BILL ANALYSIS Ó
AB 2765
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2765 (Governmental Organization Committee)
As Amended August 19, 2014
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |78-0 |(May 15, 2014) |SENATE: |35-0 |(August 25, |
| | | | | |2014) |
-----------------------------------------------------------------
Original Committee Reference: G.O.
SUMMARY : Extends the sunset date from January 1, 2015, to
January 1, 2019, for the statewide marketing organization that
is responsible for marketing and promoting Thoroughbred and fair
horse racing in California. Authorizes California Thoroughbred
owners to deduct a portion of their purse pools to participate
in the "national marketing" association, the National
Thoroughbred Racing Association (NTRA).
The Senate amendments :
1)Allow any racing association, including a fair, that conducts
Thoroughbred racing to pay to the owners' organization
contracting with the association with respect to the conduct
of Thoroughbred racing an additional 1.75% of the portion
required to be deducted for purses for a national marketing
program, as specified. This reenacted provision in law, would
be effective until January 1, 2018, and repealed as of that
date.
2)Extend the sunset date by four years (from January 1, 2015, to
January 1, 2019) for the statewide marketing organization that
is responsible for marketing and promoting Thoroughbred and
fair horse racing in California.
AS PASSED BY THE ASSEMBLY , this bill specifies that the private,
statewide marketing organization (California Marketing Committee
(CMC)) authorized in Horse Racing Law to market and promote
Thoroughbred and fair horse racing may utilize outside
consultants with horse racing or other related experience,
including experience in other gaming enterprises while
developing its annual marketing plan. In addition, each year,
the organization shall submit a written report to the California
Horse Racing Board (CHRB) by October 1.
AB 2765
Page 2
FISCAL EFECT : According to the Senate Appropriations Committee,
pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
Purpose of the bill: The author's office references the fact
that SB 27 (Maddy), Chapter 335, Statutes of 1998, among other
things, created a private statewide marketing organization for
Thoroughbred and fair racing to be funded by 0.4% of the
in-state off-track handle. The funds generated from this
distribution are used to market California horse racing on a
statewide basis. The CMC is generally responsible for promoting
horse racing in the state by developing and implementing a
marketing plan that will increase on-track and off-track
attendance throughout the state. This bill extends the CMC
sunset date by four years (from January 1, 2015, to January 1,
2019) to continue the efforts of the industry to grow the sport
for generations to come.
This bill also addresses the state's racing industry
participation in the NTRA which is intended to increase interest
in horse racing through national marketing and advertising. The
California Thoroughbred owners' legal authority to participate
in the NTRA expired on January 1, 2014. This bill reinstates
the California Thoroughbred owners' legal authority to
participate in the NTRA and establishes a January 1, 2018 sunset
date.
Marketing horse racing in California : In 2003, CMC received
approximately $6.1 million to support its marketing efforts but
due to handle declines it has been reduced to approximately $1.8
million in 2013. Existing law provides that CMC must annually
submit to 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. CMC's 2013 budget included expenditures
relating to product enhancement, significant player program,
satellite marketing, Calracing.com, and administration.
Prior legislation : AB 1074 (Atkins), Chapter 428, Statutes of
2013, extended the sunset date on the statewide marketing
organization from January 1, 2014, to January 1, 2015.
AB 2765
Page 3
SB 1072 (Ron Calderon), Chapter 283, Statutes of 2010, among its
provisions, extended the sunset date from January 1, 2011, to
January 1, 2014, in existing law relating to a private statewide
marketing organization to market and promote Thoroughbred and
fair horse racing in California, as defined.
AB 1736 (Governmental Organization Committee), Chapter 444,
Statutes of 2007, among other things, extended the sunset on
provisions to enable racing associations and fairs to fund
taking part in the statewide horse racing marketing program.
AB 2164 (Plescia), Chapter 80, Statutes of 2004, extended the
sunset on provisions to enable racing associations and fairs to
fund taking part in the statewide horse racing marketing program
to 2006.
SB 103 (Maddy), Chapter 10, Statutes of 1998, provided for
California's involvement in the NTRA by permitting Thoroughbred
owners to (pay to) take part in a national marketing program to
increase interest in horse racing.
SB 27 (Maddy), Chapter 335, Statutes of 1998, among its
provision, created a private statewide marketing organization
for Thoroughbred and fair racing that is funded by .4% of the
instate off-track handle. The funds generated from this
distribution are used to market California horse racing on a
statewide basis. CMC is generally responsible for promoting
horse racing in the state by developing and implementing a
marketing plan that will increase on-track and off-track
attendance throughout the state.
Analysis Prepared by : Eric Johnson / G.O. / (916) 319-2531
FN: 0005235