2010 California Code
Business and Professions Code
Article 9.2. Satellite Wagering

19605.  (a) Notwithstanding any other provision of law, the board
may authorize an association licensed to conduct a racing meeting in
the northern zone to operate a satellite wagering facility for
wagering on races conducted in the northern zone at its racetrack
inclosure subject to all of the conditions specified in Section
19605.3, and may authorize an association licensed to conduct a
racing meeting in the central or southern zone to operate a satellite
wagering facility for wagering on races conducted in the central or
southern zone at its racetrack inclosure subject to the conditions
specified in subdivisions (a) to (e), inclusive, of Section 19605.3
and the conditions and limitations set forth in Section 19605.6.
   (b) Notwithstanding any other provision of law, no satellite
wagering facility, except a facility that is located at a track where
live racing is conducted, shall be located within 20 miles of any
existing satellite wagering facility or of any track where a racing
association conducts a live racing meeting. However, in the northern
zone, a racing association or any existing satellite wagering
facility may waive the prohibition contained in this subdivision and
may consent to the location of another satellite wagering facility
within 20 miles of the facility or track.
   (c) Notwithstanding subdivision (b), the Department of Food and
Agriculture may approve not more than three satellite wagering
facilities that are licensed jointly to the 1a District Agricultural
Association and the 5th District Agricultural Association and that
are located on the fairgrounds of the 1a District Agricultural
Association or within the boundaries of the City and County of San
Francisco. Before a satellite wagering facility may be licensed for
the 1997 and subsequent calendar years under this subdivision, the
department shall conduct a one-year test at the proposed site in
order to determine the impact of the proposed facility on total state
parimutuel revenues and on attendance and wagering at existing
racetracks and fair satellite wagering facilities in the Counties of
Alameda, San Mateo, Santa Clara, and Solano. Notwithstanding Section
19605.1, a satellite wagering facility may be located on property
leased to one or both fairs. Notwithstanding any other provision of
law, the fairs may contract for the operation and management of a
satellite wagering facility with an individual racing association or
a partnership, joint venture, or other affiliation of two or more
racing associations that are licensed to conduct thoroughbred
meetings within the northern zone.
   (d) Subdivision (b) shall not be construed to prohibit the
location of satellite wagering facilities within 20 miles of any
existing or proposed satellite facility established pursuant to
subdivision (c).



19605.1.  With respect to the northern zone, the board may, with the
approval of the Department of Food and Agriculture, also authorize
any fair, in the northern zone that is eligible for an allocation of
racing days pursuant to Section 19549, but which is not licensed to
conduct a racing meeting or authorized pursuant to Section 19605.6,
to locate a satellite wagering facility at its fairgrounds for
wagering on races conducted in the northern zone if all of the
conditions specified in Section 19605.3 are satisfied.



19605.2.  With respect to the central and southern zones, the board
may, with the approval of the Department of Food and Agriculture,
subject to the conditions and limitations set forth in Section
19605.6, also authorize any fair, which conducted general fair
activities in 1986 within the central or southern zone, and which is
eligible for an allocation of racing days pursuant to Section 19549,
but which is not licensed to conduct a racing meeting, to locate a
satellite wagering facility at its fairgrounds for wagering on races
conducted in the central or southern zone if all of the conditions
specified in subdivisions (a) to (e), inclusive, of Section 19605.3
are satisfied.



19605.25.  (a) The California Horse Racing Board may approve an
additional 15 minisatellite wagering sites in each zone, if all of
the following conditions are met:
   (1) No site is within 20 miles of a racetrack, a satellite
wagering facility, or a tribal casino that has a satellite wagering
facility. If the proposed facility is within 20 miles of one of the
above-referenced satellite facilities, then the consent of each
facility within a 20-mile radius must be given before the proposed
facility may be approved by the board.
   (2) An agreement in accordance with subdivision (a) of Section
19605.3 has been executed and approved by the board. In addition to
the requirements set forth in that provision, the agreement shall
specify which components of its racing program, including live,
out-of-zone, out-of-state, and out-of-country races, an association
or fair will make available to the site. The terms and condition of
the agreement, including all fees payable pursuant to paragraph (3)
of that provision, a portion of which may be paid to horsemen in the
form of purses, shall be subject to the approval of the horsemen's
organization responsible for negotiating purse agreements with the
association or fair.
   (3) The site is approved by the board.
   (4) The wagers are accepted in an area that is accessible only to
those who are at least 21 years of age.
   (5) The board has approved the accommodation, equipment used in
conducting wagering at the site, communications system, technology,
and method used by the site to accept wagers and transmit odds,
results, and other data related to wagering.
   (b) Parimutuel clerks shall be available to service the
self-service tote machines at these locations, and to cash wagering
vouchers on a regularly scheduled basis.
   (c) Until January 1, 2013, if the proposed minisatellite wagering
site is in the northern zone in a fair district where the fair has
operated a satellite wagering facility for the previous five years,
the approval of the fair must be obtained even if the proposed
location is more than 20 miles from the existing satellite wagering
facility operated by the fair.
   (d) For purposes of commissions, deductions, and distribution of
handle, wagers placed at minisatellite sites shall be treated as if
they were placed at satellite wagering facilities authorized under
Section 19605, 19605.1, or 19605.2. Section 19608.4 shall apply to
minisatellite wagering facilities.
   (e) The written consent of the San Mateo County Fair shall be
obtained prior to the approval of any minisatellite wagering site
located within a 20-mile radius of its fairground.
   (f) Minisatellite wagering facilities created pursuant to this
section are not eligible for satellite wagering commission
distributions pursuant to Section 19604.
   (g) The board shall adopt emergency regulations to implement these
new facilities on or before April 1, 2008. The board, in adopting
these regulations, shall minimize the expense to both the operator of
the minisatellite facility and the host racetrack.
   (h) If there are more than 15 applications for minisatellite
wagering facilities in any zone, the board shall determine which
facilities will generate the largest handle, and give priority to the
approval of those facilities. The board shall license a
minisatellite facility for two years, and then review the operation
and the size of the handle, and determine if it is in the best
interest of horse racing to relicense the facility or, in the
alternative, license another minisatellite facility that might
generate a greater handle.
   (i) Except as may be provided in the agreement required pursuant
to paragraph (2) of subdivision (a), no association or fair shall be
required to make all or part of its racing program available to a
minisatellite wagering facility. Notwithstanding subdivision (e) of
Section 19608.2, all costs incurred by the organization executing
that agreement in excess of the amounts distributable to the
organization from wagers placed at the site on that racing program,
shall be borne by the minisatellite wagering facility.



19605.3.  (a) An organization described in Section 19608.2 has
executed an agreement approved by the board with the association
conducting a racing meeting and the satellite wagering facility. The
agreement shall provide, among other things, for all of the
following:
   (1) The conditions for transmission of the signal.
   (2) That the wagers made at the satellite wagering facility will
be included in the appropriate conventional or exotic pool at the
racetrack where the racing meeting is conducted.
   (3) The agreement of the parties, if any, respecting the payment
of fees or charges by one party to the other in substitution of, or
in addition or supplemental to, the distributions of the amount
deducted pursuant to the first paragraph of either Section 19605.7 or
Section 19605.71. The agreement as to the payment of those fees or
charges shall not operate to increase or reduce the amounts otherwise
payable from the amount handled pursuant to this article, other than
to a party to the agreement. Any dispute relating to the amount of
fees or charges to be paid by any party as a condition of receiving
the live audiovisual signal from an association or fair may be
appealed to the board. However, nothing in this paragraph shall be
construed to require an association or fair to execute an agreement.
   (b) The accommodations and equipment used in conducting wagering
at the satellite wagering facility and their location have been
approved by the board.
   (c) The communications system, technology and method used by the
satellite wagering facility to accept wagers and transmit odds,
results, and other data related to wagering has been approved by the
board.
   (d) (1) Any association or fair that operates a satellite wagering
facility shall conduct wagering on all racing that is offered to the
satellite wagering facility, except as otherwise provided in Section
19607.5 with respect to the northern zone, as long as the satellite
wagering facility is not sustaining a loss on either a day meeting or
night meeting, as determined by the board, and, if sustaining a loss
on either a day meeting or night meeting, as long as the satellite
wagering facility is reimbursed for that loss by either an
organization described in Section 19608.2 or an association. Any
association that operates a satellite wagering facility may, but is
not required to, accept an audiovisual signal. Notwithstanding any
other provision of this paragraph, an association that conducts a
racing meeting and a fair that operates a satellite wagering facility
may agree to provide an audiovisual signal and to accept wagering on
less than all of the races. Acceptance of the audiovisual signal may
be on such terms and conditions, including the payment of fees and
charges, subject to paragraph (3) of subdivision (a), as the parties
may mutually agree.
   (2) In calculating the loss, if any, for operating a satellite
wagering facility for a night meeting, only the expenses incurred by
the satellite wagering facility because of the acceptance of night
wagers shall be considered, and no overhead expenses or expenses of
the satellite wagering facility which would be incurred regardless of
the acceptance of night wagers shall be considered.
   (e) Notwithstanding any other law or any agreement under
subdivision (a), for purposes of determining license fees and
breakage at the racetrack where the racing meeting is conducted,
wagers at a satellite wagering facility shall not be included in the
conventional or exotic pools of the association conducting the racing
meeting.
   (f) The horsemen's organization that represents the horsemen at
the association that conducts the racing meeting on which wagers are
accepted consents to the acceptance of wagers at the satellite
wagering facility, except that the association or fair operating the
satellite wagering facility may appeal the withholding of consent to
the board that may determine that consent is not required.



19605.35.  (a) Notwithstanding paragraph (3) of subdivision (a) of
Section 19605.3, no fee or charge authorized under that paragraph
shall be paid by the operator of a satellite wagering facility that
was licensed in the northern zone at any time prior to January 1,
2000. Notwithstanding any other provision of law, total on-track
license fees applicable to all wagers made within the inclosure of
associations conducting thoroughbred racing meetings in the northern
zone, including wagers on out-of-zone, out-of-state, and
out-of-country races, shall be reduced by 0.3 percent. In addition,
the total on-track license fees applicable to all wagers made within
the inclosures of associations conducting thoroughbred racing
meetings in the Counties of Alameda and San Mateo shall, beginning on
January 1, 2001, and each year thereafter, be further reduced by an
additional sum equal to the amount of impact fees respectively
received by each association from the Santa Clara County Fair during
the 2000 calendar year. The reduction in license fees provided by
this section shall be distributed solely to the association in the
form of commissions. All other distributions from handle shall be as
provided elsewhere in this chapter.
   (b) Notwithstanding paragraph (3) of subdivision (a) of Section
19605.3, no fee or charge authorized under that paragraph shall be
paid by the operator of a satellite wagering facility that was also
licensed at any time during the prior year to conduct a live
thoroughbred or quarter horse racing meeting in the central or
southern zones or a live fair racing meeting in Los Angeles County.
Notwithstanding any other provision of law, on-track license fees
applicable to all wagers made within the inclosure of an association
conducting a thoroughbred meet in the central or southern zones,
including wagers on out-of-zone, out-of-state, and out-of-country
races, shall be reduced by 0.15 percent. The reduction in license
fees provided by this section shall be distributed solely to the
association in the form of commissions. All other distributions from
handle shall be as provided elsewhere in this chapter.
   (c) It is, and always has been, the intent of the Legislature that
this section apply to impact fees charged by a thoroughbred racing
association or a thoroughbred fair racing association in the northern
zone, on satellite wagers accepted by satellite facilities operated
by those associations.



19605.4.  (a) Notwithstanding Section 19605.3, the live audiovisual
signal of night harness, quarter horse, Appaloosa, or Arabian races
in the central or southern zone may be offered to satellite wagering
facilities in the northern zone and the signal of those races in the
northern zone may be offered to satellite wagering facilities in the
central or southern zone. Racing associations may agree to accept
that audiovisual signal. However, satellite wagering facilities
located at fairs shall not be required pursuant to that agreement to
accept more than five night racing programs per week.
   (b) (1) With respect to the live audiovisual signal of night
harness, quarter horse, Appaloosa, or Arabian racing, any association
or fair that operates a satellite wagering facility shall conduct
wagering on all racing that is offered to the satellite wagering
facility, as long as the satellite wagering facility is not
sustaining a loss on a night meeting, as determined by the board, and
if sustaining a loss on a night meeting, as long as the satellite
wagering facility is reimbursed for that loss by either an
organization described in Section 19608.2 or an association. Any
association that operates a satellite wagering facility may, but is
not required to, accept an audiovisual signal. Notwithstanding any
other provision of this paragraph, an association that conducts a
racing meeting and a fair that operates a satellite wagering facility
may agree to provide an audiovisual signal and to accept wagering on
less than all of the races.
   (2) In calculating the loss, if any, for operating a satellite
wagering facility for a night meeting, only the expenses incurred by
the satellite wagering facility because of the acceptance of night
wagers shall be considered, and no overhead expenses or expenses of
the satellite wagering facility that would be incurred regardless of
the acceptance of night wagers shall be considered.



19605.45.  (a) Notwithstanding Section 19605, 19605.1, 19605.35, or
any other provision of this chapter, if the racing association
licensed in the year 2002 to conduct thoroughbred race meetings in
San Mateo County is not licensed to conduct a horse racing meeting in
that county in any subsequent year, the board may authorize
satellite wagering in San Mateo County only as provided in this
section:
   (1) The board may authorize a satellite wagering facility to be
located either on the fairgrounds of the San Mateo County Fair or on
leased premises within the City of San Mateo. The facility may be
operated by the fair or the fair may contract for the operation and
management of that satellite wagering facility with an individual
racing association or fair, or a partnership, joint venture, or other
affiliation of two or more racing associations or fairs. The board
may license a facility to the San Mateo County Fair pursuant to this
section notwithstanding the mileage restrictions contained in Section
19605 or any other provision of this chapter to the contrary.
   (2) Satellite wagering facilities licensed to the fair pursuant to
this section are subject to the provisions of subdivisions (a) to
(e), inclusive, of Section 19605.3, except that they shall not be
subject to the provisions of paragraph (3) of subdivision (a) of
Section 19605.3 or any other impact fee or charge.
   (3) Distributions pursuant to subdivision (d) of Section 19605.7,
and Sections 19610.3 and 19610.4 made by a satellite wagering
facility licensed to the fair pursuant to this section shall be to
the same beneficiary that received those distributions in the year
2002 from the San Mateo County Fair and the racing association
licensed in the year 2002 to conduct thoroughbred race meetings in
San Mateo County.



19605.46.  Notwithstanding subdivision (a) of Section 19605, and
Section 19605.1, the Alameda County Fair may, with the approval of
the Department of Food and Agriculture, the authorization of the
board, and subject to the conditions set forth in Section 19605.3,
operate two additional satellite wagering facilities within the
boundaries of the fair district. However, any facility situated in
the City of Oakland shall be sited only with the concurrence of the
racing association in Alameda County. The racing association in
Alameda County shall have the opportunity to invest in the ownership
and operation of any satellite wagering facility situated in the City
of Oakland or within 20 miles of the racing association's racetrack
in Alameda County.



19605.47.  The Los Angeles County Fair may conduct satellite
wagering at an additional location, situated not more than 20 miles
from its fairgrounds, with the approval of the board. If the
additional satellite wagering facility is within 20 miles of another
racetrack, the consent of that racetrack or those racetracks shall be
received as a condition precedent to approval by the board.



19605.51.  Notwithstanding subdivision (a) of Section 19605, and
Section 19605.1, any fair that operated a satellite wagering facility
on July 1, 2007, may, with the approval of the Department of Food
and Agriculture and the authorization of the board, subject to the
conditions specified in Section 19605.3, operate a satellite wagering
facility on leased premises within the boundaries of that fair. Any
fair that did not operate a satellite wagering facility on July 1,
2007, may, subject to Sections 19605 and 19605.1, operate one
satellite wagering facility either on the property of the
fairgrounds, or on leased premises.


19605.52.  Notwithstanding subdivision (a) of Section 19605, and
Section 19605.1, any fair in Kern or Shasta County may, with the
approval of the Department of Food and Agriculture and the
authorization of the board, subject to the conditions specified in
Section 19605.3, operate one satellite wagering facility within the
boundaries of that fair.



19605.53.  (a) Notwithstanding subdivision (a) of Section 19605, and
Section 19605.1, in lieu of a satellite wagering facility that could
otherwise be authorized by the board to the Sacramento County Fair,
the California Exposition and State Fair may, with the approval of
the Department of Food and Agriculture and the authorization of the
board, subject to the conditions specified in Section 19605.3,
operate one satellite wagering facility within the boundaries of that
fair in addition to any satellite wagering facility authorized at
its fairgrounds under those provisions.
   (b) A satellite wagering facility authorized pursuant to
subdivision (a) may be operated by agreement between the California
Exposition and State Fair and an entity described in Section 19604,
pursuant to the provisions of that section.



19605.54.  Any racetrack in the central zone that conducted racing
in 2007 but that has since closed may continue to conduct satellite
wagering. If the racetrack site is no longer available for use as a
satellite wagering facility, then the owner of the racetrack may
conduct satellite racing at another location within that city,
subject to approval by the board. If the owners of the racetrack
which last conducted racing at that facility determine that they do
not wish to operate a satellite wagering facility, then any other
racetrack conducting racing in that zone may instead be authorized to
open a satellite wagering facility. If there is no other racing
association that wishes to operate a satellite wagering facility in
that city, then any other person or entity may seek the approval of
the board to operate a satellite wagering facility in that city. The
board, prior to granting its approval, shall conduct a hearing on the
issue, and afford parties the opportunity to be heard.



19605.55.  (a) Notwithstanding Section 19605, 19605.1, 19605.35, or
any other provision of this chapter, if the Solano County Fair ceases
to conduct live horse racing at the site of its 2002 racing meeting
in any subsequent year, the board may authorize satellite wagering in
Solano County as provided in this section:
   (1) The board may authorize a satellite wagering facility to
replace its existing facility to be located on the fairgrounds of the
Solano County Fair or on leased premises within the county, at the
option of the fair. The facility may be operated by the fair or the
fair may contract for the operation and management of the satellite
wagering facility with an individual thoroughbred racing association
or fair, or a partnership, joint venture, or other affiliation of one
or more thoroughbred racing associations or fairs. The board may
license a facility to the Solano County Fair pursuant to this section
notwithstanding the mileage restrictions contained in Section 19605
or any other provision of this chapter to the contrary.
   (2) A satellite wagering facility licensed to the fair pursuant to
this section is subject to the provisions of subdivisions (a) to
(e), inclusive, of Section 19605.3, except that such a facility shall
not be subject to the provisions of paragraph (3) of subdivision (a)
of Section 19605.3 or any other impact fee or charge.



19605.6.  (a) In addition to satellite wagering facilities
authorized pursuant to Sections 19605, 19605.1, and 19605.2, the
board, with the approval of the Department of Food and Agriculture,
may authorize any fair, in the County of Kern or Santa Barbara,
eligible for an allocation of racing days pursuant to Section 19549,
to operate a satellite wagering facility at its fairgrounds even
though the fair is not licensed to conduct a racing meeting, and the
fair may operate the facilities except for those functions to be
performed by an organization described in Section 19608.2. Except as
otherwise provided in this chapter, Sections 19605, 19605.3, 19605.4,
19605.7, 19605.71, 19605.8, 19606, 19606.1, 19606.3, and 19606.4
apply to satellite wagering facilities authorized pursuant to this
section.
   (b) It is the intent of the Legislature that the board provide,
when feasible, for periods of at least 10 minutes between post times
for live races conducted within California.



19605.61.  (a) Notwithstanding any other provision of law, if the
live racing or the audiovisual signals of any licensed association or
fair in this state are disrupted or interrupted so as to cause the
cessation of the live racing or audiovisual signals and the cause is
a natural disaster outside the control of the association or fair
conducting the racing or satellite wagering, as determined by the
executive director of the board, the executive director may, at the
request of the licensed association or fair and the organization
representing horsemen at the race meeting, temporarily authorize the
conduct of satellite wagering, including the transmission and
reception of audiovisual signals, from any zone in the state or from
any location outside this state. However, audiovisual signals
emanating from within the state shall have preference over
audiovisual signals from locations outside this state, and any
transmission shall be subject to the conditions specified in
subdivisions (a) to (e), inclusive, of Section 19605.3.
   (b) As used in this section, "natural disaster" means fire, flood,
storm, epidemic, riot, or earthquake.



19605.7.  The total percentage deducted from wagers at satellite
wagering facilities in the northern zone shall be the same as the
deductions for wagers at the racetrack where the racing meeting is
being conducted and shall be distributed as set forth in this
section. Amounts deducted under this section shall be distributed as
follows:
   (a) (1) For thoroughbred meetings, 1.3 percent of the amount
handled by the satellite wagering facility on conventional and exotic
wagers shall be distributed to the racing association for payment to
the state as a license fee, 2 percent shall be distributed to the
satellite wagering facility as a commission for the right to do
business, as a franchise, and this commission is not for the use of
any real property, 0.54 percent 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, 0.033 percent shall be distributed
to the Center for Equine Health, and 0.067 percent shall be
distributed to the California Animal Health and Food Safety
Laboratory, School of Veterinary Medicine, University of California
at Davis. It is the intent of the Legislature that the 0.033 percent
of funds distributed to the Center for Equine Health shall
supplement, and not supplant, other funding sources.
   (2) (A) In addition to the distributions specified in paragraph
(1), for thoroughbred meetings, an amount not to exceed 4 percent of
the amount handled by the satellite wagering facility on conventional
and exotic wagers shall be distributed to an organization described
in Section 19608.2 with the mutual consent of the racing association,
the organization representing the horsemen participating in the
meeting, and the board from January 1, 2010, until December 31, 2013.
However, the amount shall be no less than that specified in
subparagraph (B), and any amount greater than the amount specified in
subparagraph (B) shall be approved by the board for no more than 12
months at a time, and only upon a determination by the board that the
greater amount is in the economic interest of thoroughbred racing.
   (B) Commencing January 1, 2014, an amount not to exceed the amount
of actual operating expenses, as determined by the board, or 2.5
percent of the amount handled by the satellite wagering facility on
conventional and exotic wagers, whichever is less, shall be
distributed to an organization described in Section 19608.2.
   (C) A request to the board for a distribution pursuant to
subparagraph (A) shall be accompanied by a report detailing all
receipts and expenditures over the two prior fiscal years of the
funds affected by the request.
   (D) The racing association whose request pursuant to subparagraph
(A) has been approved by the board shall provide subsequent quarterly
reports of receipts and expenditures of the affected funds if
requested by the board.
   (b) For harness, quarter horse, Appaloosa, Arabian, or mixed breed
meetings, 0.4 percent of the amount handled by the satellite
wagering facility on conventional and exotic wagers shall be
distributed to the racing association for payment to the state as a
license fee, for fair meetings, 1 percent of the amount handled by
the satellite wagering facility on conventional and exotic wagers
shall be distributed to the fair association for payment to the state
as a license fee, 2 percent shall be distributed to the satellite
wagering facility as a commission for the right to do business, as a
franchise, and this commission is not for the use of any real
property, and 6 percent of the amount handled by the satellite
wagering facility or the amount of actual operating expenses, as
determined by the board, whichever is less, shall be distributed to
an organization described in Section 19608.2. In addition, in the
case of quarter horses, 0.4 percent 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; in the case of
Appaloosas, 0.4 percent 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; in the case of Arabians, 0.4
percent 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; in the
case of standardbreds, 0.4 percent shall be distributed for the
California Standardbred Sires Stakes Program pursuant to Section
19619; in the case of thoroughbreds, 0.48 percent 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; 0.033 percent
shall be distributed to the Center for Equine Health; and 0.067
percent shall be distributed to the California Animal Health and Food
Safety Laboratory, School of Veterinary Medicine, University of
California at Davis. It is the intent of the Legislature that the
0.033 percent of funds distributed to the Center for Equine Health
shall supplement, and not supplant, other funding sources.
   (c) In addition to the distributions specified in subdivisions (a)
and (b), for mixed breed meetings, 1 percent of the total amount
handled by each satellite wagering facility shall be distributed to
an organization described in Section 19608.2 for promotion of the
program at satellite wagering facilities. For harness meetings, 0.5
percent of the total amount handled by each satellite wagering
facility shall be distributed to an organization described in Section
19608.2 for the promotion of the program at satellite wagering
facilities, and 0.5 percent of the total amount handled by each
satellite wagering facility shall be distributed according to a
written agreement for each race meeting between the licensed racing
association and the organization representing the horsemen
participating in the meeting. If, with respect to harness meetings,
there are funds unexpended from this 1 percent, these funds may be
expended for other purposes with the consent of the horsemen and the
racing association to benefit the horsemen, or the racing
association, or both, pursuant to their agreement. For quarter horse
meetings, 0.5 percent of the total amount handled by each satellite
wagering facility on races run in California shall be distributed to
an organization described in Section 19608.2 for the promotion of the
program at satellite wagering facilities, 0.5 percent of the total
amount handled by each satellite wagering facility on out-of-state
and out-of-country imported races shall be distributed to the
official quarter horse registering agency for the purposes of Section
19617.75, and 0.5 percent of the total amount handled by each
satellite wagering facility on all races shall be distributed
according to a written agreement for each race meeting between the
licensed racing association and the organization representing the
horsemen participating in the meeting.
   (d) Additionally, for thoroughbred, harness, quarter horse, mixed
breed, and fair meetings, 0.33 percent of the total amount handled by
each satellite wagering facility shall be paid to the city or county
in which the satellite wagering facility is located pursuant to
Section 19610.3 or 19610.4.
   (e) Notwithstanding any other provision of law, a racing
association is responsible for the payment of the state license fee
as required by this section.


19605.71.  The total percentage deducted from wagers at satellite
wagering facilities in the central and southern zones shall be the
same as the percentage deducted from wagers at the racetrack where
the racing meeting is being conducted and shall be distributed as set
forth in this section. Amounts deducted by a satellite wagering
facility under this section shall be distributed as follows:
   (a) (1) For thoroughbred meetings, 2 percent of the amount handled
by the satellite wagering facility on conventional and exotic wagers
shall be distributed to the racing association for payment to the
state as a license fee, 2 percent shall be distributed to the
satellite wagering facility as a commission for the right to do
business, as a franchise, and this commission is not for the use of
any real property, 0.54 percent 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, 0.033 percent shall be distributed
to the Center for Equine Health, and 0.067 percent shall be
distributed to the California Animal Health and Food Safety
Laboratory, School of Veterinary Medicine, University of California
at Davis. It is the intent of the Legislature that the 0.033 percent
of funds distributed to the Center for Equine Health shall
supplement, and not supplant, other funding sources.
   (2) (A) In addition to the distributions specified in paragraph
(1), for thoroughbred meetings, an amount not to exceed 4 percent of
the amount handled by the satellite wagering facility on conventional
and exotic wagers shall be distributed to an organization described
in Section 19608.2 with the mutual consent of the racing association,
the organization representing the horsemen participating in the
meeting, and the board from January 1, 2010, until December 31, 2013.
However, the amount shall be no less than that specified in
subparagraph (B), and any amount greater than the amount specified in
subparagraph (B) shall be approved by the board for no more than 12
months at a time, and only upon a determination by the board that the
greater amount is in the economic interest of thoroughbred racing.
   (B) Commencing January 1, 2014, an amount not to exceed the amount
of actual operating expenses, as determined by the board, or 2.5
percent of the amount handled by the satellite wagering facility on
conventional and exotic wagers, whichever is less, shall be
distributed to an organization described in Section 19608.2.
   (C) A request to the board for a distribution pursuant to
subparagraph (A) shall be accompanied by a report detailing all
receipts and expenditures over the two prior fiscal years of the
funds affected by the request.
   (D) The racing association whose request pursuant to subparagraph
(A) has been approved by the board shall provide subsequent quarterly
reports of receipts and expenditures of the affected funds if
requested by the board.
   (b) For harness, quarter horse, Appaloosa, Arabian, or mixed breed
meetings, 0.4 percent of the amount handled by the satellite
wagering facility on conventional and exotic wagers shall be
distributed to the racing association for payment to the state as a
license fee, for fair meetings, 1 percent of the amount handled by
the satellite wagering facility on conventional and exotic wagers
shall be distributed to the racing association for payment to the
state as a license fee, 2 percent shall be distributed to the
satellite wagering facility as a commission for the right to do
business, as a franchise, and this commission is not for the use of
any real property, and 6 percent of the amount handled by the
satellite wagering facility or the amount of actual operating
expenses, as determined by the board, whichever is less, distributed
to an organization described in Section 19608.2. In addition, in the
case of quarter horses, 0.4 percent 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; in the case of
Appaloosas, 0.4 percent 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; in the case of Arabians, 0.4
percent 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;
in the case of standardbreds, 0.4 percent shall be distributed for
the California Standardbred Sires Stakes Program pursuant to Section
19619; in the case of thoroughbreds, 0.48 percent 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; 0.033 percent
shall be distributed to the Center for Equine Health; and 0.067
percent shall be distributed to the California Animal Health and Food
Safety Laboratory, School of Veterinary Medicine, University of
California at Davis. It is the intent of the Legislature that the
0.033 percent of funds distributed to the Center for Equine Health
shall supplement, and not supplant, other funding sources.
   (c) In addition, for Appaloosa and mixed breed meetings, 1 percent
shall be distributed to an organization described in Section 19608.2
for promotion of the program at satellite wagering facilities.
Notwithstanding any other provision of law, on wagers made in the
Counties of Orange and Los Angeles on thoroughbred races conducted in
the County of Orange or Los Angeles, or both, excluding the 50th
District Agricultural Association, the amount deducted for promotion
of the satellite wagering program at satellite wagering facilities
shall be 0.5 percent. Any of the promotion funds that are not
distributed in the year in which they are collected may be
distributed in the following year. If promotion funds distributed in
any year exceed the amount collected for that year, the funds
distributed in the following year shall be reduced by the excess
amount. For harness meetings, 0.5 percent of the total amount handled
by each satellite wagering facility shall be distributed to an
organization described in Section 19608.2 for the promotion of the
program at satellite wagering facilities, and 0.5 percent of the
total amount handled by each satellite wagering facility shall be
distributed according to a written agreement for each race meeting
between the licensed racing association and the organization
representing the horsemen participating in the meeting. For quarter
horse meetings 0.5 percent of the total amount handled by satellite
wagering facility on races run in California shall be distributed to
an organization described in Section 19608.2 for the promotion of the
program at satellite wagering facilities, 0.5 percent of the total
amount handled by each satellite wagering facility on out-of-state
and out-of-country imported races shall be distributed to the
official quarter horse registering agency for the purposes of Section
19617.75, and 0.5 percent of the total amount handled by each
satellite wagering facility on all races shall be distributed
according to a written agreement for each race meeting between the
licensed racing association and the organization representing the
horseman participating in the meeting.
   (d) Additionally, for thoroughbred, harness, quarter horse, mixed
breed, and fair meetings, 0.33 percent of the total amount handled by
the satellite wagering facility shall be paid to the city or county
in which the satellite wagering facility is located pursuant to
Section 19610.3 or 19610.4.
   (e) Notwithstanding any other provision of law, a racing
association is responsible for the payment of the state license fee
as required by this section.


19605.72.  (a) In addition to the amounts deducted and distributed
pursuant to Section 19605.7, an amount equal to 1.25 percent of the
total amount handled on thoroughbred races conducted by, or
disseminated by, a thoroughbred racing association or fair at a
satellite facility that is located on the premises where, and on days
when, harness races are being conducted in the northern zone, shall
be paid to the harness racing association and thereafter shall be
distributed as purses to the harness horsemen racing at the harness
racing meeting.
   (b) In addition to the amounts deducted and distributed pursuant
to Section 19605.71, an amount equal to 1.25 percent of the total
amount handled on thoroughbred races conducted by, or disseminated
by, a thoroughbred racing association or fair at a satellite facility
that is located on the premises where, and during calendar periods
when, quarter horse or harness race meetings are being conducted in
Orange County, shall be distributed as purses to the horsemen racing
at the quarter horse or harness racing meeting.



19605.73.  (a) Thoroughbred racing associations, fairs, and the
organization responsible for contracting with thoroughbred racing
associations and fairs with respect to the conduct of racing
meetings, may form a private, statewide marketing organization to
market and promote thoroughbred and fair horse racing, including, but
not limited to, establishment and maintenance of an Internet Web
site featuring California thoroughbred and fair racing, the
establishment and administration of players incentive programs for
those who wager on thoroughbred association and fair races, and
promotional activities at satellite wagering facilities to increase
their attendance and handle. While the promotional activities at
satellite wagering facilities shall be funded by the marketing
organization, they shall be implemented and coordinated by
representatives of the satellite wagering facilities and the
thoroughbred racing associations or fair then conducting a live race
meet. The organization shall consist of the following members: two
members, one from the northern zone and one from the combined central
and southern zones, appointed by the thoroughbred racetracks; two
members, one from the northern zone and one from the combined central
and southern zones, appointed by the owners' organization
responsible for contracting with associations and fairs with respect
to the conduct of racing meetings; and two members, one from the
northern zone and one from the combined central and southern zones,
appointed by the organization representing racing and satellite
fairs.
   (b) The marketing organization formed pursuant to subdivision (a)
shall, by November 1 of each year, submit a written report to the
board on a statewide marketing and promotion plan for the upcoming
calendar year. In addition, the organization shall annually present
to the board at the board's November meeting a verbal report on the
statewide marketing and promotion plan for the upcoming calendar
year. The plan shall be implemented as determined by the
organization. The organization shall receive input from all
interested industry participants and may utilize outside consultants.
   (c) In addition to the distributions specified in subdivisions (a)
and (b) of Section 19605.7, subdivisions (a) and (b) of Section
19605.71, and Section 19605.72, for thoroughbred and fair meetings
only, from the amount that would normally be available for
commissions and purses, an amount not to exceed 0.25 percent of the
total amount handled by each satellite wagering facility shall be
distributed to the marketing organization formed pursuant to
subdivision (a) for the purposes set forth therein. The amounts
initially distributed to the marketing organization formed pursuant
to subdivision (a) shall be 0.2 percent of the total amount handled
by satellite wagering facilities for thoroughbred and fair meetings
only. The amount distributable to the marketing organization may be
adjusted by the board, in its discretion. However, the adjusted
amounts may not exceed an aggregate of 0.25 percent of the total
amount handled by satellite wagering facilities for thoroughbred and
fair meetings only. Any of the promotion funds that are not expended
in the year in which they are collected may be expended in the
following year. If promotion funds expended in any one year exceed
the amount collected for that year, the funds expended in the
following year shall be reduced by the excess amount. Any of the
promotion funds that are not expended in the year in which they are
collected may be expended in the following year. If promotion funds
expended in any one year exceed the amount collected for that year,
the funds expended in the following year shall be reduced by the
excess amount. The marketing organization, on a quarterly basis,
shall submit to the board a written report that accounts for all
receipts and expenditures of the promotion funds for the previous
three months.
   (d) This section shall remain in effect only until January 1,
2014, and, as of that date, is repealed, unless a later enacted
statute that is enacted before January 1, 2014, deletes or extends
that date. Any moneys held by the organization shall, in the event
this section is repealed, be distributed to the organization formed
pursuant to Section 19608.2, for purposes of that section.



19605.74.  For every year that the organization operating the
Breeders' Cup Championship series chooses to conduct the Breeders'
Cup at a race meeting in California, the following, notwithstanding
any other provision of law, shall apply to the race meeting
conducting the Breeders' Cup races on days during which Breeders' Cup
races are conducted:
   (a) The amounts that would have otherwise been distributed to a
purse account pursuant to subdivisions (a), (b), (c), and (d) of
Section 19601.02 shall be made available for the purpose of promoting
and sponsoring the Breeders' Cup.
   (b) The thoroughbred racing association hosting the Breeders' Cup
shall enter into a written agreement, in consultation and cooperation
with the California Tourism Commission and the statewide marketing
organization formed pursuant to Section 19605.73, with the
organization that operates the Breeders' Cup regarding the manner in
which the funds set aside to support and promote the Breeders' Cup
are to be expended.
   (c) Within 90 days after the holding of each Breeders' Cup, a
written report shall be made to the board detailing the manner in
which the set-aside funds were utilized to promote and support the
Breeders' Cup.



19605.75.  (a) The Legislature finds and declares that the existence
of high caliber thoroughbred racing in California is important to
this state's agricultural economy. The California horse racing
industry is being threatened by the escalating costs of doing
business in California, including, but not limited to, workers'
compensation insurance costs, in that these costs are not only
causing thoroughbred horses and trainers to leave this state, but are
also discouraging owners and trainers from bringing horses into this
state to compete. It is the intent of the Legislature to provide
some relief from these escalating costs through the redistribution of
the parimutuel handle on exotic wagers.
   (b) Notwithstanding Section 19610, every thoroughbred association
and fair that conducts a racing meet shall deduct an additional 0.5
percent of the total amount handled in exotic parimutuel pools of
thoroughbred races.
   (c) The funds collected pursuant to subdivision (b) from exotic
parimutuel pools on thoroughbred races within the inclosure of a
thoroughbred association or fair conducting a race meeting, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (f) to be used in
accordance with subdivision (e).
   (d) Any thoroughbred association or fair that authorizes a betting
system located outside of this state to accept exotic wagers on its
races and to combine those wagers in the association's or fair's
exotic parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to exotic wagers made by
residents other than those of this state, shall deduct the amount
specified in subdivision (b) in addition to any other applicable
deductions specified in law. The amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (f) to be used in accordance with subdivision (e). This
additional deduction shall not be included in the amount on which
license fees are determined pursuant to Section 19602.
   (e) The amounts distributed to the organization described in
subdivision (f) shall be deposited by that organization in a separate
account to defray the costs of workers' compensation insurance
incurred in connection with thoroughbred horses that race in this
state at thoroughbred associations and racing fairs through the
payment of supplemental premiums that reduce rates, payment to or for
the benefit of trainers and owners of such thoroughbreds, based on
the number of such thoroughbreds they start, in order to reimburse
them for the costs of workers' compensation insurance directly or
indirectly incurred by them, and other appropriate payments. Any
funds that are not used for the purposes set forth in this
subdivision shall, after an affirmative vote of at least 25 of the
voting interests of the organization described in subdivision (f),
either be carried forward to the subsequent year, or be used to
reimburse racing associations for the actual cost of health and
safety programs, research or safety equipment, or making capital
improvements that are designed to prevent workplace accidents and
increase the safety of jockeys, exercise riders, backstretch
employees, and other racetrack personnel. Those capital improvements
shall include, but not be limited to, safety improvements to racing
and training surfaces. All requests for reimbursements shall be
approved by the board. In developing proposals for approval by the
board, the association shall confer with their horsemen's
organizations and all affected labor organizations or associations.
   (f) The thoroughbred racing associations and the owners'
organization described in subdivision (b) of Section 19613 shall form
an organization to which funds shall be distributed pursuant to
subdivisions (c) and (d). This organization shall have a total of 34
voting interests, of which 16 shall be allocated to the organization
representing thoroughbred owners pursuant to Section 19613, one shall
be allocated to the official registering agency for thoroughbreds in
California, and one shall be allocated to the organization
representing thoroughbred trainers pursuant to Section 19613. The
remaining 16 votes shall be allocated among the licensed racing
associations and racing fairs in the state. Each racing association
and fair shall receive the portion of these remaining votes
represented by the sum of exotic wagering on its races divided by the
statewide total of exotic wagering in the preceding calendar year,
excluding Breeders Cup races. Fractional voting shall be permitted.
Any decision of this organization with respect to the allocation of
funds pursuant to subdivisions (c) and (d) shall require the
affirmative vote of 25 of these voting interests. In the event that
the required number of affirmative votes cannot be obtained, the
matter shall be submitted to the board for a decision consistent with
subdivision (e), and the decision of the board shall be final.
   (g) (1) The organization formed pursuant to this section shall
account annually to the board with respect to the expenditure and
distribution of funds received by the organization pursuant to
subdivisions (c) and (d), and shall obtain an independent audit of
fund generation and distribution. A copy of the completed audit shall
be forwarded to the board within 45 days of its receipt by the
organization.
   (2) No earlier than 18 months and no later than two years
following the effective date of this section, the organization
described in subdivision (f) shall commission an independent
evaluation of the effectiveness of the distributions under this
section along with recommendations for any improvements or
modifications regarding the program created in this section. A copy
of that evaluation along with a report detailing the organization's
response to the evaluation shall be filed with the board within 30
days of the receipt of the final evaluation.
   (h) Between January 1, 2014, and July 1, 2014, any unexpended
funds collected under this section shall be distributed to
organizations formed and operated pursuant to Sections 19607 and
19607.2 based upon the total thoroughbred handle in their respective
zones in the year 2013.
   (i) Except for subdivision (h), this section shall become
inoperative on January 1, 2014, and as of January 1, 2015, this
entire section is repealed, unless a later enacted statute, that is
enacted before January 1, 2015, deletes or extends that date.




19605.76.  (a) Notwithstanding Section 19610, a quarter horse racing
association may deduct an additional 0.5 percent of the total amount
handled in its exotic parimutuel pools. This additional deduction
shall only be permitted with the approval of the organization
representing quarter horsemen and horsewomen at the applicable racing
association meet.
   (b) Any funds collected pursuant to subdivision (a) from exotic
parimutuel pools on races within the inclosure of a racetrack, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (e) to be used in
accordance with subdivision (d).
   (c) Any quarter horse racing association that authorizes a betting
system located outside of this state to accept exotic wagers on its
races and to combine those wagers in the association's exotic
parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to exotic wagers made by
residents other than those of this state, may deduct the amount
specified in subdivision (a) in addition to any other applicable
deductions specified in law. Any amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (e) to be used in accordance with the provisions of
subdivision (d). This additional deduction shall not be included in
the amount on which license fees are determined pursuant to Section
19602.
   (d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account to defray workers' compensation insurance costs for trainers
and owners who are racing horses at the applicable quarter horse
racing association meet. Any funds not expended for this purpose in
the calendar year in which they are collected may either be used for
the following year's workers' compensation costs, as specified above,
or to benefit the purse pools at the track where the funds are
generated. Funds to benefit purse pools shall be allocated by breed,
in the same proportions as each breed generated in deductions under
this section at the track in the year the funds were collected.
   (e) The quarter horse racing association and the organization
representing quarter horsemen and horsewomen shall form an
organization to which any funds deducted pursuant to subdivisions (b)
and (c) shall be distributed. The quarter horse associations
collectively shall have representation equal to that of the
organization representing quarter horsemen and horsewomen on the
governing board of the organization formed pursuant to this
subdivision.
   (f) If the quarter horse racing association and the organization
representing quarter horsemen and horsewomen cannot agree on the
manner for distributing these funds to defray the costs of workers'
compensation insurance, the matter shall be submitted to the
California Horse Racing Board for a decision consistent with
subdivision (d), and the decision of the board shall be final.
   (g) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.



19605.77.  (a) Notwithstanding Section 19610, a harness racing
association may deduct an additional 1 percent of the total amount
handled in conventional parimutuel pools of harness races. This
additional deduction shall only be permitted with the approval of the
organization representing harness horsemen and horsewomen at the
applicable racing association meeting.
   (b) Any funds collected pursuant to subdivision (a) from
conventional parimutuel pools on harness races within the inclosure
of a racetrack, at satellite wagering facilities within this state,
and through advance deposit wagering by residents of this state,
shall be distributed to the organization described in subdivision (e)
to be used in accordance with subdivision (d).
   (c) Any harness racing association that authorizes a betting
system located outside of this state to accept conventional wagers on
its races and to combine those wagers in the association's
conventional parimutuel pools, including, but not limited to, a
multijurisdictional wagering hub as to conventional wagers made by
residents other than those of this state, may deduct the amount
specified in subdivision (a) in addition to any other applicable
deductions specified in law. Any amount deducted pursuant to this
subdivision shall be distributed to the organization described in
subdivision (e) to be used in accordance with the provisions of
subdivision (d). This additional deduction shall not be included in
the amount on which license fees are determined pursuant to Section
19602.
   (d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account and used to reduce the workers' compensation insurance costs
for trainers who are racing horses at the applicable harness racing
association meet. Any funds not expended for this purpose in the
calendar year in which they are collected may either be used for the
following year's workers' compensation costs, as specified above, or
to benefit the harness purse pool at the track where the funds are
generated.
   (e) The harness racing association and the organization
representing harness horsemen and horsewomen shall form an
organization to which any funds deducted pursuant to subdivisions (b)
and (c) shall be distributed. The harness associations collectively
shall have representation equal to that of the organization
representing harness horsemen and horsewomen on the governing board
of the organization formed pursuant to this subdivision.
   (f) If the harness racing association and the organization
representing harness horsemen and horsewomen cannot agree on the
manner for distributing these funds to defray the costs of workers'
compensation insurance, the matter shall be submitted to the
California Horse Racing Board for a decision consistent with
subdivision (d), and the decision of the board shall be final.
   (g) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.


19605.78.  (a) Notwithstanding Section 19610 and in addition to the
deduction specified in subdivision (b) of Section 19605.75, a fair
may deduct an additional 0.5 percent of the total amount handled in
exotic parimutuel pools of races for any breed, other than races
solely for thoroughbreds. This additional deduction shall only be
permitted for a breed's races with the approval of the organization
representing the horsemen and horsewomen of that breed at the fair.
   (b) Any funds collected pursuant to subdivision (a) from exotic
parimutuel pools on races within the inclosure of a racetrack, at
satellite wagering facilities within this state, and through advance
deposit wagering by residents of this state, shall be distributed to
the organization described in subdivision (e) to be used in
accordance with subdivision (d).
   (c) Any fair that authorizes a betting system located outside of
this state to accept exotic wagers on its races and to combine those
wagers in the association's exotic parimutuel pools, including, but
not limited to, a multijurisdictional wagering hub as to exotic
wagers made by residents other than those of this state, may deduct
the amount specified in subdivision (a) in addition to any other
applicable deductions specified in law. Any amount deducted pursuant
to this subdivision shall be distributed to the organization
described in subdivision (e) to be used in accordance with the
provisions of subdivision (d). This additional deduction shall not be
included in the amount on which license fees are determined pursuant
to Section 19602.
   (d) The amounts distributed to the organization described in
subdivision (e) shall be deposited by that organization in a separate
account to defray workers' compensation insurance costs for trainers
and owners who are racing breeds other than thoroughbreds at the
applicable fair. Any funds not expended for this purpose in the
calendar year in which they are collected may either be used for the
following year's workers' compensation costs, as specified above, or
to benefit the purse pool of each breed at the particular fair where
the funds are generated in the same proportions as each breed
generated at that fair in the year the funds are collected.
   (e) The fairs and the organizations representing the horsemen and
horsewomen of each breed for which deductions have been approved
under subdivision (a) shall form an organization to which any funds
deducted pursuant to subdivisions (b) and (c) shall be distributed.
The fairs collectively shall have representation equal to the
collective representation of the organizations representing horsemen
and horsewomen on the governing board of the organization formed
pursuant to this subdivision.
   (f) If the fairs and the organizations representing horsemen and
horsewomen cannot agree on the manner for distributing these funds to
defray the costs of workers' compensation insurance, the matter
shall be submitted to the California Horse Racing Board for a
decision consistent with subdivision (d), and the decision of the
board shall be final.
   (g) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.



19605.79.  (a) Notwithstanding any other provision of law, in the
event there are at any time uncommitted surplus funds in accounts
created pursuant to Sections 19605.73 and 19605.75, those unexpended
funds may, at the written request of the organization governing those
funds and with the approval of the board, be reallocated to any
other fund or account created pursuant to this chapter.
   (b) Requests to the board to reallocate funds pursuant to
subdivision (a) shall be accompanied by a report detailing all
receipts and expenditures over the two prior fiscal years of the
funds affected by the request.
   (c) Initial board approval of a request to reallocate funds
pursuant to subdivision (a) shall be limited to a one-year period.
Approval of a reallocation may be extended beyond one year upon a
determination by the board that the extension is in the economic
interest of thoroughbred racing.
   (d) The organization whose written request pursuant to subdivision
(a) has been approved by the board shall provide subsequent
quarterly reports of receipts and expenditures of the affected funds
if requested by the board.
   (e) The organization whose written request pursuant to subdivision
(a) has been approved by the board shall file a report with the
board and the respective fiscal committees and committees on
governmental organization of the Senate and the Assembly accounting
for all receipts and expenditures in any of the affected funds. This
report shall be filed within one year of initial board approval and
annually thereafter if the approval is extended by the board.



19605.8.  For thoroughbred meetings, the funds remaining after
distribution of the amounts set forth in Sections 19605.7, 19605.71,
and 19605.72 shall be distributed 50 percent as commissions to the
association that conducts the racing meeting and 50 percent as purses
to the horsemen participating in the racing meeting. From the amount
distributed as purses, a sum equal to 0.07 percent of the 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.



19605.9.  (a) Except as provided in subdivision (b), in the central
and southern zones, all of the funds distributed for purses from
satellite wagering facilities shall go to the purse program of the
association conducting the racing meeting.
   (b) Notwithstanding subdivision (a), all funds for distribution as
purses at satellite wagering facilities which are racing fairs in
the County of Los Angeles from wagering on thoroughbred horse racing
conducted at the 22nd District Agricultural Association Fairgrounds
shall be paid to a racing fair in the County of Los Angeles for
supplementing purses at the fair meeting. Commencing January 1, 1992,
the funds distributed for purses from satellite wagering facilities
pursuant to this subdivision shall not exceed the amount distributed
during the 1990 calendar year. Any funds in excess of this amount
shall be distributed as purses at the racing meeting conducted by the
association.


19606.  (a) For harness, quarter horse, Appaloosa, Arabian, mixed
breed, and fair meetings, the funds remaining after the distribution
of the amounts set forth in Sections 19605.7 and 19605.71 shall be
distributed 50 percent as commissions to the association that
conducts the racing meeting and 50 percent to the horsemen
participating in the racing meeting in the form of purses. However,
owners' premiums shall be paid from the amount distributed for purses
in the same relative percentage as owners' premiums are paid at the
racing meeting, except that for thoroughbred races the owners'
premiums shall be as provided in subdivision (a) of Section 19605.8.
   (b) In addition to funds distributed under Sections 19605.7 and
19605.71, from the amount that would be distributed to harness racing
horsemen in the form of purses under this section, an amount equal
to 0.1 percent of the amount handled on conventional and exotic
wagers on standardbreds at satellite wagering facilities in
California shall be distributed for the California Standardbred Sires
Stakes Program pursuant to Section 19619.



19606.1.  (a) All revenues transferred pursuant to Section 19620.2
shall be deposited in a separate account in the fund and,
notwithstanding Section 13340 of the Government Code, are
continuously appropriated from that account to the Department of Food
and Agriculture, for allocation by the Secretary of Food and
Agriculture, at his or her discretion, for the purposes set forth in
paragraphs (1) to (6), inclusive. The concurrence of the Director of
Finance shall be required for allocations pursuant to paragraphs (1)
and (2). Allocations pursuant to paragraphs (3) to (6), inclusive,
shall be made with the concurrence of the Joint Committee on Fairs
Allocation and Classification.
   (1) For the repayment of the principal of, interest on, and costs
of issuance of, and as security, including any coverage factor,
pledged to the payment of, bonds issued or to be issued by a joint
powers agency or other debt service or expense, including repayment
of any advances made or security required by any provider of credit
enhancement or liquidity for those bonds or other indebtedness or
expenses of maintaining that credit enhancement or liquidity,
incurred for the purpose of constructing or acquiring improvements at
a fair's racetrack inclosure, satellite wagering facilities at
fairs, health and safety repair projects, or handicapped access
compliance projects at fairs or for the purpose of refunding bonds or
other indebtedness incurred for those purposes. As used in this
paragraph, "coverage factor" means revenues in excess of the amount
necessary to pay debt service on the bonds or other indebtedness, up
to an amount equal to 100 percent more than the amount of that debt
service, which a joint powers agency, pursuant to the resolution or
indenture under which the bonds or other indebtedness are or will be
issued, pledges as additional security for the payment of that debt
service or is required to have or maintain as a condition to the
issuance of additional bonds or other indebtedness. Notwithstanding
any other provision of law, the department may also commit any funds
available for allocation under Article 10 (commencing with Section
19620) to complete projects funded under this paragraph in the
priority described in this paragraph.
   (2) For payment to the State Race Track Leasing Commission to be
pledged for the repayment of debt necessary to construct a racetrack
grandstand at the 22nd District Agricultural Association fairgrounds.
This payment shall be made only if the Secretary of Food and
Agriculture determines, annually, that all other pledged revenues
have been applied to the repayment of that debt and have been
determined by the secretary to be inadequate for that purpose.
   (3) For the payment of expenses incurred in establishing and
operating satellite wagering facilities at fairs.
   (4) For the support of an equipment and operating fund to produce
and display a consolidated California signal at satellite wagering
facilities and fairs.
   (5) For health and safety repair projects at fairs, which includes
fire and life safety improvement projects, California Code of
Regulations compliance projects, and long-term deferred maintenance
projects.
   (6) For the development and payment of revenue generating
projects, the establishment of pilot projects to restructure the
current fair system, and for projects realizing a cost savings for
more efficient utilization of existing fair resources.
   (b) The Secretary of Food and Agriculture may not make an
allocation for purposes of paragraphs (2) to (6), inclusive, of
subdivision (a) until the payments required in any fiscal year
pursuant to paragraph (1) of subdivision (a) have been funded.
   (c) Pursuant to subdivision (a), the Joint Committee on Fairs
Allocation and Classification shall review and concur, or not concur,
with the secretary's determination of the allocations to be made
pursuant to paragraphs (3) to (6), inclusive, of subdivision (a) in
total, and the committee may not add to, or delete projects or line
items from, the proposed allocations.
   (d) Approval of the Joint Committee on Fairs Allocation and
Classification is deemed complete when one of the following
conditions is met:
   (1) The annual budget act is enacted.
   (2) If the secretary's recommendations are received by the Joint
Committee on Fairs Allocation and Classification after the enactment
of the annual budget act, the recommendations shall be deemed
approved 30 days after they are received unless they are rejected by
the committee.
   (e) If the Joint Committee on Fairs Allocation and Classification
does not concur with the secretary's recommendations, the secretary
may submit another set of recommendations to the committee pursuant
to this section.
   (f) The payments required in any fiscal year for the purposes of
paragraphs (1) to (3), inclusive, of subdivision (a) shall be made
before any transfer is made pursuant to subdivision (g).
   (g) Except as otherwise provided in subdivision (f), when the
revenues deposited in the separate account exceed eleven million
dollars ($11,000,000) in any fiscal year, the amount in excess of
eleven million dollars ($11,000,000) shall be transferred to the Fair
and Exposition Fund for allocation in accordance with Sections
19620.1 and 19630.
   (h) All of the costs of administering the accounts created by
subdivision (a) and Section 19606.3 shall be charged to the
respective accounts.



19606.3.  (a) From all revenues transferred pursuant to Section
19620.2 and deposited in the Fair and Exposition Fund, an amount up
to one million one hundred thousand dollars ($1,100,000) may be
allocated by the Secretary of Food and Agriculture, at his or her
discretion, to supplement purses at fair meetings to achieve the
purposes of Section 19606.4.
   (b) All allocations made pursuant to this section shall be made
part of the annual expenditure plan submitted to the Joint Committee
on Fairs Allocation and Classification by the Secretary of Food and
Agriculture as provided in Section 19621.



19606.4.  It is the intent of the Legislature that funds allocated
pursuant to Section 19606.3 be used primarily at fair racing meetings
in the northern zone with a daily average handle of more than three
hundred thousand dollars ($300,000). The Legislature further finds
that its intent is that these allocations be used to bring the purses
at these fairs, exclusive of purses for stakes races and special
events, to a level of at least 80 percent of purses for similar
classes of horses at private associations in the northern zone. The
funds shall be used among all breeds. For fair racing meetings in the
northern zone with a daily average handle of three hundred thousand
dollars ($300,000) or less, it is the intent of the Legislature to
bring the purses to a level of at least 25 percent of purses for
similar classes of horses at private associations in the northern
zone. Any funds remaining after meeting the requirements of this
section shall be used at fair meetings in the northern zone as
additional purses.


19606.5.  Notwithstanding subdivision (b) of Section 19641, the
state shall receive as additional license fees 50 percent of any
redistributable money in a parimutuel pool arising from wagers at a
satellite wagering facility in the central or southern zone, subject
to payment to a claimant pursuant to Section 19598, but not
successfully claimed within that period, and the funds shall be
deposited in the General Fund. The remaining 50 percent of
redistributable money in a parimutuel pool arising from wagers at a
satellite wagering facility shall be paid to a welfare fund
established by the horsemen's organization contracting with the
association conducting the racing meeting for the benefit of
horsemen, and that organization shall make an accounting to the board
within one calendar year of the receipt of the payment.



19606.6.  Of the total breakage arising in a parimutuel pool which
includes wagers at satellite wagering facilities in the central or
southern zone, that percentage of breakage equal to the percentage
that wagers placed at satellite wagering facilities constitute of the
total parimutuel pool shall be distributed equally among the state
as an additional license fee deposited in the General Fund, the track
conducting the racing meeting as a commission, and the horsemen
participating in the racing meeting in the form of purses. The
remainder of the breakage shall be distributed in the same manner as
breakage arising from wagers at the track conducting the racing
meeting.



19607.  Notwithstanding Sections 19605.8 and 19605.9, when satellite
wagering is conducted on thoroughbred races at associations or fairs
in the central or southern zone, an amount not to exceed 1.25
percent of the total amount handled by all of those satellite
wagering facilities shall be deducted from the funds otherwise
allocated for distribution as commissions, purses, and owners'
premiums and instead distributed to an organization formed and
operated by thoroughbred racing associations, fairs conducting
thoroughbred racing, and the organization representing thoroughbred
horsemen and horsewomen, with each party having meaningful
representation on the board of the organization, to administer,
pursuant to supervision of the board, a fund to provide reimbursement
for offsite stabling at board-approved auxiliary training facilities
for additional stalls beyond the number of usable stalls the
association or fair is required to make available and maintain
pursuant to Section 19535, and for the vanning of starters from these
additional stalls on racing days for thoroughbred horses.



19607.1.  (a) The funds distributed to the organization formed
pursuant to Section 19607 shall be used to reimburse racing
associations that are operating offsite stabling providing additional
stalls for the incremental increase in operating costs directly
resulting from providing the stabling. Neither the organization
administering the offsite stabling and vanning program nor any of the
entities forming and operating the organization, except the entity
operating the offsite stabling facility where the injury occurred,
shall be liable for any injury to any jockey, exercise person, owner,
trainer, or any employee or agent thereof, or any horse occurring at
any offsite stabling facility.
   (b) The funds shall also be used to reimburse horsemen for the
cost of vanning starting horses from a board-approved auxiliary
training facility operated by a licensed racing association to the
track conducting the racing meeting. Horsemen may use carriers of
their own choice, except that the amount of reimbursement to horsemen
is limited to the amount that the organization determines is
generally charged by carriers for vanning from the auxiliary training
facility to the track conducting the racing meeting. Neither the
organization administering the offsite stabling and vanning program
nor any of the entities forming and operating the organization,
except the entity actually engaged in vanning horses, is liable for
any injury occurring to any individual or horse during vanning from
an offsite stabling facility.
   (c) The training facilities and amenities provided for offsite
stabling and training purposes shall be equivalent in character to
those provided during racing meetings of the association.
   (d) Upon the request of any party within the organization, the
board shall adjudicate any dispute regarding costs, or other matters
relating to the furnishing of offsite stabling or vanning. The board
may, if necessary, appoint an independent auditor to assist in the
resolution of disputes. The auditor shall be reimbursed from the
funds of the organization.
   (e) The organization may maintain a reserve fund of up to 10
percent of the total estimated annual vanning and stabling costs. In
addition to the reserve fund, if the funds generated for offsite
stabling and vanning are insufficient to fully reimburse racing
associations for expenses incurred during the offsite vanning and
stabling program, the organization may accumulate sufficient funds to
fully reimburse those associations for those expenses.
   (f) The amount initially deducted and distributed to the
organization shall be 1.25 percent of the total amount handled by
satellite wagering facilities authorized under this article in the
central or southern zone on thoroughbred racing, but that allocation
may be adjusted by the board, in its discretion. However, the
adjusted amount may not exceed 1.25 percent of the total amount
handled by satellite wagering facilities, to pay expenses and
maintain the reserve fund for the continuing support of the program.




19607.2.  Notwithstanding Section 19605.8, when satellite wagering
is conducted on thoroughbred races at associations or fairs in the
northern zone, an amount not to exceed 1.25 percent of the total
amount handled by all of those satellite wagering facilities, shall
be deducted from the funds otherwise allocated for distribution as
commissions, purses, and owners' premiums and instead distributed to
an organization formed and operated by thoroughbred racing
associations, fairs conducting thoroughbred racing, and the
organization representing thoroughbred horsemen, with each party
having meaningful representation on the board of the organization, to
administer, pursuant to supervision of the board, a fund to provide
reimbursement for offsite stabling at board-approved auxiliary
training facilities of racing associations or fairs for additional
stalls beyond the number of usable stalls the association is required
to make available and maintain pursuant to Section 19535, for
starter fees and for the vanning of starters from these additional
stalls on race days for thoroughbred horses.



19607.3.  (a) The funds distributed to the organization formed
pursuant to Section 19607.2 shall be used to reimburse racing
associations that are operating offsite stabling providing additional
stalls for the incremental increase in operating costs directly
resulting from providing the stabling. Neither the organization
administering the offsite stabling and vanning program nor any of the
entities forming and operating the organization, except the entity
operating the offsite stabling facility where the injury occurred,
shall be liable for any injury to any jockey, exercise person, owner,
trainer, or any employee or agent thereof, or any horse occurring at
any offsite stabling facility.
   (b) The funds shall also be used to reimburse horsemen for the
cost of vanning starting horses from a board-approved auxiliary
training facility operated by a racing association or fair to the
track conducting the racing meeting. Horsemen may use carriers of
their own choice, except that the amount of reimbursement to horsemen
is limited to the amount that the organization determines is
generally charged by carriers for vanning from the auxiliary training
facility to the track conducting the racing meeting. Neither the
organization administering the offsite stabling and vanning program
nor any of the entities forming and operating the organization,
except the entity actually engaged in vanning horses, is liable for
any injury occurring to any individual or horse during vanning from
an offsite stabling facility.
   (c) The training facilities and amenities provided for offsite
stabling and training purposes shall be equivalent in character to
those provided during racing meetings of the association.
   (d) Upon the request of any party within the organization, the
board shall adjudicate any dispute regarding costs, or other matters
relating to the furnishing of offsite stabling or vanning. The board
may, if necessary, appoint an independent auditor to assist in the
resolution of disputes. The auditor shall be reimbursed from the
funds of the organization.
   (e) The organization may maintain a reserve fund of up to 10
percent of the total estimated annual vanning and stabling costs. In
addition to the reserve fund, if the funds generated for offsite
stabling and vanning are insufficient to fully reimburse racing
associations or fairs for expenses incurred during the offsite
vanning and stabling program, the organization may accumulate
sufficient funds to fully reimburse those associations or fairs for
those expenses.
   (f) The amount initially deducted and distributed to the
organization shall be 0.5 percent of the total amount handled by
satellite wagering facilities authorized under this article in the
northern zone on thoroughbred racing, but that allocation may be
adjusted by the board, in its discretion. However, the adjusted
amount may not exceed 1.25 percent of the total amount handled by
satellite wagering facilities, to pay expenses and maintain the
reserve fund for the continuing support of the program.




19607.4.  (a) Notwithstanding any other provision of law, any amount
up to an amount equal to the difference between the maximum
deduction authorized pursuant to Sections 19607 and 19607.2 and the
amount actually deducted, not to exceed four million dollars
($4,000,000) statewide annually, may be utilized to obtain, provide,
or defray the cost of workers' compensation coverage for licensed
thoroughbred stable employees and jockeys, and an amount not to
exceed one million dollars ($1,000,000) statewide annually, may be
paid to the thoroughbred welfare fund described in subdivision (b) of
Section 19641 from the funds described in Sections 19607 and
19607.2, provided (1) there is a written agreement between the owners'
organization described in subdivision (a) of Section 19613 and those
racing associations and fairs that annually conduct in California at
least 75 percent of the thoroughbred races regarding the utilization
of those funds; and (2) the agreement is filed with the board.
   (b) The agreement shall be binding upon the owners' organization
and all of the racing associations and fairs that conduct
thoroughbred races in California and the board shall have the
authority to enforce the terms of the agreement. The board shall not,
however, have the authority to impose an agreement upon the owners'
organization or the group of racing associations or fairs described
herein.



19607.5.  (a) Notwithstanding any other provision of law, when both
a fair and a thoroughbred association are licensed by the board to
conduct live racing meetings within the northern zone during the same
calendar period, signals of both racing programs shall be accepted
at each live racing meeting within the northern zone and at all
satellite wagering facilities eligible to receive these programs.
   (b) Notwithstanding any other provision of law, in order to ensure
that fairs which previously had an exclusive right to send their
signals to satellite wagering facilities in the northern zone during
periods of overlap do not lose commission revenues from satellite
wagering, each fair that conducts its meeting during the period
described in subdivision (a) shall receive the following satellite
wagering commissions:
   (1) With respect to the 2nd District Agricultural Association in
Stockton, the commissions payable to the fair from satellite wagering
during the period described in subdivision (a) shall be the greater
of any of the following:
   (A) The actual commission earned by the fair from satellite
wagering on its live races during that period.
   (B) Fifty percent of the total combined satellite wagering
commissions payable to the thoroughbred association and the fair
during that period.
   (C) One hundred ten percent of the satellite wagering commissions
paid to the fair during its live racing meeting in 1990.
   If the satellite wagering commissions received by the 2nd District
Agricultural Association are less than the greater of the amounts
specified in subparagraph (B) or (C), the thoroughbred association
shall pay to the fair from amounts deducted from satellite wagering
on its meeting and before distribution of any satellite wagering
commissions and purses on its meeting, an amount equal to the
difference between the actual satellite wagering commissions received
by the fair in that year and the applicable amount from subparagraph
(B) or (C). No additional satellite wagering commission shall be
paid to the fair by an association unless the fair conducts live
racing during the period described in subdivision (a).
   (2) With respect to the California Exposition and State Fair in
Sacramento, the commissions payable to the fair from satellite
wagering during the period described in subdivision (a) shall be the
greater of either of the following:
   (A) The actual commission earned by the fair from satellite
wagering on its live races during that period.
   (B) Sixty percent of the total combined satellite wagering
commissions payable to the thoroughbred association and the fair
during that period.
   If the satellite wagering commissions received by the California
Exposition and State Fair are less than the amount described in (B),
the thoroughbred association shall pay to the fair from amounts
deducted from satellite wagering on its meeting and before
distribution of any satellite wagering commissions and purses on its
meeting, an amount equal to the difference between the actual
satellite wagering commissions received by the fair in that year and
the amount described in (B). No additional satellite wagering
commission shall be paid to the fair by an association unless the
fair conducts live racing during the period described in subdivision
(a).
   (c) During any periods described in subdivision (a), including
periods of overlap for fairs not specified in subdivision (b), the
thoroughbred association shall deduct the same percentage from the
total amount wagered in its daily conventional and exotic parimutuel
pools as the percentage deducted by the fair meeting. The amounts
deducted shall be distributed as otherwise provided in this article,
with the following exceptions:
   (1) If the percentages deducted from the conventional and exotic
parimutuel pools of the thoroughbred association under this
subdivision exceed the percentages deducted from the association's
pools during periods other than those described under subdivision
(a), the amount deducted which is equivalent to the difference
between those percentages shall be distributed by the thoroughbred
association equally between commissions and purses.
   (2) If a thoroughbred association and the 2nd District
Agricultural Association in Stockton or the California Exposition and
State Fair in Sacramento both conduct live racing meetings during
any period described in subdivision (a), the total amount deducted
shall be distributed by both the association and fair in the
percentages specified for fair meetings in subdivision (b) of Section
19605.7.
   Nothing in this subdivision requires any portion of the additional
deduction to be distributed pursuant to subdivision (c) of Section
19614.
   (d) Notwithstanding any other provision of law, an association and
fair that conduct their meeting pursuant to subdivision (b) shall
combine the operating expenses incurred at satellite wagering
facilities during the period described in subdivision (a). For
purposes of this subdivision only, the combined satellite wagering
operating expenses of the association and the fair during the period
described in subdivision (a) shall not exceed the actual expenses, or
6 percent of the combined parimutuel pool at satellite wagering
facilities, whichever is less.
   (e) Notwithstanding Section 19606.4, it is the intent of the
Legislature that during the period described in subdivision (a) the
funds allocated pursuant to Section 19606.3 shall be used to bring
purses at the fair racing meetings conducted by the 2nd District
Agricultural Association and the California Exposition and State Fair
to a level of at least 100 percent of purses for similar classes of
horses at the private association which is conducting the
simultaneous program.



19608.  An association other than a fair that conducts a horseracing
meeting with an average daily handle of one million five hundred
thousand dollars ($1,500,000) or more shall produce a live
audiovisual signal of its racing program and shall make this signal
available, in accordance with subdivision (a) of Section 19605.3 to
any satellite wagering facility authorized to conduct wagering
pursuant to Section 19605, 19605.1, 19605.2, or 19605.6.



19608.1.  Unless the board finds it impractical to do so, any fair
or any association with an average daily handle of less than one
million five hundred thousand dollars ($1,500,000) may produce, at
its option, a live audiovisual signal of its racing program. If the
fair or association produces a signal of its program, the signal
shall be made available, in accordance with subdivision (a) of
Section 19605.3 to any satellite wagering facility authorized to
conduct wagering pursuant to Section 19605, 19605.1, 19605.2, or
19605.3.


19608.2.  (a) In order to permit associations providing audiovisual
signals the ability to do so without undue burden and expense, to
avoid unnecessary duplication of facilities, to permit the
associations to protect the security of their signals, and to permit
the associations to protect the integrity of their parimutuel pools
and to account for wagering proceeds included in those parimutuel
pools, associations and fairs providing audiovisual signals pursuant
to Section 19608 or 19608.1 may form an organization to operate,
pursuant to board supervision, the audiovisual signal system.
   (b) An organization operating under board supervision pursuant to
this section may consist of any combination of associations and
fairs.
   (c) Nothing in this section precludes any other person or business
entity from participating in, or holding a financial interest in, an
organization formed by associations or fairs to operate satellite
wagering, except that the person or business entity shall be approved
by the board.
   (d) Any organization formed shall provide horsemen's organizations
contracting with associations and fairs for racing meetings and
nonracing fairs operating satellite wagering facilities meaningful
representation on its governing board, and shall administer the
audiovisual signal and parimutuel operations at satellite wagering
facilities.
   (e) (1) An organization shall bear the costs of operating the
audiovisual signal system, including the costs of leasing or
purchasing and operation of equipment for transmission and decoding
of audiovisual signals and wagering data, the costs of totalisator
equipment, mutuel department labor and equipment charges, and the
costs, including labor, and overhead of the organization
administering the satellite wagering program.
   (2) A satellite wagering facility shall bear the costs of
satellite receiving dishes, head-end assemblies, television monitors
or screens, facility buildings, labor at the satellite wagering
facility other than mutuel department labor, and any and all other
costs at the satellite wagering facility not specifically referred to
in paragraph (1).
   (3) The board shall approve all costs and resolve any differences
between an organization and a satellite wagering facility as to which
party is required to bear the costs for a disputed item.



19608.3.  (a) Funds allocated by the Director of Food and
Agriculture pursuant to paragraph (3) of subdivision (a) of Section
19606.1 for fire and life safety improvement projects, California
Code of Regulations compliance projects, and long-term maintenance
projects at fairs in the northern zone shall be allocated in
accordance with a project schedule determined by the Department of
Food and Agriculture in compliance with this section.
   (b) The department shall prepare a three-year schedule of these
projects which commences July 1, 1987, and shall annually update the
schedule. The schedule shall list individual project costs, contain a
project description, and specify estimated project completion dates.



19608.4.  A satellite wagering facility, an organization established
pursuant to Section 19608.2 or any of their subcontractors or
entities under contract to perform any of the functions specified in
this article shall, as a condition of operating, enter into a written
contractual agreement with the bona fide labor organization which
has historically represented the same or similar classifications of
employees at the nearest horseracing meeting. Permanent state or
county employees and nonprofit organizations who have historically
performed certain services at county, state, or agricultural district
fairs may continue to provide those services notwithstanding this
section.


19608.5.  All revenues payable to the state and deposited in a
separate account in the fund pursuant to Section 19606.1 that are
allocated by the Secretary of Food and Agriculture for the purposes
of paragraph (1) of subdivision (a) of Section 19606.1 are hereby
pledged for the repayment of the principal of, and interest on, bonds
issued by a joint powers agency, or of other debt service or expense
incurred for the purposes described in that paragraph (1).



19608.6.  (a) Any joint powers agency requesting money in connection
with the issuance of bonds for the purposes described in paragraph
(1) of subdivision (a) of Section 19606.1 shall file an application
with the Secretary of Food and Agriculture, in the form required by
the secretary.
   (b) The secretary shall, upon review of the applications, prepare
a statement of allocation of money to the joint powers agency, in the
priority the director deems appropriate.
   (c) The secretary shall adopt regulations governing the allocation
procedures to be followed in implementing this section.



19608.7.  It is the intent of the Legislature in enacting Sections
19608.5, 19608.6, and 19608.8 to provide the revenues necessary for
the financing by joint powers agencies of the described facilities
and projects which shall be deemed to be public capital improvements
within the meaning of Article 4 (commencing with Section 6584) of
Chapter 5 of Division 7 of Title 1 of the Government Code. Deposits
into the account in the fund in accordance with paragraph (1) of
subdivision (a) of Section 19606.1 shall continue through and
including either the 20th year after the initial calendar year in
which the revenues are collected, or whatever period of time is
necessary to repay any borrowings of joint powers funding mechanism,
including, but not limited to, retirement of bonded indebtedness,
loan repayments, and monthly payments involving lease-purchase
programs made by a joint powers agency to finance described
facilities and projects, whichever time is longer.




19608.8.  The State of California does hereby pledge to and agree
with the holders of any bonds or other indebtedness issued, and with
those joint powers agencies which may enter into project agreements
with fairs or other third parties or authorize bonds or other
indebtedness to be issued, in reliance on the allocations set forth
in subdivision (a) of Section 19606.1, that the state will not alter
or change the structure of funding and deposits set forth in, or the
pledge of funds for debt service, security, including any coverage
factors, and expenses, pursuant to that section until the bonds and
other indebtedness are fully paid or discharged and the project is
fully performed or discharged. However, nothing precludes any
alteration or change, if and when, adequate provision has been made
by law for the protection from impairment of the contracts
represented by the bonds, other indebtedness and projects, and the
right to so alter or change is hereby reserved. Joint powers agencies
may include this pledge and undertaking of the state in the bonds,
agreements evidencing other indebtedness, and project agreements.