19606.1.
(a) Except as otherwise provided in Section 19606.3, all revenues distributed to the state as license fees from satellite wagering facilities All revenues paid to the credit of the Fair and Exposition Fund, as specified in Section 19620.1, shall be deposited in a separate account in the fund and, notwithstanding, the Special Trust Fund for the Economic Stabilization of Fairs and Horse Racing, formerly known as the Satellite Wagering Account. Notwithstanding
Section 13340 of the Government Code, funds in the Special Trust Fund for the Economic Stabilization of Fairs and Horse Racing are continuously appropriated from that account fund to the Department of Food and Agriculture, for allocation by the Secretary of Food and Agriculture, at his or her discretion, in the priority listed and for the purposes set forth in paragraphs (1) to (6), inclusive. The concurrence of the Director of Finance shall be required for allocations pursuant to paragraphs (1) and (2). Allocations pursuant to paragraphs (3) to (6), inclusive, shall be made with the concurrence of the
Joint Committee on Fairs Allocation and Classification.(1) For the repayment of the principal of, interest on, and costs of issuance of, and as security, including any coverage factor, pledged to the payment of, bonds issued or to be issued by a joint powers agency or other debt service or expense, including repayment of any advances made or security required by any provider of credit enhancement or liquidity for those bonds or other indebtedness or expenses of maintaining that credit enhancement or liquidity, incurred for the purpose of constructing or acquiring improvements at a fair’s racetrack inclosure, satellite wagering facilities at fairs, health and safety repair projects, or handicapped access compliance projects at fairs or for the purpose of refunding bonds or other indebtedness incurred for those purposes. As used in this paragraph, “coverage factor” means revenues in excess of the amount necessary to pay debt service on the bonds or other indebtedness, up to an
amount equal to 100 percent more than the amount of that debt service, which a joint powers agency, pursuant to the resolution or indenture under which the bonds or other indebtedness are or will be issued, pledges as additional security for the payment of that debt service or is required to have or maintain as a condition to the issuance of additional bonds or other indebtedness. Notwithstanding any other provision of law, the department may also commit any funds available for allocation under Article 10 (commencing with Section 19620) to the repayment of debt service on the bonds or other indebtedness to complete projects funded under this paragraph in the priority described in this paragraph ., in accordance with the following:
(A) Fifty-eight percent of those proceeds shall be used for the purpose of constructing or acquiring improvements primarily for thoroughbred racing at one fair’s racetrack inclosure in the central zone.
(B) Twenty-six percent of those proceeds shall be used for the purpose of constructing or acquiring improvements primarily for thoroughbred racing at one fair’s racetrack inclosure in the northern zone.
(C) Four percent of those proceeds shall be used for the purpose of constructing or acquiring improvements primarily for harness racing at one fair’s racetrack inclosure in the northern zone.
(D) Two percent of those proceeds shall be used for the purpose of constructing or acquiring improvements primarily for thoroughbred racing at one fair’s racetrack inclosure in the southern zone.
(E) Ten percent of those proceeds shall be used for the purpose of funding health and safety related projects at fairs pursuant to paragraph (3).
(2) For payment to the State Race Track Leasing Commission to be pledged for the repayment of debt necessary to construct a racetrack grandstand at the 22nd District Agricultural Association fairgrounds. This payment shall be made only if the Secretary of Food and Agriculture determines, annually, that all other pledged revenues have been applied to the repayment of that debt and have been determined by the secretary to be inadequate for that purpose.
(3) For the payment of expenses incurred in establishing and operating satellite wagering facilities at fairs
health and safety repair projects at fairs, including fire and life safety improvement projects, regulatory compliance projects, and long-term deferred maintenance projects.
(4) For the support of an equipment and operating fund to produce and display a consolidated California signal at satellite wagering facilities and fairs supplementing purses at fair meetings to achieve the purposes of Section 19606.4. The amount allocated pursuant to this paragraph shall not exceed one million one hundred thousand dollars ($1,100,000) in any calendar year.
(5) For health and safety repair projects at fairs, which includes fire and life safety improvement projects, California Code of Regulations compliance projects, and long-term deferred maintenance projects
the payment of expenses incurred in establishing and operating satellite wagering facilities at fairs or wagering outlets at locations other than fairs that generate revenue for the network of fairs.
(6) For the development and payment of revenue generating projects, the establishment of pilot projects to restructure the current fair system, and for projects realizing a cost savings for more efficient utilization of existing fair resources.
(b) The Secretary of Food and Agriculture may not make an allocation for purposes of paragraphs (2) to (6), inclusive, of subdivision (a) until the payments required in any fiscal year pursuant to paragraph (1) of subdivision (a) have been funded.
(c) Pursuant to subdivision (a), the Joint Committee on Fairs Allocation and Classification shall review and concur, or not concur, with the secretary’s determination of the allocations to be made pursuant
to paragraphs (3) to (6), inclusive, of subdivision (a) in total, and the committee may not add to, or delete projects or line items from, the proposed allocations.
(d) Approval of the Joint Committee on Fairs Allocation and Classification is deemed complete when one of the following conditions is met:
(1) The annual budget act is enacted.
(2) If the secretary’s recommendations are received by the Joint Committee on Fairs Allocation and Classification after the enactment of the annual budget act, the recommendations shall be deemed approved 30 days after they are received unless they are rejected by the committee.
(e) If the Joint Committee on Fairs Allocation and Classification does not concur with the secretary’s recommendations, the secretary may submit another set of recommendations to the committee pursuant to this section.
(f) The payments required in any fiscal
year for the purposes of paragraphs (1) to (3), inclusive, and (2) of subdivision (a) shall be made before any transfer is made pursuant to subdivision (g).
(g) Except as otherwise provided in subdivision (f), when the revenues deposited in the separate account exceed eleven million dollars ($11,000,000)
fifteen million dollars ($15,000,000) in any fiscal year, 98 percent of the amount in excess of eleven million dollars ($11,000,000)
fifteen million dollars ($15,000,000) shall be transferred to the Fair and Exposition Fund for allocation in accordance with Sections 19620.1 and 19630.
(h) All of the costs of administering the accounts created by subdivision (a) and Section 19606.3 shall be charged to the respective accounts.