2005 California Business and Professions Code Sections 19610-19619.6 Article 9.5. License Fees, Commissions, and Purses

19610.  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.
19610.1.  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.
19610.2.  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.
19610.3.  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.
19610.4.  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.
19610.6.  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.
19610.8.  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.
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) 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) 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) 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.
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) 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.
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) 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) 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) 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) 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.
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) 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) 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) 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) 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) 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.
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) 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) For harness and quarter horse meetings conducted pursuant to
Section 19612.6, 50 percent as commissions and 50 percent as purses.
   (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) 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) 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) 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) 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.
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) 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.
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) 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) 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) 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) 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.
19612.7.  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.
19612.8.  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.
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) 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) 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) 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) The jockeys' organization certified by the board shall develop
reasonable nondiscriminatory criteria for eligibility for health and
welfare benefits.
   (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.
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 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.
   (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 pursuant to Section 19613.8 equivalent to an additional
1 percent of the portion. The remainder of the portion shall be
distributed as purses.
   (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 backstretch personnel
pursuant to Section 19613.8. The remainder of the portion shall be
distributed as purses.
   (d) Notwithstanding subdivisions (b) and (c), any association
conducting a fair racing meeting or conducting a mixed breed 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 pursuant to Section 19613.8.
   (e) Any association other than a fair that conducts a quarter
horse racing meeting, except a mixed breed 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) 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) 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) 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) 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) Amounts distributed pursuant to this section are derived from
owners' purses.
   (h) For the purposes of this section, the following definitions
shall apply:
   (1) "Owner" means a person currently licensed by the board as an
owner of a thoroughbred racehorse.
   (2) "Trainer" means a person currently licensed by the board as a
trainer of a thoroughbred racehorse.
   This section shall remain in effect only until January 1, 2008,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2008, deletes or extends that date.
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 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.
   (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) 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) 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.
   (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) 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) 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) 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) 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) Amounts distributed pursuant to this section are derived from
owners' purses.
   (h) For the purposes of this section, the following definitions
shall apply:
   (1) "Owner" means a person currently licensed by the board as an
owner of a thoroughbred racehorse.
   (2) "Trainer" means a person currently licensed by the board as a
trainer of a thoroughbred racehorse.
   (i) This section shall become operative on January 1, 2008.
19613.05.  (a) Any association, including a fair, that conducts
thoroughbred racing shall pay to the owners' organization,
contracting with the association with respect to the conduct of
thoroughbred racing, an additional 13/4 percent of the portion
required by Section 19613 for a national marketing program.  These
funds shall be used exclusively for the promotion of thoroughbred
racing in conjunction with a national thoroughbred racing marketing
program.  Funds that may not be needed for this effort shall be
returned to the purse pool at the racing associations where these
funds were raised in direct proportion to the amount in which they
were initially raised.  The owners' organization shall file a report
with the board and the respective Committees on Governmental
Organization of the Senate and Assembly, accounting for the receipt
and expenditure of these funds on an annual basis.  The board of
directors of the owners' organization shall have the discretion to
select the national marketing organization that shall be the
recipient of these funds.  If the board of directors of the owners'
organization decides at any time not to contribute to the national
marketing organization, notice shall be given promptly to the
respective racing association or associations and the 13/4 percent
deduction shall cease until the owners' organization decides
otherwise.
   (b) This section shall remain in effect only until January 1,
2008, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1,  2008, deletes or extends
that date.
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) 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) The board shall resolve issues that are not settled between
the associations and the organizations representing owners and
trainers.
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) 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) 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) 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 which
were generated pursuant to Section 19613 for the benefit of the
horsemen and the successor organization.
19613.3.  (a)  Except as provided in subdivision (b), (c), (d), and
(e) relating to thoroughbred horsemen's organizations, each horsemen'
s organization, except an organization that solely represents owners,
or an organization that solely represents trainers, shall provide
for the representation of owners and trainers on its board of
directors.  The provisions setting forth the composition of the board
of directors of each organization shall be in the bylaws of the
organization and shall be submitted to the board. The bylaws and any
changes thereto shall be approved by the board.
   (b) Each thoroughbred horsemen's organization, except an
organization that solely represents trainers, shall provide for the
representation of owners and owner-trainers, as defined in
subdivision (c), on its board of directors.  The provisions setting
forth the composition of the board of directors of each organization
shall be in the bylaws of the organization and shall be submitted to
the board. The bylaws and any changes thereto shall be approved by
the board.
   (c) The organization representing owners shall provide in its
bylaws that owners who are also licensed as trainers, and their
spouses who are licensed as owners shall comprise a class of
owner-trainers, which may elect three of its members to the board of
directors of the organization representing owners. All other
directors shall be owners as defined in Section 19613, and shall not
be members of the class of owner-trainers.
   (d) The board of directors of the thoroughbred owners'
organization shall not exceed 15 persons, and all members of the
board shall have equal standing. No person other than a duly elected
or appointed member of the board of directors shall be entitled to
vote on matters that are subject to the vote of the board.
   (e) The organization representing thoroughbred trainers may, upon
the effective date of this section, appoint three individuals who
qualify as members of the class of owner-trainers as described in
subdivision (c) to the board of directors of the organization
representing thoroughbred owners. These appointees shall hold these
positions until members of the class are elected to fill the
positions, no later than July 1, 2003. This section shall remain in
effect only until January 1, 2007, and as of that date is repealed,
unless a later enacted statute, that is enacted before January 1,
2007, deletes or extends that date.
19613.5.  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.
19613.6.  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.
19613.8.  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.
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) 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) 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.
   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) 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 in the Fair and
Exposition Fund and is hereby appropriated for the purposes specified
in Section 19630.
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) 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) 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) 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) 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) Amounts distributed pursuant to this section are derived from
owners' purses.
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) 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) 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.
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) 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) 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) 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) 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.
19614.5.  Notwithstanding Section 19614, any county or district
agricultural association fair which is licensed to conduct racing
meetings for the first time on or after January 1, 1979, may retain
the license fee applicable to its meeting for payment of a capital
expense loan incurred for the purpose of preparing its facilities for
horseracing.  Such license fee retention shall be applicable only
during the loan period and only so long as all the monies retained
are used to pay off the loan for such capital expenses.
19614.6.  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.
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) 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) 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) 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) 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) 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.
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) 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) Each association shall pay a state license fee and make other
distributions in accordance with Section 19601.
   (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) 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) 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) 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.
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) 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) 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) 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) 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) 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) 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) 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) 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.
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) 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.
19616.51.  Notwithstanding any other provision of law, if the total
amount paid to the state by racing associations and fairs pursuant to
this chapter is less than forty million dollars ($40,000,000) in any
calendar year, beginning January 1, 2001, and thereafter, all
associations and fairs that conducted live racing during the year of
shortfall shall remit to the state, on a pro rata basis according to
the amount handled in-state by each association or fair, the amount
necessary to bring the total amount paid to the state to forty
million dollars ($40,000,000).  The amounts due under this section,
if any, shall be paid from the amount available for commissions,
purses, and breeder awards, and shall be paid to the board prior to
March 1 of the year following the year of the shortfall.
19617.  The following definitions shall govern the construction of
this section:
   (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) "Qualifying race" means the following:
   (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) 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) 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) "Certain claiming races" means those claiming races in the
central and southern zone in which the total purse exceeds the daily
average purse in races, excluding stakes, distributed at that meeting
during the prior year, or a claiming race in the northern zone in
which the total purse exceeds 125 percent of the daily average purse
in races, excluding stakes, distributed at that meeting during the
prior year.
   (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) "Eligible earnings" means the following:
   (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) In the case of owner premiums, the annual amount earned by a
California-bred thoroughbred for winning qualifying races.
   (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) 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) 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) 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) 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) 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) "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) 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) The official registering agency shall establish procedures for
the registration of stallions and may charge a fee for that
registration.
   (e) "Official registering agency" means the California
Thoroughbred Breeders Association.
   (f) "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.
   (g) "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.
   (h) "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.
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) 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) 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) 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) 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) To the owner fund for the purpose of owner premiums pursuant
to Section 19614.4.
   (c) The funds remaining after the distributions made pursuant to
subdivision (b) shall be distributed as follows:
   (1) To the breeder fund 75 percent, from which breeder awards are
to be paid.
   (2) To the stallion fund 25 percent, from which stallion awards
are to be paid.
   (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) The owner shall be paid an owner premium pursuant to Section
19614.4.
   (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) 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 sire.
   (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) 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.
19617.3.  (a) The following definitions govern the construction of
this section:
   (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) "Eligible earnings" means the following:
   (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) 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) 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) 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) 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) 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) 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) "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) "Official registering agency" means the Pacific Coast Quarter
Horse Racing Association.
   (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) "Qualifying race" means all paint horse only races in this
state.
   (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) 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) 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) 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) 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) Sixty percent to the breeder fund from which breeder premiums
are to be paid.
   (2) Twenty-five percent to the owner fund from which owners'
premiums are to be paid.
   (3) Fifteen percent to the stallion fund from which stallion
awards are to be paid.
   (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) 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) 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) 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) 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) 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) 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.
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) 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) 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) 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) 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) 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.
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) 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) 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) 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) 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) 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) 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.
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) 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) 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.
19617.7.  (a) The following definitions govern the construction of
this section:
   (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) "Eligible earnings" means the following:
   (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) 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) 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) 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) 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) 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) 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) "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) "Official registering agency" means the Pacific Coast Quarter
Horse Racing Association.
   (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) "Qualifying race" means all quarter horse races in this state.
   (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) 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) 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) 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) 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) Sixty percent to the breeder fund from which breeder premiums
are to be paid.
   (2) Twenty-five percent to the owner fund from which owners'
awards are to be paid.
   (3) Fifteen percent to the stallion fund from which stallion
awards are to be paid.
   (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) 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) 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) 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) 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) 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) 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.
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) 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.
19617.8.  (a) The following definitions govern the construction of
this section:
   (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) "Eligible earnings" means the following:
   (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) 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) 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) 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) 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) 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) "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) "Official registering agency" means the officially recognized
organization representing Arabian horsemen designated by the board.
   (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) "Qualifying race" means all Arabian horseraces in this state.
   (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) 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) 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) 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) 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) Fifty-five percent to the breeder fund from which breeder
premiums are to be paid.
   (2) Twenty percent to the owner fund from which owners' awards are
to be paid.
   (3) Fifteen percent to the stallion fund from which stallion
awards are to be paid.
   (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) 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) The breeder shall be paid a sum based on a prorated share of
first and second place earnings.
   (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) 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) 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) 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) 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) 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.
19617.9.  (a) The following definitions govern the construction of
this section:
   (1) "Breeder" means a person who is registered as the owner of the
dam at the time the mare foals.
   (2) "Eligible earnings" means the following:
   (A) In the case of breeder premiums, the annual amount earned by a
California-bred Appaloosa horse for finishing first or second.
   (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) In the case of stallion awards, the annual amount earned by
Appaloosa foals of an eligible Appaloosa sire for finishing first or
second.
   (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) 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) 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) "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) "Official registering agency" means the officially recognized
organization representing Appaloosa horsemen designated by the board.
   (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) "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) "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) 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) 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) 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) 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) Sixty percent to the breeder fund from which breeder premiums
are to be paid.
   (2) Twenty-five percent to the owner fund from which owners'
awards are to be paid.
   (3) Fifteen percent to the stallion fund from which stallion
awards are to be paid.
   (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) The breeder shall be paid a sum based on a prorated share of
first and second place earnings.
   (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) 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) 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) 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.
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) 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) 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) Subdivisions (a) and (b) do not apply to any payment by an
association in connection with any match race or special racing
event.
   (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) The agreement is filed with the board.
   (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) 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) The agreement is approved by the board.
   (2) Any sum agreed to pursuant to this subdivision is used
exclusively to supplement purses.
19618.1.  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.
19618.2.  Subdivisions (a) and (b) of Section 19618 shall not apply
to any payment by a licensed quarter horse racing association in the
southern zone, to horsemen participating in its race meeting.
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) Horses eligible to race in the California Standardbred Sires
Stakes Program shall be the offspring of any registered California
standardbred stallion standing in California during an entire
breeding season.
   (c) 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 Horse Owners and Breeders Association.
   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) 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) Classes and divisions of races, eligibility of horses and
owners therefor, and prizes and awards to be awarded.
   (2) Nominating, sustaining, and entry fees for horses and races.
   (3) Registration and certification of California stallions, mares
bred to those stallions, and foals produced thereby.
   (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) 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) 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) 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) 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) 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) 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) 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) California standardbred sires stakes races shall be scheduled
for two-year-old and 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 prior to 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) Two- and three-year-old races shall be divided into colt and
filly divisions.
   (3) Base purses for each set of races conducted during any given
year at any race meeting shall be determined by the committee but,
with the exception of championship races that may be scheduled and
excluding purses derived from nomination, sustaining, and entry fees,
shall be equal for all two-year-old and three-year-old races
regardless of sex and gait, except that, if divisions are raced, the
base purse for each division shall be no less than 75 percent of the
original base purse and, if elimination heats are raced, the base
purse shall be determined by the committee.  As used in this section,
a set of races means one final race for each eligible age, sex, and
gait, as scheduled by the committee.
   (4) In each division of each race in the California standardbred
sires stakes races, the purse shall be divided in the following
manner:
          (i) Five or more starters
              1st .....................................     50%
              2nd .....................................     25%
              3rd .....................................     12%
              4th .....................................      8%
              5th .....................................      5%
         (ii) Four starters
              1st .....................................     55%
              2nd .....................................     25%
              3rd .....................................     12%
              4th .....................................      8%
        (iii) Three starters
              1st .....................................     55%
              2nd .....................................     30%
              3rd .....................................     15%
         (iv) Two starters
              1st .....................................     65%
              2nd .....................................     35%
          (v) One starter
              1st .....................................    100%
19619.1.  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.
19619.2.  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.
19619.6.  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.