BILL ANALYSIS SB 1486 Page 1 SENATE THIRD READING SB 1486 (Governmental Organization Committee) As Introduced March 8, 2010 Majority vote SENATE VOTE :33-0 GOVERNMENTAL ORGANIZATION 20-0 APPROPRIATIONS 12-0 ----------------------------------------------------------------- |Ayes:|Coto, Anderson, |Ayes:|Fuentes, Bradford, | | |Blakeslee, Chesbro, Cook, | |Charles Calderon, Coto, | | |De Leon, Evans, Hall, | |Davis, De Leon, Gatto, | | |Hernandez, Hill, | |Hall, Skinner, Solorio, | | |Jeffries, Lieu, Mendoza, | |Torlakson, Torrico | | |Nestande, | | | | |V. Manuel Perez, | | | | |Portantino, Silva, | | | | |Torres, Torrico, Tran | | | | | | | | ----------------------------------------------------------------- SUMMARY : Clarifies the policy purpose of Horse Racing Law, reflecting the changes made to the law pursuant to the enactment of SB 16 X2 (Ashburn), 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 SB 1486 Page 2 this state; c) Supporting the network of California fairs; d) Providing for maximum expansion of horse racing opportunities in the public interest; and, 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. 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 : According to the Assembly Appropriations Committee analysis, there are no significant costs associated with this legislation. 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 SB 1486 Page 3 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 16 X2, among other things provides that beginning on July 1, 2009, and annually thereafter, $32 million 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. Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531 FN: 0005128