BILL ANALYSIS
SB 1486
Page 1
Date of Hearing: June 16, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
SB 1486 (Senate Governmental Organization Committee) - As
Introduced: March 8, 2010
SENATE VOTE : 33-0
SUBJECT : Horse racing law intent: backstretch personnel
housing: jockey riding fees.
SUMMARY : 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 :
1)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.
2)Provides that the intent of California's Horse Racing Law is
to allow pari-mutuel wagering on horse racing while:
a) Assuring protection of the public.
b) Encouraging agriculture and the breeding of horses in
this state.
c) Supporting the network of California fairs.
d) Providing for maximum expansion of horse racing
opportunities in the public interest.
e) Providing uniformity of regulation for each type of
horse racing.
1)Provides that the California Horse Racing Board (CHRB) shall
adopt emergency regulations to establish standards governing
the employee housing provided to backstretch personnel at
licensed racetracks, as specified.
SB 1486
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2)Provides various findings of the Legislature in regards to
professional jockey fees, including that the riding fee should
be increased at least as much on a percentage basis as the
state minimum wage, so that the average full-time jockey can
earn an income sufficient to provide for the basic necessities
of life. Existing law provides that minimum jockey riding
fees for losing mounts and minimum amounts awarded to 2nd and
3rd place finishers be increased by a specified amount as of
January 1, 2008 and by additional amounts on later dates, as
specified.
FISCAL EFFECT : Unknown.
COMMENTS :
In 1933, California voters passed a constitutional amendment
authorizing pari-mutuel 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, thirty-two million ($32,000,000) shall be
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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 pari-mutuel 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.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531