Bill Text: CA AB2765 | 2013-2014 | Regular Session | Chaptered
Bill Title: Horse racing: marketing organizations.
Spectrum: Slight Partisan Bill (Democrat 9-4)
Status: (Passed) 2014-09-18 - Chaptered by Secretary of State - Chapter 430, Statutes of 2014. [AB2765 Detail]
Download: California-2013-AB2765-Chaptered.html
BILL NUMBER: AB 2765 CHAPTERED
BILL TEXT
CHAPTER 430
FILED WITH SECRETARY OF STATE SEPTEMBER 18, 2014
APPROVED BY GOVERNOR SEPTEMBER 18, 2014
PASSED THE SENATE AUGUST 25, 2014
PASSED THE ASSEMBLY AUGUST 28, 2014
AMENDED IN SENATE AUGUST 19, 2014
AMENDED IN SENATE JUNE 5, 2014
AMENDED IN ASSEMBLY APRIL 22, 2014
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, and to add and repeal Section
19613.05 of, the Business and Professions Code, relating to horse
racing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2765, Committee on Governmental Organization. Horse racing:
marketing organizations.
(1) Existing law, the Horse Racing Law, authorizes, until January
1, 2015, 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.
This bill would extend the operation of those provisions to
January 1, 2019.
The bill would also 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.
(2) A former provision in the Horse Racing Law, which was repealed
on January 1, 2014, required any racing association, including a
fair, that conducts thoroughbred racing to pay to the owners'
organization contracting with the association with respect to the
conduct of thoroughbred racing an additional 13/4 % of the portion
required to be deducted for purses for a national marketing program,
as specified.
This bill would reenact this requirement, which would be effective
until January 1, 2018, and repealed as of that date.
(3) By imposing requirements under the Horse Racing Law, the
violation of which would be a crime, the bill would create new crimes
and would thereby impose a state-mandated local program.
(4) 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.
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 marketing 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 marketing 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
marketing organization. The marketing 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 in subdivision (a). 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,
2019, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2019, deletes or extends
that date. Any moneys held by the marketing 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.
SEC. 2. Section 19613.05 is added to the Business and Professions
Code, to read:
19613.05. (a) Any association, including a fair, that conducts
thoroughbred racing shall pay to the owners' organization,
contracting with the association with respect to the conduct of
thoroughbred racing, an additional 13/4 percent of the portion
deducted for purses, required by Section 19613, for a national
marketing program. These funds shall be used exclusively for the
promotion of thoroughbred racing in conjunction with a national
thoroughbred racing marketing program. Funds that may not be needed
for this effort shall be returned to the purse pool at the racing
associations where these funds were raised in direct proportion to
the amount in which they were initially raised. The owners'
organization shall file a report with the board and the respective
Senate and Assembly Committees on Governmental Organization,
accounting for the receipt and expenditure of these funds on an
annual basis. The board of directors of the owners' organization
shall have the discretion to select the national marketing
organization that shall be the recipient of these funds. If the board
of directors of the owners' organization decides at any time not to
contribute to the national marketing organization, notice shall be
given promptly to the respective racing association or associations
and the 13/4 percent deduction shall cease until the owners'
organization decides otherwise.
(b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 3. 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.
