BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1072|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
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
CONTINUED
SB 1072
Page
2
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
SB 1072
Page
3
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
**** END ****