BILL ANALYSIS                                                                                                                                                                                                    



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          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  








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               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  








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          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 




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