BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1154
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          Date of Hearing:   April 24, 2013

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Hall III, Isadore, Chair
                     AB 1154 (Gray) - As Amended:  April 18, 2013
          
          SUBJECT  :   Horse racing

           SUMMARY  :   Provides that the equine medical director (EMD) at  
          the Kenneth L. Maddy Equine Analytical Chemistry Laboratory  
          located at the University of California at Davis shall serve for  
          a term of two years.  No individual shall serve two consecutive  
          terms as the equine medical director.  In addition, the bill  
          states various legislative findings and declarations relating to  
          the laboratory. 
           
          EXISTING LAW  :

          1)  Provides that the California Horse Racing Board (CHRB) shall  
          regulate the various forms of horse racing authorized in this  
          state.

          2)  Provides that it is the intent of the Legislature that the  
          CHRB contract with the Regents of the University of California  
          to provide equine drug testing. 

          3)  Specifies that the CHRB shall contract to provide  
          compensation for an equine medical director who shall advise the  
          Kenneth L. Maddy Equine Analytical Chemistry Laboratory and be  
          appointed by the Dean of the School of Veterinary Medicine under  
          applicable university hiring rules with the advice of the board.  
           The equine medical director shall be a member of the scientific  
          advisory committee to the Kenneth L. Maddy Equine Analytical  
          Chemistry Laboratory, and act as the primary advisor to the  
          board on all matters relating to medication and drug testing,  
          the practice of veterinary medicine within the areas regulated  
          by the board, and the health and safety of horses within the  
          inclosure.

          4)  Provides that it is the intent of the Legislature that the  
          board contract with the Regents of the University of California  
          to provide equine drug testing.  It is further the intent of the  
          Legislature that to the extent that resources are available, the  
          California Animal Health and Food Safety Laboratory perform  
          studies that may lead to the development of alternative or  








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          improved drug testing techniques.

          5)  Specifies that the Kenneth L. Maddy Equine Analytical  
          Chemistry Laboratory shall be located at the University of  
          California, Davis in order to take advantage of the expertise of  
          the veterinary specialists at that campus' School of Veterinary  
          Medicine. 

          6)  Provides that the budget for equine drug testing to be  
          performed by the California Animal Health and Food Safety  
          Laboratory shall be established as a permanent line item in the  
          budget of the CHRB.  Operating budget requests shall be  
          submitted annually by the university, and the CHRB shall  
          transfer funds appropriated for the operation of the laboratory  
          and for equipment, in accordance with the contract, to the  
          university.

          7)  Provides that the CHRB and the University of California may  
          expand the services provided by the laboratory to the board in a  
          manner that is mutually agreeable and is consistent as  
          specified.  Provides if the equine drug testing is not conducted  
          by the Kenneth L. Maddy Equine Analytical Chemistry Laboratory  
          at the University of California, Davis, the CHRB shall contract  
          with the best qualified equine drug testing laboratory at a  
          compensation rate that the board determines is fair and  
          reasonable to the State of California and the board.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   

           Background  :  The Kenneth L. Maddy Equine Analytical Chemistry  
          Laboratory serves as the primary equine drug testing laboratory  
          for California's five permanent race courses and eight seasonal  
          fair venues.  Funding for the drug testing program comes from a  
          portion of California wagering revenues.

          The lab was named for the late Kenneth L. Maddy, California  
          legislator, avid horseman and supporter of veterinary education.  
           The lab at the University of California Davis is a 29,000  
          square-foot, $7.4 million facility which opened in 1999.  The  
          lab provides routine drug testing for California racehorses and  
          evaluates the effectiveness of medications and other products on  
          racehorse performance.  The lab examines blood and urine for the  
          presence of unauthorized substances.








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          In general, veterinarians may not administer equine medications  
          within 48 hours of a horse race. To protect animals and uphold  
          the integrity of the racing industry, the CHRB requires analysis  
          of post-race samples.  

          The CHRB analyzed 38,832 post-race urine and blood samples,  
          including in-depth testing of 14,199 for anabolic steroids,  
          25,253 TCO2 blood samples, 737 out-of-competition blood samples,  
          92 evidence submissions, and 1,136 other samples for various  
          purposes in FY 2011-12.  The cost to the State of California was  
          $1,987,250.

          The testing of post-race samples is the backbone of the CHRB's  
          drug regulation program. Post-race testing includes in-depth  
          testing for anabolic steroids, narcotics, tranquilizers,  
          depressants
          and potent stimulates.

           CHRB Equine Medical Director  :  The EMD for the CHRB advises the  
          Board on all matters relating to equine health and welfare and  
          drug testing.  

          The current EMD for the CHRB has served in the position since  
          2006.  A joint committee of the CHRB and the School of  
          Veterinary Medicine at the University of California, Davis  
          selected the EMD from among six candidates.  The equine medical  
          director assists the CHRB in establishing policies and  
          procedures for equine health and welfare, drug testing,  
          medication rules, classifications, and penalty guidelines.

          A Blue Ribbon Committee was formed in 1989 to evaluate why  
          California's horse racing industry was having problems with drug  
          testing and other related activities.   One of the core  
          recommendations of the committee was the creation of the  
          position of equine medical director.  The position was created  
          to provide the CHRB with technical and professional expertise.   
          The CHRB determined that they needed an individual who  
          understood drugs and medications, drug testing, and understood  
          veterinary and animal welfare issues.

          In the FY 1990/1991, an EMD was hired to fill the position and  
          it has been a permanent CHRB position since FY 1992/1993.

          The CHRB contracts with the Regents of the University of  








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          California to provide on a full-time basis, an Equine Medical  
          Director to the board in an advisory, supervisory capacity for  
          its drug testing program and other areas related to the health,  
          safety and welfare of horses.  The EMD utilizes the services of  
          faculty members of UCD as consultants to provide support in  
          specialized this area.  The Regents of the University of  
          California, Davis receives reimbursement from the CHRB for  
          approved program travel, both in-state and international;  
          mutually agreed salary and associated fringe benefits; approved  
          program supplies and equipment.

          CHRB Service Contracts with Regents of the University of  
          California, Davis for Related Services for FY 2010/11, 2011/12,  
          and 2012/13:


              ------------------------------------------------------- 
             | Contracted  |   2010-11   |   2011-12   |   2012-13   |
             |   Program   |   Budget    |   Budget    |   Budget    |
             |             |             |             |             |
             |-------------+-------------+-------------+-------------|
             |   Equine    |  $303,000   |  $303,000   |  $308,800   |
             |   Medical   |             |             |             |
             |  Director   |             |             |             |
             |             |             |             |             |
             |-------------+-------------+-------------+-------------|
             |Routine Drug | $1,987,250  | $1,987,250  |$1,987,250   |
             |   Testing   |             |             |             |
             |             |             |             |             |
              ------------------------------------------------------- 

           Purpose of the bill  :  According to the author, the Kenneth L.  
          Maddy Equine Analytical Chemistry Laboratory located at the  
          University of California, Davis has proven to be an asset to  
          California's horse racing industry.  However, like most state  
          department or agencies, succession planning needs to take place  
          to ensure the continuing success of the program.

          Accordingly, the institutional knowledge of the lab should be  
          broad.  Ideally, several individuals should possess the  
          knowledge and skill set to hold the position of equine medical  
          director.  

          The author believes that developing a pool of individuals with  
          the talent, expertise, and ability to hold the position of  








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          equine medical director will strengthen and ensure the continued  
          success of the laboratory for years to come.

           Prior legislation  :  AB 2054 (Senate Governmental Organization  
          Committee), Chapter 1082, Statutes of 2000.  Made numerous  
          technical, clarifying, and conforming changes in order to update  
          and condense, where possible, current horse racing statutes  
          found in the Business and Professions Code.

          SB 428 (Maddy), Chapter 825, Statutes of 1995.  Changed the name  
          of the Equine Research Laboratory at the UCD to the California  
          Center for Equine Health and Performance (CEHP).  Required the  
          CHRB to contract with the Regents of the University of  
          California to have one-third of all routine equine drug testing  
          performed by the California Veterinary Diagnostic Laboratory  
          System (CVDLS).

          AB 371 (Tucker), Chapter 826, Statutes of 1995.  Provides that  
          if equine drug testing is not conducted by the Equine Drug  
          Testing Laboratory at UC Davis, then the CHRB must contract with  
          the best qualified equine drug testing laboratory at a  
          compensation rate that the CHRB determines is fair and  
          reasonable to the state.

          SB 518 (Maddy), Chapter 1085, Statutes of 1993.  Required the  
          CHRB to contract with the UC Regents to have 1/3 of the equine  
          drug testing done by the CVDLS; (2) allows for the construction  
          of a drug testing laboratory at UC Davis for this purpose; and  
          (3) requires .00033% of the total amount handled by every  
          association conducting a racing meeting be distributed to the  
          Equine Research Laboratory, and that .00067% be deposited to the  
          CVDLS.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           

          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531 








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