Bill Text: CA AB1578 | 2009-2010 | Regular Session | Chaptered
Bill Title: Horse racing: thoroughbred racing: California-bred bonus
Sponsorship: Slight Partisan Bill (Democrat 11-4)
Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 550, Statutes of 2009. [AB1578 Detail]
Download: California-2009-AB1578-Chaptered.html
BILL NUMBER: AB 1578 CHAPTERED
BILL TEXT
CHAPTER 550
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE AUGUST 27, 2009
PASSED THE ASSEMBLY SEPTEMBER 2, 2009
AMENDED IN SENATE JULY 23, 2009
AMENDED IN SENATE JULY 13, 2009
INTRODUCED BY Committee on Governmental Organization (Price
(Chair), Cook, Coto, Evans, Galgiani, Hall, Hill, Jeffries, Lieu,
Mendoza, Portantino, Silva, Torres, Torrico, and Tran)
MARCH 23, 2009
An act to amend Sections 19614.4, 19617, and 19617.2 of the
Business and Professions Code, relating to horse racing.
LEGISLATIVE COUNSEL'S DIGEST
AB 1578, Committee on Governmental Organization. Horse racing:
thoroughbred racing: California-bred bonus program.
Existing law, the Horse Racing Law, provides for the regulation of
horse racing in this state. Violations of the Horse Racing Law are
generally misdemeanors.
Existing law provides for owner premiums, and breeder and stallion
awards, as specified. Existing law provides various definitions for
purposes of these provisions, including a definition for "certain
claiming races."
This bill would revise the definition of "certain claiming races"
for those purposes.
Existing law requires any association conducting a race meeting
that includes thoroughbred racing to deposit certain sums with the
official registering agency for thoroughbred horses, and requires
that official registering agency to distribute a portion of those
sums annually to the California-bred race fund for the promotion of
California-bred races and for purses for California Cup Day and other
California-bred races, and to the owner fund for owner premiums, as
provided.
This bill would require the official registering agency to also
distribute a certain portion of those sums annually to the
California-bred bonus program, which would be required to be
administered by the official registering agency, for payment of
bonuses to California-bred horses in maiden allowance races in
California.
This bill would also require the organization responsible for
negotiating purse agreements on behalf of thoroughbred horsemen
participating in racing meetings to pay, from purse revenues
generated, to the official registering agency for the purpose of the
California-bred bonus program the same amount as the official
registering agency, not to exceed $2,000,000 annually, as specified.
By imposing new requirements under the Horse Racing Law, the
violation of which would be a crime, the bill would impose 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19614.4 of the Business and Professions Code is
amended to read:
19614.4. (a) Notwithstanding any other provision of law and in
addition to any amounts provided for purses by any other provision of
this chapter, from the amount deposited with the official
registering agency for distribution pursuant to Section 19617.2, the
official registering agency shall make the following distributions as
owners' premiums:
(1) An amount equal to 20 percent of the winner's share of the
purse for a qualifying race, as defined in paragraph (2) of
subdivision (b) of Section 19617, shall be distributed as an owner
premium to the owner of a registered California-bred thoroughbred
horse conceived by a registered eligible thoroughbred stallion, as
provided in subdivision (d) of Section 19617, which finishes first in
the race.
(2) An amount equal to 10 percent of the winner's share of the
purse for a qualifying race, as defined in paragraph (2) of
subdivision (b) of Section 19617, shall be distributed as an owner
premium to the owner of a registered California-bred thoroughbred
horse that finishes first in the race and that was not conceived by a
registered eligible thoroughbred stallion as provided in subdivision
(d) of Section 19617, which finishes first in the race.
(b) The official registering agency shall develop a policy for the
payment of owner premiums pursuant to paragraphs (1) and (2) in the
event of a dead heat that involves one or more registered
California-bred horses.
(c) From the amounts distributed as purses pursuant to this
chapter, the organization responsible for negotiating purse
agreements on behalf of thoroughbred horsemen participating in racing
meetings, at its discretion, may pay an owner's premium for a
qualifying race, as defined by the organization, to the owner of a
registered California-bred thoroughbred that finishes first through
fifth in the qualifying race. Notwithstanding the foregoing, these
payments shall be not less than the amount of the total payments made
by the organization in 1998, and the discretion accorded the
organization pursuant to this subdivision shall be exercised on a
statewide basis for all racing meetings.
(d) The organization responsible for negotiating purse agreements
on behalf of thoroughbred horsemen participating in racing meetings
shall pay, from purse revenues generated, to the official registering
agency for the purpose of the California-bred bonus program an
amount equal to the amount determined in paragraph (3) of subdivision
(b) of Section 19617.2, not to exceed two million dollars
($2,000,000) annually, and that amount shall be used for
California-bred incentive awards.
SEC. 2. Section 19617 of the Business and Professions Code is
amended to read:
19617. The following definitions shall govern the construction of
this section and Section 19617.2:
(a) "Breeder" means a person who is registered as a breeder of a
California-bred thoroughbred with the official registering agency and
is named on the applicable Certificate of Registration issued by the
Jockey Club of New York.
(b) "Qualifying race" means the following:
(1) In the case of breeder awards, all races in this state, all
graded stakes races conducted within the United States, and other
stakes races as designated by the official registering agency.
(2) As qualified by paragraph (5), in the case of owner premiums,
certain claiming races, as defined by paragraph (4), and all
allowance races, including maiden special weights. No owner premiums
shall be paid on California-bred restricted races pursuant to Section
19568.
(3) As qualified by paragraph (5), in the case of stallion awards,
all nonclaiming races and certain claiming races, if the nonclaiming
races and the certain claiming races are conducted in this state
during racing meetings where more than one-half of the races on every
racing program are for thoroughbreds, all graded stakes races
conducted within the United States, and other stakes races as
designated by the official registering agency.
(4) "Certain claiming races" means thoroughbred races in the
central and southern zone with a minimum claiming level of forty
thousand dollars ($40,000) for winners and thoroughbred races in the
northern zone with a minimum claiming level of twenty thousand
dollars ($20,000) for winners.
(5) No owner premium or stallion award shall be paid on races with
purses of less than fifteen thousand dollars ($15,000). In
determining whether a race complies with the definition in paragraph
(4), the official registering agency shall base its determination on
the actual amount of the purse at the time the race was conducted and
shall not take into consideration any postrace adjustments to that
purse.
(c) "Eligible earnings" means the following:
(1) In the case of breeder awards, the annual amount earned by a
California-bred thoroughbred for finishing first, second, or third in
qualifying races.
(2) In the case of owner premiums, the annual amount earned by a
California-bred thoroughbred for winning qualifying races.
(3) In order for earnings from a qualifying race to be considered
as eligible earnings, a California-bred thoroughbred shall be
registered as such with the official registering agency before the
date entries were taken by the association for the qualifying race in
which that horse earned purse money.
(4) In the case of stallion awards, the annual amount earned by
California-conceived or California-bred foals of an eligible
thoroughbred stallion in winning qualifying races plus the amount
earned by those foals for finishing second or third in a stakes race
in this state, for finishing first, second, or third in a graded
stakes race within the United States, and for finishing first,
second, or third in other stakes races as designated by the official
registering agency.
(5) For purposes of this section, the maximum purse considered
earned in any qualifying race within this state shall be three
hundred thirty thousand dollars ($330,000) for a win, one hundred
twenty thousand dollars ($120,000) for a second, and ninety thousand
dollars ($90,000) for a third place finish and the maximum purse
considered earned in any qualifying race outside of this state shall
be one hundred sixty-five thousand dollars ($165,000) for a win,
sixty thousand dollars ($60,000) for a second, and forty-five
thousand dollars ($45,000) for a third place finish.
(6) In determining the purse earned in any qualifying race that is
a stakes race, the amount earned shall be based solely on the added
money, with no consideration to be given to other sources of the
purse, such as nomination, entry, or starting fees, bonuses, and
sponsor contributions, or any combination thereof.
(7) On or before February 15 of any year, it is the ultimate
responsibility of the stallion owner to advise the official
registering agency of any and all purses earned during the preceding
year that shall be considered in determining the amount of the
stallion award to which the owner is entitled.
(8) On or before February 15 of any year, it is the ultimate
responsibility of the breeder to advise the official registering
agency of any and all purses earned during the preceding year in
graded stakes races outside of this state by horses bred by breeder.
(d) "Eligible thoroughbred stallion" means a thoroughbred stallion
that was continuously present in this state from February 1 to June
15, inclusive, of the calendar year in which the qualifying race was
conducted, and if the sire left this state after June 15 of the
calendar year in which the qualifying race was conducted, the sire
returned to and was present in this state by February 1 of the
following calendar year and thereafter remained until June 15 of that
year. If a sire dies in this state and stood his last season at stud
in this state, he shall thereafter continue to be considered an
eligible thoroughbred stallion.
(1) Notwithstanding any provision to the contrary, a thoroughbred
stallion shall be considered an eligible thoroughbred stallion only
if its owner has filed a claim for stallion award on or before
February 15 of the calendar year immediately following the calendar
year for which the awards are being distributed and is registered
with the official registering agency.
(2) The official registering agency shall establish procedures for
the registration of stallions and may charge a fee for that
registration.
(e) "Official registering agency" means the California
Thoroughbred Breeders Association.
(f) "Owner" means the person who is registered with the paymaster
of purses on the date the qualifying race was conducted as the owner
of the California-bred thoroughbred earning purse money in that race.
(g) "Quotient," for any fund, means the amount allocated to that
fund pursuant to subdivision (b) of Section 19617.2 divided by the
aggregate eligible earnings of the horses applicable to that fund. In
calculating the quotient for each of the funds, any retroactive
purse payments with respect to a race shall not be considered after
the disbursement of the fund.
(h) "Stallion owner" means the person who is the owner of the
eligible thoroughbred stallion as of December 31 of the calendar year
in which that sire's foals had eligible earnings or the person who
owned the eligible thoroughbred sire on the date that the stallion
died.
SEC. 3. Section 19617.2 of the Business and Professions Code is
amended to read:
19617.2. (a) Except as otherwise provided in this chapter, any
association conducting a race meeting that includes thoroughbred
racing shall deposit with the official registering agency 0.54
percent of the total amount handled ontrack in daily conventional and
exotic parimutuel pools resulting from thoroughbred wagers made in
this state. These deposits shall be made at the following intervals:
(1) For any meeting of 20 racing days or less, the requisite
deposit shall be made not later than seven days immediately following
the last day of that meeting.
(2) For any meeting of more than 20 racing days, the initial
deposit shall be made not later than 27 racing days after the
commencement of that meeting and every 20 racing days thereafter,
with a final deposit made not later than seven days following the
last day of that meeting. The initial deposit for that meeting shall
be based upon the applicable amount handled during the first 20
racing days of the meeting, and deposits thereafter shall be based
upon the applicable amount handled during the ensuing periods of 20
racing days with the last deposit being based upon the applicable
amount handled from the end of the last 20-racing-day period for
which a deposit has been made to the end of the meeting.
(b) After deducting a sum equal to 5 percent of the total deposits
made pursuant to subdivision (a) and the total deposits made
pursuant to Section 19602, the amount to compensate the official
registering agency for its administrative cost and for expenses it
incurs for educational, promotional, and research programs, the
official registering agency shall for computational purposes
distribute annually the balance of the deposits in the following
manner:
(1) To the California-bred race fund, 10 percent to be used for
the promotion of California-bred races and from which purses are to
be provided or supplemented for California Cup Day, other
California-bred races, and, upon the approval of the official
registering agency, races featuring California-breds. This fund shall
be administered by the official registering agency. Any funds not
used for those purposes during any year, up to 1 percent of the total
breeder, stallion, and owner award receipts, shall remain in the
California-bred race fund to be distributed for the purposes of this
paragraph the following year. Any funds remaining thereafter shall be
redistributed to augment the funds referred to in subdivision (c),
and shall be allocated to the breeder fund and to the stallion fund
as provided in that subdivision. It is the intent of the Legislature
that all funds used for purses shall supplement and not supplant
existing purses for California-breds.
(2) To the owner fund for the purpose of owner premiums pursuant
to Section 19614.4.
(3) To the California-bred bonus program, 15 percent of the amount
remaining to be used for the payment of bonuses to California-bred
horses in maiden allowance races in California. This bonus program
shall be administered by the official registering agency.
(c) The funds remaining after the distributions made pursuant to
subdivision (b) shall be distributed as follows:
(1) To the breeder fund 75 percent, from which breeder awards are
to be paid.
(2) To the stallion fund 25 percent, from which stallion awards
are to be paid.
(d) The official registering agency shall make the following
payments to the owner, breeder, and stallion owner so as to encourage
agriculture and the breeding of higher quality horses in this state:
(1) The owner shall be paid an owner premium pursuant to Section
19614.4.
(2) The breeder shall be paid a breeder award equal to the
quotient for the breeder fund multiplied by the eligible earnings of
the horse bred by the breeder.
(3) The stallion owner shall be paid a stallion award equal to the
quotient for the stallion fund multiplied by the eligible earnings
of the stallion owner's eligible thoroughbred sire.
(4) Owner premiums for California-bred horses shall be listed in
the racing program alongside the advertised purse, and shall be
distributed to the owner pursuant to Section 19614.4 at the same time
as the purse.
(5) The breeder and stallion awards shall be paid not later than
March 31 of the calendar year immediately following the calendar year
for which the awards or premiums were earned.
SEC. 4. 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.
