BILL ANALYSIS Ó
SB 1240
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Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1240
(Hall) - As Amended April 5, 2016
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|Policy |Governmental Organization |Vote:|20 - 0 |
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Urgency: Yes State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill restructures the funding and administration of the
Stabling and Vanning Fund (S & V Fund) by increasing the amount
that is required to be deducted by a racing association or
racing fair in the northern, central, and southern zones, from
an amount not to exceed 1.25% to an amount not to exceed 2% of
the total amount handled by satellite wagering facilities. This
bill also makes a number of changes to the provisions governing
the organization formed to administer the S & V Fund.
FISCAL EFFECT:
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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
thoroughbred races at 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.
3)Purpose. According to the author, SB 1240 is intended to
address vanning and stabling issues for the racing industry in
California. The author states that current statutory language
limits available funding and decision-making flexibility. This
bill gives the CHRB and the organization governing the S & V
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Fund more flexibility in governance and decision-making.
Furthermore, it provides for additional money from purses and
commissions to help stabilize the S&V Fund.
According to the author, without the proposed changes, the S&V
Fund will continue to operate in the red and the two-licensed
auxiliary offsite stabling facilities in northern California
will continue to lose money.
4)Related Legislation. AB 2011 (Cooper), pending on the Senate
floor, among other things, increases the amount that is
required to be deducted by a racing association or racing fair
in the northern zone for the S&V Fund from an amount not to
exceed 1.25% to 2% of the total amount handled by satellite
wagering facilities, as defined. Analysis Prepared by:
Luke Reidenbach / APPR. / (916) 319-2081