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AB-1174 Horse racing: minisatellite wagering facilities.(2023-2024)



Current Version: 02/16/23 - Introduced

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AB1174:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1174

Introduced by Assembly Member Joe Patterson

February 16, 2023

An act to amend Section 19605.25 of the Business and Professions Code, relating to horse racing.


LEGISLATIVE COUNSEL'S DIGEST


AB 1174, as introduced, Joe Patterson. Horse racing: minisatellite wagering facilities.
Existing law authorizes the California Horse Racing Board to approve minisatellite wagering sites, as defined, under specified conditions. Existing law requires an organization formed by associations or fairs to operate the audiovisual signal system to execute a specified agreement with the association conducting a racing meeting and the minisatellite wagering facility that specifies, among other things, the components of its racing program, including live, out-of-zone, out-of-state, and out-of-country races, that an association or fair will make available to the site.
This bill would explicitly require the agreement to specify which live in-state races would be provided by the association or fair to the site. The bill would also make nonsubstantive changes, including deleting obsolete language.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   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, live in-state, 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 and horsewomen in the form of purses, shall be subject to the approval of the horsemen’s and horsewomen’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 persons 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 minisatellite wagering 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.