BILL ANALYSIS
Bill No: SB
1486
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 1486 Author: Committee on Governmental Organization
As Introduced: March 8, 2010
Hearing Date: April 13, 2010
Consultant: Chris Lindstrom
SUBJECT
Horse racing law intent: backstretch personnel housing:
jockey riding fees.
DESCRIPTION
SB 1486 clarifies the policy purpose of Horse Racing Law,
reflecting the changes made to the law pursuant to the
enactment of SB 16xx (Chapter 12, Statutes of 2009-10
Second Extraordinary Session). SB 1486 deletes any
reference to the emergency regulations to establish
standards governing the employee housing provided to
backstretch personnel at licensed racetracks for which
compliance was mandated by January 1, 2004. SB 1486
deletes obsolete findings of the Legislature with regards
to professional jockey fees.
EXISTING LAW
Article IV, Section 19(b) of the Constitution of the State
of California provides that the Legislature may provide for
the regulation of horse races and horse race meetings and
wagering on the results.
Existing law provides that the intent of California's Horse
Racing Law is to allow parimutuel wagering on horse racing
while:
1) Assuring protection of the public.
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2) Encouraging agriculture and the breeding of horses
in this state.
3) Supporting the network of California fairs.
4) Providing for maximum expansion of horse racing
opportunities in the public interest.
5) Providing uniformity of regulation for each type of
horse racing.
BACKGROUND
In 1933, California voters passed a constitutional
amendment authorizing parimutuel wagering on horse racing.
The commitment to use a percentage of the wagers to
establish a continuous funding source for the fairs, while
at the same time, relieving the state's General Fund of the
funding burden became socially and politically palatable in
1933 as the country began to pull itself up by the
bootstraps from the Great Depression.
For more than 75 years, this relationship existed between
horse racing and the fairs until the enactment of SB 16xx.
SB 16xx appropriates $32 million a year from the General
Fund in support of the fairs and relieves the horse racing
industry of its obligation to fund the fairs from license
fees assessed on horse racing wagers. As such, this bill
modifies the stated policy purpose of Horse Racing Law to
reflect the changes brought about by SB 16xx.
The bill cleans up two other provisions of law by
eliminating obsolete provisions authorizing the California
Horse Racing Board (CHRB) to enact emergency regulations
with regards to housing provided to backstretch personnel
at licensed racetracks. Finally, the bill eliminates
references to "minimum jockey riding fees for losing
mounts".
PRIOR/RELATED LEGISLATION
SB 16xx (Ashburn), Chapter 12, Statutes of 2009-10 Second
Extraordinary Session . Among other things, provides that
beginning on July 1, 2009, and annually thereafter,
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thirty-two million ($32,000,000) shall be appropriated from
the state's General Fund and paid into the Fair and
Exposition Fund for the financial support of the network of
California fairs.
AB 649 (Ma), Chapter 43, Statutes of 2007 . Establishes in
state law a pay scale for the minimum jockey riding fees by
the CHRB.
Proposition 3 of 1933 legalized parimutuel wagering on
horse racing in California. With the passage of Proposition
3, the stated purpose of the new law was for the
"encouragement of agriculture and breeding of horses".
Furthermore, Proposition 3 included a "commitment for the
continuous funding of the fairs of California with an
annual allotment of racing revenues to be used for health,
safety and maintenance projects". Revenue from horse
racing license fees is deposited into the F&E Fund, which
supplements the income of fairs throughout California.
SUPPORT / OPPOSITION : None on file as of April 9, 2010.
FISCAL COMMITTEE: Senate Appropriations Committee
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