Horse RacingLicense Fees, Commissions, and Purses
Section § 19610
This law states that any organization running a race betting event must take a cut from the total bets made: 15% from standard bets and 16.75% from more complex bets. However, in the case of harness racing, the cut from complex bets goes up to 17.75%. The law specifies that these amounts must be handled according to the rules set out in this chapter.
Section § 19610.1
This law requires any organization that hosts harness racing events and takes a 17.75% cut from exotic parimutuel bets to allocate 1% of those bets to support the California Standardbred Sires Stakes Program. This 1% must be deposited into a specific trust account.
Section § 19610.2
If you're running a horse racing event in California, you need to take 0.1% of all the money bet and split it in a specific way. A third of this deduction goes to the Center for Equine Health to add to its existing funds. The rest goes to UC Davis for equine drug testing. This ensures funds support horse health and safety during races.
Section § 19610.3
This law allows racing associations to take a small extra fee from bets, called parimutuel wagers, but not if they're a state or local fair. The money is meant to help pay certain taxes, and whatever is left can go to the city or county, but only if they agree not to impose any further taxes or fees on the racing association. If the city or county takes the money, they must keep providing their regular services like police and traffic control for the races without charging extra. If they don’t want the money, the remaining amount goes to the state.
Section § 19610.4
This law allows organizations that hold horse racing events or operate satellite betting facilities in California to take an extra small fee from bets to cover property-related taxes. After paying these taxes, they can choose to pass the remaining money to the local city or county where the event is held. If the local government decides to get this money, they can't charge any other special fees or taxes for things like admission or parking. However, they must provide typical city services like police and traffic management during events. If the city or county doesn't choose to get the money, it goes to the state instead.
Section § 19610.6
This law allows the 22nd District Agricultural Association to take an extra 0.33% from betting placed at its satellite wagering site. The money is shared among several local entities: 40% goes to the City of Del Mar and 40% to Solana Beach, each city must decide to receive this money. The rest is used for the San Dieguito River Valley Park; if this authority ends, that share goes to San Diego County. Cities that choose to get these funds can't charge certain taxes on the event and need to provide services like police and traffic control. If a city decides not to take the money, it goes to the state instead.
Section § 19610.8
This law explains how the deductions from betting pools on horse races in California are handled. When places like race tracks or fairs collaborate with horse owners, they can request that the state board set the deduction rate from bets at 10-30%. The state takes 3% as a fee, and if the bet is made somewhere other than the race itself, 8% goes to that location. In quarter horse races, bets are taxed like exotic wagers. For thoroughbred races, 3% goes to a specific agency, with the rest split between race organizers and horse owners. For quarter horse races, the split is decided by mutual agreement between race organizers and horse groups.
Section § 19611
This law outlines how thoroughbred horse racing associations in California must handle the money from bets placed at live races. In the northern zone, 1.3% of this money goes to the state as a licensing fee, while in the central or southern zones, 2% goes to the state. Also, 0.54% of the total handle is set aside for specific agency distribution as per another section of the law. After these deductions, what's left is divided into commissions and purses for the races, with a small additional fee from the purses also going to the registering agency.
Section § 19611.5
This law section allows organizations that host thoroughbred horse races, except for fairs, to deduct up to 3% from specific betting pools to be split equally between commissions and prize money (purses). From the prize money, 0.07% of the total bets will be held by the organization and then managed according to other detailed rules. Additionally, 30 days before the races start, these organizations must inform the governing board about the intended extra deductions, and they can't change this amount without board approval during the racing period.
Section § 19612
This law is about the fees and distribution of funds for horse race meetings in California. Horse racing associations must pay a daily license fee, which is a percentage of their betting pools. After paying this fee, the remaining funds are split between the organizers (commissions) and prize money for race winners (purses). The split varies depending on the type of horse race; quarter horse and harness races have different percentages. There’s also an adjustment for those who held races at night versus daytime before a certain date, and special rules for races in northern California, allowing some flexibility in how funds are distributed. Certain associations might have different rules based on previous agreements or sections of the law.
Section § 19612.1
This law outlines additional deductions for horse racing events that handle more than $750,000 daily. Associations conducting harness, quarter, Arabian, or Appaloosa horse races can take an extra cut, up to 3% from specific bets, to increase payouts for commissions and purses. The split between associations and horsemen typically favors the association but can be adjusted. Special rules dictate how deductions for each horse type are managed, including setting up funds and distributing premiums via sanctioned agencies. These agencies can use up to 10% of the fund for expenses with approval. Before events, associations must declare planned deductions and can't change them without permission. Lastly, harness races must take an extra 2% from specific bets to be split equally between commissions and purses.
Section § 19612.2
This law allows certain horse racing associations with smaller daily betting pools (under $750,000) to take an extra deduction of up to 3% from their pools to distribute as commissions and purses. Different rules apply depending on the type of horse race: quarter, Arabian, or Appaloosa. For quarter horse events, part of the deducted amount is set aside for horsemen, and the official agency can use a portion for expenses. Similar provisions apply for Arabian and Appaloosa races, with specific percentages and conditions on how funds are handled and distributed. Associations must report planned deductions and distributions before their race meetings start and get approval from the board. Additionally, harness racing also permits an extra deduction of 2% from its daily pool for commissions and purses.
Section § 19612.3
This law talks about harness racing associations and how they handle a specific 1% of the betting pool called the parimutuel pool. For most harness racing events, this 1% is split between the prize money (purses) and operating costs (commissions). However, for certain other racing events, like those under specific sections, this 1% is used only for commissions.
Section § 19612.6
This section outlines how money is distributed from horse racing events in California after state fees are deducted. For harness races, the remaining money is split equally between commissions and prize purses. For quarter horses, Appaloosas, and mule racing, the distribution is decided by the organizers and the representatives of the horsemen or mulemen. Fair races have a specific split of 48% to commissions and 52% to purses. If there are two separate racing programs in a day, each is treated as a separate event for financial purposes. Additional deductions of 1% and 2% from certain betting pools are also made for commissions or a mix of commissions and purses.
Section § 19612.7
This law lets money that is normally reserved for race winnings (purses) be used to help cover workers' compensation insurance for certain employees and drivers at harness races. For this to happen, the race organizers and a group representing the horsemen have to agree in writing on the amount used, and it requires approval from a governing board.
Section § 19612.8
This law states that any association holding a horse racing event must pay at least the actual costs required to compensate stewards and official veterinarians, including any benefits, and any other costs associated with the event. These payments should align with the amounts determined by the relevant board.
Section § 19612.9
This law section deals with the distribution of unclaimed refunds in horse racing, specifically directing those funds to be used for providing health and welfare benefits to licensed jockeys and their families. These funds, capped at $450,000 and adjusted for inflation, are to be held in trust for this purpose and require an agreement with a recognized jockeys' organization representing a majority of licensed jockeys in California. If no new agreement is reached annually, the existing one remains in effect. The jockeys' organization must also maintain an office in California, conduct an annual audit of the fund, and provide financial transparency to the board. The board approves the agreements, ensuring they are fair and nondiscriminatory.
Section § 19613
This section of the California Business and Professions Code discusses how money is divided and distributed to support horse racing events. Specifically, it outlines how the funds from racing events should be used to support horse owners, trainers, jockeys, and stable employees. Different deductions and payments are specified based on whether the racing event is a thoroughbred, fair, or quarter horse meeting. These funds can cover administrative expenses, services, welfare funds, and pension plans for those involved in horse racing. Additionally, it clarifies who is classified as an owner or trainer. The law also details payment procedures when no contract is in place between the racing association and horsemen’s organizations.
Section § 19613.1
This law is about how negotiations work in thoroughbred racing. It says that the racing board decides what topics the owners and trainers' organizations can negotiate with racing associations. Generally, owners negotiate things like prize money and simulcasting, while trainers focus on track safety and employee welfare. If there's any disagreement that can't be resolved, the board will step in to make the final decision.
Section § 19613.2
This law states that any organization representing horsemen, owners, or trainers of horses in California must be incorporated in the state and must represent the majority of those individuals for a specific horse breed to receive funds or deductions. These funds can only be used to benefit California horsemen. The organizations cannot use these funds for political contributions or campaigning, but they can spend a reasonable amount to represent their members on relevant legislative issues. The board reviews these budgets annually. If an organization breaks rules, the board can take action, including stopping their funds. If there's a new recognized organization, the board will allocate the appropriate assets to it.
Section § 19613.5
This law allows racing meetings that use parimutuel pools to withhold certain amounts to cover any actual financial losses before distributing money for things like license fees, commissions, and prizes. The withheld amount for losses is divided in the same way as the original deductions were divided for these expenses.
Section § 19613.6
This law allows the organization that represents thoroughbred horse owners to take the prize money from one race each year at every licensed thoroughbred racing event in California and donate it to a fund that benefits horsemen. This choice requires agreement between the horsemen's organization and the racing event's management. The trainers' organization must report how the money is used to the board within a year of receiving it.
Section § 19613.8
If most backstretch workers choose a specific group to represent them for bargaining, this group can appoint two people to join the CHBPA Pension Administrative Committee, and the committee's rules must be updated to reflect this change, as long as the majority representation continues.
Section § 19614
Section § 19614.2
This law allows fairs and associations managing horse racing events to take an additional 3% from certain betting pools, like daily double or exacta, and distribute it as extra commissions and prize money during the fair. Of this deduction, 52.5% goes to extra prize money, while 47.5% goes to commissions. A small percentage of this extra thoroughbred prize money goes into a special fund for breeder and owner awards, calculated separately for thoroughbred, quarter horse, Arabian horse, and Appaloosa horse races. The specifics of these deductions and distributions must be reported to the board 30 days before the event, and they generally can't be changed once the event starts. The law also allows for certain administrative costs to be deducted from Arabian horse funds.
Section § 19614.3
This section allows a racing association and the group representing horsemen to agree on lowering the portion taken from the betting pool for purses and commissions, but only if it affects only those funds. If there's a collective bargaining agreement based on commission amounts, it should still be calculated as if this law wasn't in effect. Any agreement to reduce these funds needs the approval of the California Horse Racing Board, with prior notice given to any labor group that might be impacted.
Section § 19614.4
This law outlines how certain financial awards, called owner premiums, are distributed to horse owners participating in qualifying races with California-bred thoroughbred horses. If a registered California-bred horse wins a race and was conceived by a registered stallion, the owner gets an extra 20% of the winner's prize. If the horse wasn’t conceived by a registered stallion, the owner gets an extra 10%. If there is a tie (dead heat) in the race with Californian horses, there's a special policy for payout. Additionally, the organization managing purse agreements can decide to pay premiums for horses finishing first to fifth if they are California-bred, ensuring payment is no less than what was distributed in 1998. Furthermore, up to $2 million annually from purse revenues is earmarked for a program that supports California-bred horses with incentive awards.
Section § 19614.6
This law says that certain county fairs can keep part of the license fees they collect from horse racing, but only if they used that money to pay back loans for improving their racing facilities. This rule applies to fairs that had racing before 1980 and started in 2006. They can only keep the extra fees during the time they have the loan, and only enough to cover the loan payments. Any extra money must go to a fund for fairs and expositions. If license fees are lowered in the future, fairs can keep fees that exceed what they would have paid in 2004 at the new lower rate.
Section § 19615
This law section outlines how California race associations should handle financial matters related to horse racing events. It requires them to estimate and revise their potential earnings, known as the 'aggregate handle,' to pay license fees weekly and allocate race purses accordingly. After each race meeting, associations must settle any outstanding license fees or receive refunds for overpayments. If a race meeting ends with unpaid amounts for horse owners and breeders, these amounts are adjusted in the following year's payments. Race associations can also combine financial results from past meetings if they have board approval and consensus with horsemen's groups. This applies to both thoroughbred racing and harness racing in specific zones.
Section § 19616
This law explains the rules for handling wagers on horse races that take place outside of California, whether in other states or countries. When bets are made on these races, they are placed in separate betting pools and the money is handled according to specific guidelines. Each racing association must take a certain percentage from these pools, which is similar to what they take from local races. They also pay a state license fee and make other payments as required. After these payments, the remaining money is distributed for specific purposes, including Appaloosa, quarter horse, and Arabian horse purses, where a portion is held and then distributed according to other specific rules.
Section § 19616.1
This law outlines how money from bets on races held outside of California or the country should be handled, particularly when these bets are combined into national betting pools. A race event organization can withhold a portion of the bets, comparable to what the external racing entities do, and from that, they must pay a state licensing fee and make other required payments according to the rules of Section 19601. What's left is allocated to horse racing purses, with specific provisions on how to further distribute funds for different types of horse races like Appaloosa, quarter horse, and Arabian races. Additionally, if a California thoroughbred racing association handles national wagers, they don't need to pay a state licensing fee on these bets. Instead, the earnings are split evenly between commissions and purses for participating horsemen and horsewomen.
Section § 19616.2
This law explains how associations handling bets on out-of-state horse races must take a percentage from the betting pools. The deducted percentage should match what they deduct from their own race events. If an association accepts bets that are mixed with an out-of-state pool, they still need to deduct according to their rates and handle winning payouts as specified in another law section.
Section § 19616.51
This section outlines a special licensing fee arrangement for horse racing associations and fairs in California. Instead of the usual state license fees, they pay a share, based on an agreed formula, to fund the Horse Racing Board and drug testing programs. The baseline funding amount mirrors the 2008-09 budget and can only change by legislation. The fee reductions are partly shared with official agencies for thoroughbreds, quarter horses, and harness racing, with the remainder divided equally between racing associations as commissions and participating horsemen as prize money.
Section § 19617
This part of the law outlines definitions and rules about breeder, owner, and stallion awards in horse racing for thoroughbreds bred or standing in California. It defines a 'breeder' as someone registered with the Jockey Club of New York. Qualifying races for awards include specific types of races in California and the U.S., with certain restrictions on claiming and purse amounts. 'Eligible earnings' are purses won by California-bred horses in these qualifying races. A thoroughbred stallion must meet specific presence requirements in California to be eligible, along with registration by the owner with the California Thoroughbred Breeders Association. The law also specifies deadlines for breeders and stallion owners to report earned purses for award calculations.
Section § 19617.2
This section of the law outlines how funds are managed and distributed from thoroughbred horse racing in California. Associations must deposit a small percentage of on-track bet totals with an official agency. The funds are distributed to promote California-bred races, provide owner premiums, and pay bonuses for California-bred horses. After expenses are covered, the remaining money is divided into a breeder fund and a stallion fund, which are used to pay awards to breeders and stallion owners. This is meant to support the breeding of high-quality horses in California.
Section § 19617.3
This section outlines the rules and definitions related to payments for breeders, owners, and stallion owners of California-bred paint horses. It specifies who qualifies as a breeder or owner, what constitutes eligible earnings, and how funds are deposited and distributed. A portion of the betting handle from paint horse races is set aside to create funds that pay premiums and awards. Breeders, owners, and stallion owners receive these payments based on how their horses perform in qualifying races, with specific percentages allocated to each group. Deposits are made by racing associations at specified intervals, and any remaining funds are prorated among qualifying race winners. If funds fall short, the associations aren't penalized.
Section § 19617.4
The agency in charge of registration is responsible for investing funds and distributing interest as specified. If funds are lacking for distributions, no extra charges are made against associations or the state. Unclaimed awards after two years are void and go into an existing breeder fund. Disputes over awards are decided by the agency, and the decision can be reviewed by a board. Appeals must be made in writing and decided before awards are distributed, with the board's decision being final. The agency must report annually on these funds to the board, which then reports to the Governor and Legislature.
Section § 19617.5
This law requires organizations that run quarter horse or harness races to allocate funds for license fees, commissions, and purses from amounts taken from betting pools, following the same distribution rules. For quarter horse races, these funds go to an official agency for further distribution. Additionally, if organizations run fair races (excluding harness) or mixed breed races, they must set aside a small portion (0.34%) of their wagering pools for breeder and stallion awards. The distribution of these funds varies by race type: thoroughbred, quarter horse, Arabian, Appaloosa, and paint horse races each have specific guidelines for distributing awards to breeders, owners, and stallions.
Section § 19617.6
This law is about supporting agriculture and horse breeding in California by providing a financial incentive to owners of horses bred in the state. Specifically, when a registered California-bred horse wins a purse at a harness racing event, 10% of the prize money must be paid to the horse's owner by the event organizer. However, this applies to all races except certain stakes races and events. The payment must come from the funds set aside for purses and be distributed to owners within 30 days after the event concludes.
Section § 19617.7
This law defines specific terms and processes related to the awarding of breeder, owner, and stallion premiums for California-bred quarter horses. It establishes how earnings from races are calculated, what qualifies a horse or stallion for premiums and awards, and how funds are collected and distributed. A breeder is someone registered as such with the American Quarter Horse Association. Eligible earnings are counted when quarter horses finish first or second in races. There are specific rules about how much can be considered as eligible earnings and how these funds are to be collected and distributed by racing associations, including percentages allocated to breeders, owners, and stallion owners. The law also outlines when deposits must be made and specifies that if funds run short, racing associations are not responsible for covering the deficit.
Section § 19617.75
This law highlights the importance of breeding and owning quarter horses for racing due to its positive impact on California's economy. It promotes the establishment of a special annual championship race for California-bred quarter horses to enhance the quality of horse breeding in the state. The law requires a special fund to be set up to support these races, with money coming from specific sources. This fund will help increase the cash prizes for the races. An annual report on the fund's status is to be submitted, and this system is retroactively effective from June 1, 2000, ensuring the races began in 2001.
Section § 19617.8
This section defines rules and processes around breeder premiums, owner awards, and stallion awards for California-bred Arabian horses participating in races. A breeder is anyone registered with the Arabian Horse Registry of America and has a horse that finishes first or second in qualifying races. The funds for these awards come from a small percentage of racing bets. The official registering agency handles the funds and distributes them to breeders, owners, and stallion owners accordingly. Additionally, strict rules are set for stallions to be considered as having earned eligible earnings, such as being continually present in California. Payments are to be made annually and if there’s any leftover, it gets distributed proportionally to other prize-winning stallion owners. If funds fall short, there is no obligation to make up the deficit.
Section § 19617.9
This law section details how funds from Appaloosa horse racing in California are distributed among breeders, owners, and stallion owners. It defines key terms like 'breeder,' 'eligible earnings,' and 'eligible Appaloosa sire.' A portion of the total betting money from races must be deposited with an official agency to later distribute as awards to encourage horse breeding. The division of funds is 60% to breeders, 25% to owners, and 15% to stallion owners, based on horses placing first or second. The funds must be distributed by March 31 of the following year. If there's not enough money, no extra charges are made to cover shortages.
Section § 19618
Basically, this section says that people running horse races and those who own horses can't give or receive payment or rewards beyond what's specifically allowed in this chapter, unless it's part of a special agreement. Simple awards like trophies don't count as payments. Special agreements can be made to share interest from certain accounts or to increase the prize money if certain activities affect the race, but these agreements must be approved and filed properly. Any money made from these deals has to benefit horsemen specifically.
Section § 19618.1
This law states that certain rules in Section 19618 don't apply to payments made by harness racing associations or fairs in the northern zone if those payments are for promotional contests or sponsorships.
Section § 19618.2
This law states that certain rules outlined in another section do not apply to specific payments within horse racing contexts. Specifically, these exceptions are for payments by a licensed quarter horse racing group in the southern zone and payments by thoroughbred racing groups particularly related to funds managed by horsemen's organizations for purse agreements, like purse supplements or promotional funds.
Section § 19619
This section creates a program to support the agriculture and horse breeding industry in California by establishing the California Standardbred Sires Stakes Program for standardbred horses bred in the state. The program is managed by a committee and has specific eligibility requirements for horses and stallions. It outlines how funds will be used and distributed, including fees and purse divisions. It allows flexibility in setting a series of races for young horses owned by California residents and details the allocation of earnings to breeders, stallion owners, and race participants. The law mandates a structured program with designated race schedules and financial management.
Section § 19619.1
This law states that if there are any funds leftover from a harness race meet that aren't given out as winnings to jockeys or as awards to horse breeders within 180 days, those funds should be put into a special account. This account supports the California Standardbred Sires Stakes Program, which promotes harness racing in California.
Section § 19619.2
This law says that extra money can be added to the prize money for horse races in the California Standardbred Sires Stakes Program. This can happen if both the official group representing the harness horsemen and the organization hosting the race agree to use funds that come from specific sections of revenue related to horse racing.
Section § 19619.6
If an association or fair broadcasts its event to a satellite wagering facility, it must work together with the facility's operator to allow access to its betting system. This ensures that bets made at the facility are combined with those made directly at the event site.
Section § 19619.7
This law states that by July 1, 2008, the jockey riding a horse that finishes fourth in a thoroughbred race must be paid a reasonable fee. This fee can't be more than 2% of the owner's winnings and should not exceed what jockeys get for second and third place finishes.