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AB-1096 Horse racing: minisatellite wagering facilities.(2017-2018)

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Date Published: 06/27/2017 09:00 PM
AB1096:v97#DOCUMENT

Amended  IN  Assembly  June 27, 2017
Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1096


Introduced by Assembly Member Bonta Gray

February 17, 2017


An act to add Chapter 22 (commencing with Section 26212) to Division 10 of the Business and Professions Code, relating to marijuana. An act to amend Section 19605.25 of the Business and Professions Code, relating to horse racing.


LEGISLATIVE COUNSEL'S DIGEST


AB 1096, as amended, Bonta Gray. Marijuana: agreements with tribal governments. Horse racing: minisatellite wagering facilities.
Existing law authorizes the California Horse Racing Board to approve an additional 15 minisatellite wagering sites in each zone under certain conditions, including that no site is within 20 miles of a racetrack, a satellite wagering facility, or a tribal casino that has a satellite wagering facility. Existing law provides that if the proposed facility is within 20 miles of one of the above-referenced satellite facilities, then the consent of each facility within a 20-mile radius must be given before the proposed facility may be approved by the board.
Existing law provided that until January 1, 2013, if the proposed minisatellite wagering site is in the northern zone in a fair district where the fair has operated a satellite wagering facility for the previous 5 years, the approval of the fair must be obtained even if the proposed location is more than 20 miles from the existing satellite wagering facility operated by the fair.
This bill would delete this obsolete provision.

The Compassionate Use Act of 1996, an initiative measure enacted by the approval of Proposition 215 at the November 5, 1996, statewide general election, allows the use of marijuana for medical purposes. The Medical Marijuana Regulation and Safety Act, enacted by the Legislature, provides for the state licensure and regulation of commercial medical cannabis activities by the Department of Consumer Affairs, the Department of Food and Agriculture, or the State Department of Public Health, as specified.

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative statute enacted by the approval of Proposition 64 at the November 8, 2016, statewide general election, authorizes a person 21 years of age or older to possess and use specified amounts of marijuana. AUMA also authorizes a person who obtains a state license under AUMA to engage in commercial marijuana activity. AUMA generally divides responsibility for the state licensure and regulation of commercial marijuana activity among the Bureau of Marijuana Control within the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health, and requires those state licensing authorities to begin issuing licenses by January 1, 2018. AUMA authorizes the Legislature to amend its provisions with a 23 vote of each house of the Legislature, to further its purposes and intent. AUMA also authorizes the Legislature by a majority vote to amend certain provisions of the act to implement specified substantive provisions, provided that the amendments are consistent with and further the purposes and intent of the act.

Existing federal law, the doctrine of tribal immunity, and the Indian Commerce Clause preclude the state, with certain exceptions, from asserting regulatory authority over the activities of federally recognized Indian tribes on their own lands.

This bill would authorize the Governor to enter into agreements concerning medical and recreational marijuana with a federally recognized sovereign Indian tribe, as defined. The bill would authorize these agreements to include provisions regulating the activities of a licensee operating on and off the land of a federally recognized sovereign Indian tribe. The bill would require these agreements to include a provision requiring an individual conducting marijuana business activity on tribal land to meet the state and local licensure requirements, as specified, that are required of a licensee operating within the jurisdiction of the local government in which the tribal land is located. The bill would authorize the Governor to delegate the authority to negotiate agreements to the Director of the Bureau of Marijuana Control.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: NO  

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


SECTION 1.

 Section 19605.25 of the Business and Professions Code is amended to read:

19605.25.
 (a) The California Horse Racing Board board may approve an additional 15 minisatellite wagering sites in each zone, if all of the following conditions are met:
(1) No site is within 20 miles of a racetrack, a satellite wagering facility, or a tribal casino that has a satellite wagering facility. If the proposed minisatellite wagering facility is within 20 miles of one of the above-referenced satellite facilities, then the consent of each facility within a 20-mile radius must be given before the proposed minisatellite wagering facility may be approved by the board.
(2) An agreement in accordance with subdivision (a) of Section 19605.3 has been executed and approved by the board. In addition to the requirements set forth in that provision, the agreement shall specify which components of its racing program, including live, out-of-zone, out-of-state, and out-of-country races, an association or fair will make available to the site. The terms and condition conditions of the agreement, including all fees payable pursuant to paragraph (3) of that provision, a portion of which may be paid to horsemen in the form of purses, shall be subject to the approval of the horsemen’s organization responsible for negotiating purse agreements with the association or fair.
(3) The site is approved by the board.
(4) The wagers are accepted in an area that is accessible only to those who are at least 21 years of age.
(5) The board has approved the accommodation, equipment used in conducting wagering at the site, communications system, technology, and method used by the site to accept wagers and transmit odds, results, and other data related to wagering.
(b) Parimutuel clerks shall be available to service the self-service tote machines at these locations, and to cash wagering vouchers on a regularly scheduled basis.

(c)Until January 1, 2013, if the proposed minisatellite wagering site is in the northern zone in a fair district where the fair has operated a satellite wagering facility for the previous five years, the approval of the fair must be obtained even if the proposed location is more than 20 miles from the existing satellite wagering facility operated by the fair.

(d)

(c) For purposes of commissions, deductions, and distribution of handle, wagers placed at minisatellite wagering sites shall be treated as if they were placed at satellite wagering facilities authorized under Section 19605, 19605.1, or 19605.2. Section 19608.4 shall apply to minisatellite wagering facilities.

(e)

(d) The written consent of the San Mateo County Fair shall be obtained prior to before the approval of any minisatellite wagering site located within a 20-mile radius of its fairground.

(f)

(e) Minisatellite wagering facilities created pursuant to this section are not eligible for satellite wagering commission distributions pursuant to Section 19604.

(g)

(f) The board, in adopting regulations to implement this section, shall minimize the expense to both the operator of the minisatellite wagering facility and the host racetrack.

(h)

(g) If there are more than 15 applications for minisatellite wagering facilities in any zone, the board shall determine which facilities will generate the largest handle, and give priority to the approval of those facilities. The board shall license a minisatellite wagering facility for up to five years, and then review the operation and the size of the handle, and determine if it is in the best interest of horse racing to relicense the facility or, in the alternative, license another minisatellite wagering facility that might generate a greater handle.

(i)

(h) Except as may be provided in the agreement required pursuant to paragraph (2) of subdivision (a), no association or fair shall be required to make all or part of its racing program available to a minisatellite wagering facility. Notwithstanding subdivision (e) of Section 19608.2, all costs incurred by the organization executing that agreement in excess of the amounts distributable to the organization from wagers placed at the site on that racing program, shall be borne by the minisatellite wagering facility.

SECTION 1.Chapter 22 (commencing with Section 26212) is added to Division 10 of the Business and Professions Code, to read:
22.Agreements with Tribal Governments
26212.

For purposes of this chapter, a “federally recognized sovereign Indian tribe” means an Indian tribe, band, nation, or community wholly or partially located within the geographical boundaries of the State of California that the United States Secretary of the Interior acknowledges to exist as an Indian tribe pursuant to the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. Sec. 479a).

26213.

(a)The Governor may enter into an agreement concerning medical and recreational marijuana with a federally recognized sovereign Indian tribe.

(b)An agreement may include provisions regulating the activities of a licensee pursuant to Section 19328 and pursuant to Section 26050 operating on and off the land of a federally recognized sovereign Indian tribe.

(c)An agreement shall include a provision requiring an individual conducting marijuana business activity on the land of the federally recognized sovereign Indian tribe to meet the applicable state and local licensure requirements prescribed by Chapter 3.5 (commencing with Section 19300) of Division 8 and the applicable state and local licensure requirements prescribed by this division that are required of a licensee operating within the jurisdiction of the local government in which the tribal land is located.

(d)The Governor may delegate the authority to negotiate agreements to the Director of the Bureau of Marijuana Control.