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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-03-18</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Committee on Governmental Organization (Assembly Members Blanca Rubio (Chair), Davies (Vice Chair), Alvarez, Berman, Bryan, Carrillo, DeMaio, Dixon, Fong, Gipson, McKinnor, Nguyen, Pacheco, Michelle Rodriguez, Solache, Soria, Ta, Valencia, and Wallis)</ns0:AuthorText>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Committee on Governmental Organization</ns0:Name>
<ns0:Members>Assembly Members Blanca Rubio (Chair), Davies (Vice Chair), Alvarez, Berman, Bryan, Carrillo, DeMaio, Dixon, Fong, Gipson, McKinnor, Nguyen, Pacheco, Michelle Rodriguez, Solache, Soria, Ta, Valencia, and Wallis</ns0:Members>
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<ns0:Title> An act to amend Section 19605.25 of the Business and Professions Code, relating to horse racing.</ns0:Title>
<ns0:RelatingClause>horse racing</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Horse racing: minisatellite wagering facilities.</ns0:Subject>
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<html:p> Existing law authorizes the California Horse Racing Board to approve minisatellite wagering sites, as defined, under specified conditions. Existing law requires an organization formed by associations or fairs to operate the audiovisual signal system to execute a specified agreement with the association conducting a racing meeting and the minisatellite wagering facility that specifies, among other things, the components of its racing program, including live, out-of-zone, out-of-state, and out-of-country races, that an association or fair will make available to the site.</html:p>
<html:p>This bill would explicitly require the agreement to specify which live in-state races would be provided by the association or fair to the site. The bill would also make nonsubstantive changes, including deleting obsolete language.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 19605.25 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>19605.25.</ns0:Num>
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(a)
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The board may approve an additional 15 minisatellite wagering sites in each zone, if all of the following conditions are met:
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(1)
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No site is within 20 miles of a racetrack, a satellite wagering facility, or a tribal casino that has a satellite wagering facility. If the proposed minisatellite wagering facility is within 20 miles of one of the above-referenced satellite facilities, then the consent of each facility within a 20-mile
radius must be given before the proposed
minisatellite wagering facility may be approved by the board.
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(2)
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An agreement in accordance with subdivision (a) of Section 19605.3 has been executed and approved by the board. In addition to the requirements set forth in that provision, the agreement shall specify which components of its racing program, including live in-state, out-of-zone, out-of-state, and out-of-country races, an association or fair will make available to the site. The terms and conditions of the agreement, including all fees payable pursuant
to paragraph (3) of that provision, a portion of which may be paid to horsemen and horsewomen in the form of purses, shall be subject to the approval of the horsemen’s and horsewomen’s organization responsible for negotiating purse agreements with the association or fair.
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<html:p>
(3)
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The site is approved by the board.
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<html:p>
(4)
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The wagers are accepted in an area that is accessible only to persons who are at least 21 years of age.
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<html:p>
(5)
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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.
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(b)
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Parimutuel clerks shall be available to service the self-service tote machines at minisatellite wagering locations, and to cash wagering vouchers on a regularly scheduled basis.
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(c)
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For purposes of commissions, deductions, and distribution of handle, wagers placed at minisatellite wagering sites shall be treated as if they were placed at satellite wagering facilities authorized under Section 19605, 19605.1, or 19605.2. Section 19608.4 shall apply to minisatellite wagering facilities.
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(d)
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The written consent of the San Mateo County Fair shall be obtained
before the approval of any minisatellite wagering site located within a 20-mile radius of its fairground.
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(e)
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Minisatellite wagering facilities created pursuant to this section are not eligible for satellite wagering commission distributions pursuant to Section 19604.
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<html:p>
(f)
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The board, in adopting
regulations to implement this section, shall minimize the expense to both the operator of the minisatellite wagering facility and the host racetrack.
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<html:p>
(g)
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If there are more than 15 applications for minisatellite wagering facilities in any zone, the board shall determine which facilities will generate the largest handle, and give priority to the approval of those facilities. The board shall license a minisatellite wagering facility for up to five years, and
then review the operation and the size of the handle, and determine if it is in the best interest of horse racing to relicense the facility or, in the alternative, license another minisatellite wagering facility that might generate a greater handle.
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(h)
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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.
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