BILL ANALYSIS Ó
AB 2011
Page 1
Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2011 (Cooper) - As Introduced February 16, 2016
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill restructures the funding and administration of the
Stabling and Vanning Fund (S & V Fund). In summary, this bill:
1)Increases the amount that may be deducted by a racing
association or racing fair in the northern zone for the S & V
Fund from 1.25% to 2.0% of the total amount handled by
AB 2011
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satellite wagering facilities.
2)Specifies that 50% of the voting interests of the organization
that administers the funds must be a vote of the organization
representing thoroughbred horsemen and horsewomen and the
other 50% shall be allocated among thoroughbred racing
associations and fairs.
3)Specifies that funds distributed to the organization shall pay
the organization's expenses and compensate a board-approved
auxiliary offsite facility for stabling, training, and vanning
of thoroughbred horses in the northern zone.
4)Authorizes the organization to enter into multiyear contracts
for auxiliary facilities in the northern zone, pending
approval from the board.
5)Allows a thoroughbred racing association or fair in the
northern zone that is able to provide the minimum number of
stalls required by its racing and meeting license without the
use of auxiliary offsite stabling and training facility and
vanning program may opt out of this program.
AB 2011
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6)Specifies that the board reserves the right to adjudicate any
disputes that arise regarding costs or other matters related
to stabling, training or vanning. The board may also request
that the organization submit a report detailing receipts and
expenditures over the prior two fiscal years.
FISCAL EFFECT:
Negligible fiscal impact.
COMMENTS:
1)Background. Existing law establishes the amount that may be
deducted from the pari-mutuel wagering pools of California
horseraces. This amount, called the takeout, is the amount
deducted from wagers before winnings are paid out to bettors.
Currently, California's takeout rate on thoroughbred races is
15.43% for the win, place, and show wagers, and 20.18% for
other types of wagers. This takeout is used for specific
purposes, defined by law, such as license fees, enforcement
fees, owners purses, racing association commissions,
marketing, workers' compensation, and vanning and stabling of
the horses.
2)Stabling and vanning. The Stabling and Vanning Fund (S & V
Fund) exists to help horsemen and horsewomen defray the costs
of having to transport and stable their horses at auxiliary
training facilities. Currently, up to 1.25% of the total
amount handled at satellite wagering facilities at
AB 2011
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thoroughbred races at northern zone fairs or associations are
deposited into the S&V Fund. However, revenue from wagering
facilities has been in decline, and as a result there has been
a significant reduction in money flowing into the S & V Fund.
According to the author's office, two licensed auxiliary
off-site stabling facilities in northern California (Alameda
County Fair and Golden Gate Fields) are operating with
deficient balances.
3)Purpose. According to the author, this bill is intended to
allow for greater flexibility in the use of the Stabling and
Vanning Fund (S&V Fund) to help streamline operations in light
of current financial constraints. Without these changes, the
S&V fund will continue to be in the red.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081