1. (a) Any association, fair, entity, or person proposing to act as a simulcast organization shall file an Application for Approval to Operate a Simulcast Organization, CHRB-34 (Rev. 3/23), which is hereby incorporated by reference, with the Board for approval based on the following conditions:

   1. (1) The applicant is an entity authorized by law to conduct business in this state.
   2. (2) The applicant establishes its banking accounts with an insured institution, has a principal office in California for the conduct of its business, retains a certified public account to conduct an annual audit of its financial statements or operations, agrees to submit an annual financial statement of its operations to the Board, and agrees to the inspection of its accounts and financial records by the Board or its agents.
   3. (3) The applicant demonstrates, by including a copy of the organization's charter, articles, or bylaws with the application form CHRB-34 (Rev. 3/23), that it offers meaningful representation on its governing board to any non-racing fair or any horsemen's organization as provided in Section 19608.2 of the Business and Professions Code.

   4. (4) The governing board of the applicant organization must hold one public meeting during each calendar year. At least fifteen (15) calendar days prior notice must be given in the Daily Racing Form or other newspaper of general circulation for the purpose of reporting the organization's activities and for receiving public comments as to its simulcasting operations. The simulcast organization shall give fifteen (15) calendar days prior notice, in writing, to its associations and fairs, the horsemen's organizations eligible to vote at the simulcast organization's governing board meeting, and the Board of any simulcast organization meeting. The organization shall maintain a minute record of the proceedings of its governing board.

      (b)(1) The Board will notify an applicant in writing within 30 calendar days from the receipt date by the Board's Administrative office if its application is incomplete. This notice will include instructions as to what is required of the applicant to complete the application.

   5. (2) If the applicant fails to submit all documents needed to complete the application within one year from the receipt date of the application by the Board, the Board shall purge said application and all documents submitted thereto and require resubmittal of an application if the applicant, thereafter, intends to apply for approval pursuant to this section.

2. (c) The Board will approve or deny an application within sixty (60) calendar days from the date the application is deemed complete by the Board. The Board may withdraw, suspend, or revoke its approval on grounds or reasons that include, but are not limited to, the following determinations:

   1. (1) The simulcast organization is ineligible to conduct business in this state pursuant to any federal or state statute.
   2. (2) The simulcast organization or any of its officers, directors, partners, or principal management employees have engaged in any activity that is a basis for denial, suspension, or revocation of a license pursuant to this Division or has failed, refused, or neglected to comply with any Board order, rule, regulation, or order by the Board's stewards reasonably related to its operations as a simulcast organization. The approval shall remain denied, suspended, or revoked until all parties of the organization comply with Board conditions. The remaining parties of the organization shall not be prohibited from applying for a new approval if compliance cannot be obtained from the offending party.
   3. (3) The simulcast organization has failed, refused, or neglected to perform any duty imposed by this Division or by the provisions of Sections 19608.2, 19605.7, 19605.71, or 19608.4 of the Business and Professions Code.

Note: Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19608.2 and 19608.4, Business and Professions Code; and Sections 15376 and 15378, Government Code.

History

1. New section filed 3-23-88 pursuant to a decision by the Governor overruling OAL's disapproval of this section on the basis that the Board's Notice of Proposed Rulemaking was invalidated by intervening statutory amendments (Government Code section 11349.5); operative 4-22-88 (Register 88, No. 17). The Horse Racing Board agreed to resolve all other legal issues identified in OAL's disapproval of these sections in a subsequent rulemaking.

2. Amendment of section heading, text and Note filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

3. Amendment filed 10-25-2024; operative 1-1-2025 (Register 2024, No. 43).