Amended in Assembly June 30, 2014

Senate Bill No. 1003

Introduced by Senator Evans

February 13, 2014

An act to begin delete amend Section 19596.2 of the Business and Professions Code, relating to horse racing end delete begin insert add Section 17132.11 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 1003, as amended, Evans. begin delete Horse racing: out-of-state thoroughbred races. end delete begin insert Personal Income Tax Law: cancellation of indebtedness: student loan forgiveness. end insert

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The Personal Income Tax Law provides for various exclusions from gross income.

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This bill would, for taxable years beginning on or after January 1, 2014, exclude from gross income the amount of student loan indebtedness repaid or canceled pursuant to a specified federal law.

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This bill would take effect immediately as a tax levy.

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Existing law authorizes a thoroughbred racing association or fair to distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races conducted in the United States during the calendar period the association or fair is conducting a race meeting, including days on which there is no live racing being conducted by the association or fair, without the consent of the organization that represents horsemen and horsewomen participating in the race meeting and without regard to the amount of purses. Under existing law, the total number of thoroughbred races imported by associations or fairs on a statewide basis under these provisions shall not exceed 50 per day on days when live thoroughbred or fair racing is being conducted in the state, with the exception of specified races.

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This bill would instead provide that the total number of thoroughbred races imported by associations or fairs on a statewide basis under these provisions shall not exceed 55 per day on days when live thoroughbred or fair racing is being conducted in the state, with the exception of specified races.

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

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

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begin insert SECTION 1. end insert   

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begin insert Section 17132.11 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

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begin insert 17132.11. end insert   

For taxable years beginning on or after January 1,
2014, gross income shall not include any loan amount repaid by
the United States Secretary of Education or canceled pursuant to
Section 1098e of Title 20 of the United States Code.

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begin insert SEC. 2. end insert   

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This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.

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SECTION 1.  

Section 19596.2 of the Business and Professions
Code is amended to read:

19596.2.  

(a) Notwithstanding any other law and except as
provided in Section 19596.4, a thoroughbred racing association
or fair may distribute the audiovisual signal and accept wagers on
the results of out-of-state thoroughbred races conducted in the
United States during the calendar period the association or fair is
conducting a race meeting, including days on which there is no
live racing being conducted by the association or fair, without the
consent of the organization that represents horsemen and
horsewomen participating in the race meeting and without regard
to the amount of purses. Further, the total number of thoroughbred
races imported by associations or fairs on a statewide basis under
this section shall not exceed 55 per day on days when live
thoroughbred or fair racing is being conducted in the state. The
limitation of 55 imported races per day does not apply to any of
the following:

(1) Races imported for wagering purposes pursuant to
subdivision (c).

(2) Races imported that are part of the race card of the Kentucky
Derby, the Kentucky Oaks, the Preakness Stakes, the Belmont
Stakes, the Jockey Club Gold Cup, the Travers Stakes, the
Arlington Million, the Breeders’ Cup, the Dubai Cup, the Arkansas
Derby, or the Haskell Invitational.

(3) Races imported into the northern zone when there is no live
thoroughbred or fair racing being conducted in the northern zone.

(4) Races imported into the combined central and southern zones
when there is no live thoroughbred or fair racing being conducted
in the combined central and southern zones.

(b) Any thoroughbred association or fair accepting wagers
pursuant to subdivision (a) shall conduct the wagering in
accordance with the applicable provisions of Sections 19601,
19616, 19616.1, and 19616.2.

(c) No thoroughbred association or fair may accept wagers
pursuant to this section on out-of-state races commencing after 7
p.m., Pacific standard time, without the consent of the harness or
quarter horse racing association that is then conducting a live racing
meeting in Orange or Sacramento Counties.

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