BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1499 (Evans)
          
          Hearing Date:  6/29/2009        Amended: As Introduced
          Consultant:  Maureen Ortiz      Policy Vote: GO 9-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 1499, an urgency measure, reauthorizes a  
          workers' compensation program for horse races other than  
          thoroughbred races until January 1, 2014.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
                                                                  
          CHRB admin expenses             --------------minor,  
          absorbable----------------      General
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          AB 1499 reauthorizes a fair to deduct an additional 0.5% of the  
          total amount handled for non-thoroughbred races at fairs (mules,  
          appaloosas, quarter horses and Arabians) to defray workers'  
          compensation insurance costs for trainers and owners. The entire  
          costs of the workers' compensation program are industry  
          supported as they are all paid out of the handle which would  
          otherwise be distributed to owners and purses.

          AB 701 (J. Horton, Chapter 40, Statutes of 2004) established a  
          program whereby 0.5% of the pari-mutuel handle on exotic wagers  
          for thoroughbred associations and fairs was deducted and  
          deposited into a separate account used to defray the costs of  
          workers' compensation insurance.  The funds are used to  
          supplement insurance premiums, and any funds not used in any  
          year may be carried forward to the subsequent year or may be  
          used to reimburse racing associations for the actual cost of  
          health and safety programs, research or safety equipment, or for  
          making capital improvements that are designed to prevent  
          workplace accidents. The provisions of AB 701 contained a sunset  
          of January 1, 2009, and an authorization to extend the program  
          for non-thoroughbred races at fairs had not been enacted.  AB  










          1499 will provide the continuation of the workers' compensation  
          program for these particular races.

          Since the passage of AB 701, the industry established the  
          California Horsemen's Safety Alliance (CHSA) to administer the  
          program which has been extremely successful and has reduced  
          workers' compensation costs by 70%.  CHSA has established  
          industry safety training programs, treatment oversight programs,  
          return to work programs, and safety equipment research programs  
          which have significantly reduced the number of accidents and the  
          costs of resulting claims.

          AB 2103 (Plescia, Chapter 443, 2008) extended the sunset on the  
          workers' compensation program for thoroughbred races from  
          January 1, 2009 to January 1, 2014.