Horse RacingSatellite Wagering
Section § 19605
This law allows licensed racing associations in California's northern, central, and southern zones to operate satellite facilities for betting on races. These facilities are subject to certain conditions. Typically, new satellite facilities can't be within 20 miles of existing ones or racetracks. However, in the northern zone, existing sites can agree to allow a new facility within this distance. Additionally, the Department of Food and Agriculture can approve up to three new satellite facilities in specific San Francisco areas, provided they pass a one-year impact test. Furthermore, fairs can lease property for these facilities and partner with racing associations to run them.
Section § 19605.1
This law says that in the northern area of California, a fair that doesn't have a license to host live horse racing but is eligible for racing days can set up a facility for off-track betting on horse races. However, they need approval from both the board and the Department of Food and Agriculture, and all conditions in another specified section must be met.
Section § 19605.2
This law allows certain fairs in central and southern California, that held general fair activities in 1986 and are eligible for racing day allocations, to set up satellite wagering facilities at their fairgrounds. However, this can only happen if they meet certain conditions and get approval from the Department of Food and Agriculture.
Section § 19605.25
The California Horse Racing Board can approve up to 15 additional minisatellite wagering sites per zone under certain conditions. These sites must be over 20 miles away from existing racetracks and satellite wagering facilities unless those facilities consent. Any proposed site must have an approved agreement detailing the races it will offer. The areas must be for patrons 21 and older, and the board must approve the equipment and technology used. Parimutuel clerks are to assist regularly. Wagers at these sites are treated like those at regular satellite facilities for financial distribution. Specific approvals are needed, like from the San Mateo County Fair if within 20 miles of its fairground. Sites aren't eligible for certain commission distributions, and the board should try to keep expenses low. If more than 15 sites are proposed, those likely to handle more bets get priority. Licenses last up to five years, after which renewal depends on performance. Potential agreements may require minisite operators to cover extra costs incurred from running these facilities.
Section § 19605.3
This section outlines how organizations can set up agreements with racetracks and satellite wagering facilities for off-track betting. These agreements must cover how signals are transmitted and how bets are pooled. They can also include details about fees, which are negotiable but can't change other payment amounts. All equipment and methods used by satellite facilities must be approved by the racing board. If a facility loses money on betting days, certain organizations may have to cover those losses. However, bets at these facilities don't count toward the main track's pools for fees. Finally, horsemen's organizations have a say, though consent can be challenged.
Section § 19605.35
This law section talks about reducing the fees that certain satellite wagering facilities and thoroughbred racing associations have to pay on bets. For facilities in the northern zone licensed before 2000, and those in Alameda and San Mateo after 2001, on-track license fees are reduced by 0.3% and an extra amount based on 2000's impact fees from Santa Clara County Fair. In the central and southern zones, for operators licensed previously for live thoroughbred or quarter horse racing, fees are reduced by 0.15%. These reductions go directly to the associations as commissions. The law also clarifies that these changes apply to impact fees related to satellite betting in the northern zone.
Section § 19605.4
This law talks about the rules for showing live video of certain horse races, like night harness and Arabian races, on screens at betting locations in different zones of California. They can show races from one zone in another, but places at fairs don't have to show more than five night races a week. Also, betting locations must take bets on all the races they show unless they're losing money on the deal. If they lose money, they must be paid back by certain groups to cover the loss. The law allows some flexibility, letting locations choose not to show all races if they agree with the race organizers.
Section § 19605.45
Section § 19605.46
This law allows the Alameda County Fair to open two more places where people can bet on horse races from a distance, as long as they get approval from the Department of Food and Agriculture and other authorities. If any of these places are in Oakland, they need to get agreement from the local horse racing group. That group can also invest in these betting sites if they are close to their racetrack.
Section § 19605.47
This law allows the Los Angeles County Fair to set up an extra place for people to bet on races from afar, as long as it is within 20 miles of the fairgrounds. However, if this new betting site is also within 20 miles of another racetrack, the fair needs permission from that racetrack before getting final approval.
Section § 19605.51
This law states that fairs which had a satellite betting facility as of July 1, 2007, can continue to operate such a facility on leased land within the fair's boundaries, provided they have approval from the Department of Food and Agriculture and are authorized by the board. Fairs without such facilities on that date can still open one, either on the fairgrounds or another leased site, but they have to meet certain conditions outlined in other sections.
Section § 19605.52
This law allows specific fairs in Kern, Shasta, or Stanislaus counties to operate one satellite wagering facility each, but only if they get approval from the Department of Food and Agriculture and the board's authorization. They must also meet the conditions outlined in another law, Section 19605.3.
Section § 19605.53
This law allows the California Exposition and State Fair to run an extra satellite wagering facility in the Sacramento County Fair, even though such a facility would normally be approved for Sacramento County Fair itself. This is okay as long as the Department of Food and Agriculture and the board agree, and the setup follows certain conditions. Additionally, this satellite wagering facility can be operated through a partnership with certain other entities.
Section § 19605.54
This law allows racetracks in the central zone of California that were operating in 2007 but have since closed to continue offering betting on races through satellite facilities. If the original track can't be used, the owner can open a satellite betting place somewhere else in the same city with approval from the board. If the original racetrack owner decides not to run a satellite betting facility, another racetrack in the zone can apply to do so. If no other racetrack is interested, other people or entities can apply. The board will hold a hearing before giving the go-ahead to ensure everyone gets a chance to voice their opinion.
Section § 19605.55
This law allows for satellite wagering in Solano County if the Solano County Fair stops holding live horse races at its old location. The board can approve a new satellite wagering facility on the fairgrounds or elsewhere in the county. The fair has the flexibility to run the facility itself or hire others to manage it. This facility can be set up regardless of the usual distance rules from other racetracks. Certain fees and charges won't apply to this facility, unlike typical ones.
Section § 19605.6
This law allows certain fairs in Kern or Santa Barbara counties to have satellite wagering facilities at their fairgrounds. Even if these fairs aren't licensed to hold races themselves, they can still host satellite wagering as long as they work with the right organizations. It also suggests that live races in California should ideally have at least 10 minutes between each race start time.
Section § 19605.61
This law allows for temporary satellite wagering and signal transmission if live racing at any licensed racetrack in California is interrupted by a natural disaster like a fire or flood. This can only happen if the executive director of the racing board agrees, and the disruption wasn't the fault of the association or racetrack. Signals from inside California take priority over those from other places. Also, certain rules from Section 19605.3 must be followed.
Section § 19605.7
This law outlines how the money bet at satellite wagering facilities in the northern zone is divided up. It says the percentage taken out of bets there has to match what's taken out at the main racetrack. Depending on the type of horse racing, like thoroughbred or harness, the money is split differently, with parts going to state license fees, commissions for the facilities, horse health programs, and promotional efforts for the races. There's also money set aside for local government based on the location of the satellite wagering facility. This law makes sure that horse racing organizations handle the payments as specified.
Section § 19605.71
This law explains how the money collected from bets placed at satellite wagering facilities is divided. For thoroughbred races, some of the money goes to the state as a license fee, the facility gets a commission, and small portions support equine health and laboratory research. There's a similar distribution for other race types like harness or quarter horse events. Additional funds from bets at satellite facilities support organizations promoting horse racing and local government, and from 2010 to 2013, extra amounts could go to specific groups if it benefited thoroughbred racing. The racing association handling the event must ensure the state gets its license fee.
Section § 19605.72
This law requires that an extra 1.25% of the money bet on thoroughbred races at certain locations be given as prize money to harness or quarter horse race participants. Specifically, this applies to races at satellite facilities when harness races are ongoing in the northern zone, and during harness or quarter horse race periods in Orange County.
Section § 19605.74
This section outlines specific rules for when the Breeders' Cup World Championship races are held in California. The money usually going to purse accounts is redirected to promote and support the event, including race winnings. The local racing association must agree with the Breeders' Cup organizers on how the funds should be used, in partnership with tourism and marketing organizations. After the event, they must report how the funds were spent. Additionally, the board can allow betting on one selected nonthoroughbred race held at the same venue, treating those wagers like they were for a thoroughbred race.
Section § 19605.75
This law aims to support California's horse racing industry by reducing costs like workers' compensation insurance. It does this by taking an extra 0.5% from exotic wagers, which are bets on less common outcomes, and using that money to help cover insurance costs for trainers and owners. The funds are managed by a specific group and can also go towards safety improvements at the racetracks, if not used for insurance. Organizations involved must report yearly on how the funds are used and have audits to ensure transparency.
Section § 19605.76
This section allows quarter horse racing associations in California to take an extra 0.5% from bets on exotic wagers, like trifectas or pick fours, but only if the horsemen and horsewomen’s organization agree. The money deducted goes to help pay for workers’ compensation insurance for the trainers and owners at the races. Money might also support prize pools for the races. If the racing associations and the horsemen’s group can't agree on using the funds, the decision is made by the board, and their decision is final.
Section § 19605.77
This section allows harness racing associations to deduct an extra 1% from the total betting pool, but only if the harness horsemen and horsewomen's organization agrees. The extra funds collected from these bets, whether at the track, satellite locations, or through advanced deposit wagering, go to a specific organization that uses them to help cover trainers' workers' compensation insurance costs. If there is any money left, it can be used the next year or to boost the prize pool at the track. The association and horsemen must form an organization to manage these funds. If they can't decide on the distribution, a board will make the final call.
Section § 19605.78
This law allows fairs in California to take an extra 0.5% from bets placed in exotic parimutuel betting pools for races that aren’t just for thoroughbred horses. However, they need approval from the group that represents the horses’ trainers and owners to do this. The money collected is then used to help cover workers’ compensation insurance costs for trainers and owners of these horse breeds. If the money's left over, it can either reduce insurance costs the next year or boost the prize money for races involving that breed. An organization must be formed to manage these funds, and if there’s any dispute on its distribution for insurance costs, a board will make the final call.
Section § 19605.79
This section explains how unspent money in certain accounts related to horse racing can be used for different purposes. If there are extra funds, the group in charge of the money can ask the board for permission to move it to other accounts. They need to provide a report showing the past two years of money in and out. If the board okays it, they can use the funds in new ways for one year, and possibly longer if it's good for the economy of thoroughbred racing. The group must also keep detailed records and report their spending to the board and government committees annually.
Section § 19605.8
This law explains how leftover funds from thoroughbred horse racing meetings should be split. Half of the funds go to the organizing association as commissions, and the other half goes to the horsemen as prize money. From the prize money, a tiny fraction (0.07%) is kept aside by the association to be sent to a specific agency for further distribution according to other specific regulations.
Section § 19605.9
This law explains how funds from satellite wagering facilities should be distributed in central and southern California. Generally, these funds go to the purse program of the association holding the horse racing meeting. However, there's a special rule for certain funds from Los Angeles County fairs. If these races happen at the 22nd District Agricultural Association Fairgrounds, the funds should help boost purses at a Los Angeles racing fair. Since 1992, any extra funds above what was distributed in 1990 must go back to the association's racing meeting purses.
Section § 19606
This section explains how certain horse racing funds are divided. For races like harness, quarter horse, and others, the remaining money after initial deductions is split evenly between the race organizers and the participating horsemen, who get their share as prize money. The horse owners receive bonuses from this prize money based on a specific formula. Additionally, a small percentage from harness racing bets at satellite facilities is specifically earmarked for a breeding program for standardbred horses.
Section § 19606.1
License fees from satellite wagering go into a special account within the Fair and Exposition Fund. The money in this account is automatically available to the Department of Food and Agriculture for specific projects. Some projects need approval from the Director of Finance, while others need the Joint Committee on Fairs Allocation and Classification's approval. The account can fund things like bond repayments for fairgrounds and racetrack improvements, setting up satellite wagering, supporting operational funds, health and safety projects, and developing revenue-generating and cost-saving projects. Payments for bond-related expenses must happen first. The Joint Committee must approve the Secretary's spending plans, and if there's any disagreement, the Secretary can modify and resubmit them. Any yearly revenue over $11 million goes to the larger Fair and Exposition Fund.
Section § 19606.5
This law states that if there is leftover money in a betting pool from wagers at certain satellite facilities, this money is split two ways. Half of it goes to the state, specifically into the General Fund, if it hasn't been claimed within a certain time. The other half goes to a welfare fund intended to benefit horsemen. The organization managing this fund must report back to the board about how they use the money within a year.
Section § 19606.6
This law describes how the extra money from odd changes (called breakage) in betting pools at satellite wagering facilities should be split. If the betting pool comes from those facilities in certain zones, the breakage is divided into three equal parts: one part goes to the state as a license fee, another part goes to the race track as a commission, and the final part goes to the horse owners as prize money. Any leftover breakage is split the same way as breakage from bets placed directly at the race track.
Section § 19607
This law states that when satellite wagering occurs on thoroughbred races in certain areas of California, up to 2% of the money collected can be redirected. Instead of being used for regular distributions like commissions and prizes, this money is given to a specific organization made up of certain racing associations and thoroughbred horse people. This group uses the money as outlined in another law, Section 19607.1. The organization has a board where thoroughbred horse people have half the voting power. For any fund usage to occur, both the thoroughbred representatives and some racing associations must agree, ensuring fair decision-making.
Section § 19607.1
This law outlines how funds must be used to support offsite stabling and vanning (transporting) of thoroughbred horses in certain zones of California. An organization is formed to manage these funds, which cover expenses of the organization, the costs of offsite facilities, and vanning from these facilities to race tracks. The organization must submit plans for the next year to the board and is generally not liable for injuries at these facilities, except certain cases. Facilities must match the quality expected for racing, and the organization can make long-term contracts with facility providers, subject to board approval. They must also report financial details to the board, and funds can be set aside as a reserve or used to pay back excess deductions if they occur. An initial 2% of satellite wagering proceeds funds these activities, subject to adjustments. The board can resolve disputes and ensures operations align with horse racing interests.
Section § 19607.2
When betting on thoroughbred races is done via satellite in the northern area, up to 2% of the betting money can be taken and used by a special organization related to thoroughbred racing. This organization includes race associations, fairs, and representatives of horsemen and horsewomen, and must follow rules in another law section, 19607.3. The horsemen and horsewomen's group gets half the voting power in decisions about this money, while the other half goes to the race associations and fairs. This way, everyone involved in racing gets fair say in how the funds are used, except in specific cases mentioned elsewhere.
Section § 19607.3
This law focuses on the management and funding of offsite stabling and vanning (transporting) of thoroughbred horses in California's northern zone. It outlines how funds are used to support these activities, including covering expenses for training facilities and transporting horses to racing events. Organizations managing this program aren't liable for injuries to people or horses at these offsite facilities, with some exceptions. The facilities must match the quality of on-site locations, and multi-year contracts for using them are allowed. The organization must submit annual plans to the board and provide financial reports when requested. They can maintain a reserve fund and repay any excess funds collected over needed amounts. The board can adjust funding distribution, and tracks that don't need offsite facilities can opt out of the program. The board also has the authority to resolve disputes related to costs or operations.
Section § 19607.4
This law allows for up to $4 million each year to be used to help cover workers’ compensation costs for thoroughbred racing employees and jockeys in California. Additionally, up to $1 million can be allocated to a welfare fund for thoroughbreds. To access these funds, there must be a written agreement between the organization representing horse owners and the associations or fairs that conduct most thoroughbred races in the state. This agreement must be filed with the board, which can enforce its terms but cannot force an agreement upon the involved parties.
Section § 19607.5
This law addresses how to handle satellite wagering commissions when both a fair and a thoroughbred association hold live horse races in the northern zone at the same time. Both parties must accept the other's racing programs, and fairs should not lose commission money they would normally get. Different rules apply to the fairs in Stockton and Sacramento to ensure they receive certain minimum commissions based on past performance or a set percentage. If they receive less than this, the thoroughbred association has to make up the difference. Similarly, expenses tied to the satellite wagering should be shared but cannot exceed a specific limit. This ensures fairness and financial stability for all parties involved during overlapping racing events.
Section § 19608
If a horseracing association, other than a fair, hosts events and earns at least $1.5 million a day, it must broadcast its races. This broadcast should be sent to approved satellite wagering locations so bettors can place bets there, following specific rules.
Section § 19608.1
This law says that if a fair or racing association has daily bets totaling less than $1.5 million, it can choose to broadcast live video of its races. If they do broadcast their races, they must share the video with authorized facilities that allow betting, according to specific sections of the law.
Section § 19608.2
This section allows horse racing associations and fairs to team up to manage audiovisual signals used in broadcasting races and handling satellite wagering. It aims to make the process cost-effective and secure. Organizations can include a mix of associations, fairs, and approved external investors. These organizations should work with horsemen's groups and ensure they have a say in the board. Certain operational costs are to be covered by the organizing entity, while satellite facilities have their own costs, like equipment. A state board must approve these costs and resolve any financial disputes that arise.
Section § 19608.3
This law outlines how funds given by the Secretary of Food and Agriculture for improvements at fairs in the northern zone of California should be allocated. The funds are specifically for fire and life safety improvements, complying with regulations, and fixing long-term maintenance issues. The Department of Food and Agriculture is tasked with creating and updating a schedule every year that spans three years. This schedule, starting from July 1, 1987, should detail project costs, descriptions, and expected completion dates.
Section § 19608.4
If a place is set up for off-track betting or similar purposes, it must agree in writing with a genuine labor union that usually represents similar workers at the closest racetrack. However, long-term state or county workers and nonprofits that have traditionally worked at fairs can keep doing their jobs even without this agreement.
Section § 19608.5
This law states that the money the state receives, which is set aside in a specific account, must be used to pay back the main amount and interest on bonds or other financial obligations. These financial obligations must be related to certain purposes managed by a joint powers agency, as described in a specific part of the law.
Section § 19608.6
If a group of government agencies wants money for bonds specifically related to certain purposes, they need to apply to the Secretary of Food and Agriculture using the correct form. The Secretary will then decide how to distribute the money, based on what's most important. Rules for how this money distribution should happen will be officially set by the Secretary.
Section § 19608.7
Section § 19608.8
The state of California promises to bondholders and those working with fairs on projects that it won't change the way project funds are handled or pledged until those debts are paid off. However, changes can be made if there are laws in place to protect those contracts. Joint powers agencies can include this promise in their financial agreements.