BILL ANALYSIS
AB 1949
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Date of Hearing: May 3, 2006
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Jerome Horton, Chair
AB 1949 (J. Horton) - As Amended: April 17, 2006
SUBJECT : Horse racing: thoroughbred trainers' organization.
SUMMARY : Requires that the Board of Directors for the
thoroughbred trainers' organization and thoroughbred owners'
organization to appoint 3 mutually agreed upon persons who
qualify as owner-trainers to the board of the thoroughbred
owners' organization. Provides for this provision to be
repealed on January 1, 2008. Specifically, this bill :
1)Requires that the Board of Directors for the thoroughbred
trainers' organization and thoroughbred owners' organization
to appoint 3 mutually agreed upon persons who qualify as
owner-trainers to the board of the thoroughbred owners'
organization.
2)Extends "sunset" provisions in effect until January 1, 2008.
EXISTING LAW :
1)Provides for the recognition of horsemen's organizations, by
the California Horse Racing Board (CHRB) including
organizations solely representing owners and organizations
solely representing trainers.
2)Provides that each organization, except for the thoroughbred
horsemen's and horsewomen' s organizations, and except an
organization that solely represents owners, or solely
represents trainers, shall provide for the representation of
owners and trainers on its board of directors. Each
thoroughbred horsemen's and horsewomen's organization, except
one that solely represents trainers, shall provide for the
representation of owners and owner-trainers on its board.
3)Provides that the organization representing owners who are
also licensed as trainers, and their spouses who are licensed
as owners, shall comprise a class of owner-trainers, which may
elect 3 of its members to the board of directors of the
owner's organization, while all other directors shall be
owners and not owner-trainers.
AB 1949
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4)Specifies that the board of the thoroughbred owners'
organization shall not exceed 15 members and all members shall
have equal standing. Existing law further provides that the
thoroughbred trainers' organization may appoint 3 persons who
qualify as owner-trainers, to the board of the thoroughbred
owners' organization. Provides for the provision to be
repealed as of January 1, 2007.
5)Requires CHRB to annually review the budgets of horsemen's
organizations.
FISCAL EFFECT : None.
COMMENTS :
Purpose of the bill . This bill extends the "sunset" on a
previous bill that was chaptered in 2002. AB 2619
(Strickland), Chapter 921, Statutes of 2002, allocated three
positions on the board of directors of the organization
representing thoroughbred owners for persons holding licenses as
both owners and trainers, and for their spouses who are licensed
as owners, as specified.
AB 2619 resolved a long standing issue regarding the eligibility
of California Thoroughbred trainers, who are also licensed as
thoroughbred owners, and licensed owners who are the spouse of a
thoroughbred trainer, to serve on the Board of Directors of the
Thoroughbred Owners of California (TOC). The California
Thoroughbred Trainers Association (CTT) recognized that the
thoroughbred owners should have their own association, however a
significant number of trainers not only train racehorses but own
a vast majority of them as well.
The language contained in this bill, was developed by the two
horsemen's organizations, as it provides that the Board of
Directors of the CTT and TOC shall appoint three (3) mutually
agreed upon individuals who qualify as members of the class of
owner-trainer to the board of directors of the organization
representing thoroughbred owners.
This bill further provides for an extension of the current
"sunset provision" by one year.
Background . In 1994, AB 991 (Tucker, Ch. 62, Statutes of 1994)
AB 1949
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was enacted which divided the horsemen organization into two
groups. The author of AB 991 believed that by having two
separate organizations, one representing owners and, the other,
trainers, the respective interest of both groups would be better
served. An owners organization was formed under the name the
Thoroughbred Owners of California (TOC) and the trainers'
organization changed names from the California Horsemen's
Benevolent Protective Association to the California Thoroughbred
Trainers (CTT). The TOC is generally responsible for
negotiating purse agreements, satellite simulcast agreements,
and other business agreements relating to the conduct of racing
that affects the racehorse owners. The CTT is generally
responsible for activities relating to the backstretch and the
welfare of backstretch employees and administration of a Pension
Fund.
Prior legislation . AB 2619 (Strickland), Chapter 921, Statutes
of 2002, allocated three positions on the board of directors of
the organization representing owners for persons holding
licenses as both owners and trainers, and for their spouses who
are licensed as owners, as specified, and makes related and
conforming changes.
AB 991 (Tucker), Chapter 62, Statutes of 1994. provided for
separate owner and trainer organizations to represent
thoroughbred horsemen as specified.
REGISTERED SUPPORT / OPPOSITION :
Support
California Thoroughbred Trainers Association
California Thoroughbred Breeders Association
Opposition
None on file.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531