be used to
reimburse racing associations for the actual cost of health and
safety programs, research or safety equipment, or making capital
improvements that are designed to prevent workplace accidents and
increase the safety of jockeys, exercise riders, backstretch
employees, and other racetrack personnel. Those capital improvements
shall include, but not be limited to, safety improvements to racing
and training surfaces. All requests for reimbursements shall be
approved by the board. In developing proposals for approval by the
board, the association shall confer with their horsemen's
organizations and all affected labor organizations or associations.
(f) The thoroughbred racing associations and the owners'
organization described in subdivision (b) of Section 19613 shall form
an organization to which funds shall be distributed pursuant to
subdivisions (c) and (d). This organization shall have a total of 34
voting interests, of which 16 shall be allocated to the organization
representing thoroughbred owners pursuant to Section 19613, one shall
be allocated to the official registering agency for thoroughbreds in
California, and one shall be allocated to the organization
representing thoroughbred trainers pursuant to Section 19613. The
remaining 16 votes shall be allocated among the licensed racing
associations and racing fairs in the state. Each racing association
and fair shall receive the portion of these remaining votes
represented by the sum of exotic wagering on its races divided by the
statewide total of exotic wagering in the preceding calendar year,
excluding Breeders' Cup races. Fractional voting shall be permitted.
Any decision of this organization with respect to the allocation of
funds pursuant to subdivisions (c) and (d) shall require the
affirmative vote of 25 of these voting interests. In the event that
the required number of affirmative votes cannot be obtained, the
matter shall be submitted to the board for a decision consistent with
subdivision (e), and the decision of the board shall be final.
(g) The organization formed pursuant to this section shall account
annually to the board with respect to the expenditure and
distribution of funds received by the organization pursuant to
subdivisions (c) and (d), and shall obtain an independent audit of
fund generation and distribution. A copy of the completed audit shall
be forwarded to the board within 45 days of its receipt by the
organization.
SEC. 2. Section 19605.76 is added to the Business and Professions
Code, to read:
19605.76. (a) Notwithstanding Section 19610, a quarter horse
racing association may deduct an additional 0.5 percent of the total
amount handled in its exotic parimutuel pools. This additional
deduction shall only be permitted with the approval of the
organization representing quarter horse horsemen and
horsewomen at the applicable racing association meet.
(b) Any funds collected pursuant to subdivision (a) from exotic
parimutuel pools on races within the inclosure of a racetrack, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (e) to be used in
accordance with subdivision (d).
(c) Any quarter horse racing association that authorizes a betting
system located outside of this state to accept exotic wagers on its
races and to combine those wagers in the association's exotic
parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to exotic wagers made by
residents other than those of this state, may deduct the amount
specified in subdivision (a) in addition to any other applicable
deductions specified in law. Any amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (e) to be used in accordance with the provisions of
subdivision (d). This additional deduction shall not be included in
the amount on which license fees are determined pursuant to Section
19602.
(d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account to defray workers' compensation insurance costs for trainers
and owners who are racing horses at the applicable quarter horse
racing association meet. Any funds not expended for this purpose in
the calendar year in which they are collected may either be used for
the following year's workers' compensation costs, as specified above,
or to benefit the purse pools at the track where the funds are
generated. Funds to benefit purse pools shall be allocated by breed,
in the same proportions as each breed generated in deductions under
this section at the track in the year the funds were collected.
(e) The quarter horse racing association and the organization
representing quarter horse horsemen and horsewomen shall
form an organization to which any funds deducted pursuant to
subdivisions (b) and (c) shall be distributed. The quarter horse
associations collectively shall have representation equal to that of
the organization representing quarter horse horsemen and
horsewomen on the governing board of the organization formed pursuant
to this subdivision.
(f) If the quarter horse racing association and the organization
representing quarter horse horsemen and horsewomen cannot
agree on the manner for distributing these funds to defray the costs
of workers' compensation insurance, the matter shall be submitted to
the board for a decision consistent with subdivision (d), and the
decision of the board shall be final.
SEC. 3. Section 19605.77 is added to the Business and Professions
Code, to read:
19605.77. (a) Notwithstanding Section 19610, a harness racing
association may deduct an additional 1 percent of the total amount
handled in conventional parimutuel pools of harness races. This
additional deduction shall only be permitted with the approval of the
organization representing harness horsemen and horsewomen at the
applicable racing association meeting.
(b) Any funds collected pursuant to subdivision (a) from
conventional parimutuel pools on harness races within the inclosure
of a racetrack, at satellite wagering facilities within this state,
and through advance deposit wagering by residents of this state,
shall be distributed to the organization described in subdivision (e)
to be used in accordance with subdivision (d).
(c) Any harness racing association that authorizes a betting
system located outside of this state to accept conventional wagers on
its races and to combine those wagers in the association's
conventional parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to conventional wagers made by
residents other than those of this state, may deduct the amount
specified in subdivision (a) in addition to any other applicable
deductions specified in law. Any amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (e) to be used in accordance with the provisions of
subdivision (d). This additional deduction shall not be included in
the amount on which license fees are determined pursuant to Section
19602.
(d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account and used to reduce the workers' compensation insurance costs
for trainers who are racing horses at the applicable harness racing
association meet. Any funds not expended for this purpose in the
calendar year in which they are collected may either be used for the
following year's workers' compensation costs, as specified above, or
to benefit the harness purse pool at the track where the funds are
generated.
(e) The harness racing association and the organization
representing harness horsemen and horsewomen shall form an
organization to which any funds deducted pursuant to subdivisions (b)
and (c) shall be distributed. The harness associations collectively
shall have representation equal to that of the organization
representing harness horsemen and horsewomen on the governing board
of the organization formed pursuant to this subdivision.
(f) If the harness racing association and the organization
representing harness horsemen and horsewomen cannot agree on the
manner for distributing these funds to defray the costs of workers'
compensation insurance, the matter shall be submitted to the board
for a decision consistent with subdivision (d), and the decision of
the board shall be final.
SEC. 4. Section 19605.78 is added to the Business and Professions
Code, to read:
19605.78. (a) Notwithstanding Section 19610 and in addition to
the deduction specified in subdivision (b) of Section 19605.75, a
fair may deduct an additional 0.5 percent of the total amount handled
in exotic parimutuel pools of races for any breed, other than races
solely for thoroughbreds. This additional deduction shall only be
permitted for a breed's races with the approval of the organization
representing the horsemen and horsewomen of that breed at the fair.
(b) Any funds collected pursuant to subdivision (a) from exotic
parimutuel pools on races within the inclosure of a racetrack, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (e) to be used in
accordance with subdivision (d).
(c) Any fair that authorizes a betting system located outside of
this state to accept exotic wagers on its races and to combine those
wagers in the association's exotic parimutuel pools, including, but
not limited to, a multijurisdictional wagering hub as to exotic
wagers made by residents other than those of this state, may deduct
the amount specified in subdivision (a) in addition to any other
applicable deductions specified in law. Any amount deducted pursuant
to this subdivision shall be distributed to the organization
described in subdivision (e) to be used in accordance with the
provisions of subdivision (d). This additional deduction shall not be
included in the amount on which license fees are determined pursuant
to Section 19602.
(d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account to defray workers' compensation insurance costs for trainers
and owners who are racing breeds other than thoroughbreds at the
applicable fair. Any funds not expended for this purpose in the
calendar year in which they are collected may either be used for the
following year's workers' compensation costs, as specified above, or
to benefit the purse pool of each breed at the particular fair where
the funds are generated in the same proportions as each breed
generated at that fair in the year the funds are collected.
(e) The fairs and the organizations representing the horsemen and
horsewomen of each breed for which deductions have been approved
under subdivision (a) shall form an organization to which any funds
deducted pursuant to subdivisions (b) and (c) shall be distributed.
The fairs collectively shall have representation equal to the
collective representation of the organizations representing horsemen
and horsewomen on the governing board of the organization formed
pursuant to this subdivision.
(f) If the fairs and the organizations representing horsemen and
horsewomen cannot agree on the manner for distributing these funds to
defray the costs of workers' compensation insurance, the matter
shall be submitted to the board for a decision consistent with
subdivision (d), and the decision of the board shall be final.
SEC. 5. 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.
SEC. 6. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to ensure that trainers and owners of certain horse
racing breeds receive assistance in defraying workers' compensation
insurance costs, it is necessary that this bill take immediate
effect.