BILL ANALYSIS Ó
AB 1074
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Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1074 (Atkins) - As Introduced: February 22, 2013
Policy Committee: Governmental
Organization Vote: 16 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill deletes a January 1, 2014, sunset date for the
statewide marketing organization that is responsible for
marketing and promoting thoroughbred and fair horse racing. By
deleting the sunset date, this bill extends the operation of the
California Marketing Committee (CMC) and its related funding
indefinitely.
FISCAL EFFECT
Funding for the CMC comes from the instate off-track wagering
handle. Of the amount wagered, .4% is provided to the CMC for
marketing horse racing in the state. In 2013, the CMC will
receive approximately $1.8 million for marketing. Eliminating
the sunset would result in continuing the annual redirection of
the handle.
COMMENTS
1)Purpose . According to the author, this bill will allow the CMC
to establish a long-term marketing plan to promote horse
racing in the state. Past and current legislative sunsets
have been somewhat of a hindrance to the CMC because long-term
financial commitments could not be made to support programs
which were proven to be successful in attracting new fans to
the sport. The CMC will still be required to present to the
CHRB at the board's November meeting a verbal report on the
statewide marketing and promotion plan for the upcoming
calendar year and will still be required to report
expenditures to the CHRB on a quarterly basis.
AB 1074
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Supporters note there is enough history and documentation on
the books to remove the legislative sunset. The CMC,
supporters argue, has demonstrated they are able to make
fiscally responsible business decisions to market and promote
California's racing industry.
2)Statewide Marketing Organization . SB 27 (Maddy), Statutes of
1998, created a private statewide marketing organization for
thoroughbred and fair racing funded by .4% of the instate
off-track (satellite wagering) handle. The funds generated
from this portion of the takeout are used for marketing
California horse racing throughout the state.
CMC is generally responsible for promoting horse racing in the
state by developing and implementing a marketing plan to
increase on-track and off-track attendance throughout the
state. An underlying assumption of the CMC's Marketing Plan
is that it is easier to capture a new fan through an on-track
experience than through an off-track visitation to a satellite
wagering facility.
In 2003, the CMC received approximately $6.1 million to
support its marketing efforts but due to reduced handle
revenue, it was reduced to approximately $1.8 million for
2013. Current law provides the CMC must annually submit to
the CHRB a statewide marketing and promotion plan for
thoroughbred and fair horse racing that encompasses all
geographical zones in the state, including the manner in which
funds were expended in the implementation of the plan for the
previous calendar year.
3)Related Legislation . SB 1072 (Ron Calderon), Chapter 283,
Statutes of 2010 extended the sunset date for the CMC from
January 1, 2011 to January 1, 2014. In addition, that bill
required the marketing organization, on a quarterly basis, to
submit to the board a written report that accounts for all
receipts and expenditures of the promotion funds for the
previous three months.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081
AB 1074
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