Section § 19610

Explanation

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.

Every association which conducts a racing meeting shall deduct 15 percent of the total amount handled in conventional parimutuel pools and 16.75 percent of the total amount handled in exotic parimutuel pools, except that any association conducting a harness racing meeting shall deduct 17.75 percent of the total amount handled in exotic parimutuel pools. The amounts as deducted shall be distributed as prescribed in this chapter.

Section § 19610.1

Explanation

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.

Every association which conducts a harness racing meeting and deducts 17.75 percent of the total amount handled in exotic parimutuel pools shall use 1 percent of the total amount handled in the exotic parimutuel pools to fund the California Standardbred Sires Stakes Program. The 1 percent shall be deposited into the separate trust account provided for in Section 19619.

Section § 19610.2

Explanation

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.

Every association that conducts a racing meeting shall deduct one-tenth of 1 percent of the total amount handled. From the amount deducted on wagers made on-track, thirty-three one hundredths of the amount deducted shall be distributed to the Center for Equine Health and shall supplement, and not supplant, other funding sources. Sixty-seven one hundredths of the amount deducted shall be distributed to the California Animal Health and Food Safety Laboratory to fund the equine drug testing program and laboratory at the University of California, Davis described in Section 19578.

Section § 19610.3

Explanation

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.

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, prior to 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.
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.

Section § 19610.4

Explanation

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.

Notwithstanding Section 19610.3, any association that conducts a racing meeting pursuant to Section 19549.9, or any fair that operates a satellite wagering facility, may elect to deduct an additional amount of 0.33 of 1 percent from the total parimutuel wagers placed within its inclosure or at its satellite wagering facility.
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 or county in which the racing meeting or wagering is conducted, at the option of the association or fair. If a city or county has elected by ordinance to receive a distribution from a racing association or fair 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 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 or fair conducting a racing meeting or satellite wagering, or any patron, participant, service-supplier, promoter, or vendor thereof. Further, a city or county electing to receive a distribution under this section shall provide ordinary and traditional municipal services, such as police services and traffic control, in connection with the racing meetings or satellite wagering. 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.

Section § 19610.6

Explanation

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.

Notwithstanding Section 19605.71, and in lieu of any deduction under Section 19610.3 or 19610.4, the 22nd District Agricultural Association shall deduct an additional amount of 0.33 of 1 percent from the total parimutuel wagers placed at its satellite wagering facility.
Forty percent of the amount deducted pursuant to this section shall be distributed to the City of Del Mar and 40 percent shall be distributed to the City of Solana Beach, if the respective city has elected to receive a distribution under this section. The remaining amounts deducted pursuant to this section shall be distributed to the San Dieguito River Valley Regional Open Space Park Joint Powers Authority, which is established for the enhancement of the San Dieguito River Valley and Lagoon. If the San Dieguito River Valley Regional Open Space Park Joint Powers Authority is dissolved, the distribution of the remaining amounts deducted pursuant to this section shall be distributed to the County of San Diego. If the City of Del Mar or the City of Solana Beach has elected by ordinance to receive a distribution from a fair under this section, it shall not at any time thereafter assess or collect, with respect to an event conducted by that 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 fair conducting satellite wagering or any patron thereof. Furthermore, a city electing to receive a distribution under this section shall provide ordinary and traditional municipal services, such as police services and traffic control, in connection with the satellite wagering. If an eligible city does not elect to receive a distribution under this section, the amount deducted shall be paid to the state as an additional license fee.

Section § 19610.8

Explanation

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.

Notwithstanding any other provision of law, and in lieu of any deduction and distribution provided for in this chapter, upon the joint request of the association or fair accepting the wager, and the organization representing the horsemen and horsewomen participating in the meeting of the association or fair accepting the wager, the board may set the total percentage deducted from the parimutuel pool for proposition wagers and any new type of wager introduced after January 1, 2004, in an amount of at least 10 percent and not more than 30 percent of the amount handled in the parimutuel pool for the wager. Three percent of the amount deducted shall be paid to the state as a license fee and, if the wager was placed at a satellite wagering facility or a location other than the host racing association, 8 percent of the amount deducted shall be paid to the satellite wagering facility or to the entity that processed the wager. Notwithstanding the foregoing and in lieu of the license fee set forth herein for proposition wagers, with regard to quarter horse racing only, the total wagers made in a proposition parimutuel pool are subject to the same license fee as exotic wagers on a live quarter horse race. In addition, with respect to thoroughbred racing only, 3 percent of the amount remaining after the payment of the state license fee and payment to a satellite wagering facility or an entity that processed the wager, if any, shall be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2, and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2. Thereafter, for all kinds of racing, except quarter horse racing, the remaining amount shall be distributed 50 percent to the association conducting the racing meeting and 50 percent to the horsemen participating in the racing meeting as purses. With regard to quarter horse racing, commissions and purses shall be distributed in the amounts mutually agreed upon by the association conducting the meeting and the organization representing the horsemen and horsewomen.

Section § 19611

Explanation

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.

(a)CA Business & Professions Code § 19611(a) For every thoroughbred association conducting a live racing meeting in the northern zone, 1.3 percent of the total amount handled on live races, excluding wagering at a satellite facility, shall be retained by the association for payment to the state as a license fee.
(b)CA Business & Professions Code § 19611(b) For every thoroughbred association conducting a live racing meeting in the central or southern zone, 2 percent of the total amount handled on live races, excluding wagering at a satellite wagering facility, shall be retained by the association for payment to the state as a license fee.
(c)CA Business & Professions Code § 19611(c) Additionally, 0.54 percent of the total amount handled on live racing, excluding wagering at a satellite facility, shall be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2 and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2.
(d)CA Business & Professions Code § 19611(d) After distribution of the applicable amounts set forth in subdivision (a), (b), or (c), and the payments pursuant to other relevant sections of this chapter, all funds remaining from the deductions shall be distributed 51.9 percent as commissions and 48.1 percent as purses. From the amount distributed as purses, a sum equal to 0.07 percent of the total handle shall be held by the association to be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2, and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2.

Section § 19611.5

Explanation

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.

(a)CA Business & Professions Code § 19611.5(a) In addition to the amounts otherwise deducted pursuant to this chapter, every association other than a fair that conducts a thoroughbred race meeting may deduct from the total amount handled in daily double, quinella, exacta, and other multiple wagering pools approved by the board up to 3 percent thereof to be distributed 50 percent as commissions and 50 percent as purses. From the amount distributed as purses, a sum equal to 0.07 percent of the total handle shall be held by the association to be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2, and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2.
(b)CA Business & Professions Code § 19611.5(b) At least 30 days prior to the commencement of its meeting, the association shall file with the board a statement of the additional deduction to be made pursuant to subdivision (a). Except with the consent of the board, the amount of the deduction shall not be changed during the course of the meeting.

Section § 19612

Explanation

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.

(a)CA Business & Professions Code § 19612(a) Except as otherwise provided, every association which conducts a quarter horse race meeting or a harness horse race meeting shall pay a daily license fee at the rate of 0.4 percent of its daily conventional and exotic parimutuel handle.
(b)CA Business & Professions Code § 19612(b) With respect to quarter horse meetings, all funds remaining from the deductions provided in Sections 19491, 19491.5, and 19610 after distribution of the license fee, shall be distributed 55 percent as commissions and 45 percent as purses. With respect to harness meetings, except for meetings conducted pursuant to Sections 19549.2 and 19549.6, the funds remaining from deductions provided in Section 19610, after distribution of the license fee, shall be distributed 59.5 percent as commissions and 40.5 percent as purses. For harness meetings conducted pursuant to Sections 19549.2 and 19549.6, the funds remaining from deductions provided in Section 19610, after distribution of the license fee, shall be distributed 50 percent as commissions and 50 percent as purses.
(c)CA Business & Professions Code § 19612(c) Every association that conducted a quarter horse or Arabian horse racing meeting in the southern zone during the daytime prior to January 1, 1979, and thereafter conducts the meeting at night, shall be entitled to the following license fee adjustment:
For each 1 percent that the association’s average daily handle in the 1981 year, during the period from the commencement of the meeting to December 25, falls below its 1980 average daily handle during the same period, the amount of the license fee as set forth in subdivision (a) shall be reduced by 2 percent.
(d)CA Business & Professions Code § 19612(d) Any association qualified to operate its meetings pursuant to Section 19612.6 shall be entitled to continue to distribute license fees, commissions, and purses as provided by that section.
(e)CA Business & Professions Code § 19612(e) Notwithstanding subdivision (b), for every association that conducts a quarter horse meeting in the northern zone, the amount remaining after deduction of the state license fee shall be distributed between commissions and purses as agreed to by the association conducting the meeting and the organization representing the horsemen participating at the meeting. Every association conducting a quarter horse meeting in the northern zone may deduct an additional amount up to 1 percent of its conventional and exotic parimutuel pools to be distributed as commissions. The association may also deduct an additional 1 percent from the exotic parimutuel pools to be distributed as commissions and purses as agreed to by the association conducting the meeting and the organization representing the horsemen participating at the meeting.

Section § 19612.1

Explanation

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.

(a)CA Business & Professions Code § 19612.1(a) In addition to the amounts otherwise deducted pursuant to this chapter, every association with an average daily handle of more than seven hundred fifty thousand dollars ($750,000) that conducts a harness, quarter, Arabian, or Appaloosa horse meeting may deduct from the total amount handled in daily double, quiniela, exacta, and other multiple wagering pools approved by the board up to 3 percent thereof to be distributed as additional commissions and purses in the following percentage ratio: to the association as additional commissions, not more than 59.5 percent; and to the horsemen as additional purses, not less than 40.5 percent, except that the association and the horsemen’s organization may agree to a different distribution by percentage of these funds.
(b)CA Business & Professions Code § 19612.1(b) From the amount deducted for quarter horse purses under subdivision (a), a sum equal to 25 percent thereof shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.7 and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.7.
The board shall designate the official registering agency representing quarter horse horsemen to administer this subdivision and to distribute premiums. The agency may, with the approval of the board, make a deduction for expenses not to exceed 10 percent of the total awards fund.
(c)CA Business & Professions Code § 19612.1(c) From the amount deducted for Arabian horse purses under subdivision (a), a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency, pursuant to Section 19617.8, and thereafter shall be distributed in accordance with Section 19617.8. The board shall designate the officially recognized organization representing Arabian horsemen to administer this subdivision and to distribute premiums. The organization may, with the approval of the board, make a deduction for expenses not to exceed 10 percent of the total awards fund.
(d)CA Business & Professions Code § 19612.1(d) From the amount deducted for Appaloosa purses under subdivision (a), a sum equal to 13.33 percent thereof shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.9 and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.9.
The board shall designate the official registering agency representing Appaloosa horsemen to administer this subdivision and to distribute premiums. The agency may, with the approval of the board, make a deduction for expenses of up to, but not to exceed, 10 percent of the total awards fund.
(e)CA Business & Professions Code § 19612.1(e) At least 30 days prior to the commencement of its meeting, the association shall file with the board a statement of the additional deduction to be made pursuant to subdivision (a). Except with the consent of the board, the amount of the deduction shall not be changed during the course of the meeting.
(f)CA Business & Professions Code § 19612.1(f) In addition to the amounts otherwise deducted pursuant to this section, every harness racing association shall deduct an additional 2 percent of its exotic parimutuel pools to be distributed equally as commissions and purses.

Section § 19612.2

Explanation

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.

(a)CA Business & Professions Code § 19612.2(a) In addition to the amounts otherwise deducted pursuant to this chapter, every association with an average daily handle of seven hundred fifty thousand dollars ($750,000) or less, except an association subject to Section 19614.2, which conducts a harness, quarter, Arabian, or Appaloosa horse meeting may deduct from the total amount handled in its daily exotic parimutuel pool up to 3 percent thereof to be distributed as additional commissions and purses as follows:
(1)CA Business & Professions Code § 19612.2(a)(1) For quarter horse meetings conducted other than pursuant to Section 19612.6 and for Appaloosa horse meetings, as agreed to by the association conducting the meeting and the organization representing the horsemen participating at the meeting.
(2)CA Business & Professions Code § 19612.2(a)(2) For harness and quarter horse meetings conducted pursuant to Section 19612.6, 50 percent as commissions and 50 percent as purses.
(b)CA Business & Professions Code § 19612.2(b) From the amount deducted for quarter horse purses under subdivision (a), a sum equal to 25 percent thereof shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.7 and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.7.
The board shall designate the official registering agency representing quarter horse horsemen to administer this subdivision and to distribute premiums. The agency may, with the approval of the board, make a deduction for expenses not to exceed 10 percent of the total awards fund.
(c)CA Business & Professions Code § 19612.2(c) From the amount deducted for Arabian horse purses under subdivision (a), a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency, pursuant to Section 19617.8, and thereafter shall be distributed in accordance with Section 19617.8.
The board shall designate the officially recognized organization representing Arabian horsemen to administer this subdivision and to distribute premiums. The organization may, with the approval of the board, make a deduction for expenses not to exceed 10 percent of the total awards fund.
(d)CA Business & Professions Code § 19612.2(d) From the amount deducted for Appaloosa purses under subdivision (a), a sum equal to 13.33 percent thereof shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.9 and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.9.
The board shall designate the official registering agency representing Appaloosa horsemen to administer this subdivision and to distribute premiums. The agency may, with the approval of the board, make a deduction for expenses not to exceed 10 percent of the total awards fund.
(e)CA Business & Professions Code § 19612.2(e) At least 30 days prior to the commencement of its meeting, the association shall file with the board a statement of the additional deduction to be made pursuant to subdivision (a) and its distribution between commissions and purses. Except with the consent of the board, the amount of the deduction and its distribution shall not be changed during the course of the meeting.
(f)CA Business & Professions Code § 19612.2(f) In addition to any deductions pursuant to this section, every harness racing association shall also deduct an additional 2 percent of its daily exotic parimutuel pool to be distributed equally as commissions and purses.

Section § 19612.3

Explanation

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.

(a)CA Business & Professions Code § 19612.3(a) Notwithstanding any other provision of law, with respect to harness racing associations other than those conducting a meeting pursuant to Section 19612.6, an additional 1 percent of the parimutuel pool shall be retained and shall be distributed equally between purses and commissions.
(b)CA Business & Professions Code § 19612.3(b) With respect to harness racing associations conducting a meeting pursuant to Section 19549.2 or 19612.6, an additional 1 percent of the parimutuel pool shall be retained and shall be distributed as additional commissions.

Section § 19612.6

Explanation

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.

(a)Copy CA Business & Professions Code § 19612.6(a)
(1)Copy CA Business & Professions Code § 19612.6(a)(1) For harness meetings, the amount remaining after deduction of the state license fee shall be distributed equally between commissions and purses. For quarter horse, Appaloosa, and muleracing meetings, the amount remaining after deduction of the state license fee pursuant to Section 19612 shall be distributed between commissions and purses as agreed to by the association conducting the meeting and the organization representing the horsemen or mulemen participating in the meeting. For fair meetings conducted pursuant to Section 19549, the amount remaining after deduction of the state license fee pursuant to Section 19612 shall be distributed 48 percent to commissions and 52 percent to purses.
(2)CA Business & Professions Code § 19612.6(a)(2) Every association which conducts a racing meeting pursuant to Section 19549 shall, in addition, deduct from its parimutuel pools the amount specified in subdivision (d) of Section 19614.
(b)CA Business & Professions Code § 19612.6(b) If an association qualified to operate its meeting pursuant to this section conducts two separate programs of racing on any day, each such program shall be considered a separate racing day for purposes of determining the daily handle and computing the distribution of license fees, commissions, and purses thereon. For the purposes of this subdivision, a program shall consist of at least nine races.
(c)CA Business & Professions Code § 19612.6(c) In addition to any deductions pursuant to this section, every association conducting a racing meeting pursuant to Section 19549.1 shall also deduct an additional 1 percent of its parimutuel pools to be distributed as commissions.
(d)CA Business & Professions Code § 19612.6(d) In addition to any deductions pursuant to this section, every association conducting a racing meeting pursuant to Section 19549.1 shall also deduct an additional 2 percent of its exotic parimutuel pools to be distributed equally as commissions and purses.

Section § 19612.7

Explanation

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.

With respect to a harness race meeting, in addition to any other distributions, a portion of the money allocated for purses pursuant to this chapter may be used to pay for obtaining, providing, or defraying the cost of workers’ compensation coverage for stable employees and drivers of licensed standardbred trainers. This portion of the purse money, if any, shall be specified in a written agreement between the racing association that conducts the live harness race meeting and the organization representing the horsemen participating at the race meeting, and shall be jointly administered by the racing association and the organization representing the horsemen. This agreement is subject to the approval of the board.

Section § 19612.8

Explanation

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.

Notwithstanding any other provision of law, any association conducting a racing meeting shall pay not less than the actual amount necessary to cover the costs for compensation, including any fringe benefits, to stewards and official veterinarians and to cover the costs for that racing meeting, as provided by the board under Section 19518.

Section § 19612.9

Explanation

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.

(a)Copy CA Business & Professions Code § 19612.9(a)
(1)Copy CA Business & Professions Code § 19612.9(a)(1) Except as provided in subdivision (d) of Section 19601, unclaimed refunds shall be distributed to the organization that is responsible for negotiating purse agreements, satellite wagering agreements, and all other business agreements on behalf of the horsemen participating in the racing meeting for the purpose of negotiating, in good faith, an agreement of at least three years’ duration with a jockeys’ organization to provide health and welfare benefits to California licensed jockeys, former California licensed jockeys, and their dependents if those persons contribute to the plan and do not receive welfare benefits pursuant to Section 19613.
(2)CA Business & Professions Code § 19612.9(a)(2) The amount of money distributed annually pursuant to this section shall be held in trust solely for the purpose described in this section and shall not exceed four hundred fifty thousand dollars ($450,000), adjusted annually for inflation. The board shall determine the inflation adjustment based on an index quantifying changes in the cost of health insurance benefits.
(3)CA Business & Professions Code § 19612.9(a)(3) If an agreement is not reached before the regular meeting of the board in November of any calendar year, the board, on its own motion, shall provide that the provisions of the existing agreement, if any, shall remain in effect until a subsequent agreement is reached.
(b)CA Business & Professions Code § 19612.9(b) The jockeys’ organization referred to in subdivision (a) shall represent a majority of the jockeys licensed by the board, and the board shall initially certify that the organization represents the majority of those licensed jockeys. The organization shall maintain an office in this state. The organization certified by the board shall provide an annual audit of the health and welfare fund established pursuant to this section. The organization shall make available to the board all records and documents necessary for the performance of its duties.
(c)CA Business & Professions Code § 19612.9(c) The jockeys’ organization certified by the board shall develop reasonable nondiscriminatory criteria for eligibility for health and welfare benefits.
(d)CA Business & Professions Code § 19612.9(d) The agreement shall be approved by the board and, if approved, no other entity licensed in this state shall be required to enter into an agreement for the purposes of this section.

Section § 19613

Explanation

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.

(a)CA Business & Professions Code § 19613(a) Except as provided in subdivisions (b), (c), (d), (e), and (f), the portion deducted for purses pursuant to this chapter shall be paid to or for the benefit of the horsemen and horsewomen at the racing meeting, and may include obtaining, providing, or defraying the cost of workers’ compensation coverage for stable employees and jockeys of licensed trainers. For purposes of this section, the trainers’ organization referred to in subdivisions (b), (c), and (d), known as the California Thoroughbred Trainers, Inc., shall be the plan sponsor, consistent with the definition set forth in Section 3 of the federal Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(16)(B)), as amended.
(b)CA Business & Professions Code § 19613(b) Any association other than a fair that conducts a thoroughbred racing meeting shall pay to the owners’ organization contracting with the association with respect to the conduct of racing meetings for administrative expenses and services rendered to owners, an amount not to exceed two-thirds of 11/2 percent of the portion, and to a trainers’ organization for administrative expenses and services rendered to trainers and backstretch employees an amount equivalent to one-third of 11/2 percent of the portion. That association shall also pay an amount for a pension plan for backstretch personnel to be administered by the trainers’ organization equivalent to an additional 1 percent of the portion. The remainder of the portion shall be distributed as purses.
(c)CA Business & Professions Code § 19613(c) Any other association may pay to the horsemen’s organization contracting with the association with respect to the conduct of racing meetings for administrative expenses and services rendered to horsemen an amount out of the portion as may be determined by the association by agreement or otherwise, but, in all events, shall include, relative to a thoroughbred horsemen’s organization racing, 1 percent of the portion for a pension plan for the trainers’ organization. The remainder of the portion shall be distributed as purses.
(d)Copy CA Business & Professions Code § 19613(d)
(1)Copy CA Business & Professions Code § 19613(d)(1) Notwithstanding subdivisions (b) and (c), any association conducting a fair racing meeting shall pay to the horsemen’s organizations contracting with the association with respect to the conduct of races for their respective breeds of horses at the meetings for administrative expenses and services rendered to their respective horsemen those amounts out of the portion as determined by the horsemen’s organization for the respective breeds with the approval of the board. Pursuant to this subdivision, amounts not to exceed 3 percent of the portion for the owners’ and trainers’ organizations shall be distributed to any thoroughbred owners’ and trainers’ organizations contracting with an association for a fair racing meeting or participating in mixed breed racing meetings as follows: two-thirds of 1 percent to the owners’ organization and one-third of 1 percent to the trainers’ organization for administrative expenses and services rendered to both owners and trainers, 1 percent for welfare funds, and 1 percent for a pension program for backstretch personnel, to be administered by the thoroughbred trainers’ organization.
(2)CA Business & Professions Code § 19613(d)(2) For purposes of subdivisions (b) and (c) and paragraph (1), the 1 percent amount for a pension plan or program may include all reasonable, documented administrative expenses attributable to the pension plan or program, including, but not limited to, the establishment, amendment, operation, or termination of the pension plan or program.
(e)CA Business & Professions Code § 19613(e) Any association other than a fair that conducts a quarter horse racing meeting shall pay to the horsemen’s organization contracting with the association with respect to the conduct of racing meetings for administrative expenses and services rendered to horsemen, an amount not to exceed 3 percent of the portion. The remainder of the portion shall be distributed as purses.
(f)CA Business & Professions Code § 19613(f) For racing meetings other than thoroughbred meetings, if no contract has been signed between the association conducting the racing meeting and the organization representing the horsemen by the time the racing meeting commences, the distribution of purses shall be governed by the following:
(1)CA Business & Professions Code § 19613(f)(1) If the association conducted a racing meeting within the past 15 months and a contract was in existence, for that meeting with the horsemen’s organization and the association is conducting a subsequent meeting for the same breed or mixed breeds, the amounts payable to the horsemen’s organization under subdivision (c) shall be computed under the provisions of the last signed contract between the parties.
(2)CA Business & Professions Code § 19613(f)(2) This subdivision applies regardless of the cause of the failure to execute a contract, whether that failure is a result of inadvertence or otherwise.
(3)CA Business & Professions Code § 19613(f)(3) For racing meetings that do not come within paragraph (1), the board shall, within 15 days after the commencement of the racing meeting, determine the amounts payable to the horsemen’s organization for administrative expenses and services, and provide for the direct payment of those amounts.
(g)CA Business & Professions Code § 19613(g) Amounts distributed pursuant to this section are derived from owners’ purses.
(h)CA Business & Professions Code § 19613(h) For the purposes of this section, the following definitions shall apply:
(1)CA Business & Professions Code § 19613(h)(1) “Owner” means a person currently licensed by the board as an owner of a thoroughbred racehorse.
(2)CA Business & Professions Code § 19613(h)(2) “Trainer” means a person currently licensed by the board as a trainer of a thoroughbred racehorse.
(i)CA Business & Professions Code § 19613(i) This section shall become operative on January 1, 2008.

Section § 19613.1

Explanation

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.

(a)CA Business & Professions Code § 19613.1(a) With respect to thoroughbred racing, except as provided in subdivision (b), the board shall determine which matters shall be the subject of negotiation and contract between the owners’ organization and the association, and which matters shall be the subject of negotiation and contract between the trainers’ organization and the association.
(b)CA Business & Professions Code § 19613.1(b) The owners’ organization shall generally be responsible for negotiating purse agreements, satellite simulcast agreements, and all other business agreements relating to the conduct of racing that affect the owners. The trainers’ organization shall generally be responsible for negotiating issues relating to the backstretch, track safety, and the welfare of backstretch employees.
(c)CA Business & Professions Code § 19613.1(c) The board shall resolve issues that are not settled between the associations and the organizations representing owners and trainers.

Section § 19613.2

Explanation

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.

(a)CA Business & Professions Code § 19613.2(a) Any horsemen’s, owners’, or trainers’ organization or organization representing horsemen, owners, or trainers shall be incorporated under the laws of the State of California in order to receive a distribution or deduction under this chapter. Each corporation shall represent a majority of the horsemen, owners, or trainers in the state with respect to the breed of horses the corporation represents. The board shall initially determine the organization that represents California horsemen with respect to each breed. Any distribution or deduction received by any of those organizations shall be used only for the benefit of California horsemen.
(b)CA Business & Professions Code § 19613.2(b) No portion of the amount distributed pursuant to Section 19613 to an owners’, trainers’, or horsemen’s organization shall be used for the purpose of making contributions to candidates for public office, or to urge or oppose any measure on the ballot. The organizations representing owners, trainers, and horsemen may expend no more than the amount reasonably necessary to represent its members before the Legislature and the board with respect to issues that directly affect services rendered to owners, trainers, and horsemen. The board shall annually review the budgets of the organizations representing owners, trainers, and horsemen and shall determine the appropriate amount to be expended for providing the representation authorized by this subdivision.
(c)CA Business & Professions Code § 19613.2(c) If an owners’, trainers’, or horsemen’s organization is conducting itself contrary to statute, regulation, or order of the board, the board may take disciplinary action against the organization, including ordering an association to withhold any distribution authorized pursuant to Section 19613.
(d)CA Business & Professions Code § 19613.2(d) Upon recognition by the board of a successor horsemen’s, owners’, or trainers’ organization or organization representing horsemen, owners, or trainers, the board shall apportion those assets that were generated pursuant to Section 19613 for the benefit of the horsemen and the successor organization.

Section § 19613.5

Explanation

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.

Notwithstanding any other provision of this chapter, of the amount deducted for license fees, commissions, and purses from parimutuel pools at a racing meeting an amount may be retained and distributed for payment of any actual losses sustained at the meeting on parimutuel minus pools prior to the distribution of license fees, commissions, and purses. The proportion of license fees, commissions, and purses distributed for payment of such parimutuel minus pools shall be in the same proportion as they would be distributed in the provision under which they were deducted.

Section § 19613.6

Explanation

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.

Notwithstanding any other provision of this chapter, the owners’ organization referred to in subdivision (a) of Section 19613.2 that represents thoroughbred owners may elect to contribute the purses from one race conducted annually by each licensed thoroughbred racing association or fair to a welfare fund. The contribution shall be used for the benefit of horsemen, and the trainers’ organization shall make an accounting to the board within one calendar year of the receipt of the contribution. The designation of a specific race from which the horsemen elect to contribute the purses is subject to the mutual agreement of the horsemen’s organization and the racing association or fair that conducts the race.

Section § 19613.8

Explanation

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.

Within 60 days of a statewide majority of backstretch workers having chosen to be represented by an exclusive collective bargaining agent pursuant to Article 2.5 (commencing with Section 19455) or any other law, and so long as a majority continues to be represented by the agent, that agent shall designate two representatives to replace two of the members if the CHBPA Pension Administrative Committee and the plan document shall be amended to provide for this representation.

Section § 19614

Explanation
This law specifies how money from bets on live horse races is allocated. For fairs hosting live races, 1% of the total bet amount, excluding satellite wagers, goes to the state as a license fee. Another 0.48% is given to a registering agency for further distribution. After these deductions, the remaining funds are split into commissions (47.5%) and purses (52.5%). Additionally, if purses weren't fully distributed in the last meeting, they carry over to the current one. Fairs also deduct 1% from their daily pools for the Fair and Exposition Fund but can use these funds for specific improvements if located in the northern zone and if they follow specific audit and cost rules.
(a)CA Business & Professions Code § 19614(a) Notwithstanding Sections 19611 and 19612, and except for an association that qualifies pursuant to Section 19612.6, for a fair conducting a live racing meeting, 1 percent of the total amount handled on live races, excluding wagering at a satellite facility, shall be retained by the fair association for payment to the state as a license fee.
(b)CA Business & Professions Code § 19614(b) Additionally, 0.48 percent of the total amount handled on live racing, excluding wagering at a satellite facility, shall be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2, and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2.
(c)Copy CA Business & Professions Code § 19614(c)
(1)Copy CA Business & Professions Code § 19614(c)(1) After distribution of the applicable amounts as set forth in subdivisions (a) and (b) and the payments made pursuant to other relevant sections of this chapter, all funds remaining from the deductions provided in Section 19610 shall be distributed 47.5 percent as commissions and 52.5 percent as purses. From the amount distributed as thoroughbred purses, a sum equal to 0.07 percent of the total handle shall be held by the association to be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2, and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2.
(2)CA Business & Professions Code § 19614(c)(2) Any additional amount generated for purses and not distributed during the previous corresponding meeting shall be added to the purses at the current meeting.
(d)CA Business & Professions Code § 19614(d) In addition to the amounts deducted pursuant to Section 19610, any fair racing association shall deduct 1 percent from the total amount handled in its daily conventional and exotic parimutuel pools. The additional 1 percent shall be deposited into the Fair and Exposition Fund and is hereby appropriated for the purposes specified in Section 3204 of the Food and Agricultural Code, except as specified in subdivision (e).
(e)Copy CA Business & Professions Code § 19614(e)
(1)Copy CA Business & Professions Code § 19614(e)(1) A fair conducting a live racing meeting at a fair in the northern zone or a joint powers authority designated by a fair racing association in the northern zone involved in conducting live racing meetings at fairs in the northern zone may retain the funds described in subdivision (d) for the purposes of improving a fair enclosure, racetrack maintenance, safety at fairs, or other similar activities if both of the following conditions are satisfied:
(A)CA Business & Professions Code § 19614(e)(1)(A) The administrative costs do not exceed 7.5 percent of the funds retained.
(B)CA Business & Professions Code § 19614(e)(1)(B) An annual audit of the funds is conducted by an independent third party to ensure compliance with the law and approved standards and policies that shall be filed with the Department of Food and Agriculture, the board, and the Senate and Assembly Committees on Governmental Organization.
(2)CA Business & Professions Code § 19614(e)(2) This subdivision shall apply retroactively to January 1, 2016.

Section § 19614.2

Explanation

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.

(a)CA Business & Professions Code § 19614.2(a) In addition to the amounts otherwise deducted pursuant to this chapter, a fair, or an association conducting its meeting pursuant to Section 19549.1, may deduct from the total amount handled in daily double, quinella, exacta, and other multiple wagering pools approved by the board up to 3 percent thereof to be distributed as additional commissions and purses in the current year of the fair meet. Of the amount deducted, if any, 52.5 percent shall be distributed as additional purses and 47.5 percent shall be distributed as additional commissions. From the amount distributed as thoroughbred purses, a sum equal to 0.07 percent of the total amount handled shall be held by the association to be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2, and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2.
(b)CA Business & Professions Code § 19614.2(b) At least 30 days prior to the commencement of its meeting, the association shall file with the board a statement of the additional deduction to be made pursuant to subdivision (a). Except with the consent of the board, the amount of the deduction shall not be changed during the course of the meeting.
(c)CA Business & Professions Code § 19614.2(c) From the amount deducted for quarter horse purses under subdivision (a), a sum equal to 25 percent thereof shall be paid as breeder premiums and owners’ and stallion awards as provided in Section 19617.7, shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.7, and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.7.
(d)CA Business & Professions Code § 19614.2(d) From the amount deducted for Arabian horse purses under subdivision (a), a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency, pursuant to Section 19617.8, and thereafter shall be distributed in accordance with Section 19617.8. The board shall designate the officially recognized organization representing Arabian horsemen to administer this subdivision and to distribute premiums. The organization may, with the approval of the board, make a deduction for expenses of up to, but not to exceed, 10 percent of the total awards fund.
(e)CA Business & Professions Code § 19614.2(e) From the amount deducted for Appaloosa horse purses under subdivision (a), a sum equal to 13.33 percent thereof shall be paid as breeder premiums and owners’ and stallion awards as provided in Section 19617.9, and shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.9, and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.9.
(f)CA Business & Professions Code § 19614.2(f) Amounts distributed pursuant to this section are derived from owners’ purses.

Section § 19614.3

Explanation

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.

(a)CA Business & Professions Code § 19614.3(a) Notwithstanding any other provision of law, a racing association and the organization representing horsemen may agree to reduce the portion deducted from the parimutuel pool for purses and commissions, provided that the change only affect funds available for purses and commissions.
(b)CA Business & Professions Code § 19614.3(b) Any collective bargaining agreement that is premised in part on the amount of commissions earned shall continue to be calculated based on the amount of commissions that would have been earned had this section not become law.
(c)CA Business & Professions Code § 19614.3(c) An agreement by a horsemen’s organization and a racing association to reduce the portion deducted from the parimutuel pool for purses and commissions is subject to the approval of the California Horse Racing Board, and may not be approved unless notice has been given to any labor organization that could be affected by the agreement.

Section § 19614.4

Explanation

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.

(a)CA Business & Professions Code § 19614.4(a) Notwithstanding any other provision of law and in addition to any amounts provided for purses by any other provision of this chapter, from the amount deposited with the official registering agency for distribution pursuant to Section 19617.2, the official registering agency shall make the following distributions as owners’ premiums:
(1)CA Business & Professions Code § 19614.4(a)(1) An amount equal to 20 percent of the winner’s share of the purse for a qualifying race, as defined in paragraph (2) of subdivision (b) of Section 19617, shall be distributed as an owner premium to the owner of a registered California-bred thoroughbred horse conceived by a registered eligible thoroughbred stallion, as provided in subdivision (d) of Section 19617, which finishes first in the race.
(2)CA Business & Professions Code § 19614.4(a)(2) An amount equal to 10 percent of the winner’s share of the purse for a qualifying race, as defined in paragraph (2) of subdivision (b) of Section 19617, shall be distributed as an owner premium to the owner of a registered California-bred thoroughbred horse that finishes first in the race and that was not conceived by a registered eligible thoroughbred stallion as provided in subdivision (d) of Section 19617, which finishes first in the race.
(b)CA Business & Professions Code § 19614.4(b) The official registering agency shall develop a policy for the payment of owner premiums pursuant to paragraphs (1) and (2) in the event of a dead heat that involves one or more registered California-bred horses.
(c)CA Business & Professions Code § 19614.4(c) From the amounts distributed as purses pursuant to this chapter, the organization responsible for negotiating purse agreements on behalf of thoroughbred horsemen participating in racing meetings, at its discretion, may pay an owner’s premium for a qualifying race, as defined by the organization, to the owner of a registered California-bred thoroughbred that finishes first through fifth in the qualifying race. Notwithstanding the foregoing, these payments shall be not less than the amount of the total payments made by the organization in 1998, and the discretion accorded the organization pursuant to this subdivision shall be exercised on a statewide basis for all racing meetings.
(d)CA Business & Professions Code § 19614.4(d) The organization responsible for negotiating purse agreements on behalf of thoroughbred horsemen participating in racing meetings shall pay, from purse revenues generated, to the official registering agency for the purpose of the California-bred bonus program an amount equal to the amount determined in paragraph (3) of subdivision (b) of Section 19617.2, not to exceed two million dollars ($2,000,000) annually, and that amount shall be used for California-bred incentive awards.

Section § 19614.6

Explanation

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.

Notwithstanding Section 19614, any county fair in the central zone that conducted fair racing meetings prior to January 1, 1980, commencing with the 2006 racing season, may retain that portion of the license fee applicable to its live racing meeting that exceeds the amount of license fees paid during its 2004 live racing meeting for payment of a capital expense loan incurred for the purpose of improving its facilities for horse racing. The license fee retention shall be applicable only during the loan period, only in an amount equal to the loan payments, and only if all the moneys retained are used to pay off the loan for those capital expenses. Any portion of the license fee in excess of the amount needed to make loan payments pursuant to this section shall be deposited in the Fair and Exposition Fund. However, if after the effective date of this section, the rate of the license fee imposed on fairs is reduced, the county fair may retain that portion of the license fee applicable to its live racing meeting that exceeds the amount of the license fees that would have been paid on its 2004 live racing meeting at the reduced rate.

Section § 19615

Explanation

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.

(a)CA Business & Professions Code § 19615(a) The board shall provide a method for estimating the aggregate handle for each association’s proposed race meeting. Estimates may be revised during the course of the meeting. Based upon the estimate, each association shall pay its license fee weekly, and purses shall be reasonably allocated over the period of the association’s anticipated race meeting pursuant to a purse program developed by the association in consultation with the horsemen’s organization contracting with the association with respect to the conduct of racing meetings subject to approval of the board.
(b)CA Business & Professions Code § 19615(b) Within seven days after the close of a race meeting, an association shall pay any license fee theretofore unpaid, or shall have refunded to it any excess license fee theretofore paid.
(c)CA Business & Professions Code § 19615(c) If, at the close of a thoroughbred racing meeting, it is determined that the association conducting the meeting has not made payments to or for the benefit of owners and breeders of horses in an amount equaling the percentages set forth in this chapter, any excess shall be deducted from, and any deficiency not in excess of an amount agreed upon between the association and the horsemen’s organization contracting with the association with respect to the conduct of racing meetings shall be added to, the amount the association is required to pay to or for the benefit of owners and breeders of horses at its racing meeting in the following calendar year. Any deficiency in excess of the amount agreed upon shall be distributed as provided in the agreement.
(d)CA Business & Professions Code § 19615(d) If, at the close of any other racing meeting, it is determined that the association conducting the meeting has not made payments to or for the benefit of owners and breeders of horses in an amount equaling the percentages set forth in this chapter, any excess shall be deducted from, and any deficiency shall be added to, the amount the association is required to pay to or for the benefit of owners and breeders of horses at its racing meeting in the following calendar year.
(e)CA Business & Professions Code § 19615(e) Any two associations conducting a meeting pursuant to Section 19612 or 19612.6 may, with the approval of the board, combine their excesses or deficiencies from prior meetings if the associations and the organizations representing the horsemen all agree.
(f)CA Business & Professions Code § 19615(f) Any associations conducting a harness meeting in the northern zone, including an association conducting any meeting pursuant to Section 19549.3, may, with the approval of the board, combine their excesses or deficiencies from prior meetings if the associations and the organizations representing horsemen all agree.

Section § 19616

Explanation

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.

(a)CA Business & Professions Code § 19616(a) Notwithstanding any other provision of law, wagers accepted on out-of-state or out-of-country races pursuant to Sections 19596 and 19596.2, or on any multiple race exotic wager involving out-of-state races that is designated as a national wager, but not included in the parimutuel pool or pools of the entity conducting the out-of-state or out-of-country racing, shall be placed in a separate parimutuel pool or pools and shall be distributed as provided by this section.
(b)CA Business & Professions Code § 19616(b) Each association accepting wagers on an out-of-state or out-of-country race shall deduct a percentage of the amount handled in its conventional and exotic parimutuel pools that is equal to the percentage deducted from the amount handled by the association in its parimutuel pools at its racing meeting.
(c)CA Business & Professions Code § 19616(c) Each association shall pay a state license fee and make other distributions in accordance with Section 19601.
(d)CA Business & Professions Code § 19616(d) The amount remaining from the deduction under subdivision (b), after payment of the state license fee and the contractual payment to the out-of-state host racing association, shall be distributed in accordance with applicable provisions of Section 19601.
(e)CA Business & Professions Code § 19616(e) From the amount distributed under subdivision (d) for Appaloosa purses, a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.9, and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.9.
(f)CA Business & Professions Code § 19616(f) From the amount distributed under subdivision (d) for quarter horse purses, a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.7, and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.7.
(g)CA Business & Professions Code § 19616(g) From the amount distributed under subdivision (d) for Arabian purses, a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency, pursuant to Section 19617.8, and shall thereafter be distributed in accordance with Section 19617.8.

Section § 19616.1

Explanation

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.

(a)CA Business & Professions Code § 19616.1(a) Notwithstanding any other provision of law, wagers accepted on out-of-state or out-of-country races pursuant to Section 19596 or 19596.2, or on any multiple race exotic wager involving races from out of state that is designated by the board as a national wager and included in the parimutuel pool or pools of the entity conducting the racing shall be distributed as provided in this section.
(b)CA Business & Professions Code § 19616.1(b) From the amount handled by the association and included in the parimutuel pool or pools of the entity conducting the out-of-state or out-of-country racing, each association may, with the permission of the board, deduct a percentage equal to the percentage deducted by the entity conducting the out-of-state or out-of-country racing.
(c)CA Business & Professions Code § 19616.1(c) From the amount deducted pursuant to subdivision (b), if any, each association shall pay a state license fee and make other distributions in accordance with Section 19601.
(d)CA Business & Professions Code § 19616.1(d) The amount remaining from the deduction under subdivision (b), if any, after payment of the state license fee and the contractual payment to the out-of-state or out-of-country host racing association, shall be distributed in accordance with the applicable provisions of Section 19601.
(e)CA Business & Professions Code § 19616.1(e) From the amount distributed under subdivision (d) for Appaloosa purses, a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.9, and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.9.
(f)CA Business & Professions Code § 19616.1(f) From the amount distributed under subdivision (d) for quarter horse purses, a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.7, and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.7.
(g)CA Business & Professions Code § 19616.1(g) For the purposes of subdivisions (a) and (b), with respect to any multiple race exotic wager involving races from out of state that is designated by the board as a national wager, the totalizator hub for the wager shall be considered the “entity conducting the racing.”
(h)CA Business & Professions Code § 19616.1(h) Notwithstanding any other provision of law, if a thoroughbred association conducting a racing meeting in this state accepts wagers on a race that is part of a national wager as designated by the board, or acts as the totalizer hub pursuant to subdivision (g), the association shall not be required to pay a license fee to the state on those wagers. Amounts received by the association from the wagering shall be distributed 50 percent as commissions and 50 percent as purses to the horsemen and horsewomen participating in the racing meeting.
(i)CA Business & Professions Code § 19616.1(i) From the amount distributed under subdivision (d) for Arabian purses, a sum equal to 13.33 percent thereof shall be held by the association to be deposited with the official registering agency, pursuant to Section 19617.8, and shall thereafter be distributed in accordance with Section 19617.8.

Section § 19616.2

Explanation

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.

(a)CA Business & Professions Code § 19616.2(a) Except as provided in Section 19616.1, an association conducting wagering on an out-of-state feature race that is included in the parimutuel pool of the out-of-state entity conducting the out-of-state racing shall deduct a percentage equal to the percentage deducted from the amount handled by the association in its parimutuel pools at its racing meeting.
(b)CA Business & Professions Code § 19616.2(b) An association that accepts wagers in a common parimutuel pool on an out-of-state feature race and deducts a percentage equal to that deducted from the amount handled by the association in its parimutuel pool at its racing meeting, as specified in subdivision (a), shall calculate payments on winning tickets as provided in Section 19602.

Section § 19616.51

Explanation

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.

(a)CA Business & Professions Code § 19616.51(a) Notwithstanding any other law, and in lieu of any license fee payable to the state prescribed for or referred to in Section 19491, 19491.5, 19596.3, 19601, 19601.2, 19602, 19603, 19604, 19605.25, 19605.35, 19605.45, 19605.6, 19605.7, 19605.71, 19606.5, 19606.6, 19610.8, 19611, 19612, 19614, 19616, 19616.1, 19616.2, or 19641, any association or fair that conducts a racing meeting shall only pay its proportional amount, as determined by the formula devised pursuant to paragraph (1), as a license fee to the state, to be deposited into the Horse Racing Fund, which is hereby established, to fund the board and the equine drug testing program as follows:
(1)CA Business & Professions Code § 19616.51(a)(1) All racing associations and fairs including all breeds of racing shall participate in the funding of the board in accordance with a formula devised by the board in consultation with the industry.
(2)CA Business & Professions Code § 19616.51(a)(2) The baseline funding for the board and equine drug testing program in the first fiscal year after the enactment of this section shall be the amount approved in the 2008–09 Budget Act.
(3)CA Business & Professions Code § 19616.51(a)(3) Adjustments to the funding in subsequent budget years may only be made by an act of the Legislature.
(b)CA Business & Professions Code § 19616.51(b) The license fee reductions resulting from subdivision (a), after payments to fund the board and the equine drug testing program, shall be distributed as follows:
(1)CA Business & Professions Code § 19616.51(b)(1) For thoroughbred racing only, 3 percent of the amount of the reduction shall be deposited with the official registering agency pursuant to subdivision (a) of Section 19617.2, and shall thereafter be distributed in accordance with subdivisions (b), (c), and (d) of Section 19617.2. The remaining amount shall be distributed to the association that conducts the racing meeting and to horsemen participating in that racing meeting as follows:
(A)CA Business & Professions Code § 19616.51(b)(1)(A) Fifty percent to the association as commissions.
(B)CA Business & Professions Code § 19616.51(b)(1)(B) Fifty percent to the horsemen as purses.
(2)CA Business & Professions Code § 19616.51(b)(2) For quarter horse racing, 3 percent of the amount of the reduction shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.7, and shall thereafter be distributed in accordance with subdivisions (c), (d), (e), and (f) of Section 19617.7, the remaining amount shall be distributed to the association that conducts the racing meeting and to horsemen participating in that racing meeting as follows:
(A)CA Business & Professions Code § 19616.51(b)(2)(A) Fifty percent to the association as commissions.
(B)CA Business & Professions Code § 19616.51(b)(2)(B) Fifty percent to the horsemen as purses.
(3)CA Business & Professions Code § 19616.51(b)(3) For harness racing, 6 percent of the amount of the reduction shall be distributed as specified in Section 19617.6, the remaining amount shall be distributed to the association that conducts the racing meeting and to horsemen participating in that racing meeting as follows:
(A)CA Business & Professions Code § 19616.51(b)(3)(A) Fifty percent to the association as commissions.
(B)CA Business & Professions Code § 19616.51(b)(3)(B) Fifty percent to the horsemen as purses.
(4)CA Business & Professions Code § 19616.51(b)(4) For all other breeds, the remaining amount shall be distributed to the association that conducts the racing meeting and to horsemen participating in that racing meeting as follows:
(A)CA Business & Professions Code § 19616.51(b)(4)(A) Fifty percent to the association as commissions.
(B)CA Business & Professions Code § 19616.51(b)(4)(B) Fifty percent to the horsemen as purses.

Section § 19617

Explanation

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.

The following definitions shall govern the construction of this section and Section 19617.2:
(a)CA Business & Professions Code § 19617(a) “Breeder” means a person who is registered as a breeder of a California-bred thoroughbred with the official registering agency and is named on the applicable Certificate of Registration issued by the Jockey Club of New York.
(b)CA Business & Professions Code § 19617(b) “Qualifying race” means the following:
(1)CA Business & Professions Code § 19617(b)(1) In the case of breeder awards, all races in this state, all graded stakes races conducted within the United States, and other stakes races as designated by the official registering agency.
(2)CA Business & Professions Code § 19617(b)(2) As qualified by paragraph (5), in the case of owner premiums, certain claiming races, as defined by paragraph (4), and all allowance races, including maiden special weights. No owner premiums shall be paid on California-bred restricted races pursuant to Section 19568.
(3)CA Business & Professions Code § 19617(b)(3) As qualified by paragraph (5), in the case of stallion awards, all nonclaiming races and certain claiming races, if the nonclaiming races and the certain claiming races are conducted in this state during racing meetings where more than one-half of the races on every racing program are for thoroughbreds, all graded stakes races conducted within the United States, and other stakes races as designated by the official registering agency.
(4)CA Business & Professions Code § 19617(b)(4) “Certain claiming races” means thoroughbred races in the central and southern zone with a minimum claiming level of forty thousand dollars ($40,000) for winners and thoroughbred races in the northern zone with a minimum claiming level of twenty thousand dollars ($20,000) for winners.
(5)CA Business & Professions Code § 19617(b)(5) No owner premium or stallion award shall be paid on races with purses of less than fifteen thousand dollars ($15,000). In determining whether a race complies with the definition in paragraph (4), the official registering agency shall base its determination on the actual amount of the purse at the time the race was conducted and shall not take into consideration any postrace adjustments to that purse.
(c)CA Business & Professions Code § 19617(c) “Eligible earnings” means the following:
(1)CA Business & Professions Code § 19617(c)(1) In the case of breeder awards, the annual amount earned by a California-bred thoroughbred for finishing first, second, or third in qualifying races.
(2)CA Business & Professions Code § 19617(c)(2) In the case of owner premiums, the annual amount earned by a California-bred thoroughbred for winning qualifying races.
(3)CA Business & Professions Code § 19617(c)(3) In order for earnings from a qualifying race to be considered as eligible earnings, a California-bred thoroughbred shall be registered as such with the official registering agency before the date entries were taken by the association for the qualifying race in which that horse earned purse money.
(4)CA Business & Professions Code § 19617(c)(4) In the case of stallion awards, the annual amount earned by California-conceived or California-bred foals of an eligible thoroughbred stallion in winning qualifying races plus the amount earned by those foals for finishing second or third in a stakes race in this state, for finishing first, second, or third in a graded stakes race within the United States, and for finishing first, second, or third in other stakes races as designated by the official registering agency.
(5)CA Business & Professions Code § 19617(c)(5) For purposes of this section, the maximum purse considered earned in any qualifying race within this state shall be three hundred thirty thousand dollars ($330,000) for a win, one hundred twenty thousand dollars ($120,000) for a second, and ninety thousand dollars ($90,000) for a third place finish and the maximum purse considered earned in any qualifying race outside of this state shall be one hundred sixty-five thousand dollars ($165,000) for a win, sixty thousand dollars ($60,000) for a second, and forty-five thousand dollars ($45,000) for a third place finish.
(6)CA Business & Professions Code § 19617(c)(6) In determining the purse earned in any qualifying race that is a stakes race, the amount earned shall be based solely on the added money, with no consideration to be given to other sources of the purse, such as nomination, entry, or starting fees, bonuses, and sponsor contributions, or any combination thereof.
(7)CA Business & Professions Code § 19617(c)(7) On or before February 15 of any year, it is the ultimate responsibility of the stallion owner to advise the official registering agency of any and all purses earned during the preceding year that shall be considered in determining the amount of the stallion award to which the owner is entitled.
(8)CA Business & Professions Code § 19617(c)(8) On or before February 15 of any year, it is the ultimate responsibility of the breeder to advise the official registering agency of any and all purses earned during the preceding year in graded stakes races outside of this state by horses bred by breeder.
(d)CA Business & Professions Code § 19617(d) “Eligible thoroughbred stallion” means a thoroughbred stallion that was continuously present in this state from February 1 to June 15, inclusive, of the calendar year in which the qualifying race was conducted, and if the sire left this state after June 15 of the calendar year in which the qualifying race was conducted, the sire returned to and was present in this state by February 1 of the following calendar year and thereafter remained until June 15 of that year. If a sire dies in this state and stood his last season at stud in this state, he shall thereafter continue to be considered an eligible thoroughbred stallion.
(1)CA Business & Professions Code § 19617(d)(1) Notwithstanding any provision to the contrary, a thoroughbred stallion shall be considered an eligible thoroughbred stallion only if its owner has filed a claim for stallion award on or before February 15 of the calendar year immediately following the calendar year for which the awards are being distributed and is registered with the official registering agency.
(2)CA Business & Professions Code § 19617(d)(2) The official registering agency shall establish procedures for the registration of stallions and may charge a fee for that registration.
(3)CA Business & Professions Code § 19617(d)(3) This subdivision shall apply only to thoroughbred stallions standing at stud in this state before January 1, 2010, and as to foals conceived in this state before January 1, 2010.
(e)CA Business & Professions Code § 19617(e) “Eligible thoroughbred stallion” means a thoroughbred stallion that was continuously present in this state from February 1 to June 15, inclusive, of the year 2010 or any subsequent calendar year in which he stood at stud and fathered the participant in the race. If a sire dies in this state in the year 2010 or any subsequent year and stood his last season at stud in this state, or was standing at stud in this state on the date of his death in the year 2010 or any subsequent year, he shall thereafter continue to be considered an eligible thoroughbred stallion regarding a race participant fathered by him in that season.
(1)CA Business & Professions Code § 19617(e)(1) Notwithstanding any provision to the contrary, a thoroughbred stallion shall be considered an eligible thoroughbred stallion only if the stallion owner has filed a claim for stallion award on or before February 15 of the calendar year immediately following the calendar year for which the awards are being distributed and the stallion and the stallion owner are registered with the official registering agency.
(2)CA Business & Professions Code § 19617(e)(2) The official registering agency shall establish procedures for the registration of stallions and stallion owners and may charge a fee for that registration.
(3)CA Business & Professions Code § 19617(e)(3) This subdivision shall apply only to thoroughbred stallions standing at stud in this state on or after January 1, 2010, and as to foals conceived in this state on or after January 1, 2010.
(f)CA Business & Professions Code § 19617(f) “Official registering agency” means the California Thoroughbred Breeders Association.
(g)CA Business & Professions Code § 19617(g) “Owner” means the person who is registered with the paymaster of purses on the date the qualifying race was conducted as the owner of the California-bred thoroughbred earning purse money in that race.
(h)CA Business & Professions Code § 19617(h) “Quotient,” for any fund, means the amount allocated to that fund pursuant to subdivision (b) of Section 19617.2 divided by the aggregate eligible earnings of the horses applicable to that fund. In calculating the quotient for each of the funds, any retroactive purse payments with respect to a race shall not be considered after the disbursement of the fund.
(i)CA Business & Professions Code § 19617(i) “Stallion owner” means the person who is the owner of the eligible thoroughbred stallion as of December 31 of the calendar year in which that sire’s foals had eligible earnings or the person who owned the eligible thoroughbred sire on the date that the stallion died. This subdivision shall only apply to thoroughbred stallions standing at stud in this state before January 1, 2010, and as to foals conceived in this state before January 1, 2010.
(j)CA Business & Professions Code § 19617(j) “Stallion owner” means the person who is the owner of the eligible thoroughbred stallion as of December 31 of each calendar year in which the eligible thoroughbred stallion stands at stud in this state as to all of that sire’s foals (1) that were conceived in this state in that calendar year and (2) that thereafter have eligible earnings. If the eligible thoroughbred stallion dies prior to December 31 of a year in which that stallion stands at stud in this state, the person who owned the eligible thoroughbred stallion on the date that the stallion died shall be the stallion owner for that year. This subdivision shall only apply to thoroughbred stallions standing at stud in this state on or after January 1, 2010, and as to foals conceived in this state on or after January 1, 2010.

Section § 19617.2

Explanation

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.

(a)CA Business & Professions Code § 19617.2(a) Except as otherwise provided in this chapter, any association conducting a race meeting that includes thoroughbred racing shall deposit with the official registering agency 0.54 percent of the total amount handled ontrack in daily conventional and exotic parimutuel pools resulting from thoroughbred wagers made in this state. These deposits shall be made at the following intervals:
(1)CA Business & Professions Code § 19617.2(a)(1) For any meeting of 20 racing days or less, the requisite deposit shall be made not later than seven days immediately following the last day of that meeting.
(2)CA Business & Professions Code § 19617.2(a)(2) For any meeting of more than 20 racing days, the initial deposit shall be made not later than 27 racing days after the commencement of that meeting and every 20 racing days thereafter, with a final deposit made not later than seven days following the last day of that meeting. The initial deposit for that meeting shall be based upon the applicable amount handled during the first 20 racing days of the meeting, and deposits thereafter shall be based upon the applicable amount handled during the ensuing periods of 20 racing days with the last deposit being based upon the applicable amount handled from the end of the last 20-racing-day period for which a deposit has been made to the end of the meeting.
(b)CA Business & Professions Code § 19617.2(b) After deducting a sum equal to 5 percent of the total deposits made pursuant to subdivision (a) and the total deposits made pursuant to Section 19602, the amount to compensate the official registering agency for its administrative cost and for expenses it incurs for educational, promotional, and research programs, the official registering agency shall for computational purposes distribute annually the balance of the deposits in the following manner:
(1)CA Business & Professions Code § 19617.2(b)(1) To the California-bred race fund, 10 percent to be used for the promotion of California-bred races and from which purses are to be provided or supplemented for California Cup Day, other California-bred races, and, upon the approval of the official registering agency, races featuring California-breds. This fund shall be administered by the official registering agency. Any funds not used for those purposes during any year, up to 1 percent of the total breeder, stallion, and owner award receipts, shall remain in the California-bred race fund to be distributed for the purposes of this paragraph the following year. Any funds remaining thereafter shall be redistributed to augment the funds referred to in subdivision (c), and shall be allocated to the breeder fund and to the stallion fund as provided in that subdivision. It is the intent of the Legislature that all funds used for purses shall supplement and not supplant existing purses for California-breds.
(2)CA Business & Professions Code § 19617.2(b)(2) To the owner fund for the purpose of owner premiums pursuant to Section 19614.4.
(3)CA Business & Professions Code § 19617.2(b)(3) To the California-bred bonus program, 15 percent of the amount remaining to be used for the payment of bonuses to California-bred horses in maiden allowance races in California. This bonus program shall be administered by the official registering agency.
(c)CA Business & Professions Code § 19617.2(c) The funds remaining after the distributions made pursuant to subdivision (b) shall be distributed as follows:
(1)CA Business & Professions Code § 19617.2(c)(1) To the breeder fund 75 percent, from which breeder awards are to be paid.
(2)CA Business & Professions Code § 19617.2(c)(2) To the stallion fund 25 percent, from which stallion awards are to be paid.
(d)CA Business & Professions Code § 19617.2(d) The official registering agency shall make the following payments to the owner, breeder, and stallion owner so as to encourage agriculture and the breeding of higher quality horses in this state:
(1)CA Business & Professions Code § 19617.2(d)(1) The owner shall be paid an owner premium pursuant to Section 19614.4.
(2)CA Business & Professions Code § 19617.2(d)(2) The breeder shall be paid a breeder award equal to the quotient for the breeder fund multiplied by the eligible earnings of the horse bred by the breeder.
(3)CA Business & Professions Code § 19617.2(d)(3) The stallion owner shall be paid a stallion award equal to the quotient for the stallion fund multiplied by the eligible earnings of the stallion owner’s eligible thoroughbred stallion.
(4)CA Business & Professions Code § 19617.2(d)(4) Owner premiums for California-bred horses shall be listed in the racing program alongside the advertised purse, and shall be distributed to the owner pursuant to Section 19614.4 at the same time as the purse.
(5)CA Business & Professions Code § 19617.2(d)(5) The breeder and stallion awards shall be paid not later than March 31 of the calendar year immediately following the calendar year for which the awards or premiums were earned.

Section § 19617.3

Explanation

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.

(a)CA Business & Professions Code § 19617.3(a) The following definitions govern the construction of this section:
(1)CA Business & Professions Code § 19617.3(a)(1) “Breeder” means a person who is registered as the breeder of a California-bred paint horse with the official registering agency and is named on the applicable Certificate of Registration issued by the American Paint Horse Association.
(2)CA Business & Professions Code § 19617.3(a)(2) “Eligible earnings” means the following:
(A)CA Business & Professions Code § 19617.3(a)(2)(A) In the case of breeder premiums, the annual amount earned by a California-bred paint horse for finishing first or second in qualifying races.
(B)CA Business & Professions Code § 19617.3(a)(2)(B) In the case of owners’ awards, the annual amount earned by a California-bred paint horse for finishing first or second in qualifying races.
(C)CA Business & Professions Code § 19617.3(a)(2)(C) In the case of stallion awards, the annual amount earned by California-conceived or California-bred foals of an eligible paint horse sire for finishing first or second in qualifying races.
(D)CA Business & Professions Code § 19617.3(a)(2)(D) In order for earnings from a qualifying race to be considered as eligible earnings, a California-bred paint horse shall be registered as such with the official registering agency before the entries were taken by the association for the qualifying race in which that horse earned purse money.
(E)CA Business & Professions Code § 19617.3(a)(2)(E) For purposes of this paragraph, the maximum purse considered earned in any qualifying race within this state is two hundred thousand dollars ($200,000) for a win, and eighty thousand dollars ($80,000) for a second place finish.
(F)CA Business & Professions Code § 19617.3(a)(2)(F) In determining the purse earned in any qualifying race that is a stakes race, the amount earned shall be based on the added money and other sources of the purse, such as nomination, entry, or starting fees, bonuses, and sponsor contributions, or any combination thereof.
(G)CA Business & Professions Code § 19617.3(a)(2)(G) On or before February 1, of any year, the stallion owner shall verify with the official registering agency the eligibility of a stallion to receive the stallion award to which the owner is entitled.
(3)CA Business & Professions Code § 19617.3(a)(3) “Eligible paint horse sire” means a paint horse, thoroughbred, or quarter horse sire of a registered paint horse foal, where the sire was continuously present in this state from February 1 to July 15, inclusive, of the calendar year in which the qualifying race was conducted, as well as from February 1 to July 15, inclusive, of the following calendar year. If a sire dies in this state and stood his last seasons at stud in this state, he shall thereafter continue to be considered an eligible paint horse sire. Notwithstanding any other provision of law, a paint horse stallion shall be considered an eligible paint horse sire only if its owner has verified the stallion’s eligibility with the official registering agency for stallion awards on or before February 1 of the calendar year immediately following the calendar year for which the awards are being distributed.
(4)CA Business & Professions Code § 19617.3(a)(4) “Official registering agency” means the Pacific Coast Quarter Horse Racing Association.
(5)CA Business & Professions Code § 19617.3(a)(5) “Owner” means the person who is registered with the paymaster of purses on the date the qualifying race was conducted as the owner of the California-bred paint horse earning purse money in that race.
(6)CA Business & Professions Code § 19617.3(a)(6) “Qualifying race” means all paint horse only races in this state.
(7)CA Business & Professions Code § 19617.3(a)(7) “Stallion owner” means the person who is the owner of the eligible paint horse sire as of December 31 of the calendar year in which that sire’s foals had eligible earnings or the person who owned the eligible paint horse sire on the date that the sire died.
(b)CA Business & Professions Code § 19617.3(b) Any association conducting a race meeting that includes paint horse racing shall deposit with the official registering agency 0.2 of 1 percent of the total amount handled ontrack, and 0.4 of 1 percent of the total amount handled offtrack, in daily conventional and exotic parimutuel pools and a sum equal to 25 percent of those funds specified for purses in Sections 19612.1, 19612.2, 19614.2, 19616, and 19616.1 and the sums specified in Sections 19567 and 19617.5, resulting from paint horse racing. The deposits shall be made at the following intervals:
(1)CA Business & Professions Code § 19617.3(b)(1) For any meeting of 20 racing days or less, the requisite deposit shall be made not later than seven days immediately following the last day of that meeting.
(2)CA Business & Professions Code § 19617.3(b)(2) For any meeting of more than 20 racing days, the initial deposit shall be made not later than 27 racing days after the commencement of that meeting and every 20 racing days thereafter, with a final deposit made not later than seven days following the last day of that meeting. The initial deposit for that meeting shall be based upon the applicable amount handled during the first 20 racing days of the meeting, and deposits thereafter shall be based upon the applicable amount handled during the ensuing periods of 20 racing days, with the last deposit being based upon the applicable amount handled from the end of the last 20-racing-day period for which a deposit has been made to the end of the meeting.
(c)CA Business & Professions Code § 19617.3(c) After deducting a sum up to, but not to exceed, 10 percent of the total deposits made pursuant to subdivision (b) and the total deposits made pursuant to other provisions of this chapter, including Sections 19612.1, 19612.2, 19614.2, 19616, and 19616.1, to compensate the official registering agency for its administrative costs, the official registering agency shall distribute annually the balance of the deposits in the following manner:
(1)CA Business & Professions Code § 19617.3(c)(1) Sixty percent to the breeder fund from which breeder premiums are to be paid.
(2)CA Business & Professions Code § 19617.3(c)(2) Twenty-five percent to the owner fund from which owners’ premiums are to be paid.
(3)CA Business & Professions Code § 19617.3(c)(3) Fifteen percent to the stallion fund from which stallion awards are to be paid.
(d)CA Business & Professions Code § 19617.3(d) The official registering agency shall make the following payments to the breeder, owner, and stallion owner to encourage agriculture and the breeding of high quality horses in this state:
(1)CA Business & Professions Code § 19617.3(d)(1) The breeder shall be paid a sum based on a prorated share, but not less than 10 percent, of first and second place earnings from qualified races by a California-bred paint horse. If the sum paid to the breeder is less than 10 percent of the purse paid for a first or second place finish in a qualifying race, the owners’ award and stallion award pools shall respectively contribute 62.5 percent and 37.5 percent of the moneys necessary to the breeder premium pool to raise the breeder premium to 10 percent minimum. In calculating the 10 percent breeder premium, the maximum purse considered earned in any qualifying race within this state is two hundred thousand dollars ($200,000) for a first place finish, and eighty thousand dollars ($80,000) for a second place finish.
(2)CA Business & Professions Code § 19617.3(d)(2) The owner shall be paid an owners’ award, a sum based on a prorated share of first and second place earnings from qualified races by a California-bred paint horse.
(3)CA Business & Professions Code § 19617.3(d)(3) The stallion owner shall be paid a stallion award, a sum based on a prorated share of first and second place earnings from qualified races by a California-bred paint horse. Stallion awards shall not be made to the owner of a sire that has been out of the state for breeding purposes during the calendar year.
(4)CA Business & Professions Code § 19617.3(d)(4) The breeder premium and owners’ and stallion awards shall be paid not later than March 31 of the calendar year immediately following the calendar year for which the awards or premiums were earned. Any payments for awards or premiums that are uncashed on December 31 of the year issued shall accrue to the following year for distribution on an equal basis.
(e)CA Business & Professions Code § 19617.3(e) The amount remaining for distribution under this section, if any, after the payments are made under subdivision (d) shall be used for the payment of paint horse breeders premiums and owners’ and stallion awards on a prorated percentage based on the win and second place shares of the purse exclusive of all purse money not derived from the parimutuel pools, to the breeders, owners, and owners of sires of paint horses who have been officially placed first or second in one or more qualifying races.
(f)CA Business & Professions Code § 19617.3(f) If there are insufficient funds to make all of the distributions in this section, there shall be no assessments made against any association to fund the deficiencies.

Section § 19617.4

Explanation

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.

(a)CA Business & Professions Code § 19617.4(a) The official registering agency shall invest the funds deposited with it, and the interest earned on those deposits shall be a part of the total deposits distributable under subdivisions (b) and (c) of Section 19617.2.
(b)CA Business & Professions Code § 19617.4(b) In the event there are insufficient funds to make the distributions described in Section 19617.2, there shall be no additional assessments made against any association or the state to fund the deficiencies.
(c)CA Business & Professions Code § 19617.4(c) Any award or premium remaining uncollected for two consecutive years from that date of disbursement shall be deemed null and void. The official registering agency shall deposit the amount of the uncollected award or premium into the breeder fund existing at that time.
(d)CA Business & Professions Code § 19617.4(d) Any dispute with respect to a breeder award, owner premium, or stallion award shall be decided by the official registering agency, which may demand and inspect any registration certificate or record, or require the submission of claims forms, affidavits, and declarations or make that inspection and require submissions of that information. The decision of the official registering agency shall be subject to review by the board pursuant to subdivision (e).
(e)CA Business & Professions Code § 19617.4(e) A decision made by the official registering agency with respect to a breeder award, owner premium, or stallion award may be appealed to the board. The appeal shall be submitted in writing to the board in such manner and at such time as to permit the board, in the exercise of reasonable diligence, to determine the appeal prior to the time at which distribution of that award or premium is to be made. The board’s decision on this matter shall be final and binding upon all parties.
(f)CA Business & Professions Code § 19617.4(f) The official registering agency shall report annually to the board, which in turn shall report annually to the Governor and Legislature, with respect to the funds deposited pursuant to subdivision (a) of Section 19617.2.

Section § 19617.5

Explanation

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.

(a)CA Business & Professions Code § 19617.5(a) Any association conducting a quarter horse or harness racing meeting shall pay the sums required to be paid by Section 19567 out of the amounts deducted from the parimutuel pool for license fees, commissions, and purses in the same proportion as the distribution of the license fees, commissions, and purses.
Those sums deducted for quarter horse meetings shall be deposited with the official registering agency pursuant to subdivision (b) of Section 19617.7 and shall thereafter be distributed in accordance with subdivisions (c), (d), and (e) of Section 19617.7.
(b)CA Business & Professions Code § 19617.5(b) Notwithstanding subdivision (a), any association conducting a fair racing meeting other than a harness meeting or conducting a mixed breed meeting shall deduct an additional 0.34 of 1 percent of the total amount handled in its daily conventional and exotic parimutuel pools for all races for payment of breeder and stallion awards provided for in this chapter. Following the close of the meeting, the respective official registering agency or officially recognized horsemen’s organization shall distribute the amounts so deducted as follows:
(1)CA Business & Professions Code § 19617.5(b)(1) With respect to thoroughbred races, the amounts deducted shall be paid as breeder awards, owners’ premiums, and stallion awards as provided in Section 19617.2.
(2)CA Business & Professions Code § 19617.5(b)(2) With respect to quarter horse races, the amounts deducted shall be paid as breeder premiums, and owners’ and stallion awards, as provided in Section 19617.7.
(3)CA Business & Professions Code § 19617.5(b)(3) With respect to Arabian races, the amounts deducted shall be paid as breeder premiums, and owners’ and stallion awards as provided in Section 19617.8.
(4)CA Business & Professions Code § 19617.5(b)(4) With respect to Appaloosa races, the amounts deducted shall be paid as breeder premiums, and owners’ and stallion awards, as provided in Section 19617.9.
(5)CA Business & Professions Code § 19617.5(b)(5) With respect to paint horse races, the amounts deducted shall be paid as breeder and owners’ premiums, and stallion awards, as provided in Section 19617.3.

Section § 19617.6

Explanation

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.

(a)CA Business & Professions Code § 19617.6(a) Since the purpose of this chapter is to encourage agriculture and the breeding of horses in this state, a sum equal to 10 percent of the first money of each purse won by a registered California-bred horse at a harness racing meeting shall be paid by the licensee conducting the meeting to the owner of the horse. This section applies to any California-bred standardbred horse for all races except the California Standardbred Sires Stakes races, other stakes races designed for California-bred standardbred horses, and late closing events and series conducted at the harness racing meetings in California.
(b)CA Business & Professions Code § 19617.6(b) Each licensee conducting a harness race meeting shall pay the sums required to be paid in subdivision (a) out of the amount deducted for purses pursuant to subdivision (b) of Section 19612, Section 19612.6, and subdivision (d) of Section 19616.1.
(c)CA Business & Professions Code § 19617.6(c) Funds paid to owners of California-bred standardbred horses pursuant to this section shall be distributed by the licensed harness racing association no later than 30 calendar days after the conclusion of the racing meeting.

Section § 19617.7

Explanation

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.

(a)CA Business & Professions Code § 19617.7(a) The following definitions govern the construction of this section:
(1)CA Business & Professions Code § 19617.7(a)(1) “Breeder” means a person who is registered as the breeder of a California-bred quarter horse with the official registering agency and is named on the applicable Certificate of Registration issued by the American Quarter Horse Association.
(2)CA Business & Professions Code § 19617.7(a)(2) “Eligible earnings” means the following:
(A)CA Business & Professions Code § 19617.7(a)(2)(A) In the case of breeder premiums, the annual amount earned by a California-bred quarter horse for finishing first or second in qualifying races.
(B)CA Business & Professions Code § 19617.7(a)(2)(B) In the case of owners’ awards, the annual amount earned by a California-bred quarter horse for finishing first or second in qualifying races.
(C)CA Business & Professions Code § 19617.7(a)(2)(C) In the case of stallion awards, the annual amount earned by California-conceived or California-bred foals of an eligible quarter horse sire for finishing first or second in qualifying races.
(D)CA Business & Professions Code § 19617.7(a)(2)(D) In order for earnings from a qualifying race to be considered as eligible earnings, a California-bred quarter horse shall be registered as such with the official registering agency before the entries were taken by the association for the qualifying race in which that horse earned purse money.
(E)CA Business & Professions Code § 19617.7(a)(2)(E) For purposes of this paragraph, the maximum purse considered earned in any qualifying race within this state is two hundred thousand dollars ($200,000) for a win, and eighty thousand dollars ($80,000) for a second place finish.
(F)CA Business & Professions Code § 19617.7(a)(2)(F) In determining the purse earned in any qualifying race that is a stakes race, the amount earned shall be based on the added money and other sources of the purse, such as nomination, entry, or starting fees, bonuses, and sponsor contributions, or any combination thereof.
(G)CA Business & Professions Code § 19617.7(a)(2)(G) On or before February 1 of any year, the stallion owner shall verify with the official registering agency the eligibility of a stallion to receive the stallion award to which the owner is entitled.
(3)CA Business & Professions Code § 19617.7(a)(3) “Eligible quarter horse sire” means a quarter horse, or thoroughbred stallion, bred to a quarter horse mare, where the sire was continuously present in this state from February 1 to July 15, inclusive, of the calendar year in which the qualifying race was conducted, as well as from February 1 to July 15, inclusive, of the following calender year. If a sire dies in this state and stood his last season at stud in this state, he shall thereafter continue to be considered an eligible quarter horse sire. Notwithstanding any other provision of law, a quarter horse or thoroughbred stallion shall be considered an eligible quarter horse sire only if its owner has verified the stallion’s eligibility with the official registering agency for stallion awards on or before February 1 of the calendar year immediately following the calendar year for which the awards are being distributed.
(4)CA Business & Professions Code § 19617.7(a)(4) “Official registering agency” means the Pacific Coast Quarter Horse Racing Association.
(5)CA Business & Professions Code § 19617.7(a)(5) “Owner” means the person who is registered with the paymaster of purses on the date the qualifying race was conducted as the owner of the California-bred quarter horse earning purse money in that race.
(6)CA Business & Professions Code § 19617.7(a)(6) “Qualifying race” means all quarter horse races in this state.
(7)CA Business & Professions Code § 19617.7(a)(7) “Stallion owner” means the person who is the owner of the eligible quarter horse sire as of December 31 of the calendar year in which that sire’s foals had eligible earnings or the person who owned the eligible quarter horse sire on the date that the sire died.
(b)CA Business & Professions Code § 19617.7(b) Any association conducting a race meeting that includes quarter horse racing shall deposit with the official registering agency 0.2 of 1 percent of the total amount handled ontrack, and 0.4 of 1 percent of the total amount handled offtrack, in daily conventional and exotic parimutuel pools and a sum equal to 25 percent of those funds specified for purses in Sections 19612.1, 19612.2, 19614.2, 19616, and 19616.1 and the sums specified in Sections 19567 and 19617.5, resulting from quarter horse racing. The deposits shall be made at the following intervals:
(1)CA Business & Professions Code § 19617.7(b)(1) For any meeting of 20 racing days or less, the requisite deposit shall be made not later than seven days immediately following the last day of that meeting.
(2)CA Business & Professions Code § 19617.7(b)(2) For any meeting of more than 20 racing days, the initial deposit shall be made not later than 27 racing days after the commencement of that meeting and every 20 racing days thereafter, with a final deposit made not later than seven days following the last day of that meeting. The initial deposit for that meeting shall be based upon the applicable amount handled during the first 20 racing days of the meeting and deposits thereafter shall be based upon the applicable amount handled during the ensuing periods of 20 racing days with the last deposit being based upon the applicable amount handled from the end of the last 20-racing-day period for which a deposit has been made to the end of the meeting.
(c)CA Business & Professions Code § 19617.7(c) After deducting a sum up to, but not to exceed, 10 percent of the total deposits made pursuant to subdivision (b) and the total deposits made pursuant to other provisions of this chapter, including Sections 19612.1, 19612.2, 19614.2, 19616, and 19616.1, to compensate the official registering agency for its administrative costs, the official registering agency shall distribute annually the balance of the deposits in the following manner:
(1)CA Business & Professions Code § 19617.7(c)(1) Sixty percent to the breeder fund from which breeder premiums are to be paid.
(2)CA Business & Professions Code § 19617.7(c)(2) Twenty-five percent to the owner fund from which owners’ awards are to be paid.
(3)CA Business & Professions Code § 19617.7(c)(3) Fifteen percent to the stallion fund from which stallion awards are to be paid.
(d)CA Business & Professions Code § 19617.7(d) The official registering agency shall make the following payments to the breeder, owner, and stallion owner to encourage agriculture and the breeding of high quality horses in this state:
(1)CA Business & Professions Code § 19617.7(d)(1) The breeder shall be paid a sum based on a prorated share, but not less than 10 percent, of first and second place earnings from qualified races by a California-bred quarter horse.
If the sum paid to the breeder is less than 10 percent of the purse paid for a first or second place finish in a qualifying race, the owners’ award and stallion award pools shall respectively contribute 62.5 percent and 37.5 percent of the moneys necessary to the breeder premium pool to raise the breeder premium to 10 percent minimum. In calculating the 10 percent breeder premium, the maximum purse considered earned in any qualifying race within this state is two hundred thousand dollars ($200,000) for a first place finish, and eighty thousand dollars ($80,000) for a second place finish.
(2)CA Business & Professions Code § 19617.7(2) The owner shall be paid an owners’ award, a sum based on a prorated share of first and second place earnings from qualified races by a California-bred quarter horse.
(3)CA Business & Professions Code § 19617.7(3) The stallion owner shall be paid a stallion award, a sum based on a prorated share of first and second place earnings from qualified races by a California-bred quarter horse.
Stallion awards shall not be made to the owner of a sire that has been out of the state for breeding purposes during the calendar year.
(4)CA Business & Professions Code § 19617.7(4) The breeder premium, and owners’ and stallion awards shall be paid not later than March 31 of the calendar year immediately following the calendar year for which the awards or premiums were earned. Any payments for awards or premiums that are uncashed on December 31 of the year issued, shall accrue to the following year for distribution on an equal basis. All uncashed payments for premiums and awards that have accumulated as of December 31, 1994, shall be paid to the 1995 awards program in accordance with subdivision (c).
(e)CA Business & Professions Code § 19617.7(e) The amount remaining for distribution under this section, if any, after the payments are made under subdivision (d) shall be used for the payment of quarter horse breeder premiums and owners’ and stallion awards on a prorated percentage based on the win and second place shares of the purse, exclusive of all purse money not derived from the parimutuel pools, to the breeders, owners, and owners of sires of quarter horses who have been officially placed first or second in one or more qualifying races.
(f)CA Business & Professions Code § 19617.7(f) If there are insufficient funds to make all of the distributions in this section, there shall be no assessments made against any association to fund the deficiencies.

Section § 19617.75

Explanation

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.

(a)CA Business & Professions Code § 19617.75(a) The Legislature finds and declares that the breeding and ownership of quarter horses for racing is an industry that has proven to be beneficial to the welfare of the state’s economic growth. The Legislature further finds and declares that an annual California-bred Quarter Horses Championship races program will further expand and improve the quality of mares bred to California stallions and promote ownership of quality breeding stock in the State of California, which thereby will establish a foundation for expanded investment in this great industry.
(b)CA Business & Professions Code § 19617.75(b) It is the intent of the Legislature that in addition to the awards, premiums, and payments provided for in Section 19617.7, the official registering agency for quarter horses shall establish a separate, segregated account for the deposit of funds distributed to it pursuant to subdivision (c) of Section 19605.7 and subdivision (c) of Section 19605.71. Moneys in this fund shall be used to supplement purses in the annual California-bred Quarter Horse Championship races, to be established pursuant to regulation of the California Horse Racing Board. The distribution of these purse moneys among these races shall be made pursuant to mutual agreement between the quarter horse association and the registering agency. On June 1 of each year, the official registering agency shall provide the board with an annual report accounting for the current and projected balance of this separate fund. Furthermore, it is the intent of the Legislature that the authorization for this fund be retroactive from June 1, 2000, so as to enable the running of the 2001 California-bred Quarter Horse Championship races.

Section § 19617.8

Explanation

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.

(a)CA Business & Professions Code § 19617.8(a) The following definitions govern the construction of this section:
(1)CA Business & Professions Code § 19617.8(a)(1) “Breeder” means the person or persons listed as breeder of record by the Arabian Horse Registry of America and so indicated on the horse’s registration papers.
(2)CA Business & Professions Code § 19617.8(a)(2) “Eligible earnings” means the following:
(A)CA Business & Professions Code § 19617.8(a)(2)(A) In the case of breeder premiums, the annual amount earned by a California-bred Arabian horse for finishing first or second in qualifying races.
(B)CA Business & Professions Code § 19617.8(a)(2)(B) In the case of owners’ awards, the annual amount earned by a California-bred Arabian horse for finishing first or second in qualifying races.
(C)CA Business & Professions Code § 19617.8(a)(2)(C) In the case of stallion awards, the annual amount earned by California-bred Arabian foals of an eligible Arabian horse sire for finishing first or second in qualifying races.
(D)CA Business & Professions Code § 19617.8(a)(2)(D) In order for earnings from a qualifying race to be considered as eligible earnings, an Arabian horse shall be registered as a California-bred horse with the official registering agency before the date entries were taken by the association for the qualifying race in which that horse earned purse money.
(E)CA Business & Professions Code § 19617.8(a)(2)(E) In determining the purse earned in any race that is a stakes race, the amount earned shall be based on the added money, with no consideration given to other sources of the purse, such as nomination, entry, or starting fees, bonuses, and sponsor contributions, or any combination thereof.
(F)CA Business & Professions Code § 19617.8(a)(2)(F) On or before February 15 of any year, the stallion owner shall advise the official registering agency of any and all purses earned during the preceding year to be considered in determining the amount of the stallion award to which the owner is entitled.
(3)CA Business & Professions Code § 19617.8(a)(3) “Eligible Arabian sire” means an Arabian stallion that was continuously present in this state for the calendar year in which the qualifying race was conducted. If a sire dies in this state and stood his last season at stud in this state, he shall thereafter continue to be considered an eligible Arabian sire. Notwithstanding any other provision of law, an Arabian or stallion shall be considered an eligible Arabian sire only if its owner has registered the stallion with the official registering agency for the stallion awards on or before February 15 of the calendar year immediately following the calendar year for which the awards are being distributed. Stallion claim forms are due February 15, whether or not the official registering agency solicits them.
(4)CA Business & Professions Code § 19617.8(a)(4) “Official registering agency” means the officially recognized organization representing Arabian horsemen designated by the board.
(5)CA Business & Professions Code § 19617.8(a)(5) “Owner” means the person who is registered with the paymaster of purses on the date the qualifying race was conducted as the owner of the California-bred Arabian horse earning purse money in that race.
(6)CA Business & Professions Code § 19617.8(a)(6) “Qualifying race” means all Arabian horseraces in this state.
(7)CA Business & Professions Code § 19617.8(a)(7) “Stallion owner” means the person who is the owner of the eligible Arabian sire as of December 31 of the calendar year in which that sire’s foals had eligible earnings or the person who owned the eligible Arabian sire on the date that the sire died.
(b)CA Business & Professions Code § 19617.8(b) Any association conducting a race meeting that includes Arabian horseracing shall deposit with the official registering agency 0.2 of 1 percent of the total amount handled ontrack, and 0.4 of 1 percent of the total amount handled offtrack, in daily conventional and exotic parimutuel pools and a sum equal to 13.33 percent of those funds specified for purses in Section 19612.1 and the sums specified in Sections 19567 and 19617.5, resulting from Arabian horseracing. The deposits shall be made at the following intervals:
(1)CA Business & Professions Code § 19617.8(b)(1) For any meeting of 20 racing days or less, the requisite deposit shall be made not later than seven days immediately following the last day of that meeting.
(2)CA Business & Professions Code § 19617.8(b)(2) For any meeting of more than 20 racing days, the initial deposit shall be made not later than 27 racing days after the commencement of that meeting and every 20 racing days thereafter, with a final deposit made not later than seven days following the last day of the meeting. The initial deposit for that meeting shall be based upon the applicable amount handled during the first 20 racing days of the meeting and deposits thereafter shall be based upon the applicable amount handled during the ensuing periods of 20 racing days with the last deposit being based upon the applicable amount handled from the end of the last 20-racing-day period for which a deposit has been made to the end of the meeting.
(c)CA Business & Professions Code § 19617.8(c) After deducting a sum up to, but not to exceed, 10 percent of the total deposits made pursuant to subdivision (b) and the total deposits made pursuant to other provisions of this chapter, including Sections 19612.1 and 19612.2, to compensate the official registering agency for its administrative costs, the official registering agency shall distribute annually the balance of the deposits in the following manner:
(1)CA Business & Professions Code § 19617.8(c)(1) Fifty-five percent to the breeder fund from which breeder premiums are to be paid.
(2)CA Business & Professions Code § 19617.8(c)(2) Twenty percent to the owner fund from which owners’ awards are to be paid.
(3)CA Business & Professions Code § 19617.8(c)(3) Fifteen percent to the stallion fund from which stallion awards are to be paid.
(4)CA Business & Professions Code § 19617.8(c)(4) Ten percent to the California-bred race fund to be used for the promotion of California-bred races and programs, which fund shall be administered by the official registering agency. Any funds not so used during the year shall augment the owner fund of that year and shall be distributable therefrom. It is the intent of the Legislature that all funds used for purses shall supplement and not supplant existing purses for California-breds.
(d)CA Business & Professions Code § 19617.8(d) The official registering agency shall make the following payments to the breeder, owner, and stallion owner to encourage agriculture and the breeding of high quality horses in this state:
(1)CA Business & Professions Code § 19617.8(d)(1) The breeder shall be paid a sum based on a prorated share of first and second place earnings.
(2)CA Business & Professions Code § 19617.8(d)(2) The owner shall be paid an owners’ award, a sum based on a prorated share of first and second place earnings from qualified races by a California-bred Arabian horse.
(3)CA Business & Professions Code § 19617.8(d)(3) The stallion owner shall be paid a stallion award, a sum based on a prorated share of first and second place earnings from the Arabian horses who placed first or second in one or more races at a fair meeting, mixed breed meeting, or other type of meeting.
Stallion awards shall not be made to the owner of a sire that has been out of the state for breeding purposes during the calendar year. Stallion awards shall not be made for any race run outside of the State of California.
(4)CA Business & Professions Code § 19617.8(4) The breeder premium, and owners’ and stallion awards shall be paid not later than March 31 of the calendar year immediately following the calendar year for which the awards or premiums were earned.
(e)CA Business & Professions Code § 19617.8(e) The amount remaining for distribution under this section, if any, after the payments are made under subdivision (d) shall be paid at the end of the year on a prorated percentage basis to the owners of sires of Arabian horses who placed first in one or more races at a fair meeting, mixed breed meeting, or other type of meeting.
(f)CA Business & Professions Code § 19617.8(f) If there are insufficient funds to make all of the distributions in this section, there shall be no assessments made against any association to fund the deficiencies.
(g)CA Business & Professions Code § 19617.8(g) Any award remaining uncollected for one year from the date of disbursement is null and void. The official registering agency shall deposit the amount of the uncollected award into the award fund existing at that time.

Section § 19617.9

Explanation

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.

(a)CA Business & Professions Code § 19617.9(a) The following definitions govern the construction of this section:
(1)CA Business & Professions Code § 19617.9(a)(1) “Breeder” means a person who is registered as the owner of the dam at the time the mare foals.
(2)CA Business & Professions Code § 19617.9(a)(2) “Eligible earnings” means the following:
(A)CA Business & Professions Code § 19617.9(a)(2)(A) In the case of breeder premiums, the annual amount earned by a California-bred Appaloosa horse for finishing first or second.
(B)CA Business & Professions Code § 19617.9(a)(2)(B) In the case of owners’ awards, the annual amount earned by a California-bred Appaloosa horse for finishing first or second in qualifying races.
(C)CA Business & Professions Code § 19617.9(a)(2)(C) In the case of stallion awards, the annual amount earned by Appaloosa foals of an eligible Appaloosa sire for finishing first or second.
(D)CA Business & Professions Code § 19617.9(a)(2)(D) In order for earnings from a qualifying race to be considered as eligible earnings, an Appaloosa horse shall be registered as such with the official registering agency before the date entries were taken by the association for the qualifying race in which that horse earned purse money.
(E)CA Business & Professions Code § 19617.9(a)(2)(E) In determining the purse earned in any race that is a stakes race, the amount earned shall be based solely on the added money, with no consideration given to other sources of the purse, such as nomination, entry, or starting fees, bonuses, and sponsor contributions, or any combination thereof.
(F)CA Business & Professions Code § 19617.9(a)(2)(F) On or before February 1 of any year, the stallion owner shall advise the official registering agency of any and all purses earned during the preceding year to be considered in determining the amount of the stallion award to which the owner is entitled.
(3)CA Business & Professions Code § 19617.9(a)(3) “Eligible Appaloosa sire” means an Appaloosa stallion that was continuously present in this state from February 1 to July 15, inclusive, of the calendar year in which the qualifying race was conducted, and, if the sire left this state after July 15 of the calendar year in which the qualifying race was conducted, the sire returned to and was present in this state by February 1 of the following calendar year and thereafter remained until July 15 of that year. If a sire dies in this state and stood his last season at stud in this state, he shall thereafter continue to be considered an eligible Appaloosa sire. Notwithstanding any other provision of law, an Appaloosa stallion shall be considered an eligible Appaloosa sire only if its owner has registered the stallion with the official registering agency for stallion awards on or before February 1 of the calendar year immediately following the calendar year for which the awards are being distributed.
(4)CA Business & Professions Code § 19617.9(a)(4) “Official registering agency” means the officially recognized organization representing Appaloosa horsemen designated by the board.
(5)CA Business & Professions Code § 19617.9(a)(5) “Owner” means the person who is registered with the paymaster of purses on the date the race was conducted as the owner of the California-bred Appaloosa horse earning purse money in that race.
(6)CA Business & Professions Code § 19617.9(a)(6) “Qualifying race” means all Appaloosa horseraces in this state for breeders and stallions; for owners’ awards, a qualifying race must be equal to or above four thousand dollars ($4,000) claiming.
(7)CA Business & Professions Code § 19617.9(a)(7) “Stallion owner” means the person who is the owner of the eligible Appaloosa sire as of December 31 of the calendar year in which that sire’s foals had eligible earnings or the person who owned the eligible Appaloosa sire on the date that the sire died.
(b)CA Business & Professions Code § 19617.9(b) Any association conducting a race meeting that includes Appaloosa horseracing shall deposit with the official registering agency 0.2 of 1 percent of the total amount handled ontrack, and 0.4 of 1 percent of the total amount handled offtrack, in daily conventional and exotic parimutuel pools and a sum equal to 13.33 percent of those funds specified for purses in Section 19612.1, and the sums specified in Sections 19567 and 19617.5, resulting from Appaloosa horseracing. The deposits shall be made at the following intervals:
(1)CA Business & Professions Code § 19617.9(b)(1) For any meeting of 20 racing days or less, the requisite deposit shall be made not later than seven days immediately following the last day of that meeting.
(2)CA Business & Professions Code § 19617.9(b)(2) For any meeting of more than 20 racing days, the initial deposit shall be made not later than 27 racing days after the commencement of that meeting and every 20 racing days thereafter, with a final deposit made not later than seven days following the last day of that meeting. The initial deposit for that meeting shall be based upon the applicable amount handled during the first 20 racing days of the meeting and deposits thereafter shall be based upon the applicable amount handled during the ensuing periods of 20 racing days with the last deposit based upon the applicable amount handled from the end of the last 20-racing-day period for which a deposit has been made to the end of the meeting.
(c)CA Business & Professions Code § 19617.9(c) After deducting a sum up to, but not to exceed, 10 percent of the total deposits made pursuant to subdivision (b) and the total deposits made pursuant to other provisions of this chapter, including Sections 19612.1 and 19612.2, to compensate the official registering agency for its administrative costs, the official registering agency shall distribute annually the balance of the deposits in the following manner:
(1)CA Business & Professions Code § 19617.9(c)(1) Sixty percent to the breeder fund from which breeder premiums are to be paid.
(2)CA Business & Professions Code § 19617.9(c)(2) Twenty-five percent to the owner fund from which owners’ awards are to be paid.
(3)CA Business & Professions Code § 19617.9(c)(3) Fifteen percent to the stallion fund from which stallion awards are to be paid.
(d)CA Business & Professions Code § 19617.9(d) The official registering agency shall make the following payments to the breeder, owner, and stallion owner to encourage agriculture and the breeding of high quality horses in this state:
(1)CA Business & Professions Code § 19617.9(d)(1) The breeder shall be paid a sum based on a prorated share of first and second place earnings.
(2)CA Business & Professions Code § 19617.9(d)(2) The owner shall be paid an owners’ award, a sum based on a prorated share of first and second place earnings from qualified races by a California-bred Appaloosa horse.
(3)CA Business & Professions Code § 19617.9(d)(3) The stallion owner shall be paid a stallion award, a sum based on a prorated share of first and second place earnings from Appaloosa horses who placed first or second in one or more races at a fair meeting or a mixed breed meeting.
Stallion awards shall not be made to the owner of a sire that has been out of the state for breeding purposes during the calendar year. Stallion awards shall not be made for any race run outside the State of California.
(4)CA Business & Professions Code § 19617.9(4) The breeder premium, and owners’ and stallion awards shall be paid not later than March 31 of the calendar year immediately following the calendar year for which the awards or premiums were earned.
(e)CA Business & Professions Code § 19617.9(e) If there are insufficient funds to make all of the distributions in this section, there shall be no assessments made against any association to fund the deficiencies.

Section § 19618

Explanation

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.

(a)CA Business & Professions Code § 19618(a) Except as provided in Article 9.2 (commencing with Section 19605), no person licensed under this chapter to conduct a racing meeting shall pay or distribute to, or on behalf of, any horse owner, any agent, or person or organization representing any horse owner or owners, purses, or any other type of consideration to, or for, the benefit of horsemen, other than that expressly provided in this chapter.
(b)CA Business & Professions Code § 19618(b) Except as provided in Article 9.2 (commencing with Section 19605), no horse owner, any agent, or person or organization representing any horse owner or owners, shall receive, solicit, or obtain from any person licensed under this chapter to conduct a race meeting, purses, or any other type of consideration to, or for, the benefit of horsemen, other than that expressly provided in this chapter.
(c)CA Business & Professions Code § 19618(c) No plaque, cup, tray, ribbon, trophy, or similar award given in recognition of achievement or special event is deemed to be consideration for the purpose of subdivisions (a) and (b).
(d)CA Business & Professions Code § 19618(d) Subdivisions (a) and (b) do not apply to any payment by an association in connection with any match race or special racing event.
(e)CA Business & Professions Code § 19618(e) Notwithstanding subdivision (a) or (b), or any other provision of law, the horsemen’s organization that represents the horsemen participating in a racing meeting and a licensed racing association may enter into an agreement which provides for the division of, and sharing by the organization and the association of, the interest earned on the association’s paymaster accounts during racing meetings conducted prior to, during, or subsequent to, 1990, if both of the following conditions are satisfied:
(1)CA Business & Professions Code § 19618(e)(1) The agreement is filed with the board.
(2)CA Business & Professions Code § 19618(e)(2) The share of earned interest allocated to the horsemen’s organization is used exclusively for the benefit of horsemen, including, among other purposes, purses.
(f)CA Business & Professions Code § 19618(f) Notwithstanding subdivision (a) or (b), or any other provision of law, the horsemen’s organization that represents the horsemen participating in a racing meeting and a licensed racing association may enter into an agreement that provides for the supplementing of purses due to the impact, if any, of activities regulated pursuant to the provisions of Chapter 5 (commencing with Section 19800) that are conducted on the association’s property during a race meeting, if both of the following conditions are satisfied:
(1)CA Business & Professions Code § 19618(f)(1) The agreement is approved by the board.
(2)CA Business & Professions Code § 19618(f)(2) Any sum agreed to pursuant to this subdivision is used exclusively to supplement purses.

Section § 19618.1

Explanation

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.

Subdivisions (a) and (b) of Section 19618 shall not apply to any payment by a licensed harness racing association in the northern zone, or by any fair, in connection with promotional contests or sponsorship contributions.

Section § 19618.2

Explanation

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.

Subdivisions (a) and (b) of Section 19618 shall not apply to either of the following:
(a)CA Business & Professions Code § 19618.2(a) Any payment by a licensed quarter horse racing association in the southern zone, to horsemen participating in its race meeting.
(b)CA Business & Professions Code § 19618.2(b) Any payment by a licensed thoroughbred racing association in connection with funds contributed or authorized by the horsemen’s organization responsible for negotiating purse agreements on behalf of the horsemen participating in the racing meeting, including purse supplements, sponsorship contributions, or promotional funds.

Section § 19619

Explanation

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.

(a)CA Business & Professions Code § 19619(a) Since the purpose of this chapter is to encourage agriculture and the breeding of horses in this state, a California Standardbred Sires Stakes Program is hereby established for standardbred horses bred in the State of California.
(b)CA Business & Professions Code § 19619(b) Horses eligible to race in the California Standardbred Sires Stakes Program shall be the offspring of a registered California standardbred stallion standing in California during an entire breeding season, or the offspring of a registered standardbred stallion standing in Iowa, Maine, Michigan, Minnesota, or Wisconsin, or the Province of Alberta, Canada.
(c)Copy CA Business & Professions Code § 19619(c)
(1)Copy CA Business & Professions Code § 19619(c)(1) Responsibility for the California Standardbred Sires Stakes Program is with the board. Administration of the California Standardbred Sires Stakes Program is the responsibility of the California Standardbred Sires Stakes Committee. The committee shall consist of five members and one alternate selected from and by the California Harness Horsemen’s Association.
(2)CA Business & Professions Code § 19619(c)(2) Administrative expenses of the committee in any given year shall not exceed 4 percent of that year’s income to the California Standardbred Sires Stakes Program, and all expenses shall be approved by the board.
(d)CA Business & Professions Code § 19619(d) The board may do all that is necessary to ensure that the California Standardbred Sires Stakes Program is appropriately administered and shall prepare, issue, and adopt rules and regulations providing for all of the following:
(1)CA Business & Professions Code § 19619(d)(1) Classes and divisions of races, eligibility of horses and owners therefor, and prizes and awards to be awarded.
(2)CA Business & Professions Code § 19619(d)(2) Nominating, sustaining, and entry fees for horses and races.
(3)CA Business & Professions Code § 19619(d)(3) Registration and certification of California stallions, mares bred to those stallions, and foals produced thereby.
(4)CA Business & Professions Code § 19619(d)(4) Any other matter that is considered to be necessary and appropriate for the proper administration and implementation of the California Standardbred Sires Stakes Program.
(e)CA Business & Professions Code § 19619(e) The funds for the California Standardbred Sires Stakes Program made available pursuant to Section 19491.7 and the nominating, sustaining, and entry fees provided for in this section shall be deposited with the California Standardbred Sires Stakes Committee. The committee shall distribute the funds deposited with it in accordance with this section for the purposes of the program in the manner approved by the board.
(f)CA Business & Professions Code § 19619(f) Pursuant to Section 19491.7, the breakage used to fund the California Standardbred Sires Stakes Program and to increase purses shall be divided in accordance with the following criteria:
California Standardbred
Sires Stakes Program
Purses
1977 ........................
10%
90% 
1978 ........................
20%
80% 
1979 ........................
25%
75% 
1980 ........................
50%
50% 
January 1 to June 30, 1981 ........................
75%
25% 
July 1, 1981, and thereafter ........................
100%
0% 
(g)CA Business & Professions Code § 19619(g) An amount equal to 10 percent of the total purses raced for in the California sires stakes races shall be awarded to the standardbred breeders of the horses that earned purse money in the California standardbred sires stakes races in proportion to the amount of purse money earned by each horse.
(h)CA Business & Professions Code § 19619(h) An amount equal to 2 percent of the total purses raced for in the California sires stakes races shall be awarded to the owners of the registered California standardbred stallions that sired horses that earned purse money in the California standardbred sires stakes races in proportion to the amount of purse money earned by each horse so sired.
(i)CA Business & Professions Code § 19619(i) Notwithstanding subdivision (b), the board may establish a series of races for two-year-old and three-year-old fillies that are wholly owned by a California resident on the first day of January of the year that they become two years old and are wholly owned by a California resident on the day of the race.
(j)CA Business & Professions Code § 19619(j) The balance of the remaining funds, including nominating, sustaining, and entry fees, and after the expenditures described in subdivisions (e), (g), (h), and (i) have been made, shall be allocated to purses for races comprising the California Standardbred Sires Stakes Program.
(k)CA Business & Professions Code § 19619(k) The schedule of races that shall comprise the California Standardbred Sires Stakes Program during each year shall be set by the board in accordance with the following criteria:
(1)CA Business & Professions Code § 19619(k)(1) California standardbred sires stakes races shall be scheduled for two-year-old or three-year-old trotters and two-year-old and three-year-old pacers at the discretion of the California Standardbred Sires Stakes Committee, except that no two-year-old races shall be held before the first day of June of any year. Races for four-year-old or aged trotters and four-year-old or aged pacers may also be scheduled.
(2)CA Business & Professions Code § 19619(k)(2) Base purses for each set of races conducted during any given year at any race meeting shall be determined by the committee.
(3)CA Business & Professions Code § 19619(k)(3) In each division of each race in the California standardbred sires stakes races, the purse shall be divided in the following manner:
1st  ........................
 50%
2nd  ........................
 25%
3rd  ........................
 12%
4th  ........................
8%
5th  ........................
5%

Section § 19619.1

Explanation

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.

With respect to harness meetings, all funds that are not distributed to horsemen as purses pursuant to subdivision (b) of Section 19612, Section 19612.6, and subdivision (d) of Section 19616.1 or as breeder awards pursuant to Sections 19567 and 19617.5 within 180 days after the conclusion of a licensed harness race meet or a portion of a split harness meet, shall be deposited into the account for the California Standardbred Sires Stakes Program established pursuant to Section 19619.

Section § 19619.2

Explanation

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.

Notwithstanding any other provision of this chapter, funds may be made available to supplement the purses distributed by the California Standardbred Sires Stakes Program from purse funds generated pursuant to Sections 19612, 19612.2, 19612.3, and 19612.6 upon agreement by the recognized harness horsemen’s organization and the harness racing association conducting the live racing meeting.

Section § 19619.6

Explanation

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.

Every association or fair that provides a live audiovisual signal of its program to a satellite wagering facility pursuant to Sections 19608 and 19608.1 shall cooperate with the operator of the satellite wagering facility with respect to arrangements with the ontrack totalizator company for access to its ontrack totalizator system for purposes of combining parimutuel pools.

Section § 19619.7

Explanation

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.

Notwithstanding any other provision of this chapter, no later than July 1, 2008, the board shall provide that the jockey who rides the horse that finishes in fourth place in a thoroughbred horse race shall be entitled to a reasonable riding fee, not to exceed 2 percent of the owner’s share of the purse, provided that the riding fee is no greater than that earned by the jockeys whose horses finish second and third in the same race.