Section § 19620.3

Explanation

This law section creates a special account within the State Treasury called the Horse and Jockey Safety and Welfare Account. Money collected from certain horse racing license fees is put into this account. The funds are used continuously to enhance the safety and integrity of horse racing. This includes hiring more state veterinarians and officials, and improving racehorse and jockey safety infrastructures.

The Horse and Jockey Safety and Welfare Account is hereby created in the State Treasury. Notwithstanding Sections 19606.1, 19616.51, 19620, 19620.1, and 19632, Section 13340 of the Government Code, or any other law, moneys from license fees imposed pursuant to Article 3 (commencing with Section 19460) shall be deposited in the Horse and Jockey Safety and Welfare Account and be continuously appropriated without regard to fiscal years for allocation by the Department of Finance to the board for equine safety measures to improve the integrity and safety of horse racing that shall include, but are not limited to, contracting for additional state veterinarians, stewards, and infrastructure support related to the safety and welfare of racehorses and jockeys.

Section § 19640

Explanation

This section requires that any fines or penalties collected during horse racing events be forwarded to a state account dedicated to horse and jockey safety. The collected funds are to be used without limitation of fiscal years for improving horse welfare and safety measures. These measures include hiring more state veterinarians, adding additional race event stewards, and enhancing race track infrastructure to ensure the safety of horses and riders. The board must also share how it uses these funds for welfare and safety on its website.

All money representing penalties or fines imposed by the stewards of a horse race meeting shall be collected by the licensee of the meeting and paid to the board within 10 business days after its close, and the board shall deposit all those moneys in the Horse and Jockey Safety and Welfare Account established pursuant to Section 19620.3, and be continuously appropriated without regard to fiscal years for allocation by the Department of Finance to the board for horse welfare and safety measures. The board shall publicly disclose on its internet website the horse welfare and safety measures it funds with these moneys. For purposes of this section, horse welfare and safety measures shall include all of the following:
(a)CA Business & Professions Code § 19640(a) Contracting for additional state veterinarians.
(b)CA Business & Professions Code § 19640(b) Adding additional stewards.
(c)CA Business & Professions Code § 19640(c) Improving or adding race track infrastructure to directly improve the safety and welfare of horses and riders.

Section § 19641

Explanation

This law outlines what happens to unclaimed money from horse racing betting pools. If people don’t claim their winnings, the money is split between supporting horse racing research and welfare funds for people working in the horse racing industry. Some money goes to the board to fund horse racing research, and the rest goes to welfare funds that support the health and welfare of those involved in racing. Payments are made quarterly, with final adjustments at the end of the racing season. The welfare fund must report to the board on how the money is used.

(a)Copy CA Business & Professions Code § 19641(a)
(1)Copy CA Business & Professions Code § 19641(a)(1) Except as provided in subdivision (b), any redistributable money in a parimutuel pool subject to payment to a claimant pursuant to Section 19598, but not successfully claimed within that period, shall be paid to the board, as follows:
(A)CA Business & Professions Code § 19641(a)(1)(A) An estimated payment equal to 20 percent of the preceding year’s unclaimed redistributable money paid pursuant to this paragraph shall be paid to the board on July 1, October 1, January 1, and April 1, or the next business day thereafter.
(B)CA Business & Professions Code § 19641(a)(1)(B) On May 30, or the next business day thereafter, of the year following the close of a horse racing meeting, the association shall pay to the board all of the redistributable funds that are owed it pursuant to this paragraph, less estimated payments made pursuant to subparagraph (A).
(2)CA Business & Professions Code § 19641(a)(2) The money received by the board under this subdivision resulting from thoroughbred, harness, or quarter horse meetings, but excluding the meetings of the California Exposition and State Fair or of a county, district agricultural association, or citrus fruit fair, shall be used by the board to support research on matters pertaining to horse racing and racetrack security, but the money shall be subject to annual budgetary review by the Legislature. All of the redistributable money received by the board from other meetings shall be paid immediately into the State Treasury to the credit of the General Fund.
(b)Copy CA Business & Professions Code § 19641(b)
(1)Copy CA Business & Professions Code § 19641(b)(1) One-half of the redistributable money resulting from the thoroughbred, harness, or quarter horse meetings, but excluding the meetings of the California Exposition and State Fair or county, district agricultural association, or citrus fruit fair meetings, shall be distributed to a welfare fund established for the benefit of horsemen and horsewomen and backstretch personnel, as follows:
(A)CA Business & Professions Code § 19641(b)(1)(A) An estimated payment equal to 20 percent of the preceding year’s unclaimed redistributable money distributed pursuant to this paragraph shall be distributed to the welfare fund on July 1, October 1, January 1, and April 1, or the next business day thereafter.
(B)CA Business & Professions Code § 19641(b)(1)(B) On May 30, or the next business day thereafter, of the year following the close of a horse racing meeting, the association shall pay to the welfare fund all of the redistributable funds that are owed it pursuant to this paragraph, less estimated payments made pursuant to subparagraph (A).
(2)CA Business & Professions Code § 19641(b)(2) The welfare fund shall make an accounting to the board within one calendar year of the receipt of the payment.
(3)CA Business & Professions Code § 19641(b)(3) Upon approval of the board, moneys under this subdivision may be used to provide treatment for, and support the health care needs of, licensees under this chapter, employees of racing associations, and members of horsemen’s and horsewomen’s organizations and other racing-related charitable organizations representing or assisting backstretch personnel, if the need for the treatment and support is related to the person’s participation in the horse racing industry.
(c)CA Business & Professions Code § 19641(c) Except as provided in subdivision (a) or (b), any remaining redistributable money in a parimutuel pool subject to payment to a claimant pursuant to Section 19598, but not successfully claimed within the period specified in that section, shall be distributed one-half to the board, for the purposes specified and in the manner specified in subdivision (a), and one-half to the welfare fund established by the horsemen’s and horsewomen’s organization described in subdivision (b) in the manner specified in subdivision (b).

Section § 19641.2

Explanation

This law details the management and duties related to a health and welfare trust fund for eligible individuals. A nonprofit foundation must administer the fund fairly and responsibly, ensuring it benefits all eligible persons. Employers of backstretch workers are required to submit employment records to assist with the payment of benefits. The board governing the fund must include at least one member who has no financial ties to horse racing, selected from certain union and guild nominees. The law also clarifies that the fund should maintain its charitable status and comply with relevant charitable laws.

(a)CA Business & Professions Code § 19641.2(a) The nonprofit foundation authorized to receive funds pursuant to Section 19641 shall use those funds to administer a health and welfare trust fund without prejudice and for the benefit of every eligible person. The officers and directors of the health and welfare trust fund shall have a fiduciary responsibility to manage the fund for the benefit of the beneficiaries.
(b)CA Business & Professions Code § 19641.2(b) Every employer of backstretch workers shall, upon request, submit in writing or electronically to the administrator of the welfare program for backstretch workers any employment records necessary for prompt payment of benefits and proper administration of the program. Upon request, employers shall also provide to the administrator access to any employment records necessary for prompt payment of benefits and proper administration of the program.
(c)CA Business & Professions Code § 19641.2(c) At least one member of the health and welfare fund board shall be a member without financial interest in the horse racing industry appointed from a list of nominees submitted jointly by the California State Council of the Service Employees International Union, the Jockey’s Guild, and the California Teamsters Public Affairs Council.
(d)CA Business & Professions Code § 19641.2(d) Nothing in this section is intended to affect the status of the welfare fund as a charity under Section 501(c)(3) of the federal Internal Revenue Code or its compliance with the Charitable Purposes Act (Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code).

Section § 19642

Explanation

If you buy a cash voucher during a horse racing event and don't use it within a year, the voucher's value will be given to a nonprofit chosen by the board. This nonprofit uses the money to keep a database about horse racing information.

Cash vouchers that are not redeemed within 365 days of the close of the racing meeting at which the voucher was purchased shall be distributed to a nonprofit organization designated by the board for purposes of maintaining a data base of horseracing information to further the purposes of Section 19444.

Section § 19642.1

Explanation

This law states that a small percentage (up to 0.05%) of the money bet at satellite wagering facilities is given to a designated nonprofit organization. The nonprofit's job is to manage a horse racing information database. The exact percentage can be changed by the board. The nonprofit must give its annual budget to the board each November and file financial reports every three months.

In addition to the distributions specified in Sections 19605.7, 19605.71, and 19605.72, from the amounts that would normally be available for commissions and purses from wagering on all breeds, an amount not to exceed 0.05 percent of the total amount handled by each satellite wagering facility shall be distributed to the nonprofit organization designated by the board for purposes of maintaining a database of horse racing information to further the purposes of Section 19444. The amount distributable to the nonprofit organization initially shall be 0.05 percent of the total amount handled by each satellite wagering facility and may be adjusted by the board, in its discretion. The nonprofit organization shall annually submit its budget for the ensuing calendar year to the board at its November meeting and shall file quarterly financial statements with the board.