BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 398|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 398
Author: Galgiani (D)
Amended: 9/10/13
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 4/9/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Galgiani, Hernandez, Lieu, Padilla
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 36-0, 4/25/13 (Consent)
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,
Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,
Jackson, Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen,
Pavley, Price, Roth, Steinberg, Walters, Wright, Wyland, Yee
NO VOTE RECORDED: Padilla, Wolk, Vacancy, Vacancy
ASSEMBLY FLOOR : Not available
SUBJECT : Horse racing: distribution of proceeds
SOURCE : California Authority of Racing Fairs
DIGEST : This bill provides that revenue raised by horse
racing associations, from their mandated charity racing days,
may be distributed to a nonprofit corporation or trust that has
as its sole purpose the support of recognized fairs or the
network of California fairs, and extends a sunset date.
CONTINUED
SB 398
Page
2
Assembly Amendments extend a sunset date in existing law from
December 31, 2013, until December 31, 2016; and make technical
changes.
ANALYSIS :
Existing law:
1. Provides that each licensed horse racing association shall
designate three to five racing days as charity days by the
licensee for the purpose of distribution of the net proceeds
to charitable beneficiaries.
2. Provides that at least 20% of the distribution from charity
day racing must be made to charities associated with the
horse racing industry. In addition to this 20%, another 5%
of the distribution must go to a welfare fund established for
the benefit of horsemen, horsewomen and backstretch
personnel, as specified, and another 5% of the distribution
must be provided to a nonprofit corporation assisting
horsemen, horsewomen and backstretch personnel who are
affected adversely as a result of alcohol or substance abuse.
3. Requires that an additional 20% of the distribution from
charity day racing, up to a maximum of $2 million, be
provided as an endowment for a nonprofit corporation or trust
which assists disabled jockeys.
4. Provides that the Legislature may provide for the regulation
of horse races and horse race meetings and wagering on the
results.
5. Grants the California Horse Racing Board (CHRB) the authority
to regulate the various forms of horse racing authorized in
this state.
6. Authorizes the CHRB to increase the amount set aside under
current law for simulcast operating expenses for a
Thoroughbred race meet in the northern zone and in the
central and southern zones to up to 4%.
This bill:
CONTINUED
SB 398
Page
3
1. Provides that revenue raised by horse racing associations,
from their mandated charity racing days, may be distributed
to a nonprofit corporation or trust that has as its sole
purpose the support of recognized fairs or the network of
California fairs.
2. Extends a sunset date in existing law from December 31, 2013
until December 31, 2016, to allow a thoroughbred racing
association in the northern zone to deduct up to 4% of the
in-state satellite wagering handle for simulcast operating
expenses, as specified.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/12/13)
California Authority of Racing Fairs (source)
ARGUMENTS IN SUPPORT : The author's office points out that for
more than 75 years, horse racing license fees was the primary
source of funding for fairs. In 2009, as part of the State
Budget negotiations, SB 16 X2 (Ashburn, Chapter 12, Statutes of
2009-10 Second Extraordinary Session) shifted the responsibility
for funding fairs from horse racing license fees to the state
General Fund. Elimination of the license fees was intended to
help the racing industry and provide a dedicated revenue stream
from the General Fund ($32 million) to the network of fairs. In
2011, the General Fund support for fairs was eliminated as part
of a package of cuts designed to help deal with the state's
ongoing fiscal crisis. According to the author's office, this
bill is intended to give the horse racing industry the ability
to, once again, contribute to the well-being of California's
fairs.
MW:d 9/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED
SB 398
Page
4
CONTINUED