BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1072|
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                                    CONSENT


          Bill No:  SB 1072
          Author:   Calderon (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  7-0, 4/27/10
          AYES:  Wright, Denham, Florez, Negrete McLeod, Price,  
            Wyland, Yee
          NO VOTE RECORDED:  Harman, Calderon, Oropeza, Padilla


           SUBJECT  :    Horse racing:  statewide marketing organization

           SOURCE  :     California Authority of Racing Fairs


           DIGEST :    This bill extends the sunset, from January 1,  
          2011 to January 1, 2014, on provisions of the Horse Racing  
          Law that authorize racing associations and fairs that  
          conduct thoroughbred racing to pay to the owners'  
          organization a certain portion of the purses for a  
          statewide marketing program, as specified, to increase  
          interest in horse racing.

           ANALYSIS  :    Existing law provides that the California  
          Horse Racing Board (CHRB) regulates the various forms of  
          horse racing authorized in this state.

          Existing law authorizes a California racing association to  
          execute an agreement with any other racing association  
          conducting thoroughbred races in the southern racing zone  
          to allow the other association to distribute the signal and  
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          accept wagers on out-of-state and international races.

          Existing law permits racing associations, fairs, and the  
          organization responsible for contracting with racing  
          associations and fairs with respect to the conduct of  
          racing meetings, to form a private, statewide marketing  
          organization to market and promote thoroughbred and fair  
          horse racing, and to obtain, provide, or defray the cost of  
          workers' compensation coverage for stable employees and  
          jockeys of thoroughbred trainers.  Existing law requires  
          the marketing organization to annually submit to the CHRB a  
          statewide marketing and promotion plan and a thoroughbred  
          trainers' workers' compensation defrayal plan for  
          thoroughbred and fair horse racing.  A specified percentage  
          of the amount handled by each satellite wagering facility  
          is required to be distributed to the marketing organization  
          for the promotion of thoroughbred and fair horse racing,  
          and for workers' compensation defrayal, as specified.   
          Existing law repeals these provisions on January 1, 2011.

          Existing law authorizes California Thoroughbred owners to  
          deduct a portion of their purse pools to participate in the  
          "national marketing" association, the National Thoroughbred  
          Racing Association.

          Existing law allows uncommitted surplus funds in the horse  
          racing Marketing Promotion Fund or the horse racing  
          Workers' Compensation Fund, to be reallocated to any other  
          fund or account created pursuant to the Horse Racing Law.  

           Background  

           Purpose of the bill  .  According to the author's office, "SB  
          27 (Maddy), Chapter 335, Statutes of 1998, among its  
          provision, created a private statewide marketing  
          organization for thoroughbred and fair racing that is  
          funded by .4 percent of the instate off-track handle.  The  
          funds generated from this distribution are used to market  
          California horse racing on a statewide basis.  The  
          California Marketing Committee (CMC) is generally  
          responsible for promoting horse racing in the state by  
          developing and implementing a marketing plan that will  
          increase on-track and off-track attendance throughout the  
          state."  AB 1736 (Assembly Governmental Organization  







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          Committee), Chapter 444, Statutes of 2007, extended the  
          sunset to January 1, 2011.  This bill will extend the  
          sunset of the program until January 1, 2014, and will help  
          defray the cost of workers' compensation insurance for  
          jockeys of thoroughbred trainers and stable employees, as  
          well as, any other fund or account created in the Horse  
          Racing Law that is in deficit.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  4/27/10)

          California Authority of Racing Fairs (source)


          TSM:mw  4/27/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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