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AB-1508 Horse racing: advance deposit wagering.(2017-2018)



Current Version: 03/28/17 - Amended Assembly

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AB1508:v98#DOCUMENT

Amended  IN  Assembly  March 28, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 1508

Introduced by Assembly Member Chau
(Coauthor: Senator Hernandez)

February 17, 2017

An act to amend Section 19610.3 of add Section 19605.5 to the Business and Professions Code, relating to horse racing.


LEGISLATIVE COUNSEL'S DIGEST


AB 1508, as amended, Chau. Horse racing: parimutuel wagers. advance deposit wagering.
The Horse Racing Law authorizes advance deposit wagering to be conducted, with the approval of the California Horse Racing Board. That law requires the board to develop and adopt rules to license and regulate all phases of operation of advance deposit wagering for advance deposit wagering providers operating in California and authorizes a racing association, a fair, a satellite wagering facility, or a minisatellite wagering facility to enter into an agreement with an advance deposit wagering provider to accept and facilitate the placement of any wager at its facility that a California resident could make through that advance deposit wagering provider.
The Horse Racing Law also authorizes every association that conducts a racing meeting to elect permanently to deduct an additional amount up to 0.33 of 1% from the total parimutuel wagers placed within its inclosure and any association that conducts a racing meeting or any fair that operates a satellite wagering facility to elect to deduct an additional amount of 0.33 of 1% from the total parimutuel wagers placed within its inclosure or at its satellite wagering facility. That law provides that the amounts deducted pursuant to these provisions be retained by the association or fair for the payment of possessory interest taxes, if any, assessed against the organization that operates the audiovisual signal system, the racing association, or fair, and after payment of these taxes be distributed to the city, or to the city or county, in which the racing meeting or wagering is conducted.
This bill would require the California Horse Racing Board to review the payments made to a city pursuant to the above-described provisions to ensure that the additional amounts paid to a city based on 0.33 of 1 percent from the total parimutuel wagers and 0.33 of the 1 percent of the total amount handled by each satellite wagering facility include the total amount that was waged by advance deposit wagers at the racetrack. The bill would require the board to determine whether the total amount paid to a city included compensation from advance deposit wagers. The bill would also require the board to release its findings at a publicly noticed hearing and make its findings available to the public on its Internet Web site.

Existing law permits, among other things, the deduction of 33100 of 1% of the total parimutuel wagers by an association or fair that conducts a racing meeting, as specified. If deducted, existing law provides that the funds be used to pay possessory interest taxes, if any, on the racing association or fair. Under existing law, any remaining funds may be used to pay the city or county in which the fair meeting was conducted, at the option of the fair or association, in lieu of the imposition of any license or excise tax or fee on the racing association or any racing patron, if a city or county agrees by ordinance to this arrangement.

This bill would make nonsubstantive changes to these provisions.

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

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


SECTION 1.

 Section 19605.5 is added to the Business and Professions Code, to read:

19605.5.
 (a) The board shall review the payments made to a city pursuant to Sections 19610.3 and 19610.4 to ensure that the additional amounts paid to a city based on 0.33 of 1 percent from the total parimutuel wagers and 0.33 of the 1 percent of the total amount handled by each satellite wagering facility include the total amount that was waged by advance deposit wagers at the racetrack. The board shall determine whether the total amount paid to a city included compensation from advance deposit wagers.
(b) The board shall release its findings at a publicly noticed hearing and make its findings available to the public on its Internet Web site.

SECTION 1.Section 19610.3 of the Business and Professions Code is amended to read:
19610.3.

(a)In addition to the amounts required or allowed to be deducted from the parimutuel pools as provided by this chapter, and except as otherwise provided in this section, every association that conducts a racing meeting may elect permanently to deduct an additional amount up to 0.33 of 1 percent from the total parimutuel wagers placed within its inclosure. This election is not available to the California Exposition and State Fair or to a county or district agricultural association fair unless, before January 1, 1984, the city or county in which the fair meeting was being conducted levied a license fee or excise tax pursuant to Section 19495 or imposed an admission tax on track patrons.

(b)The amounts deducted pursuant to this section shall be retained by the association or fair for the payment of possessory interest taxes, if any, assessed against the organization described in Section 19608.2, the racing association, or fair, and after payment of these taxes shall be distributed to the city in which the racing meeting is conducted or, if the meeting is conducted outside the limits of any city, to the county in which the racing meeting is conducted. If a city or county has elected by ordinance to receive a distribution from a racing association under this section, it shall not at any time thereafter assess or collect, with respect to an event conducted by that racing association, or an event conducted by or by contract with that association or fair, any license or excise tax or fee, including, but not limited to, any admission, parking, or business tax, or any tax or fee levied solely upon the racing association conducting a racing meeting or any racing patron, participant, service-supplier, promoter, or vendor thereof. Further, a city or county electing to receive a distribution under this section shall continue to provide ordinary and traditional municipal services, such as police services and traffic control, in connection with racing meetings. “Ordinary and traditional services,” as used in this section, means those services provided by the city or county at no charge to the racing association in 1981. If an eligible city or county does not elect to receive a distribution under this section, the amount remaining after payment of possessory interest taxes, if any, as provided in this section shall be paid to the state as an additional license fee.