BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1154
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      AB 1154 (Gray) - As Amended:  May 1, 2013 

          Policy Committee:                              Governmental  
          Organization Vote:                            14 - 1 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill removes the current equine medical director (EMD) from  
          his position by January 1, 2018, and provides that after January  
          1, 2014, the EMD at the Kenneth L. Maddy Equine Analytical  
          Chemistry Laboratory located at the University of California at  
          Davis (UCD) shall serve for a term of two years and is limited  
          to two consecutive terms. However, there is no limit to the  
          number of nonconsecutive terms a person may serve.   
                                   
           FISCAL EFFECT  

          1)The 2007 search to find the current EMD took eight months and  
            involved a joint committee of the California Horse Racing  
            Board (CHRB) and the School of Veterinary Medicine at UCD. The  
            committee ultimately identified six candidates and selected  
            the current director from those six. 

            Using the industry standard of 160% of the base salary to fill  
            an administrative position at a university, replacing the  
            current EMD and subsequently replacing the EMD every four  
            years could result in a one-time cost of $300,000 (GF) for  
            every new EMD. Because of this particular specialty and the  
            few individuals who actually possess the expertise necessary,  
            the search could cost considerably more. 

          2)On-going costs in the range of $60,000 for salary increases  
            for the new EMD.  The current director has not received an  
            increase in salary since 2007.  At a minimum, that salary will  
            need to be adjusted to account for inflation. 

           COMMENTS  








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

            The author states, 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 replacing the  
            director every four years will develop a pool of individuals  
            with the talent, expertise, and ability to hold the position  
            of equine medical director, which will strengthen and ensure  
            the continued success of the laboratory for years to come. 

            The practical effect of this legislation is to remove the  
            current director, Dr. Richard M. Arthur, one of the world's  
            foremost veterinary experts on racehorses, from the position  
            in four years. The author's office asserts removing Dr. Arthur  
            from his position, while intentional, is not the sole purpose  
            of the bill. 

           2)Kenneth L. Maddy Equine Analytical Chemistry Laboratory  . The  
            Maddy Lab 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 housed at the UCD 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.

            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 lab 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  








                                                                  AB 1154
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            various purposes in FY 2011-12 for the CHRB.  The cost to the  
            state was approximately $2 million.

           3)Equine Medical Director  . The CHRB contracts with the regents  
            of the University of 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 areas.  The  
            Regents of the University of California, Davis receives  
            reimbursement from the CHRB for the EMD position and pays for  
            routine drug testing.  In 2012-13, the salary for the director  
            is $308,800, plus $2 million for routine drug testing of  
            racehorses.

           4)Richard M. Arthur, DVM  . The current EMD for the CHRB, Dr. Rick  
            Arthur, has served in the position since 2006.  A joint  
            committee of the CHRB and the School of Veterinary Medicine at  
            UCD selected the EMD from among six candidates. Dr. Arthur is  
            a world renowned expert on horseracing injuries, regulation,  
            drug testing, anabolic steroids, medications, veterinary  
            procedures and pre-race veterinary examinations. He has  
            specialized in equine medicine, and racehorses in particular,  
            for the last 30 years. He has traveled broadly throughout the  
            country and overseas participating in equine medicine and  
            surgery clinics and has published articles on diverse topics  
            pertaining to the diagnosis, treatment, training, conditioning  
            and maintenance of racehorses. 

            As the EMD, he serves as one of the chief regulators of  
            horseracing in California.  His position requires that he  
            investigate and prosecute people who violate the rules of  
            racing, particularly as it concerns the illegal drugging of  
            racehorses in California.  

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081