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 ****