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BUSINESS AND PROFESSIONS CODE
SECTION 19560-19578.1


19560.  No person shall, without complying with this chapter, hold
or conduct, or assist, aid, or abet in holding or conducting, any
meeting in this State where there is horse racing with wagering on
its results.

19562.  The board may prescribe rules, regulations, and conditions,
consistent with the provisions of this chapter, under which all horse
races with wagering on their results shall be conducted in this
State.

19563.  The board may adopt any rules and regulations of the United
States Trotting Association, not inconsistent with this chapter, for
the regulation of harness racing.

19564.  The board may adopt any rules and regulations of the Pacific
Coast Quarter Horse Racing Association, not inconsistent with this
chapter, for the regulation of quarter horse racing.

19565.  Subject to the provisions of this article, the board shall
by rule provide for the registration of all California-bred horses.

19566.  The official Stud Book and Registry of the American Quarter
Horse Association shall be recognized as the sole official registry
for quarter horses.  The board shall, however, by rule provide for
the registration of California-bred quarter horses to enable
compliance with this chapter.

19566.5.  The Stud Book of the Appaloosa Horse Club as approved by
the Appaloosa Horse Club shall be recognized as the sole official
registry for Appaloosa horses.  The Stud Book of the Arabian Horse
Registry of America, Inc.  shall be recognized as the sole official
registry for Arabian horses.  The board shall, however, by rule
provide for the registration of California-bred Appaloosa horses and
Arabian horses to enable compliance with this chapter.

19566.6.  The registry for registered California standardbred
stallions shall be maintained by the California Horse Racing Board or
its designee and shall be recognized as the sole official registry
for stallions whose offspring are eligible to compete in the
California Standardbred Sires Stakes Program.

19567.  (a) Since the purpose of this chapter is to encourage
agriculture and the breeding of horses in this state, a sum equal to
10 percent of the first money of every purse won by a California-bred
horse at a horse race meeting shall be paid by the licensee
conducting the meeting to the breeder of the horse.  This section
applies to any California-bred standardbred horse that is foaled on
or after November 1, 1977, for all races, except the California
standardbred sires stakes races.
   (b) Notwithstanding subdivision (a), a sum equal to 10 percent of
the first and second place money of every purse won by a
California-bred Arabian horse for first or second place at a horse
race meeting shall be deposited with the official registering agency,
pursuant to subdivision (b) of Section 19617.8, and shall thereafter
be distributed in accordance with subdivisions (c) to (g),
inclusive, of Section 19617.8.
   (c) Moneys from quarter horse racing derived pursuant to this
section shall be deposited with the official registering agency
pursuant to subdivision (b) of Section 19617.7 and shall thereafter
be distributed in accordance with subdivisions (c), (d), and (e) of
Section 19617.7.
   (d) Moneys from Appaloosa horse racing derived pursuant to this
section 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) and (d) of Section
19617.9.
   (e) This section does not apply to thoroughbred horses or
thoroughbred racing.

19568.  (a) Every licensee conducting a horse racing meeting shall,
each racing day, provide for the running of at least one race limited
to California-bred horses, to be known as the "California-bred race."
  If, however, sufficient competition cannot be had among horses of
that class on any day, the race, with the consent of the board, may
be eliminated for that day and a substitute race provided.
   (b) For thoroughbred and quarter horse racing only, the total
amount distributed to horsemen and horsewomen for California-bred
stakes races, and for races featuring California-breds upon the
approval of the official registering agency, from the purse account,
including overnight stakes, shall be not less than 10 percent of the
total amount distributed for all stakes races from the purse account,
including overnight stakes races, at that meeting of the racing
association licensed to conduct live racing.
   (c) It is the intent of the Legislature that the thoroughbred
racing associations in this state, in conjunction with the official
registering agency, and owners and trainers organizations meet and
report to the board on the establishment of a coordinated
California-bred restricted schedule of stakes races designed to
showcase California-bred restricted stakes races and qualify
registered California-bred horses for the California Cup and the
California Cup Day races.  It is also the intent of the Legislature
that the report be submitted to the board annually at least 60 days
prior to the start of the racing year.

19569.  In order to encourage and develop the racing of quarter
horses, whenever a fair conducts a program of horse races on which
there is parimutuel wagering, it shall, so far as practicable,
provide a program of quarter horse racing on the same days that it
provides a program of other types of horse racing, if sufficient
quarter horses are available to provide competition in one or more
quarter horse races.
   Such quarter horse events may be in addition to the customary
number of thoroughbred or standardbred events.

19572.  The board may, by rule, provide for the exclusion or
ejection from any inclosure where horse races are authorized, or from
specified portions of such inclosure, of any known bookmaker, known
tout, person who has been convicted of a violation of any provision
of this chapter or of any law prohibiting bookmaking or any other
illegal form of wagering on horse races, or any other person whose
presence in the inclosure would, in the opinion of the board, be
inimical to the interests of the state or of legitimate horse racing,
or both.  No such rule shall provide for the exclusion or ejection
of any person on the ground of race, color, creed, national origin or
ancestry, or sex.

19573.  Any person who, pursuant to a rule of the board, is excluded
or ejected from any inclosure where horse racing is authorized may
apply to the board for a hearing on the question of whether the rule
is applicable to him.
   The board shall hold the hearing either at its next regular
meeting after receipt of the application at the office of the board
nearest the residence of the applicant or at such other place and
time as the board and the applicant may agree upon.
   If, upon the hearing, the board determines that the rule does not
or should not apply to the applicant, it shall notify all persons
licensed under Article 4 of this chapter of such determination.
   If the board determines that the exclusion or ejection was proper,
it shall make and enter in its minutes an order to that effect.
Such order shall be subject to review by any court of competent
jurisdiction in accordance with law.

19574.  Any person who is excluded or ejected from an inclosure
pursuant to a rule or rules promulgated pursuant to the provisions of
Section 19572 is guilty of a misdemeanor if he thereafter enters the
inclosure of any association during its horse race meeting without
having first obtained a determination by the board that the rule or
rules pursuant to which he was excluded or ejected does not or should
not apply to him.

19576.  (a) No person may furnish a tape of any quarter horse race
occurring in this state to any other person either within or outside
of the state for any commercial purpose, including the use of the
tape in any type of video game, without first securing the consent of
the racing association conducting the meeting, the organization
representing horsemen participating in the meeting, and the board.
   (b) No person may use any tape of any quarter horse race occurring
in this state for any commercial purpose without first securing the
consent of the racing association holding the meeting, the
organization representing horsemen participating in the meeting, and
the board.
   (c) Any person whose consent is required under this section may
file and maintain an action in superior court to obtain an injunction
against the furnishing or commercial use of a quarter horse race
tape in violation of this section.

19577.  (a) Any blood or urine test sample required by the board to
be taken from a horse that is entered in any race shall be divided or
taken in duplicate, if there is sufficient sample available after
the initial test sample has been taken.  The initial test sample
shall be referred to as the official test sample and the secondary
sample shall be referred to as the split sample.  All samples
immediately become and remain the property of the board.  The board
shall adopt regulations to ensure the security of obtaining and
testing of all samples.
   (b) If the official test sample is found to contain a prohibited
drug substance, the executive director, after consulting with and
agreeing with the equine medical director that the official test
sample contains a prohibited substance, shall confidentially inform
the owner and trainer of those results.  The owner or the trainer of
the horse, upon being so informed, may request that the split sample
be tested by an independent laboratory selected from a list of
laboratories provided by and approved by the board.  The owner or
trainer of the horse shall pay the cost of testing the split sample.
   (c) If the split sample test results fail to confirm the finding
of the prohibited drug substance found in the official test sample, a
presumption affecting the burden of producing evidence pursuant to
Section 603 of the Evidence Code of no evidentiary prohibited drug
substance in the animal shall exist for purposes of this chapter.
   (d) The executive director shall report to the board a finding of
a prohibited drug substance in an official test sample within 24
hours of the confirmation of that prohibited drug substance in the
split sample by the independent laboratory, or within 24 hours of
waiver of split sample testing by the owner or trainer.  Any
recommendation to the board by the executive director to dismiss the
matter shall be by mutual agreement with the equine medical director.
  The authority for the disposition of the matter shall be the
responsibility of the board.
   (e) The executive director shall maintain responsibility for all
test samples until the executive director refers the matter to the
board.  Notwithstanding any other provision of law, and except as
provided in subdivision (a), the results of the tests from the
official testing laboratory, the Kenneth L. Maddy Equine Analytical
Chemistry Laboratory and the independent laboratory shall be
confidential until or unless the board files an official complaint.
   (f) If the owner or trainer does not request that the split sample
be tested within the time limits set by the board, the owner and
trainer waive all rights to that sample and the board assumes all
jurisdiction over the split sample.
   (g) The board shall contract with the Regents of the University of
California to have one-third of the routine equine drug testing
required by this section performed by the California Animal Health
and Food Safety Laboratory.

19578.  (a) It is the intent of the Legislature that the board
contract with the Regents of the University of California to provide
equine drug testing.  It is further the intent of the Legislature
that to the extent that resources are available, the California
Animal Health and Food Safety Laboratory perform studies that may
lead to the development of alternative or improved drug testing
techniques.
   (b) The Kenneth L. Maddy Equine Analytical Chemistry Laboratory
shall be located at the University of California at Davis in order to
take advantage of the expertise of the veterinary specialists at
that campus' School of Veterinary Medicine.  The laboratory shall be
a part of the California Animal Health and Food Safety Laboratory.
Any capital outlay expenditures for the Kenneth L. Maddy Equine
Analytical Chemistry Laboratory shall comply with Section 13332.11 of
the Government Code.
   (c) Funds collected under Article 9.2 (commencing with Section
19605) and Article 9.5 (commencing with Section 19610) for purposes
of the California Animal Health and Food Safety Laboratory and the
Center for Equine Health shall be deposited in the California Animal
Health and Food Safety Laboratory and Center for Equine Health
Account in the Fair and Exposition Fund.  Funds deposited in that
account constitute trust funds and shall be held in trust and may be
expended only for the purposes for which those funds are authorized
to be expended pursuant to this section.  The funds designated for
the California Animal Health and Food Safety Laboratory shall be
distributed to that system and shall be used to fund the construction
costs, equipment costs, and 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 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 expense of maintaining that
credit enhancement or liquidity, incurred for the purpose of
constructing the Kenneth L. Maddy Equine Analytical Chemistry
Laboratory, and for the operating costs of the Kenneth L. Maddy
Equine Analytical Chemistry Laboratory.  The funds designated for the
Center for Equine Health shall be distributed to the Center for
Equine Health, School of Veterinary Medicine, University of
California, Davis.
   (d) Title to the Kenneth L. Maddy Equine Analytical Chemistry
Laboratory shall vest in the Regents of the University of California.
  The laboratory shall be used in a manner that is consistent with
Section 19577 and this section.
   (e) The board shall contract to provide compensation for an equine
medical director who shall advise the Kenneth L. Maddy Equine
Analytical Chemistry Laboratory and be appointed by the Dean of the
School of Veterinary Medicine under applicable university hiring
rules with the advice of the board.  The equine medical director
shall be a member of the scientific advisory committee to the Kenneth
L. Maddy Equine Analytical Chemistry Laboratory, and act as the
primary advisor to the board on all matters relating to medication
and drug testing, the practice of veterinary medicine within the
areas regulated by the board, and the health and safety of horses
within the inclosure.
   (f) The budget for equine drug testing to be performed by the
California Animal Health and Food Safety Laboratory pursuant to
Section 19577 shall be established as a permanent line item in the
budget of the board.  Operating budget requests shall be submitted
annually by the university, and the board shall transfer funds
appropriated for the operation of the laboratory and for equipment,
in accordance with the contract, to the university.
   (g) The board and the University of California may expand the
services provided by the laboratory to the board in a manner that is
mutually agreeable and is consistent with Section 19577 and this
section.

19578.1.  If the equine drug testing is not conducted by the Kenneth
L.  Maddy Equine Analytical Chemistry Laboratory at the University
of California, Davis, the board shall contract with the best
qualified equine drug testing laboratory at a compensation rate that
the board determines is fair and reasonable to the State of
California and the board.





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