California CodesBusiness and Professions Code - BPCDivision 8 — Special Business RegulationsChapter 4 — Horse RacingArticle 9 — WageringSection 19597.5
A person licensed under this chapter to conduct a horse racing meeting shall hold in trust the distributions required to be made pursuant to this chapter until the funds are paid to the various distributees. These required deductions, except for those that enure to the benefit of the racing association, are trust funds and shall not be used by the racing association for any purpose other than for payment to those distributees as directed by this chapter. These funds are not the property of the racing association, but are merely held in trust for the benefit of the statutory distributees until the funds are distributed to them in accordance with this chapter. These funds shall be held in a separate depository account until they are actually distributed as provided for in this chapter.
Notes
Requires a horse-racing-meeting licensee to hold required statutory distributions in trust until paid to distributees and to keep them in a separate depository account. Except for deductions benefiting the racing association, those funds are not association property and may be used only for required payments to statutory distributees.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 19597.5 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-8/chapter-4/article-9/section-19597-5