Bill Text: CA AB246 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Horse racing: deductions and distributions: trust funds:

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 226, Statutes of 2009. [AB246 Detail]

Download: California-2009-AB246-Amended.html

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BILL NUMBER: AB 246	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 25, 2009

INTRODUCED BY   Assembly Member Price

                        FEBRUARY 10, 2009

   An act to add Section 19597.5 to the Business and Professions
Code, relating to horse racing.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 246, as amended, Price. Horse racing: deductions and
distributions: trust funds.
   Existing law, the Horse Racing Law, generally regulates horse
racing and parimutuel wagering on horse races. Existing law requires
various deductions and distributions to be made from parimutuel pools
as specified.
   This bill would require a person licensed to conduct a horse
racing meeting to hold in trust the distributions required to be made
pursuant to the Horse Racing Law until the funds are paid to the
various distributees. The bill would provide that these required
deductions, except for those that enure to the benefit of the racing
association, are trust funds and shall not be used by the racing
association for any purpose other than for payment to those
distributees as directed by the Horse Racing Law.  The bill would
provide that these funds are not the property of the racing
association and are to be held in a separate depository  
account until they are actually distributed as provided for in the
Horse Racing Law. 
   By  imposing new   codifying 
requirements on licensees 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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  (a) The Legislature finds and declares that it has long
been established in California that the racing association and its
parimutuel operation is actually a stakes holder. The funds wagered
are not the property of the racing association. The racing
association merely holds the funds wagered until the results of the
race are known, then the association pays the winning wagers, and
holds funds for others pursuant to the California Horse Racing Law.
It has always been known that the funds due the various distributees
are not the property of the racing association. The racing
association is merely acting as a trustee until the funds are paid to
those as provided for in statute.
   (b) It is therefore the intent of the Legislature that the purpose
of this act is not to change California law, but merely to codify
this trustee relationship.
   SECTION 1.   SEC. 2.   Section 19597.5
is added to the Business and Professions Code, to read:
   19597.5.  A person licensed under this chapter to conduct a horse
racing meeting shall hold in trust the distributions required to be
made pursuant to this chapter until the funds are paid to the various
distributees. These required deductions, except for those that enure
to the benefit of the racing association, are trust funds and shall
not be used by the racing association for any purpose other than for
payment to those distributees as directed by this chapter. These
funds are not the property of the racing association, but are merely
held in trust for the benefit of the statutory distributees until the
funds are distributed to them in accordance with this chapter. These
funds shall be held in a separate depository account until they are
actually   distributed as provided for in this chapter.

   SEC. 2.   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.