Bill Text: CA AB2637 | 2013-2014 | Regular Session | Chaptered
Bill Title: Horse racing: parimutuel wagering and charity racing days.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-08-21 - Chaptered by Secretary of State - Chapter 241, Statutes of 2014. [AB2637 Detail]
Download: California-2013-AB2637-Chaptered.html
BILL NUMBER: AB 2637 CHAPTERED
BILL TEXT
CHAPTER 241
FILED WITH SECRETARY OF STATE AUGUST 21, 2014
APPROVED BY GOVERNOR AUGUST 21, 2014
PASSED THE SENATE AUGUST 7, 2014
PASSED THE ASSEMBLY MAY 23, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Hall
FEBRUARY 21, 2014
An act to amend Sections 19556 and 19599 of, and to repeal Section
19549.3 of, the Business and Professions Code, relating to horse
racing.
LEGISLATIVE COUNSEL'S DIGEST
AB 2637, Hall. Horse racing: parimutuel wagering and charity
racing days.
(1) Existing law, the Horse Racing Law, provides for the operation
of live horse racing in this state and for wagering on horse races,
and for the operation of satellite wagering facilities, subject to
regulation and oversight by the California Horse Racing Board as
specified. That law authorizes an association or fair to offer any
form of parimutuel wagering, as defined, and authorizes the board to
prohibit any form of parimutuel wagering if it determines that the
proposed wagering would compromise the honesty and integrity of
racing in the state.
This bill would correct an outdated cross-reference and would
delete the board's authority to annually allocate a maximum of 28
racing days to any county fair in the northern zone which did not
conduct horse racing prior to January 1, 1985.
(2) The Horse Racing Law also requires each licensed racing
association to designate a certain number of racing days to be
conducted as charity days for the purpose of distribution of the net
proceeds to beneficiaries. Existing law requires that beneficiaries
of these proceeds be a nonprofit corporation or organization entitled
by law to receive a distribution made by a distributing agent,
exempt or entitled to exemption from state and federal income taxes,
engaged in specified beneficial activities, and approved by the
California Horse Racing Board. Existing law requires, among other
distributions, that at least 20% of the distribution from charity day
racing go to charities associated with the horse racing industry.
This bill would increase the percentage of that distribution to
30%.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19549.3 of the Business and Professions Code is
repealed.
SEC. 2. Section 19556 of the Business and Professions Code is
amended to read:
19556. (a) The distribution shall be made by the distributing
agent to beneficiaries qualified under this article. For purposes of
this article, a beneficiary shall be all of the following:
(1) A nonprofit corporation or organization entitled by law to
receive a distribution made by a distributing agent.
(2) Exempt or entitled to an exemption from taxes measured by
income imposed by this state and the United States.
(3) Engaged in charitable, benevolent, civic, religious,
educational, or veterans' work similar to that of agencies recognized
by an organized community chest in the State of California, except
that the funds so distributed may be used by the beneficiary for
capital expenditures.
(4) Approved by the board.
(b) At least 30 percent of the distribution shall be made to
charities associated with the horse racing industry. In addition to
this 30 percent of the distribution, another 5 percent of the
distribution shall be paid to a welfare fund described in subdivision
(b) of Section 19641 and another 5 percent of the distribution shall
be paid to a nonprofit corporation, the primary purpose of which is
to assist horsemen and backstretch personnel who are being affected
adversely as a result of alcohol or substance abuse. No beneficiary
otherwise qualified under this section to receive charity day net
proceeds shall be excluded on the basis that the beneficiary provides
charitable benefits to persons connected with the care, training,
and running of racehorses, except that type of beneficiary shall make
an accounting to the board within one calendar year of the date of
receipt of any distribution.
(c) (1) In addition to the distribution pursuant to subdivision
(b), a separate 20 percent of the distribution shall be made to a
nonprofit corporation or trust, the directors or trustees of which
shall serve without compensation except for reimbursement for
reasonable expenses, and that has as its sole purpose the
accumulation of endowment funds, the income on which shall be
distributed to qualified disabled jockeys.
(2) To receive a distribution under this subdivision, a nonprofit
corporation or trust must establish objective qualifications for
disabled jockeys, and provide an annual accounting and report to the
board on its activities indicating compliance with the requirements
of this subdivision.
(3) The nonprofit corporation or trust shall, in an amount
proportional to the contributions received pursuant to this
subdivision as a percentage of the total contributions received by
the corporation or trust, give preference in assisting qualified
disabled jockeys to the following:
(A) Jockeys who were disabled while participating in the racing or
training of horses at licensed racing associations or approved
training facilities in California.
(B) Jockeys licensed by the board who were disabled while
participating in the racing or training of horses in a state other
than California.
(d) When the nonprofit corporation or trust described in
subdivision (c) has received distributions in an amount equal to two
million dollars ($2,000,000), the distribution mandated by
subdivision (c) shall cease.
SEC. 3. Section 19599 of the Business and Professions Code is
amended to read:
19599. An association or fair may offer any form of parimutuel
wagering, as defined by regulations adopted by the board, or as
defined by Chapter 4, Pari-Mutuel Wagering, Model Rules of Racing, as
published by the Association of Racing Commissioners International.
The board may prohibit any form of parimutuel wagering if it
determines that the proposed wagering would compromise the honesty
and integrity of racing in the state. Each racing association or fair
shall include the types of conventional exotic and other wagering it
proposes to offer on its application to conduct a horse racing
meeting.
