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Rule No.Rule Title
2060Duties of a Simulcast Organization.
Rule TextA simulcast organization, under the supervision of the Board, conducts pari-mutuel wagering at one or more simulcast facilities on the results of horse races run at one or more host racing associations. (a) The organization shall provide a copy of its operational agreement with each host or guest association and/or authorized user to the Board for approval within 10 calendar days following the execution date of the agreement. The Board shall act to approve or disapprove the agreement within 45 calendar days of the date of its receipt by collective action at a noticed public meeting. The Board shall act to approve the agreement when: (1) The agreement with each host association specifies the terms and conditions under which the simulcast organization will administer the audio-visual transmission of the host association's racing program for simulcast wagering purposes, for a period of less than the entire term of the host association's race meeting and on the conditions agreed upon by the parties. (b) A simulcast organization shall provide the following to its guest locations: (1) Pari-mutuel personnel/supervisor, pari-mutuel terminals and telecommunication equipment for the transmission and reception of pari-mutuel data to and from the totalizator utilized by the host association, pari-mutuel odds display data, and courier or armored transport services for the delivery of pari-mutuel funds and receipts for which the simulcast organization is responsible. Any pari-mutuel wagering odds display data available at the host association shall be available at all guest associations participating in that host's pari-mutuel pools. (2) A communication system consisting of data and voice lines for operations when providing its audio-visual signals. (3) A simulcast audiovisual signal of horse races being held or conducted at its contracting host associations. Every simulcast shall be encrypted using a time displacement decoding algorithm encryption method. (4) Access to the totalizator equipment operated by the host association conducting its meeting to combine the pari-mutuel wagers from the guest associations with the pari-mutuel pools formed by the wagers accepted at the host association. (c) A simulcast organization is strictly responsible to the Board to transmit the same high quality audio-visual signal as transmitted by the host association and for the conduct of pari-mutuel wagering at each contracting simulcast facility under this division, and as required by Business and Professions Code Section 19608.2. (d) Audiovisual signals must be of broadcast quality and the simulcast organization shall initiate a test program of its transmitter, encryption and decoding system, and data and voice communication systems not later than 20 minutes before post time of the first race of the simulcast racing program to ensure proper operation of its system. (e) The simulcast organization must insure that system failures which cause any public complaint, discontinuance of pari-mutuel wagering or facility closure are responded to by qualified technicians within 24 hours of the failures. (f) The simulcast organization shall, at the written request of any representative of the Board, display a listing of all locations where the organization or its simulcast service supplier has placed a decoder unit. The listing shall include the serial number of each decoder, and whether or not the decoder is electronically enabled to decode the encrypted simulcast. (g) The simulcast organization shall maintain security controls over its uplink and communication systems and its pari-mutuel operations as directed by the Board's Executive Director or his/her designee. The simulcast organization shall prevent unauthorized access to its pari-mutuel and totalizator areas and tampering with its audio-visual and communication equipment. Simulcast organizations have the right to request, in writing, that the Chairman of the Board grant a stay from the security controls directed by the Executive Director within 72 hours of the directive. If granted, the stay remains in force until an appeal can be considered at the next regularly scheduled public meeting of the Board. Appeals must be submitted, in writing, at least two weeks before the meeting date. The directive will be in force until a stay is issued or the Board renders its decision on the appeal. Decisions by the Board are final. (h) A simulcast organization shall file with the Board an annual audited financial statement of its operations within 120 days after the end of its fiscal year of operation and permit the Board to examine its business records upon written request. NOTE: Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19608.2 and 19608.4, Business and Professions Code. HISTORY: 1. New rule filed 3-23-88; effective 4-22-88. Governor overruled OAL's disapproval on the basis the Notice of Proposed Rulemaking was invalidated by intervening statutory amendments. 2. Amendment filed 10-4-93; effective 11-3-93. 3. Amendment filed 6-7-94; effective 7-7-94. 4. Amendment filed 12-6-99; effective 12-6-99.
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