Horse RacingCharity Racing Days
Section § 19550
This California law outlines requirements for licensed horse racing associations regarding charity racing days. If an association races for 14 weeks or less, they must dedicate 3 days to charity. If they race more than 14 weeks, 5 charity days are required. The money made from these charity races goes to beneficiaries via a distributing agent. However, the amount given cannot exceed two-tenths of 1% of the total earnings from live races at the meeting. The law does not apply to fairs or associations racing 3 weeks or less.
Section § 19551
Section § 19552
This law states that any officials who are required by law to work at horse racing events must also work on charity racing days, performing the same duties and receiving the same pay.
Section § 19553
This law talks about special charity race days. It states that any money made from these events, like ticket sales or wagers, counts as income from the charity event. The only expenses that can be subtracted from this income are those directly related to running the race on that charity day. Other costs, like general business expenses, can't be deducted. After these specific expenses are deducted, what's left—called the charity days' net proceeds—must go to an approved agent to be distributed as intended. The race organizers cannot profit from these charity events.
Section § 19554
This section outlines the rules for selecting and governing distributing agents that handle charity distributions associated with race meetings. These agents must be nonprofit entities approved by the racing meeting's license holder and the board. Distributing agents have to meet certain legal and tax conditions to ensure they are tax-exempt. They must have at least five trustees or directors, none of whom can be connected to the race event organizers. Each board member must reside in the state and be associated with civic, religious, or charity organizations. Distributing agents must also establish bylaws, elect board members to fill vacancies, and hold at least one meeting annually. In some cases, with board approval, a racing association with uncompensated trustees can serve as its own distributing agent, provided certain financial conditions are met.
Section § 19555
When a licensee holds charity racing events, they must give the profits to a specific distributing agent quickly after the events. This agent must then give at least 90% of those profits to beneficiaries within a year after the event ends. Any leftover funds should be distributed as soon as possible after that year.
Section § 19556
This law describes how funds should be distributed to various beneficiaries from a distributing agent. Eligible beneficiaries are nonprofit organizations with charitable purposes related to areas like education and veterans' work, and they must be approved by the board. At least 30% of distributions must go to charities linked to the horse racing industry, including specific allocations to welfare funds for alcohol or substance abuse aid. Additionally, 20% must support a nonprofit dedicated to disabled jockeys. This nonprofit must help jockeys injured in horse racing, with preference for those hurt in California or licensed by the board elsewhere, and must provide annual reports to the board.
Section § 19556.5
This law requires a board to choose a nonprofit organization focused on making horse racing safer, to be eligible for certain funds.
Section § 19557
If a charity event is held, the organizer must tell the board who will receive the proceeds before handing out the money. If the board doesn't say 'no' within 60 days, it's assumed they agree with the choice.