Bill Text: CA AB650 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Taxicab transportation services.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2016-09-28 - Vetoed by Governor. [AB650 Detail]

Download: California-2015-AB650-Amended.html
BILL NUMBER: AB 650	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 4, 2015

INTRODUCED BY   Assembly Member Perea

                        FEBRUARY 24, 2015

   An act to amend  Section 19596.2   Sections
19607.2 and 19607.3  of the Business and Professions Code,
relating to horse  racing.   racing, and
declaring the urgency thereof, to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 650, as amended, Perea.  Horse racing: out-of-state
thoroughbred races: Blue Grass Stakes.   Horse racing:
thoroughbred racing: northern zone: auxiliary offsite stabling,
training, and vanning.  
   (1) The Horse Racing Law requires, when satellite wagering is
conducted on thoroughbred races at associations or fairs in the
northern zone, that an amount not to exceed 1.25% of the total amount
handled by all of those satellite wagering facilities be deducted
from the funds otherwise allocated for distribution as commissions,
purses, and owners' premiums and instead distributed to an
organization formed and operated by thoroughbred racing associations,
fairs conducting thoroughbred racing, and the organization
representing thoroughbred horsemen, to administer a fund to provide
reimbursement for offsite stabling at California Horse Racing
Board-approved auxiliary training facilities for additional stalls
beyond the number of usable stalls the association or fair is
required to make available and maintain, and for the vanning of
starters from these additional stalls on racing days for thoroughbred
horses.  
   This bill would increase the amount that is required to be
deducted to an amount not to exceed 2% and would provide that this
amount, if adjusted by the board, may be a different percentage of
the handle for different associations and fairs but only if all the
associations and fairs agree to the differing percentages. The bill
would establish an auxiliary offsite stabling and training facility
and vanning program for thoroughbred races in the northern zone. The
bill would revise and recast the provisions governing the
organization formed and operated to administer the fund to include,
among other things, a 50-50 percentage allocation of specified voting
interests on the board of the organization, the use of funds to pay
the organization's expenses and compensate the provider of a
board-approved auxiliary facility for offsite stabling and training
of thoroughbred horses in the northern zone, and the requirement that
the organization submit its proposed financial and operational plans
for the upcoming calendar year to the board for review no later than
November 1 of the preceding year. 
   The bill would also require that the funds be used to cover all or
part of the cost of vanning thoroughbred horses in the northern zone
from a board-approved auxiliary offsite stabling and training
facility and would authorize the organization to enter into multiyear
contracts for auxiliary facilities in the northern zone subject to
specified conditions. The bill would authorize the organization to
use the funds to pay back commissions, purses, and owners' premiums
to the extent that the deductions made exceed in any year the amount
of the funds necessary to achieve the objectives of the organization.
The bill would also authorize a thoroughbred racing association or
fair in the northern zone to opt out of the auxiliary offsite
stabling and training facility and vanning program, as specified. The
bill would provide that the board shall reserve the right to
adjudicate any disputes that arise regarding costs, or other matters,
relating to the furnishing of offsite stabling, training, or
vanning, as specified.  
   (2) By expanding the provisions of the Horse Racing Law, a
violation of which is a crime, the bill would create new crimes and
would thereby impose a state-mandated local program.  
   (3) 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.  
   (4) This bill would declare that it is to take effect immediately
as an urgency statute.  
   The Horse Racing 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 that law, the total number of thoroughbred races
imported by associations or fairs on a statewide basis under these
provisions are required to not exceed 50 per day on days when live
thoroughbred or fair racing is being conducted in the state, with the
exception of prescribed races, including 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, the Apple Blossom Handicap, or the Haskell
Invitational.  
   This bill would exempt from the 50 imported race per day
limitation, races imported that are part of the race card of the Blue
Grass Stakes. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


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

   SECTION 1.    Section 19607.2 of the  
Business and Professions Code   is amended to read: 
   19607.2.  Notwithstanding Section 19605.8, when satellite wagering
is conducted on thoroughbred races at associations or fairs in the
northern zone, an amount not to exceed  1.25   2
 percent of the total amount handled by all of those satellite
wagering facilities, shall be deducted from the funds otherwise
allocated for distribution as commissions, purses, and owners'
premiums and instead distributed to an organization formed and
operated by thoroughbred racing associations, fairs conducting
thoroughbred racing, and the organization representing thoroughbred
 horsemen, with each party having meaningful representation
  horsemen and horsewomen, for use pursuant to Section
19607.3. A vote of the organization representing thoroughbred
horsemen and horsewomen shall constitute 50 percent of all voting
interests  on the board of the  organization, to
administer, pursuant   organization formed and operated
 to  supervision of   administer  the
 board, a fund to provide reimbursement for offsite stabling
at board-approved auxiliary training facilities of  
fund. The other 50 percent of all voting interests shall be allocated
among thoroughbred  racing associations  or 
 and  fairs  for additional stalls beyond the number
of usable stalls the association is required to make available and
maintain pursuant to Section 19535,   conducting
thoroughbred racing in a manner that provides meaningful
representation on the governing board of the organization  for
 starter fees   thoroughbred racing associations
 and  for the vanning of starters from these additional
stalls on race days for thoroughbred horses.   fairs
conducting thoroughbred racing, except as provided in subdivision (h)
of Section 19607.3. 
   SEC. 2.    Section 19607.3 of the   Business
and Professions Code   is amended to read: 
   19607.3.  (a)  The   Notwithstanding Section
19535, the  funds distributed to the organization formed
pursuant to Section 19607.2 shall be used to  reimburse
racing associations that are operating offsite stabling providing
additional stalls   pay the organization's expenses and
compensate the provider of a board-approved auxiliary offsite
facility for stabling, training, and vanning of thoroughbred horses
in the northern zone. The organization administering the auxiliary
offsite stabling and  training facility and vanning program
shall submit its proposed financial and operational plans  for
the  incremental increase in operating costs directly
resulting from providing the stabling.   upcoming
calendar year to the board for review no later than November 1 of the
preceding year.  Neither the organization administering the
 auxiliary  offsite stabling and  training facility and
 vanning program nor any of the entities forming and operating
the organization, except the entity operating the  auxiliary
 offsite stabling  and training  facility where the
injury occurred, shall be liable for any injury to any jockey,
exercise person, owner, trainer, or any employee or agent thereof, or
any horse occurring at any  auxiliary  offsite stabling
 and training  facility.
   (b) The funds shall also be used to  reimburse horsemen
for   cover all or part of  the cost of vanning
 starting  thoroughbred  horses from a
board-approved auxiliary  training facility operated by a
racing association or fair   offsite stabling and
training facility  to the track  conducting the racing
meeting. Horsemen may use carriers of their own choice, except that
  to start in a thoroughbred race at a thoroughbred or
fair racing meeting in  the  amount  
northern zone. The organization shall determine the extent  of
 reimbursement to horsemen is limited to the amount 
 and manner in which compensation will be paid for thoroughbred
horses  that  the organization determines is generally
charged by carriers for vanning   are vanned  from
the auxiliary  training  facility to the track 
or the fair  conducting the  thoroughbred or fair 
racing meeting. Neither the organization administering the 
auxiliary  offsite stabling  and training facility  and
vanning program nor any of the entities forming and operating the
organization, except  the   an  entity
actually engaged in vanning horses, is liable for any injury
occurring to any individual or horse during vanning from an offsite
stabling  and training  facility.
   (c) The  training   auxiliary offsite
stabling and training  facilities and  the  amenities
provided for offsite stabling and training purposes shall be 
substantially  equivalent in character to those provided
 during   by the thoroughbred  racing
 meetings of   association or fair conducting
 the  association.   racing meeting. 

   (d) In order to ensure the long-term availability of facilities
for offsite stabling and training, the organization may enter into
multiyear contracts for auxiliary facilities in the northern zone.
The organization shall submit to the board for its approval the
multiyear contracts that it enters into with providers of auxiliary
facilities for offsite stabling and training. Contracts not
disapproved by the board within 60 days of submittal to the board
shall be deemed to have been approved by the board.  
   (e) At the request of the board, the organization shall submit a
report detailing all of its receipts and expenditures over the prior
two fiscal years and, upon request of any party within the
organization, those receipts and expenditures shall be audited by the
board.  
   (d) Upon the request of any party within the organization, the
board shall adjudicate any dispute regarding costs, or other matters
relating 
    (f)     In addition  to the 
furnishing   uses  of  offsite stabling or
vanning. The board may, if necessary, appoint an independent auditor
to assist   the funds described  in  the
resolution of disputes. The auditor shall be reimbursed from the
  subdivisions (a) and (b), the organization may use the
 funds  for both of the  organization.
  following:  
   (e) The organization may maintain 
    (1)     Maintain  a reserve fund of up
to 10 percent of the total estimated annual vanning and 
auxiliary offsite  stabling  and training facili 
ty  costs. In addition to the reserve fund, if the funds
generated for  the auxiliary  offsite stabling and 
training facilities and  vanning are insufficient to fully
 reimburse racing associations or fairs for expenses incurred
during   cover  the  offsite vanning and
stabling program,   expenses incurred,  the
organization  may   may, in the future, 
accumulate sufficient funds to fully  reimburse 
 cover  those  associations or fairs for those
 expenses. 
   (2) Pay back commissions, purses, and owners' premiums to the
extent the deductions made pursuant to Section 19607.2 exceed in any
year the amount of funds necessary to achieve the objectives of the
organization.  
   (f) 
    (g)  The amount initially deducted and distributed to
the organization  shall be 0.5 percent of the total amount
handled by satellite wagering facilities authorized under this
article in the northern zone on thoroughbred racing, but that
allocation may   pursuant to Section 19607.2 may, at the
request of the organization,  be adjusted by the board, in its
discretion. However, the adjusted amount may not exceed  1.25
  2  percent of the total amount handled by
satellite wagering  facilities,   facilities.
The amount deducted and distributed  to  pay expenses
  the organization as adjusted by the board may be a
different percentage of the handle for different associations 
and  maintain   fairs conducting thoroughbred
racing meetings in  the  reserve fund for  
northern zone, but only if all  the  continuing support
of   associations and fairs agree to  the 
program.   differing percentages.  
   (h) A thoroughbred racing association or fair in the northern zone
that is able to provide the minimum number of stalls required by its
racing meeting license without the use of any auxiliary offsite
stabling and training facility and vanning program may opt out of
that program, in which case the deduction described in Section
19607.2 shall not apply during the live racing meeting conducted by
the association or fair until such time as the association or fair
opts back into the auxiliary offsite stabling and training facility
and vanning program. Any thoroughbred racing association or fair in
the northern zone that opts out of the auxiliary offsite stabling and
training facility and vanning program shall not have any voting
interest therein until such time as the association or fair opts back
into the program. The organization shall establish reasonable
procedures and timelines for the giving of notice to the organization
by a thoroughbred racing association or fair that elects to opt out
of the auxiliary offsite stabling and training facility and vanning
program.  
   (i) The board shall reserve the right to adjudicate any disputes
that arise regarding costs, or other matters, relating to the
furnishing of offsite stabling, training, or vanning. Notwithstanding
any other law, the board shall maintain all powers necessary and
proper to ensure that offsite stabling, training, and vanning, as
provided for in this article, is conducted in a manner that protects
the public and serves the best interests of horse racing. 
   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. 
   SEC.   4   .    This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:  
   At current levels, there are insufficient funds to maintain an
auxiliary offsite stabling and training facility and vanning program
at racing meetings of thoroughbred horses conducted by thoroughbred
racing associations or fairs. Therefore, in order to raise sufficient
funds before the winter thoroughbred horse racing season begins, it
is necessary that this act take effect immediately.  
  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 50 per day on days when live thoroughbred or fair racing
is being conducted in the state. The limitation of 50 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, the Apple
Blossom Handicap, the Blue Grass Stakes, 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. 
                              
feedback