CA SB1240

Increases the deduction from satellite wagering funds from 1.25% to 2% of total handle in northern, central, and southern zones to fund auxiliary offsite stabling, training, and vanning programs for thoroughbred horses.

Establishes a 50-50 voting structure on the governing board between the organization representing thoroughbred horsemen and horsewomen and thoroughbred racing associations/fairs, with allowance for differing deduction percentages in the northern zone if all parties agree.

Requires organizations administering the program to submit financial and operational plans to the California Horse Racing Board by November 1 annually and submit receipts/expenditures reports upon board request, with audits by independent third parties at the organization's expense.

Authorizes the organization to enter into multiyear contracts with auxiliary facility providers and allows use of funds to maintain a 10% reserve, cover vanning costs, and pay back commissions/purses if annual deductions exceed program expenses.

Permits thoroughbred racing associations or fairs in the northern zone to opt out of the program if they can meet stall requirements without auxiliary facilities, with no voting interest until opting back in.