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.