Charity racing days: distribution of proceeds.
The bill is expected to have a significant impact on the funding available to charities linked to the horse racing community. With the increased percentage of proceeds allocated to these charities, supporters argue that it will provide greater financial stability and support for programs that benefit the horse racing community and also enhance the ability of these nonprofits to carry out their missions. Furthermore, an additional stipulation includes the allocation of 5% to a welfare fund that assists horsemen and backstretch personnel adversely affected by substance abuse.
Assembly Bill 1150, introduced by Assembly Member Frazier on February 18, 2021, seeks to amend Section 19556 of the Business and Professions Code, specifically focusing on the distribution of proceeds from charity days in horse racing. Currently, the law mandates that licensed racing associations designate certain racing days as charity days, during which the proceeds are distributed to authorized beneficiaries. AB 1150 proposes to increase the mandated allocation of these proceeds to charities associated with the horse racing industry from 30% to 40%. This increase aims to enhance the financial support provided to these charitable organizations.
During discussions surrounding AB 1150, various points of contention were raised regarding the financial implications of mandating higher distributions. Opponents of the bill expressed concerns that increasing the percentage of proceeds may limit the amount available for other beneficiaries or reduce the net funds that can be allocated for operational costs within the racing associations. Proponents counter these arguments by underscoring the importance of supporting charities that directly benefit the workforce involved in horse racing and advocating for a holistic approach to charity funding within the sector.
Ultimately, AB 1150 seeks to not only solidify the funds directed towards important charities within the horse racing industry but also aim to address the welfare of those who play critical roles in horse racing, particularly disabled jockeys. By mandating a greater allocation of funds, AB 1150 hopes to strengthen community ties and ensure that the charities that provide essential services can thrive financially.