Licenses For Track Operators - Horse Racing - Business & Professions - CA

Section § 19480

This law explains that the board responsible for horse racing can grant a license to someone applying for it if they follow the rules, pay the required fee, and if the license benefits the public and meets the goals of the law. It also defines 'person' in this context as key members, like officers or shareholders, of a racing association.

(a) The board may issue to any person who makes application therefor in writing, who has complied with this chapter, and who makes the deposit to secure payment of the license fee imposed by this article, a license to conduct a horse racing meeting in accordance with this chapter at the track specified in the application if the board determines that the issuance thereof will be in the public interest and will subserve the purposes of this chapter.

(b) For purposes of this section, “person” means any officer, director, or partner, or any individual who holds 5 percent or more of outstanding shares, of a racing association.

horse racing license racing association public interest

Section § 19481

This law outlines the responsibilities of a board to ensure safety at horse racing tracks. They must create safety standards for various aspects of the track like the racing surface, equipment, lighting, and medical services to protect horses, riders, and workers. Additionally, they must appoint a steward at each racing event to enforce these safety rules.

In performing its responsibilities, the board shall do all of the following:

(a) Establish safety standards governing the uniformity and content of the track base and racing surface, inner and outer rails, gates and gaps, turf, access and egress to the track, lighting for night racing, equipment for horse and rider, drainage, communications, veterinary services, medical and ambulance services, and other track facilities in order to improve the safety of horses, riders, and workers at the racetrack.

(b) Designate a steward at all horse racing meetings to be responsible for enforcing compliance with safety standards.

horse racing safety track safety standards racing surface

Section § 19481.3

This law requires racing associations and fairs that host live horse racing to have on-site first aid facilities staffed by a physician, except in certain situations involving nearby hospitals. They must also have an ambulance with trained EMTs on standby during races. Racing associations need an emergency medical plan posted in English and Spanish, coordinate with local hospitals before events, and designate health and safety managers responsible for compliance. Additionally, there must be a report on any jockey accidents, with details of the incident and injuries, sent to relevant parties. The racing board is tasked with creating regulations to support these requirements.

(a) Every racing association and racing fair licensed pursuant to this article shall maintain, staff, and supply an on-track first aid facility, that may be either permanent or mobile, and which shall be staffed and equipped as directed by the board. A qualified and licensed physician shall be on duty at all times during live racing, except that this provision shall not apply to: (1) a quarter horse racing association if there is a hospital situated no more than 1.5 miles from the racetrack and the racetrack has an agreement with the hospital to provide emergency medical services to jockeys and riders, or (2) a harness racing association if there is a hospital situated no more than 2.5 miles from the racetrack and the harness racing association has an agreement with the hospital to provide emergency medical services to injured drivers. An ambulance licensed to operate on public highways provided by the track shall be available at all times during live racing and shall be staffed by two emergency medical technicians licensed in accordance with Division 2.5 (commencing with Section 1797) of the Health and Safety Code, one of whom may be an Emergency Medical Technician Paramedic, as defined in Section 1797.84 of the Health and Safety Code.

(b) Each racing association and racing fair shall adopt and maintain an emergency medical plan detailing the procedures that shall be used in the event of an on-track injury. The plan shall be posted in each jockey room in English and Spanish.

(c) Prior to every race meeting, the racing association or racing fair shall contact area hospitals to coordinate procedures for the rapid admittance and treatment of emergency injuries.

(d) Each racing association or racing fair shall designate a health and safety manager and assistant manager, who shall be responsible for compliance with the provisions of this section and one of whom shall be on duty at all times when live racing is conducted. The health and safety manager may, at the discretion of the racing association, be the person designated to perform risk management duties on behalf of the association.

(e) The stewards shall investigate and prepare a report with respect to all on-track accidents involving jockeys that occur during the performance of their duties. The report shall, at a minimum, identify the circumstances of the accident, the likely causes, and the extent of any injuries. The investigation shall be commenced no later than the next live racing day and shall be completed expeditiously. Upon completion of the report, it shall immediately be sent by facsimile or electronic mail to the entity certified to provide health and welfare for jockeys pursuant to Section 19612.9, to the jockey or his or her representative, the racing association, and the owner and trainer of the horse the jockey was riding at the time of the accident.

(f) The board shall adopt regulations to implement the provisions of this section no later than July 1, 2007.

racing association on-track first aid licensed physician

Section § 19481.5

Before any horse racing event can happen on a track, the track must be inspected and approved for safety by the board. The board also sets rules for housing provided to employees working at racetracks. This housing must meet or exceed certain health and safety standards, and these rules consider the needs of tracks with short or long racing schedules, year-round training, and various other setups. Starting in 2004, racetracks are checked each year for proper living conditions for staff, and no racing license is issued unless the housing conditions meet board standards. Tracks may be charged fees for these inspections.

(a) Notwithstanding any other provision of law, no license shall be issued to conduct a horse racing meeting upon a track unless the track has been inspected by the board within 30 days prior to the date of application for a license and the track has been approved by the board as conforming to the racetrack safety standards set forth in subdivision (a) of Section 19481.

(b) The board shall adopt regulations to establish standards governing the employee housing provided to backstretch personnel at licensed racetracks. These regulations shall be commensurate with the housing standards established in the Employee Housing Act (Part 1 (commencing with Section 17000) of Division 13 of the Health and Safety Code), and shall consider the following:

(1) The health and safety of the human and equine population and the necessity for humans and horses to live in close proximity.

(2) The housing needs of state or county facilities with live racing meetings of no more than 43 days in duration that do not operate as year-round training facilities. The board shall specifically consider the different needs of these facilities compared to permanent facilities or other state and county facilities that function on a year-round basis, including state and county fair facilities that operate as year-round training facilities where horses are stabled and workers live.

(3) Compliance of facilities with racing meetings of 19 days or less, even if they operate as a year-round training facility, with this subdivision shall be contingent on funding in the Budget Act of 2002 (Chapter 379 of the Statutes of 2002).

(c) Commencing January 1, 2004, the board, with assistance from the California Department of Housing and Community Development or a local building department or other local entity designated by the jurisdiction in which the racetrack is located, shall annually inspect the living conditions of backstretch employee housing to ensure compliance with the housing standards established by the board, the findings or results of which shall be submitted to the board. No license shall be issued to a racing association to conduct a horse race meeting unless the board has inspected the housing conditions that exist on the racetrack’s backstretch and determined the living conditions to be in compliance with the standards established by the board in subdivision (b).

(d) The board may assess a reasonable fee upon racing associations to defray the costs associated with the inspections provided for in subdivision (c).

horse racing meeting track inspection safety standards

Section § 19481.7

This law allows the board to temporarily stop a horse racing event if it’s needed to ensure the safety of the horses or jockeys. It takes at least four board members to vote for such a suspension, and it remains until safety concerns are resolved. If lifted, the board might impose new safety measures on the racing event. In emergencies, a quick meeting can be held without the usual public notice to decide on suspending a race. This meeting must be justified and shared publicly soon after. Trying to hold a race during a suspension is illegal. The board also needs to adopt rules to make these provisions work effectively, and they can do this rapidly if needed to protect public safety.

(a)

(1) The board may, at any time, immediately suspend a license to conduct a racing meeting when necessary to protect the health and safety of the horses or riders that are present at the racing meeting.

(2) The suspension shall require a vote of at least four members of the board.

(3) The suspension shall remain in effect until the board determines that the matters jeopardizing the health and safety of the horses or riders that are present at the racing meeting have been adequately addressed.

(4) As a condition of lifting the suspension, the board may require a licensee to comply with additional safety standards or other requirements as it deems necessary or desirable for the best interests of horse racing and the purposes of this chapter.

(5) The suspension is not a revocation subject to the proceedings required by Section 19461, regardless of any effect on a license issued under this chapter.

(b)

(1) Notwithstanding the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), an emergency meeting may be called at any time by the chairperson of the board, the executive director, or by a majority of the members of the board to consider suspending a license to conduct a racing meeting when there exists an emergency situation involving matters upon which prompt action is necessary to protect the health and safety of the horses or riders that are present at the racing meeting.

(2) An emergency meeting held pursuant to this section is exempt from the 10-day notice requirement of Section 11125 of the Government Code or the 48-hour notice requirement of Section 11125.4 of the Government Code if the delay necessitated by those requirements would significantly and adversely impact the board’s ability to protect the health and safety of the horses or riders that were present at the racing meeting.

(3) Before the commencement of the emergency meeting, the board shall make a finding in open session that the delay necessitated by providing the 10-day notice required by Section 11125 of the Government Code or 48 hours before a meeting as required by Section 11125.4 of the Government Code would significantly and adversely impact the board’s ability to protect the health and safety of the horses or riders that are present at that racing meeting. The finding shall be adopted by a vote of at least four members of the board. Failure to adopt the finding shall terminate the meeting.

(4) Newspapers of general circulation and radio or television stations that have requested notice of meetings pursuant to Section 11125 of the Government Code shall be notified by the executive director, or a designee thereof, at least one hour before the emergency meeting by telephone. Notice shall also be made available on the board’s internet website as soon as is practicable after the decision to call the emergency meeting has been made. Notwithstanding Section 11125 of the Government Code, the board may take action at the emergency meeting on an item of business involving the emergency situation that is not included in the agenda, if any, that accompanies a notice provided pursuant to this paragraph.

(5) The minutes of the emergency meeting, a copy of the rollcall vote, and any action taken at the meeting shall be posted for a minimum of 10 days in a public place as soon after the meeting as is possible.

(c)

(1) It is unlawful to conduct a racing meeting under a license suspended pursuant to this section or, if the suspension is lifted, without meeting a condition imposed pursuant to paragraph (4) of subdivision (a).

(2) The board shall review any action taken under this section within 10 calendar days.

(3) Nothing in this section supersedes or limits the board’s authority to suspend or deny a license under any other law, rule, or regulation.

(d) The board shall adopt emergency regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code to implement this section. The board may readopt, pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, any emergency regulation authorized by this section that is the same as, or substantially equivalent to, an emergency regulation previously adopted as authorized by this section. No such regulation shall be readopted on an emergency basis pursuant to this section more than a total of two times. Notwithstanding any other law, the initial adoption of emergency regulations and the readoption of emergency regulations authorized by this section shall be deemed an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare.

horse racing safety suspension emergency meeting

Section § 19482

This law states that a license to hold a horse racing event cannot be granted to certain entities. Specifically, it excludes nonprofit organizations that are exempt from state taxes and applicants organizing races for the benefit of such nonprofits, especially if the nonprofit is to receive a share of the proceeds. However, there is an exception for corporations that had been issued licenses before September 7, 1955, allowing them to still obtain licenses.

No license to conduct a horse racing meeting shall be issued to any of the following:

(a) Any nonprofit corporation entitled to an exemption from any tax imposed by this State.

(b) Any applicant who proposes to conduct a horse racing meeting for the benefit of any such nonprofit corporation or under any arrangement pursuant to which such nonprofit corporation is to share in the receipts of the licensee from the conduct of such meeting, whether by rentals or otherwise.

Nothing in this section prohibits the board, in its discretion, from issuing a license to conduct a horse racing meeting to any corporation to which it has, prior to September 7, 1955, issued a license to conduct such a meeting.

horse racing license nonprofit corporation tax exemption

Section § 19483

This law says that you generally can't hold a horse racing license for one track if you have a financial interest in another horse racing track in California, unless the board thinks it's better for the chapter's purpose. Also, if one corporation owns stock in another, that's considered a financial interest.

Unless the board finds that the purpose of this chapter will be better served thereby, no license to conduct a horseracing meeting at any track shall be issued to any person or held by any person having any financial interest in the conduct of any horseracing meeting by any other person at any other track in this State.

Ownership of stock in one corporation by another corporation constitutes a financial interest within the meaning of this section.

horseracing meeting financial interest license issuance

Section § 19484

This law prohibits someone who is licensed to conduct a horse racing event from having any financial interest in another horse racing track or its betting operations unless the board believes it would better serve the chapter's purpose.

Unless the board finds that the purpose of this chapter will be better served thereby, no person licensed under this article to conduct a horseracing meeting at any place, track or inclosure shall own or acquire any stock or hold or obtain any other financial interest in any other track of another such licensee or in the operation thereof, or in the operation of authorized wagering on the results of horseraces at any such other track.

horse racing license financial interest track ownership restriction

Section § 19485

This law says that if someone wants to start a new horse racing location in California and it wasn't used for horse racing before July 1, 1941, they need to get permission from the board first. The board needs to decide if having horse racing meetings there is in the public interest. However, this rule doesn't apply to smaller tracks built by existing thoroughbred horse racing operators if these tracks are only for thoroughbred racing.

The board shall not issue a license to conduct a horse racing meeting at any place, track or inclosure, not used for horse racing meetings prior to July 1, 1941, unless prior to the beginning of the construction or preparation of such track for horse racing meetings, the board, upon application in such form as it may require, has determined that the conduct of horse racing meetings at such track will be in the public interest and will subserve the purposes of this chapter.

This section does not apply in respect to any track of not less than five-eighths of one mile in circumference or length partially or entirely in the infield of a mile track constructed and operated by a thoroughbred licensee under this article provided that such infield track is to be used solely for thoroughbred racing.

horse racing license new racing venue public interest determination

Section § 19487

This law allows a licensed racing association to build a smaller racetrack inside their existing one if the racetrack is at least half a mile long and they get approval from the board beforehand. The new track can be used for horse race meetings, and the board needs to confirm that the races would benefit the public and align with chapter goals. Harness racing associations can also get a license to hold races on tracks shorter than one mile.

Notwithstanding Section 19485, any licensed racing association operating a racetrack may construct another track of not less than one-half mile in circumference or length partially or entirely in the infield of such track, if prior to the beginning of construction or preparation of such track for horse race meetings, the board has determined upon application, in such form as it may require, that the conduct of horse race meetings at such track will be in the public interest and subserve the purposes of this chapter. A license may be granted to any harness racing association to conduct a harness racing meeting upon such a track of less than one mile.

licensed racing association racetrack construction infield track

Section § 19488

This law outlines the details that must be included in a license for a horse racing event. Each license must indicate the licensee's name, the location of the event, the schedule, the types and number of races, available stalls, and the person in charge of racetrack safety. Additionally, it must confirm that a deposit has been paid to secure the license fee.

(a) Every license issued under this article shall specify the following:

(1) The name of the person to whom it is issued.

(2) The track where the horse racing meeting to which it relates is to be held or conducted.

(3) The days and hours of the day when the meeting will be permitted.

(4) The number and types of races to be run on each day of the meeting.

(5) The number of useable stalls available for the meeting.

(6) The name of the person responsible for supervising the maintenance of racetrack safety standards.

(b) The license shall also recite the payment to, and receipt by, the board of the deposit to secure payment of the license fee required by this article.

horse racing license license details racetrack location

Section § 19489

This law states that a horse racing license in California cannot be transferred and is only valid for the specific track mentioned in the license. However, if that track becomes unusable due to a disaster like fire or flood, the board can allow the race to be held at a different nearby track. The board needs permission from the license holder and the owners of the new track before making this change, even if it increases racing days in the area.

A license issued under this article is not transferable nor does it permit the conduct of a horse racing meeting at any track not specified therein.

If, however, the track specified in a license becomes unsuitable for racing because of fire, flood, or other catastrophe, the meeting or any remaining portion thereof may be conducted at any other track specified by the board in the same area. The board may specify any other track within the area for the conduct of the meeting, whether or not such conduct would result in increasing the number of racing days in the county or area in which such track is situated. Before any other track is so specified, the board shall obtain the consent of the person licensed to conduct a meeting at the track which has become unsuitable for racing and of the owners and operators licensed to conduct a meeting at such other track.

horse racing license non-transferable track suitability

Section § 19490

When someone applies for a license to hold a horse racing event, they need to provide a $10,000 certified check to guarantee they'll pay any required license fees.

Each application for a license to conduct a horse racing meeting shall be accompanied by a deposit to secure the payment of any license fee imposed by this article, in the form of a certified check payable to the Treasurer of the State of California, in the amount of ten thousand dollars ($10,000).

horse racing license application deposit certified check

Section § 19491

This law applies to associations that organize racing events. They need to pay an extra license fee based on small revenue differences, known as breakage, from parimutuel betting pools. For the first $24 million processed, they pay half the breakage as a license fee, while the other half goes towards additional prize money and commissions according to specific rules. If the revenue exceeds $24 million, all the breakage from the excess is paid as a license fee. Special rules apply for fairs. Payments are made weekly, and breakage amounts have to be reported separately.

(a) Subject to Sections 19491.5 and 19491.6, and except as provided in Section 19491.7, every association which conducts a racing meeting shall pay as an additional license fee one-half of the breakage deducted pursuant to Section 19597 on the first twenty-four million dollars ($24,000,000) or less, excluding wagering at a satellite wagering facility, of the total amount handled in the parimutuel pools relating to its meeting and all of the breakage deducted on amounts so handled in excess of twenty-four million dollars ($24,000,000), excluding wagering at a satellite wagering facility.

(b) Every association which conducts a racing meeting shall distribute the remaining one-half of the breakage deducted pursuant to Section 19597 on the first twenty-four million dollars ($24,000,000) or less, excluding wagering at a satellite wagering facility, of the total amount handled in the parimutuel pools relating to the meeting as additional purses and for additional commissions in the same proportion, as between purses and commissions, as provided in Sections 19611, 19612, 19612.6, and 19614.

(c) Notwithstanding subdivision (b), one-half of all the breakage deducted pursuant to Section 19597 at fair racing meetings shall be retained and distributed as additional commissions.

Payment of the fee shall be made weekly on account during each meeting, and the amount attributable to breakage shall be reported as a separate item.

racing meeting parimutuel pools license fee

Section § 19491.5

This law explains when certain horseracing associations in California, like county fairs or the State Fair, don't have to pay part of a licensing fee. If an association handled $250 million or less in betting money (excluding satellite bets) last year, they don't pay a fee on the first $125 million handled. If they handled more than $250 million, the fee doesn't apply to the amount between $24 million and $50 million. A 'predecessor association' is an earlier license holder at the same racetrack. This rule update in 1970 was intended to clarify, not change, the original law's meaning.

Notwithstanding the provisions of subdivision (a) of Section 19491, an association, including the California Exposition and State Fair or a county or district agricultural association fair, which conducts, or whose predecessor association has conducted, a horseracing meeting during the preceding year at which the total amount handled in the parimutuel pools operated by the association, or by such predecessor association, is not more than two hundred fifty million dollars ($250,000,000), excluding wagering at a satellite wagering facility, shall be exempt from payment of that portion of the license fee provided in subdivision (a) of Section 19491 on the amount handled by it under one hundred twenty-five million dollars ($125,000,000), excluding wagering at a satellite wagering facility. All the money accruing pursuant to this section shall be distributed as purses. In addition, an association which conducts, or whose predecessor association has conducted, a horseracing meeting during the preceding year at which the total amount handled in the parimutuel pools operated by the association or predecessor association is more than two hundred fifty million dollars ($250,000,000), excluding wagering at a satellite wagering facility, shall be exempt from the payment of that portion of the license fee provided in subdivision (a) of Section 19491 on the amount handled in excess of twenty-four million dollars ($24,000,000) but not in excess of fifty million dollars ($50,000,000).

“Predecessor association,” as used in this section, means a person who was previously licensed to conduct racing of the same kind and at the same racing facility as the presently existing association.

It is the intent of the Legislature that the amendment to this section at its 1970 Regular Session shall be deemed to be a clarification of the effect of this section, and that such amendment does not constitute a substantive change.

horseracing meetings parimutuel pools license fee exemption

Section § 19491.6

This law requires that certain funds kept by an association must be deposited in a separate, board-approved account. The money in this account is to be used specifically for race purses, which are the prize money distributed to winning competitors.

Except as provided in subdivision (b) of Section 19612, the exempt amount retained by the association shall be regularly deposited in a separate account with a depository approved by the board. The funds deposited shall be distributed as purses.

funds retention separate account depository approval

Section § 19491.7

This law specifies that any leftover money, called 'breakage,' that is taken by a licensed harness racing association must be used to support the California Standardbred Sires Stakes Program. This rule stands even if other laws suggest something different about handling breakage.

Notwithstanding any other provision of law, all breakage deducted pursuant to Section 19597 by an association licensed to conduct harness racing shall be used to fund the California Standardbred Sires Stakes Program as set forth in subdivision (f) of Section 19619.

harness racing breakage California Standardbred Sires Stakes Program

Section § 19493

When a horse racing event ends, the organizer (the licensee) gets back the money they deposited when applying for the license, as long as they've paid the full licensing fee. If they haven't paid it, the fee gets taken out of their deposit, and any leftover money is returned to them.

Upon the termination of the horse racing meeting for which a license has been granted:

(a) If the licensee has fully paid the license fee imposed by this article, the sum deposited with the application for the license shall be returned to the licensee.

(b) If the licensee fails, refuses, or neglects to pay such fee, the amount thereof shall be deducted from the sum deposited and the balance, if any, shall be returned to the licensee.

horse racing meeting license fee refund termination of racing

Section § 19494

Basically, if something happens that's out of a race licensee's control, and it's not their fault, making it impossible to hold a scheduled race, they won't be penalized. They can ask the board to either refund the race day fee or reschedule the race to another day. This gives some flexibility when unexpected things occur.

If by reason of any cause beyond control, and through no fault or neglect of any licensee, and when the licensee is not in default, it becomes impossible for the licensee to hold or conduct racing upon any day authorized by the board, the board, in its discretion and at the request of the licensee, may either return any fee paid by the licensee for racing on that day or, as a substitute for such day, may specify any other day for the holding or conducting of racing by the licensee.

racing licensee impossible to hold race beyond control

Section § 19495

This law states that except for certain exceptions mentioned within the same chapter, no license fee, excise tax, or similar charge over $100 per racing day can be imposed on licensees by the state or any local authorities like counties or cities.

Except as provided in this chapter, no license or excise tax or fee in excess of one hundred dollars ($100) for each racing day shall be assessed against or collected from any licensee by the State or by any county, city, district, or any other body having the power to assess or collect any license, tax, or fee.

racing day license fee excise tax

Section § 19497

If you are licensed to run a horse race at a place you've leased from the state, you can't let someone else use that place for racing unless the Department of General Services checks and approves the deal first. This rule applies to any kind of agreement where you let another person use the property for horse racing, like a sublease or license. The same rules apply to anyone you transfer rights to run horse races.

Any person who is licensed to conduct a horse racing meeting at any place, track or inclosure which is leased by him from the state, shall not transfer any such property to any other person, whether licensed under this chapter or not, for the purpose of furnishing such other person a place, track or inclosure at which it may conduct a horse racing meeting, unless such transfer is first submitted to the Department of General Services and the department finds that its terms and provisions are just and reasonable and approves of it.

As used in this section, “transfer” includes any sublease, permit to use, license to use, and any other transaction or arrangement of any kind or nature whereby any right to the use or possession of property, or any part thereof, for the purpose of conducting a horse racing meeting is conferred upon any person.

The provisions of this section which are applicable to a person licensed under this chapter to conduct a horse racing meeting shall also apply to any person to whom a transfer is made by such a licensee in accordance with this section.

horse racing license state lease transfer approval

Struggling to fill out your Divorce Forms?

Horse Racing

Horse RacingLicenses for Track Operators