BILL NUMBER: SB 44	INTRODUCED
	BILL TEXT


INTRODUCED BY  Senator Maddy

                        DECEMBER 2, 1996

   An act to amend Section 19602 of the Business and Professions
Code, relating to horseracing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 44, as introduced, Maddy.  Horseracing.
   Existing law permits any horseracing association in this state to
authorize  betting systems located outside of this state to accept
wagers on races conducted or disseminated by that association and to
transmit live audiovisual signals of the races and their results to
those betting systems.
   Existing law, with the permission of the Horse Racing Board, also
authorizes wagers to be accepted by betting systems located outside
of this state to be included in the parimutuel pool of the
association that conducts the racing meeting in this state.
   This bill would prohibit wagers accepted by betting systems
located in a state that is contiguous to this state, and in which no
live thoroughbred racing is conducted, from being included in the
parimutuel pool of the association that conducts the live racing in
this state.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  no.
State-mandated local program:  no.


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


  SECTION 1.  Section 19602 of the Business and Professions Code is
amended to read:
   19602.  (a) Notwithstanding any other provision of law, any racing
association in this state may authorize betting systems located
outside of this state to accept wagers on a race or races conducted
or disseminated by that association and may transmit live audiovisual
signals of the race or races and their results to those betting
systems, except that any authorization is subject to the consent of
the host association and applicable federal laws, including, but not
limited to, Chapter 57 (commencing with Section 3001) of Title 15 of
the United States Code.
   (b) (1) Except as provided in paragraph (2), any racing
association described in subdivision (a), when it authorizes betting
systems located outside of this state to accept wagers on a race,
shall pay a license fee to the state in an amount equal to 8 percent
of the total amount received by the association from the out-of-state
betting system.  In addition, with respect to thoroughbred racing
only, 3 percent of the amount remaining after the payment of the
license fee shall be deposited with the official registering agency
pursuant to subdivision (a) of Section 19617.2, and shall thereafter
be distributed in accordance with subdivisions (b), (c), and (d) of
Section 19617.2.  The remaining amount received by the association
shall be distributed to the association that conducts the racing
meeting and to horsemen participating in that racing meeting as
follows:  50 percent to the association as commissions, and 50
percent to the horsemen as purses.  All rents, costs, and fees shall
be deducted pursuant to a contract between the association that
conducts the racing meeting and the horsemen participating in the
racing meeting.  Notwithstanding any other provision of law, racing
associations may form a partnership, joint venture, or any other
affiliation in order to negotiate terms and conditions of agreements
with out-of-state betting systems.
   (2) A thoroughbred association that hosts the series of races
known as the "Breeder's Cup" shall not be required to pay to the
state the license fees required pursuant to paragraph (1).  Amounts
received by the association from out-of-state betting systems as
wagers on Breeder's Cup races shall be distributed as follows:  50
percent as commissions to the association that conducts the racing
meeting, and 50 percent as purses to the horsemen participating in
the meeting.
   (c)  With   (1) Except as provided in
paragraph (2), with  the permission of the board, wagers
accepted by betting systems located outside of this state may be, but
are not required to be, included in the parimutuel pool of the
association that conducts the racing meeting in this state.  If the
wagers accepted by betting systems located outside of this state are
included in the parimutuel pool of the association that conducts the
racing meeting in this state, the betting system located outside of
this state shall, if permissible under applicable law, deduct from
the total amount handled in each conventional and exotic parimutuel
pool the same total percentages deducted pursuant to Article 9.5
(commencing with Section 19610) by the association that conducts the
racing meeting in this state.  If the laws of the jurisdiction in
which the betting system is located do not permit the betting system
to deduct the same percentages as are deducted by the association
that conducts the racing, the board may, nonetheless, permit the
inclusion of those out-of-state wagers in the association's
parimutuel pool if the board determines it to be in the public
interest of this state to do so.  
   (2) Notwithstanding any other provision of the law, wagers
accepted by betting systems located in a state that is contiguous to
this state, and in which no live thoroughbred racing is conducted,
shall not be included in the parimutuel pool of the association that
conducts the live racing in this state. 
   (d) If wagers accepted by an association conducting racing within
the state and wagers accepted by a betting system located outside of
the state are combined in one parimutuel pool and the association and
the betting system both deduct the same total percentages as set
forth in  paragraph (1) of  subdivision (c), the breakage
shall be allocated between the association and the betting system on
the basis of a calculation for distribution approved by the board.
   (e) If wagers accepted by an association conducting racing within
the state are combined in one parimutuel pool with wagers accepted by
a betting system located outside the state and the association and
the betting system deduct different percentages from the amount
handled in the parimutuel pool, the precise calculation and
distribution of payments on winning tickets and breakage between the
association and the betting system shall be on the basis of a
calculation for distribution approved by the board.
   (f) The board shall report to the Department of Finance whenever
it approves a calculation for distribution pursuant to subdivision
(d) or (e) and the projected impact of that calculation, if any, on
state revenues.
   (g) Breakage allocated pursuant to this section to an association
conducting racing within this state shall be distributed in the same
manner as would be breakage arising from wagers at the association in
the absence of a combined parimutuel pool.  This section does not
apply to the disposition of breakage allocated to the betting system
located outside of the state.
   (h) If wagers accepted by a betting system located outside of this
state are included in the parimutuel pool of an association
conducting racing in this state, funds in the parimutuel pool
attributable to unclaimed tickets relating to wagers accepted by the
association conducting racing within the state shall be distributed
in the same manner as unclaimed tickets relating to wagers accepted
by that association in the absence of a combined parimutuel pool.
Funds in the parimutuel pool attributable to unclaimed tickets
related to wagers accepted by the betting system located outside of
this state shall be allocated to that betting system, and this
section does not otherwise apply to the disposition of those funds at
that location outside of the state.