AB 1526: Horse racing: audits of the horsemen’s organizations: license fee deposits: minisatellite wagering facilities.

19440.5.

An annual audit shall be conducted of the financial books and records of the horsemen’s organizations, including any subsidiaries of the horsemen’s organizations, by a nationally recognized accounting firm as follows:

(a) Except with the permission of the board, with respect to pension funds received by those organizations pursuant to Sections 19533, 19613, and 19613.1, the audit shall be conducted annually. The audit shall cover the period of time since the last audit, and a copy of the audit shall be filed with the board and the Senate and Assembly Committees on Governmental Organization.

(b) With respect to administrative funds and welfare funds received pursuant to Sections 19533, 19606.5, 19613, and 19641, the audit shall be conducted within 90 days of the close of the fund’s business year. The audit shall cover the period of time since the last audit, and a copy of the audit shall be filed with the board and the Senate and Assembly Committees on Governmental Organization.

(c) The horsemen’s organizations shall bear the cost of the audit.

19480.

(a) The board may issue to any person who makes application therefor in writing, and who has complied with this chapter, 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.

19488.

Every license issued under this article shall specify all of the following:

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

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

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

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

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

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

19605.25.

(a) The board may approve an additional 15 minisatellite wagering sites in each zone, if all of the following conditions are met:

(1) No site is within 20 miles of a racetrack, a satellite wagering facility, or a tribal casino that has a satellite wagering facility. If the proposed minisatellite wagering facility is within 20 miles of one of the above-referenced satellite facilities, then the consent of each facility within a 20-mile radius must be given before the proposed minisatellite wagering facility may be approved by the board.

(2) An agreement in accordance with subdivision (a) of Section 19605.3 has been executed and approved by the board. In addition to the requirements set forth in that provision, the agreement shall specify which components of its racing program, including live in-state, out-of-zone, out-of-state, and out-of-country races, an association or fair will make available to the site. The terms and conditions of the agreement, including all fees payable pursuant to paragraph (3) of that provision, a portion of which may be paid to horsemen and horsewomen in the form of purses, shall be subject to the approval of the horsemen’s and horsewomen’s organization responsible for negotiating purse agreements with the association or fair.

(3) The site is approved by the board.

(4) The wagers are accepted in an area that is accessible only to persons who are at least 21 years of age.

(5) The board has approved the accommodation, equipment used in conducting wagering at the site, communications system, technology, and method used by the site to accept wagers and transmit odds, results, and other data related to wagering.

(b) Parimutuel clerks shall be available to service the self-service tote machines at minisatellite wagering locations, and to cash wagering vouchers on a regularly scheduled basis.

(c) For purposes of commissions, deductions, and distribution of handle, wagers placed at minisatellite wagering sites shall be treated as if they were placed at satellite wagering facilities authorized under Section 19605, 19605.1, or 19605.2. Section 19608.4 shall apply to minisatellite wagering facilities.

(d) The written consent of the San Mateo County Fair shall be obtained before the approval of any minisatellite wagering site located within a 20-mile radius of its fairground.

(e) Minisatellite wagering facilities created pursuant to this section are not eligible for satellite wagering commission distributions pursuant to Section 19604.

(f) The board, in adopting regulations to implement this section, shall minimize the expense to both the operator of the minisatellite wagering facility and the host racetrack.

(g) If there are more than 15 applications for minisatellite wagering facilities in any zone, the board shall determine which facilities will generate the largest handle, and give priority to the approval of those facilities. The board shall license a minisatellite wagering facility for up to five years, and then review the operation and the size of the handle, and determine if it is in the best interest of horse racing to relicense the facility or, in the alternative, license another minisatellite wagering facility that might generate a greater handle.

(h) Except as may be provided in the agreement required pursuant to paragraph (2) of subdivision (a), no association or fair shall be required to make all or part of its racing program available to a minisatellite wagering facility. Notwithstanding subdivision (e) of Section 19608.2, all costs incurred by the organization executing that agreement in excess of the amounts distributable to the organization from wagers placed at the site on that racing program, shall be borne by the minisatellite wagering facility.