BILL ANALYSIS Ó
SB 1
Page 1
Date of Hearing: June 20, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 1 (Kehoe) - As Amended: January 4, 2012
SENATE VOTE : 35-0
SUBJECT : State Race Track Leasing Commission
SUMMARY : Deletes the January 1, 2013 sunset date of the
State Race Track Leasing Commission (SRTLC) which oversees
leases and other agreements for the use of the Del Mar Race
Track located on the grounds of the Del Mar Fairgrounds.
EXISTING LAW :
1) Establishes, until January 1, 2013, the State Race Track
Leasing Commission (SRTLC) which is composed of the Secretary of
Food and Agriculture, the Director of Finance, the Director of
General Services, and three other individuals, appointed by the
Governor, who are members of the Board of Directors of the 22nd
District Agricultural Association (22nd DAA).
2) Grants SRTLC the authority to enter into leases and
agreements for use of specified property owned or controlled by
the 22nd DAA.
FISCAL EFFECT : Unknown.
COMMENTS :
Background : The 22nd DAA is a state entity that operates the
approximately 400-acre Del Mar Fairgrounds and Racetrack located
primarily in the City of Del Mar with a portion in the City of
San Diego. The 22nd DAA is one of 54 state agricultural
districts, with board members appointed by the Governor. The
22nd DAA oversees the Del Mar Fairgrounds and Racetrack,
Surfside Race Place, Horse Park Equestrian Center and the Del
Mar Golf Center.
The State Race Track Leasing Commission, as noted above, is a
six-member body, as specified, with authority over leasing and
contractual matters in the 22nd DAA's administration of the Del
Mar Racetrack. Specifically, SRTLC oversees the lease agreement
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between the 22nd DAA and the Del Mar Thoroughbred Club (DMTC).
The SRTLC serves as the pass through for horse racing revenues
from DMTC and the 22nd DAA and racing revenues to the Race Track
Authority. The Authority uses the racing revenues to service
bonds on the racetrack and fund capital improvements. The State
of California, through the 22nd DAA owns the Fairgrounds and
Racetrack and is ultimately responsible for payment of the
bonds.
The Race Track Authority is a Joint Powers entity consisting of
the 22nd DAA and the SRTLC - the documents which created the
Authority provide that it shall remain in existence until any
outstanding bonds are paid in full.
Purpose of the bill : The author's office has been informed that
elimination of the SRTLC prior to the bonds maturing in 2025
would at the very least create legal and logistical issues that
would have to be resolved and most likely violate the bond
covenants. Thus, this bill proposes to eliminate the existing
January 1, 2013 sunset date of the SRTLC and make it a permanent
entity in law again.
Prior/Related Legislation : SB 855 (Kehoe), 2011-12 Legislative
Session. Would have extended the sunset on the State Race Track
Leasing Commission from January 1, 2013 to January 1, 2018.
(This bill was gutted in the Assembly and used for other
purposes.)
AB 656 (Huber), 2011-12 Legislative Session. Proposed to
abolish certain state entities and also delete the January 1,
2013 sunset date of the SRTLC. (Vetoed by Governor Brown on the
basis that it delegated to a legislative committee sole
discretion on whether and, for how long, certain commissions
should exist.)
AB 2130 (Huber), Chapter 670, Statutes of 2010. Among other
things, imposed a sunset date of January 1, 2013, on the State
Race Track Leasing Commission, the Capitol Area Committee, the
Continuing Care Advisory Committee, and the California
Recreational Trails Committee.
SB 1321 (Kehoe), 2009-10 Legislative Session. Would have
authorized the director of the Department of General Services
(DGS) and secretary of the Department of Food and Agriculture
(CDFA) to designate a deputy to act in his or her place on the
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SRTLC with all the rights and powers as the respective director
for SRTLC. (Vetoed by Governor Schwarzenegger)
AB 181 (Saldana), 2009-10 Legislative Session. Would have
authorized the City of Del Mar to enter into an agreement with
the Department of General Services to purchase all of the real
property that comprises the 22nd DAA and any related personal
property for $120 million. (Held in Senate Rules Committee)
REGISTERED SUPPORT / OPPOSITION :
Support
Del Mar Thoroughbred Club
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531