AB 1423 Summary

• Modifies advance deposit wagering (ADW) deduction requirements for harness racing meetings, requiring amounts held in trust by the California Exposition and State Fair to be distributed 50% to harness racing horsemen from the June 16, 2012 meeting as purses and 50% to the California Exposition and State Fair as commissions.

• Changes the sunset date for exchange wagering licensee distributions to jockey health and welfare benefits from January 1, 2021 to January 1 following the year in which the 10th annual distribution is made, rather than a fixed date.

• Establishes detailed regulatory framework for advance deposit wagering including licensing requirements, security safeguards, contractual compensation limits (6.5% excluding host fees), and hub agreement arbitration procedures.

• Requires ADW providers to enter into labor agreements with bona fide labor organizations representing wagering employees at nearby racetracks and maintain neutrality regarding unionization.

• Sets specific percentages for distributing market access fees from ADW wagers to various beneficiaries including jockey retirement plans, backstretch welfare funds, satellite wagering facilities, and racing associations.