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AB-771 Horse racing: charity days.(2003-2004)

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AB771:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Assembly Bill
No. 771

Introduced  by  Assembly Member Wyland

February 19, 2003

An act to amend Section 19556 of the Business and Professions Code, relating to horse racing.


LEGISLATIVE COUNSEL'S DIGEST


AB 771, as introduced, Wyland. Horse racing: charity days.
Existing law requires each licensed racing association to designate a certain number of racing days to be conducted as charity days for the purpose of the distribution of the net proceeds therefrom to beneficiaries. Existing law also requires that beneficiaries of these proceeds be exempt or entitled to exemption from state and federal income taxes, involved in specified beneficial activities, and approved by the California Horse Racing Board. Existing law requires that at least 20% of the distribution from charity day racing go to charities associated with the horse racing industry, and provides for other, more specific distributions for some, but not all of the balance of this distribution.
This bill would require that 20% of the distribution from charity day racing go to a nonprofit corporation that cares for retired race horses. It would also require the board to maintain a list of these charities, and adopt regulations to ensure the proper expenditure of this money. The bill would reduce the minimum amount required to go to charities associated with the horse racing industry that are not further specified in these provisions to 10% of the distribution.
This bill would also make nonsubstantive changes in the organization of these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 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 the 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 20 percent of the distribution shall be made to charities associated with the horse racing industry. In addition to this 20 percent of the distribution, another 5 These funds shall be distributed as follows:
(1) Five percent of the distribution shall be paid to a welfare fund described in subdivision (b) of Section 19641 and another 5 19641.
(2) Five 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

(3) Twenty percent of the distribution shall be paid to a nonprofit corporation that cares for retired race horses. The board shall maintain a list of charities that are nonprofit corporations in good standing with the State of California, whose aim is to provide for retired racehorses. The board shall adopt regulations to assure that this funding is spent to ensure that retired race horses receive proper care.
(4) Twenty 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 which has as its sole purpose the accumulation of endowment funds, the income on which shall be distributed to qualified disabled jockeys. jockeys, subject to the following:

(2)

(A) To receive a distribution under this subdivision paragraph, a 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)

(B) The nonprofit corporation or trust shall, in an amount proportional to the contributions received pursuant to this subdivision paragraph as a percentage of the total contributions received by the corporation or trust, give preference in assisting qualified disabled jockeys to the following:

(A)

(i) Jockeys who were disabled while participating in the racing or training of horses at licensed racing associations or approved training facilities in California.

(B)

(ii) Jockeys licensed by the board who were disabled while participating in the racing or training of horses in a state other than California.

(d)

(C) 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) this paragraph shall cease.
(5) In addition to all of the above, at least 10 percent of the distribution shall be made to charities associated with the horse racing industry.
(c) 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.